Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-02-13

collateral We have from Illinois Of undoubted
authority which state that motion has been made in the
for the Reputation of the last loan for
90 500 600 ON the ground of fraudulent the part
of the company acting the agents The comptroller refuses
anv longer that stock security for bills issued by
him He also refuses to the interest accruing
stocks held by security, and dposes
ofthe Albany banks.
The Legislature of this State employed devisng
ways tinker the currency. Every they
likely take will only plunge the currency into greater d
cues Every legislative action upon the currency, which
runs the natural action of rade arrangement
and every aconn accordance with the Of trade
superuous This position strongly exempded IN the pre-
sent regulation of the of New England The plan
operation has been brought about not only whouts
ave assistance but opposition to the acts OF the State GO
vernment We will goa little into the detail of the system IN
order to illustrate it,
In the year 1922 currency of New England in nearly
the same currency of New York at the present
The Bank of Geneva of ~ York, two the hartford
Banks with in Maine and New Hampshire nearly
monopoized the circulation The Bank OF Geneva alone had
81 ncng great tax upon the merchants rene
dy this evil Messrs Abbott and Amos Lawrence and Mr. H.
b. Stone the Suffolk Bank to devise means Tor e re-
demption country money, at less rate Inc p eh pro-
posed has grown into the present system Inc ouok COM
menced bv buvinr IN the bills at n per cent discount
and demanding the specie These rates were something
less the market rates. but the operation yie'deu
GOOD profit In little time this elected opposition, and
the New England Bank with capital OF s2oOooo TOOK Inc
hills AT uer cent less discount The Suffolk then lowered
its rate to correspond About this time the New or banks
adopted the of receiving country money ana amongst
others those of the Connecticut banks at BY this means
cpsccut money Immediately in demand in Boston,
AZ remittance New York at cent discount Inns
sa,e of things Immediately drew all the Connecticut bills out OF
the market, and their place was supplied by uose Oh
New Hampshire and Maine To remedy this one OF the banks
of depoe of $4,000 in one OF the Boston
banks to induce take all country money at per cent DIS
count This had desired The next move was apropos
ton to all banks to receive all country money at par
rht Of the hanks came I'M the measure; taking their bills
became adopt tohaye them promptly
redeemed purpose not for each bank
but to fix on some one to the whole Inc
Suffolk for this purpose and the allied banks daily
paid the country that came into their hands
This would necessarily absorb large portion Of her capital
To indemnify her for this outlay each bank deposited with her
agreed upon without interest amounting all to 81 100000
This constituted the between the allied banks
The country bills received from their customers at
making clear saving of per cent, the rate of the discount
under old system They commenced to receive them at
part oFebruary s22 and the amount received from
that up following January monthly as follows