528 



NEW YORK CITY. 



The evidence of this is found in the savings 

 banks, the deposits in which have shown such 

 marvellous increase. 



The savings in these institutions underwent 

 a rapid increase in the aggregate, twenty mil- 

 lions in four years. The return for 1858 does 

 not, however, show an increase; neither does it 

 show a reduction. The fact that no increase of 

 deposits is apparent, is due to the panic of 1857, 

 which threw such large numbers out of employ 

 in the winter of 1857-58, and compelled them 

 to resort to their savings for support. The war 

 in 1861 was still more disastrous. In New 

 York and Brooklyn more than one-fourth of 

 the whole population are depositors in the sav- 

 ings banks, being nearly half the adult popula- 

 tion. The terrible effects of the war are mani- 

 fest in the operations of the banks of New York 

 State for the year 1861 : 



Thus there were nearly 7 millions less added 

 to the savings, and $5,369,659 more drawn upon 



for necessities. This reduction appears to have 

 take,n place in the first half of the year to a 

 greater extent than subsequently, since up to 

 July the deposits declined $2,267,353. It was 

 inferred that the deposits were withdrawn to 

 invest in Government securities. But inas- 

 much as the Government had not issued its small 

 denominations of notes until after the deposits 

 had been withdrawn, that reason is not very 

 tenable. It is probable, however, that in the 

 eagerness with which the people of New York 

 responded to the call of the President for troops, 

 much was withdrawn from the savings banks to 

 aid their departure. The seven largest of the city 

 institutions reduced their deposits $4,137,077; 

 some of the smaller ones, and those of the in- 

 terior towns, increased their deposits. The re- 

 sult, however, shows how fearfully the war has 

 told upon the producing classes of the metropo- 

 lis, even in its first year, and before the taxes 

 which the expenditure makes necessary fall 

 upon the real estate and consumable articles, to 

 swell their expenses while it destroys their in- 

 comes. By this double process those large sav- 

 ing accumulations may gradually melt before 

 the exigencies of the Government. 



The aggregate property of the city, and the 

 rate of taxation for a series of years, are repre- 

 sented in the following table : 



The progress of taxation is large. In 1826 it 

 was $2J per head; in 1846, $6 per head; in 

 1856, $1(H per head ; in 1861, $13J per head. 

 On the other hand, the value of property per 



head hns not increased. It was $700 average in 

 1827, and is about the same now. The taxes im- 

 posed for the year 1861 were not, however, all for 

 city purposes, but were composed as follows : 



