Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-02-24

make arrangements for their spring business. Some
60 east, west, some north, and south, to
meet the rich produce Of the country, its way to
the central markets On the other hand, the farmers,
planters, and real producers of the country, will
shortly be bringing their various commodities TO the
different markets for disposal. Under these circum-
stances, it becomes important point to ascertain
the nature and value of the different descriptions OF
money that have maze, and that Will make their APP
pearance in the several sections OF the Union, by
way of payment for produce. And the furnishing
such information is one of the most important SER
vices we can render the wealth producing portion
of our fellow citizens.
We have from time to time through our money ar
ticles kept the country thoroughly and accurately
Informed on this subject The entire Union look to
New York as a central spot for this information /;
and most particularly is it incumbent on us to state
all we know of the actual state of all city banks,
in order that honest men at a distance may know
whom 10 trust and whom to steer clear of. Already
have we alluded TO two or three banks in New York
whose Daodus operandi to call for especial at
tention: ard in relation to of these, the North
River Ban king Co., have received the following
letter from aIr Schermerhorn,t the president thereof
New York, Feb. p, 1910
]. GORDON BENNETT Esq.-Dear Sir,-I have
lust been informed by Mr. Dodge the Cashier Of the
your office called upon him this afternoon soliciting
Information in relation TO said company. an obli-
ged you for your kindness, in thus furnishing me
with opportunity for explanation on tins SUBJECT
Twas in this city last fall, attending to my own
private affairs when was called upon by some gen
tlcmen of respcctability, requesting me TO take
charge of an institution they proposed to establish
under the General Banking Law of this State.
consented to accept the presidency of such mstitu
ton, which induced those gentlemen to purchase
out the North Biver Banking Co, the proPnetors of
which had filed their certificate agreeably to law,
with a capital Of Sl0C, 0O0 and had their plates
graved and were ready to 30 into operation. The
intention of the purchasers of this institution to
issue post-notes only, (of which notice gven in
Svvesters Reporter) and their capital to carry
on their business, rather than to purchase State
stocks at their present uncertain value TO be pedg-
ed with the comptroller, as collateral security for
notes to be circulated as money
This bank loans its netes upon good security, for
the purchase of produce only; which loans are also
further to be secured by liens upon the property
purchased, the proceeds Of which is to be applied
towards the redemption of those notes.
In article in your paper yesterday, you repre-
scented me as a SPECTATOR in real estate, &c, &c.
You WERE have doubt, informed so, and believed
or you would not have made the publications this,
however, is mistake. l purchased my real estate
as permanent investment several years ago, and in
payment of cash loaned. 1t is true that l took
! $50 900 Of the North American Trust and Banking
Co.. but have only, as yet, disposed OF about s25OOO
Of it, The real estate mortgaged to the company is
productive real estate principally and of substantial
permanent value, and worth about three times the
par value OF the stock Ii is extremely unpleasant
to me to be made the subject of newspaper remark
and to have my business affairs exposed to those
who can have ID interest in them.
i am, very respectfully, sir,
Your most obedent servant,
j. Nj. ScHERMERHoRS.
So far, so good; all this is very well, far it
goes. We have not the least doubt that it is
pleasant to Mr.Schermerhorn be made the subject
OF newspaper remark; but when a man, set of
men, undertake to set up bankers, and regulators
of the of the country, and further under
take make and issue money and 10 obtain goods for
promises to pay, owe higher duty to the public
than we do to private and personal feelings, and that
duty is TO present the plain truth in plain language,
in relation the entire operations of these money
makers, without fear, favor, or affection.
And now that we have given Mr.. Schermerhorn
the benefit of his own representations in this matter,
we will go on and detail the state and condition of
half a dozen Of the institutions, being, view
them sbeauties of the free banking system" First
in order we ought TO name the Clinton Bank. This
in stitution is not very old, and like most young
things, suspect is not very strong. II has had
one or two different locations in the city, does not
remain long in a place, and all its affairs
rounded with suspicious veil Of mystery. The Of
cers Of this bank to love darkness rather than
light whether for the reason ssigned in the Scrip
ture, otherwise, are not prepared to say This
bank was got up principally by land spectators, from
or near Baltimore In the neighberhood Of that city
there is large quantity Of barren laad; this has
been beautifully Autographed, divided into town and
city lots, valued at ten times much its worth,
and put in as stock worth two millions. Upon the
strength ofths, they have had two or three banking
houses, bought elegant furniture, fitted up their
rooms in splendid STYLE hired clerks, accountants,
bought books &C SC, and taken part Of the granite
buildings corner Of Hanover and Exchange buildings.
They ready and willing to "receive deposites,"
a. much as any chooses to trust them with; but
what they do with the money, or whether they get
any, no one to know; the probability is, they
are more talked about than trusted.
Go into their banking room, and you see a fine
long ma hogany counter with three desks placed equ
distant from each other; short counter sets of at
right giles; little two-penny desk placed under
the window looking into Hanover street, for the
cashier to scribble and gossip at punch pole
stands solitary and alone behind the counter,
and, like the half dozen books placed methodically
on the desks, IL looks the FOR the wear.
The door Of the small safe stands open, exhibiting
a" beggarly account Of empty boxes" within il /;
in an obscure corner is placed another desk and
stool, in dangerous contiguity TO large good look
in- stove; and, in short. the stove is the most
respectable looking affair the premises, pre-
sideut, cashiers, tclers, and clerks not excepted
AID this, with five chairs, make mp the sum
total of the goods and chattels on the premises
We have been in the place three or four times
but never saw trace of money in any shape