Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1838-03-17
Legislative Cenanitsee q. Enquiry inte eer-
tsfn procccdAnEs q the Phenix Bank.

3 FRIDAY. March To-.
[Ths commencement Of this days proceedings will
be found on eur outside page. From thence we con-
unue N. Delafelds examination w.
Queston-Were net the terms and conditions OF
the Bank in relation collections well known 70 ,ts
general customers, and was not notice OF such cond
tons publicly gven2 II So statewhen, where ana
how2
Answer-The terms and conditions on which the
Bank dealt with its customers were, as believe, al
all times well understood by the latter. Al the time
Of the suspension of specie payments special nouces
were issued to every dealer with the Bank In Octo-
Der last, when the Bank determined tepay all It's le-
gal obligations in specie it was deemed prudent to
issue more formal notice, copy OF which now
give - EHe
Phcnix Bank.
h<rbp declred thai until further notice. tie conditions on
chich fhis Bank deals NTH sf persons are Jo"oS'-
ALL Pepeses other win be repaid u note. Of
made In specie will Ie re paid in Kind.
The proceeds Of all securities Z. posted with lbs hasa for
paid in the manner above stated II such securities col
its checks the proceeds al tAe place Of collection
| in bank notes there current
city and win b. received payment Of discounted
paper '' 0'0e' q =" ). I DEIIArIELD, Cashier.
October o. 1887.
Queston-Was the rate of collection at all the city
banks the same or did they differ7
Answer-They differed. Some of the banks of the
city Of New York had extensive correspondence af
fordmg them greater less facilities according to the
extent thereof; and accordngto the agreement exist
ing between the foreign and city banks respectively
were they able to give the facilities required csllect
ing. No two banks agreeing in these arrangements
their rates. of course, varied.
Quesnon-Was your own rate of collection fixed
and stationary or did il fuctuate from time to time
Answer-lt necessarily varied from time to time.
Question-Was there net in the Bank at all times
schedule of the rates of collection, indicating the
fluctuations of the rates?
Answer-There was at all times printed list Of the
states OF the Union on which the Phenix Bank made
collections, with the rates thereto affixed; copy OF
which was always with the cashier the assistant
cashier, and the clerk Of the foreign department
now present two Of such caras-I present for Dec,
Question by Mr.. Ward well-were these ra,es strict
adhered to in dealings with all the customers Of the
| bank for the time being?
Answer-They were. Thecar now present were
rates charged at some time within the months Tespec-
lively for which they charged. But the exchange
on the various parts Of the United States may vary
essentially within one week. Our charges frequently
varied within the month, and several times within the
| week.
| An arrangement was here made between the coun.
| sci and the COMMITTEE, that abstract of all the
rates the cards should be prepared by the Pheniz
Bank, and copies furnished the Committee and coun
sci during the progress of the inquiry.
la little sparring between the counsel as an inter
Jude to vary the monotony of the investigation, here
| took place.
Il by E1dlk-Wdb there ever any contract OF
agreement TO your knowledge with any persons on
deposltlng paper for collection that the bank would
collect and pay the proceeds at the rate which
prevailed at the time OF the depositesl
Answer do net remember q single instance. The
rule of the Phenx Bank was to credit the deposors
with the nett proceeds Of paper collected after hear
| ing of its payment at the place of maturity; the
rates Of exchange charged being the rate Of the day
when such credit is made.
Qseston-Can you give any table of rates Of ex-
change various states of the Union in the city
Of New York, for Sept, Oct, Nov. and Dec, 1886
Answer-Yes. now present table thereof taken
from the New York Price CurreHt, az published at
sne2 you furnish table of rates Of ex-
change Ohio from May to December, 1887, as quo
| ted by the same Price Current2
4 Answer can, and now hand it in
| Question-Wh hat were the usual terms rules, and
regulations of the Phenix Bank in relation to the
collection of debts due in places other than the ctv
/ of New York
.Answer-It was, and is optional with the custom
ers Of the Bank TO have credit for collections made
at the rate Of exchange on the day that the same
might by rule be passed. which is after hearing of the
| paymeRt; or may have a cheque on the place where
the collection was made less half of one per cent
which is the usual charge OF the Bank for collection
i Questionable the bank ever, to your know ledge
information, or belief make il condition of its Dis
counts, that the party offering the paper should 70
ceive cheques, paper, or funds under part
Answsr-lt was never made condition.
Questlon-Were not applications frequently made
BY persons offering notes for discount for CHEQUES Of
the Phsnx Bank, other banks in different ties
Answer-Yes, very frequently, much ofener than
| granted.
Qucs,ion-Were not ssch applications frequently
made in writing TO the Boardf
| Answsr-lt was a common practice.
| Queshon-Did Nelson, Carleton e. Co. ever make
such application IN writing if 50, can yeu produce
/ n1
| Answer-They have done 80, and now produce
an sppca in the hand writing Of one of that firm
This was put in dated February g. 1887, asking for
| e8, 600 discount and a chequc to that amount on
i New Orleans and Mobile.
Qucstion-What 10 usually done with such letters
| Answer-They are usually destroyed.
| Queston-Was not the bank pressed with appl;r.
tons for discounts in December 1886, and January,
| 1881
Answer-The offerings to the Board in those
months varied frsm to $50 900 dollars each discount
| day.
Qucstion-Please state 10 the Committee the trans.
| actions Of the bank with Nance Gould d. Co
Answer-Tke firm Of Nance, Gould a. Co opened
an account with the Phenix Bank think about the
autumn of 1886. Mr.. Gould, of that firm being dis.
tant connexen Of my family, was with some relue-
lance that entertained his proposi lion for an account
Il having ever been my practice to avoid all accounts
with the bank, either on my own account or for nv
connexions Al the period stated considerable pres
sure was felt in the money market; and, by his
representations Of the strength of the firm, and the
condition Of their business, yiededs reluctant con-
sent AZ the demand for money increased in the civ
so also did the demands for discount from this Arm