curity in pursuance of their charter; and that in addition thereto, the sum of $2,521,630, has been received by the company by way of deposites in trust, which has also been loaned out by the company; $1,101,560, thereof on bond and mortgage, and the residue, being $1,320,070, on stocks, and other personal securities.

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On a comparison of the annual return of that company, made on the 31st January, 1832, with that of the present year, which is hereto annexed, it will be seen that the amount of loans of moneys received by the company by way of deposites has increased within the last year from $944,373, to the above mentioned sum of $2,521,630, ōō Almost tripling the amount of trust loans in the space of one year. And no reasonable doubt can be entertained that this amount will continue rapidly to increase.

3"

The security which these institutions offer to those who are disposed to intrust them with their funds, is the capital of the respective companies; and the committee are of opinion, that in. granting charters of this description, a due regard ought to be had to the proportion which such capital should always bear to the amount of trusts which they are respectively authorized to receive and loan.

There is no limitation in this respect in the charter of the NewYork Life Insurance and Trust Company. And unless the Legislature interpose, and by an amendment to its charter, prevent the increase of the amount which this company may receive in deposit, it is not difficult to perceive that the amount of responsibility assumed by the company will ere long be vastly disproportionate to the security which it affords.

It is found to be a wise policy in reference to bank issues, to restrain those issues to twice and a half the amount of capital actually paid into the vault of the bank. And on a close examination of the subject, it will be seen that the reasons which induce a limitation of bank issues, apply with equal force to the case of trust loans.

The office of bank capital is to secure to the bill holder the faithful redemption of its bills, and in addition to its capital, the bank also holds the endorsed notes of those to whom the bills were origi nally issued to the same amount of those issues. In like manner the

purpose of the capital of the trust company is to secure the repayment of the sums deposited with it, and for which sums the depositors, or cestui que trusts, hold the certificates of the company; and in addition to its capital, the company also holds the bonds and mortgages, stocks. and other securities, on which its loans were made, to the amount of those loans. In the one case, the amount of responsibility assumed by the bank is measured by the amount of its bills in circulation. In the other case the amount of responsibility is equal to the amount of unredeemed certificates issued by the company; and in each case the capital of the company is the only pecuniary pledge for the fulfilment of its trust.

Your committee, therefore, are of the opinion that a limitation of the amount of moneys to be received in trust by the incorporations in question, similar to that in the case of bank issues, ought to be provided.

The attention of your committee has also been attracted to the rate of interest imposed upon the borrower by the institutions in question. For in the opinion of your committee, although it be admitted to be the tendency of trust companies to invite the investment of foreign capital, and although the rate of interest actually realized by the foreign capitalist be never so low, yet if the premium paid by the country by way of interest either for the benefit of the foreign capitalist, or his trustee resident here, or both, be a rate of interest high in respect to the value of money; such investment of foreign capital will ultimately prove an injurious drain upon the country; and unless so regulated as to limit this draft upon the productions of the lands pledged for its payment to a standard reasonable and moderate in reference to the value of money, ought, in the opinion of your committee, to be guarded against and discouraged. For it is obviously of little consequence to the country at what rate of interest the foreign capitalist makes his investment with his own agent or trustee resident here, provided the ultimate premium paid by the borrower, whose real estate is pledged therefor, is burdensome or excessive.

The rate of interest allowed by the charter of the existing trust company, and at which most of its loans are made, is 7 per cent per annum, payable half yearly. The advantage to the company in receiving interest semi-annually on loans, is about per cent upon the amount loaned. In addition to this, the borrower pays incidental charges, such as for depositions as to deductions of ti

tle, copies and extracts from records, certificates of clerks of courts and counties, drawing bonds and mortgages, recording mortgages, and counsel fees for examination of title, to a considerable amount upon each loan, the average of which the committee have no means of arriving at, but have no doubt that in the average, the borrower, including all the several charges here enumerated, is made to pay an interest of at least 8 per cent per annum on 7 per cent loans.

Your committee, therefore, after bestowing upon the subject the best consideration which the means afforded them have enabled them to give it, have come to the conclusion that it is inexpedient at the present time to increase the number of trust companies, and thereby to increase the power by a combination of interests to extend loans to an indefinite amount at a high rate of interest, and that the prayer of the petitioners, therefore, ought not to be granted.

ORDER, &c.

At a Court of Chancery, held for the State of New-York, at the city of Albany, on the nineteenth day of November, in the year one thousand eight hundred and thirty-one.

PRESENT-REUBEN H. WALWORTH, Chancellor.

In the matter of the New-York Life Insurance and Trust Company.

PURSUANT to the provisions of the act, entitled, "An act to incorporate the New-York Life Insurance and Trust Company," passed ninth day of March, one thousand eight hundred and thirty, it is ordered, that the Board of Trustees of said company exhibit to the Chancellor, and file in the office of the Register of the Court of Chancery in the month of January next, and in the month of January in each year thereafter, a statement of the affairs of the said company for the political year next and immediately preceding the exhibition of such statement; which statement shall exhibit and set forth the amount, and the particular nature and description, of all the funds, property, securities, and effects of the said company, or which are under their care, control, or management, in trust, or for the benefit of others, as the same existed at the end of the said political year, and on the first day of January thereafter, as follows:

1st. The amount of the capital stock of the company loaned out on bonds and mortgages, exclusive of interest; specifying the amount loaned in each county of the State; the amount, if any, on which any part of the interest remains due, and has remained due for more than six months; and the amount, if any, of the bonds and mortgages, exclusive of interest, given for the said capital stock, which are in suit, or judgment, or on which prosecutions have been directed, to compel the payment of the principal or interest due thereon.

2d. The amount, exclusive of interest, of other loans on bonds and mortgages, other than loans to moneyed corporations, or to their officers or agents for their use and benefit, specifying the amount loaned in each county, the amount on which interest has been due more than six months, and the amount in suit, or ordered for prosecution, as aforesaid.

3d. The amount, exclusive of interest, of loans of stock securities, other than loans to, or for the use of moneyed corporations, as aforesaid; specifying the amount loaned on each kind of stock; the number of shares, and the nominal, and the market value thereof; the amount payable on demand at the time of the loan; the amount loaned for limited periods less than six months; the amount