Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-05-22
MONEY MARK EFT.
Thursday, Ma.

The Of confidence in the market generally causes
continued decline in stocks Notwithstanding the amount Of
anempoy ed capital further decline manifest most
stock today The failure Of broker reported at the board
brokers' phrase, "lame duck waddled out of t street,
time purchases Of North American Trust when has
fallen per since the commencement of the week. 1t
closed today decline of per cent from the closing sale of
yesterday. United States Bank declined per cent Harlem
per cent Farmers Insurance per cent Stonngon
There little doing sterling b and prices
nnay the Domestic bills evince material change
The TO lowing sales of stocks made auction by
order of the comptroller redeem the bills of the Farmers
Bank Of Seneca County and those of the City Trust and Bank
ing Company:
5000 1000 Michigan cents, 1851 s. per cent ss?O
soSs Arkankass 1851 s5a5s $3.50
Under the head of of Trade" will be found the part
culars Of a sale of real estate in Brooklyn
We yesterday laid before readers of the particulars
sfthe City Trust Banking Company the hands OF
The startling facts which been brought light
and exposed this paper concerning the banking ins
hons we'll calculated alarm the real friends of the bank
and credit system for the OF its existence
The sagnaon Of trade and ndsPosition to invest
capital Of the want of confidence created BY the de-
merazed state of the public mind in regard to mercantile
honor 1t the habit of the English capitalists time
SINCE charge upon the Americans generally that in their
business transactions, roguery the rule and honesty the
exception The honorable and sesacfcng which
the merchants of the United States redeemed their honor,
ss7, far to that opinion, and establish the fact
hat honesty the and roguery the exception The
Of of the States aud most of the banking in
situations likely destroy the reputation which the
prompt integrity of the American merchants has earned New
York stands highest in credit this moment but her charac
aeter the hands of most unprincpled set of men, whs
under the of Banking Law have committed the
daring and dgraeef frauds 1.-The community On
the first passage Bile hanks started by
ho of real estate old The law does not prescribe
the in which the capital should be paid but merely
requires that they should be paid Spectators availed
themselves of this and amount OF bonds and mortgages
could be procured with which to create capital 1t the
practice of all the banks, time TO stock
depose Of mortgages the stock then sold the market
bring In the
IN the mortgages which deposited had been previously
nortgaged the full Of its marketable value The in
uion therefore the stocks without having elu
val at whatever Ia many instances operations of this kind
esoed order the necessary of
stocks to deposit with the comptroller In order to obtain
sufficient amount Of genuine circulating bills to give chasc
ter to the concern whatever it might be- This the
ton Of things agot then supposed that the
ket would take favorable turn and that the L. s. Bank and
the other speculative leaders would again be able to initiate the
currency enable all the small banks to keep all the
circulation they could procure In this they disappointed
The times and the fall the for the
redemption Of bulls this ceased and being followed by
the failure Of the Southern Banks confidence Far de
oyed that specie circulation could not be kept out This
turn in affairs opened the door to system of fraud in the
Of post notes. circulate money Many banks in this
city and state composed Of association Of individuals
needy and unpneipd those of the City Trust Banking
Company began to issue post notes to circulate money
Its true the law expressly forbade this but the comptroller
was rizard and they easily evaded II By saying they did
them circulate money.
The proceedings City Trust and Banking Company
affair sample OF the proceedings of these They made
ass deposte with the comptroller and received about s2os
in true bills They then hired place Fulton stree and
Oyed of in all directions any
kind Of property and at price They commenced their
eperationsA. Abbott cashier and J. b. Munson pres-
dent The fitting up Of the bank $500. The
who contracted 10 called them twice for money while
work. and received each time $50 in good money making
$500 When the WORK finished he called for the balance
receipt written Ter him, which he signed aud received
$500 rolled paper and sealed he did not examine it, but
supposed to be good Some time after, opening
he fund IL 10 b, notes This the Of their ope
aobs Agents sent to the country towns east and
S7oo worth Of clocks bought Bristol man.
high prices who oolishy other agents
sent south to buy cotton and others again west to purchase
produce In this way ssooOso Of this fraudulent
has been put out but the property really obtained for them
will probably exceed $4,000 in value This has been ds
dd the getter Of the and used Tor their
private purposes The banking has been seized under
landlords but this conflicts with the ehancery
junction. will probably be abandoned The securities in the
bands Of the comptroller sold today the regular
bills Tn. receiver possession of the assets Of the bank
will probably realize $4,000 meet nominal claims Of $500
This outline Of There many in the
state and city which have purssed similar operations here
have issued post notes.. .............. stooooos
Stocks isssed without secsrity. ......... iooOoOo
.,-,.,.,,.. ,...., sIs ?ss:Ss
By this appears that the banks have issued so
fraudulent paper than Of the legitimate bills II
high time that example made Of the audacious swind
l Who long pryng upon the public This
note swnding is however by confuedo the New
York Banking Associations The United States Bank
ne 6rst to set the example, and the first TO fail them
That has out upwards Of $40, 100000 post
notes. which her agents distributed all this country
and Europe making the Of bank obtain
the money OF unsuspecng parties; and the maturity
% the notes she refuses to them, except in her
able bills This atrocous swndling transaction has
been gared by the Pennsy legislature Its demora
ng than that Of the small hanks Of this State
The institution only takes adv of the ignorance Of
others obtain their money for her worthless paper
but her agents have every direction tempting public
Disturbing take her bills exchange for the specie
funds Of the Government thereby draudng the public cred
per ofheir thus not committing
roeuss These facts have been repeatedly before
public have been countenaneed by the state auhor
ties Every attempt compl honesty the part ofthe banks
restoring confidence TO revive credit has been denounced
by It's presses destructive The dscredit which at
taches itself the swndng operations Of the banks Of this
state is for similar destroying the credit OF the L.
Ban the II in vain to expect that
sen IN possession Of real capital will invest that capital IN
quarter where unbuhng disregard TO the rights Of cred
tors evowed Where there is security Tor property NO
credit can exist
sales at tn. stock Exchange
30 shss US Bk "a sdo do sscd %
wdo DO ssel "a iss do Harlem RR i9i
UedO do T7l so de- do 45l