BANK BANKRUPT. 



407 



i*uiks had an immense amount of unredeemable 

 paper in circulation, purporting, it is true, to be pay- 

 able to the bearer, in specie, on presentment for that 

 purpose, but which was not, in fact, so paid. Im- 

 mediately on the bank of the United States going 

 into operation, with its various branches in the prin- 

 cipal commercial cities, it became necessary for all 

 the other banks, within the circle of its influence, to 

 resume specie payments, or discontinue their opera- 

 tions. Those which had not resources to resume 

 specie payments necessarily stopped ; and the con- 

 sequence of the influence of this institution is, a com- 

 plete restoration of the currency to specie or its equi- 

 valent. In fine, whether we consider the extent of 

 _ the capital of the institution, that of its operation, or 

 its commercial and financial utility and influence, it 

 may justly be considered the second institution of the 

 kind in the world, ranking, in all these respects, next 

 after that of England. The stock was made the 

 subject of speculation soon after its establishment, 

 and rose, at one time, to the enormous advance of 

 56 per cent, upon the original subscription ; but the 

 great losses incurred by some of the branches, espe- 

 cially those of the new states, and other causes, sub- 

 sequently reduced it to 10 per cent, discount on its 

 original subscription value. It has since risen to a 

 more steady market value of about 20 to 25 per cent, 

 advance. The amount of the circulation for 1828 

 was, on an average, between 12,000,000 and 

 13,000,000 dollars. The deposits for the same year 

 averaged from 13,000,000 to 14,000,000 dollars. 

 The dividends have varied from 5 to 6 per cent. In 

 January, 1829, there were 21 offices of discount, be- 

 sides the bank at Philadelphia ; namely, at Portland, 

 Portsmouth, Boston, Providence, Hartford, New 

 York, Baltimore, Washington, Richmond, Norfolk, 

 Fayetteville, Charleston, Savannah, Mobile, New 

 Orleans, Nashville, Louisville, Lexington, Cincinnati, 

 Pittsburg, Chilicothe Besides the bank of the Unit- 

 ed States, there are, in the United States, more than 

 350 banking companies, incorporated by the several 

 states, in active operation, and in good credit, besides 

 50 or 60 of doubtful standing. The amounts of ca- 

 pital vary from 50,000 to 3,000,000 dollars. The 

 whole banking capital of the country was stated, in 

 1804, to be 26,707,000, and, in 1813, 77,158,000 

 dollars. It must have increased greatly since that 

 time, but the amount is not easily ascertained with 

 precision. 



Bank, Savings. Savings Banks are an institution 

 of recent origin, which have already accomplished 

 much good. They afford an opportunity for those 

 who have any thing to spare, not only to deposit 

 their savings in safety, but to receive interest for the 

 sum so secured, against a time of sickness, or distress, 

 or age. One of the first attempts with which we are 

 acquainted to realize such an institution was made 

 by Mrs Priscilla Wakefield, at Tottenham, near Lon- 

 don, in 1803, in which small sums were received, 

 and interest allowed on them. The first attempt on 

 a larger scale was made in Edinburgh, in 1814 ; and 

 soon after this example was imitated in England. 

 The Scottish banks allowing interest on mere deposits, 

 the managers of savings institutions in that country 

 had no difficulty in investing their funds ; but in 

 England, this not being the case, it became neces- 

 sary to vest the deposits in the public funds, in some 

 instances paying a fixed interest, in others leaving 

 the depositors to take their chance in the fluctuations 

 of the stocks. Such was the extent of the operations 

 of these institutions, that from 1817 to 1828 inclu- 

 sive, the commissioners for the reduction of the pub- 

 lic debt received from the directors of savings banks, 

 including friendly societies, the sum of 13,746,546, 

 tor which government paid four per cent, interest. 



By act of parliament of July 28, 1828 (to consolidate 

 and amend the laws relating to savings banks), for 

 the further regulation of savings banks, the rate of 

 interest was reduced to 3, 8s. 5d. per cent, per 

 annum. November 20, 1830, there were 379 sav- 

 ings banks in England, and since that time five others 

 have been established. The number of depositors in 

 369 banks, from which returns were received, was 

 367,812 ; the amount deposited, 12,287,606: of the 

 depositors, 187,770 deposited under twenty pounds, 

 and 102,621 under fifty pounds. In Wales, there 

 are twenty-five institutions of this kind, with 10,204 

 depositors, and an amount invested of 314,903. In 

 Ireland, there are eighty-three, returns from sixty- 

 two of which give 34,201 depositors, and an amount 

 invested of 905,056. (See Pratt's History of Sav- 

 ings Banks.) 



The first savings bank in America was opened in 

 Philadelphia, in November, 1816. In Boston, an 

 institution was incorporated in December of the same 

 year; but its action did not begin until February 

 following. Since that time, these societies have be- 

 come quite numerous, and, with hardly an exception, 

 have been exceedingly prosperous. That of New 

 York has the largest funds : next in magnitude is the 

 institution at Boston ; then those of Philadelphia, 

 Baltimore, Salem, New Bedford. Perhaps the num- 

 ber may amount to forty or fifty; for most of the 

 northern maritime cities, and the larger manufactur- 

 ing towns, afford strong encouragement to such pro- 

 jects. In Boston, the number of depositors exceeds 

 ten thousand, and the amount of funds cannot be 

 short of a million and a half of dollars. 



BANKRUPT is derived, generally, from bancus, a 

 bench, and ruptus, broken, in allusion to the benches 

 formerly used by the money-lenders in Italy, which 

 were broken in case of their failure. This word sig- 

 nifies, in its most general sense, an insolvent person, 

 but, more strictly, an insolvent merchant. There is, 

 perhaps, no branch of legislation more difficult, and 

 at the same time more important, than that which 

 defines the relations of debtors and creditors. One 

 of the first objects of all laws, after the protection of 

 the person, is, the enforcement of the obligation of 

 contracts, and, among all the contracts made in a 

 community, those imposing the obligation to pay 

 money constitute the most numerous class. Some of 

 the first questions in legislation are, By what mea- 

 sures shall this obligation be enforced ? and by what 

 penalties shall the breach of it be punished ? In 

 many communities, especially in the earlier stages of 

 civilization, the breach of such a contract or obliga- 

 tion is regarded as a crime, and the insolvent debtor 

 treated as a criminal. The ancient laws upon this 

 subject, in England, regard the insolvent trader in 

 this light. The early laws of the Romans and Athe- 

 nians authorized the most rigorous measures for pro- 

 curing satisfaction of a debt, even permitting the 

 sale of the debtor into slavery for this purpose. And 

 the Battas of Sumatra are said to sell, not only the 

 debtor, but also his family, for the benefit of the 

 creditor. But as civilization advances, the laws put 

 a more mild construction upon the debtor's failure to 

 fulfill his contract, and, with certain qualifications, and 

 under certain restrictions, attribute it to misfortune, 

 and, on his giving up his property to be divided 

 among his creditors, discharge him from all further 

 liability. Both by the French code and the English 

 statutes, the persons capable of becoming bankrupts 

 are such* as fall under the general description of 

 merchants : the French code describes them as com- 

 mercante; the English statute of 6 Geo. IV., c. 16, 

 s. 2, embodying the previous acts and judicial deci- 

 sions on this subject, enumerates particularly the de- 

 scriptions of persons who are to ue considered mer- 



