Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-03-26
Correspondence of the Herald

The plot thickens-aifairs are, at length, APP
preaching crisis in our commonwealth. The house
passed resolution today, authorsing the Governor
to take loan of one million Of dsllars from the
Bank of the United States, at four per cent ser
mum according to the provisions of its charter),
for the payment of the interest on the State debt
falling due the LIST July next, and to pay the ge-
neral repairs the public works, during the cur
rent year.
The Senate will, probably, agree, tomorrow, with
the honse, in fixing upon the 3lst of March, as the
day of adjournment. No appropriation has yet been
made for the daily pay of the members-and If no
loan can be obtained, it will be curious to observe
the chagrn of some of them, who have done nothing
but talk and procrastnate business, while they
should have be en- ndusriously engaged in perform
ing their duty and advancing legislative business
The Resumption Conference Committee reported
bill today in the Senate, which is very long, and
very severe in regard to the banks. 1t has SO
TONS and provides for the resumption the LIST Of
October next. 1t further provides for the appoint
ment oil three Bank Commissioners, with the power
of joint cTmmittee of the legislature, to proceed
imme dately on the passage oithe bill to examine
the affairs of all the banks in the Stateto straghten
the solvent ones, and appoint trustees to wind up
the rotten banks. The salary Of the commss ioners
to be $5sper day-to be paid by the banks of the
Commonwealth in proportion to their capital stock,
and il they refuse to pay their share, they to be
compelled to pay double the amount by levy and
ecuton, under the hand Of the Sheriif-the trustees
Of the insolvent banks TO make pro rota distrbu-
ton of the proceeds to the creditors, paying LIST.
note holdcrs-2d, depositOrs-3d, stockholders
Concealment from the trustees, of any of the affairs
of the bank by the officers of the bank, is made a
pententary ofenceif the assets prove insufficient
TO meet the liabilities the stoc kholders to be made
liable for the deficit in proportion to the amount Of
capital stock held by them. Ii is made penitcn-
tary offence for the officers OF any bank to do bust
ness, Except TO wind up), after its charter is de-
clared Notwithstanding for directors by proxy is
Observation-Disclosures are limited to eight per cent
per annum, and and the contingent fund to five per
cent per annum, and any overplus above that per
centage is to 60 to the State Treasury. After Feb.
|, 1871, the banks must have 81 in specie in their
vaults, for every So in notes in circulation, an
compliance with this provision enforced by severe
penalties-the banks prohibited from purchas
ing holding any stocks except those Of this State
the United States-the specie paying banks
throughout the commonwealth to take each others
notes at par; notes under $40 to be issued after
July l. lS4l-post notes prohbited-the monthly
statements Of the banks to the commits sioners to
contain full and complete accounts Of all the affairs
Of the banks, on each discount day in the months
list OF stockholders, together with the amount Of
stock held by each, to be furnished to the pro-
thonotary OF the respective county quarterly; the
amount OF moneys loaned to the directors to
exceed certain per centage OF the capital stock the
banks inform the Governor their compliance
with the provisions Of the bill within 60 days aud If
they don't comply, their charters forfeited; and
loans To brokers are strictly prohibited All these
provisions are accompanied by severe and heavy
penalties, which you will see in the printed copy OF
the bill which will send you in the morning. The
bill will not get any farther than il is now. The Lee
gislature viii adjourn the 3st inst. The loan
solution which passed the House this morning, will
be converted into an improvement bill and increased
to @3,6000O0. No bank bill tciH be pdssed-and then
the assembled wisdom of our State disperse and God
grant we may never "look upon theirlike again"