Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-02-25


similar who camored for the banks of this city
pend last fall when they could not pay own debspe
and unlimited credit system men, organs
certain all street The individuals
manifest; loan made to theVicksburg Railroad,
which appeared in the returns Of that company that pub
shed yesterday Of $500 Alabama loan of 100000
taken, and the Georgia loan of making SooOo
which drawn directly from the the mercantile
munty In this city, and sunk in securities that will yield
of perhaps cent The stock OF the Phenx Bank
fell 20 cent and nothing but the election Of Mr. Teston
saved from bankruptcy The large surplus left by Mr. Della
field been sunk and the institution has not been able 10 de-
clare DIVIDEND but under the Of Mr. Teston
may recover its standing.
The class obbers and spectators that nearly ruined
the Phenx Bank and endeavored to entail irredeemabe
currency this State started of the banks parcu-
ar the American Exchange Bank who obtained loans
from the Manhattan and which used in real estate
rations the most active in getting up the American Ex
change Bank which is based bonds and mortgages Also
the clique who most active in getting up the suspension
meetings last October the chief movers in this ns
on On starting this institution agents went round to deal
soliciting them accounts with the concern The
dposes obtained the basis Of loans to the getters
of the concethey being borrowing bankers instead
of lenders.
II is little singular that Of the il3 banks started under
the law ohs State but three have been operation
by persons who money lend All the have been
patriots who xprencng the evils ola want omoney
themselves kindly undertake furnish currency for Others
The Bank Of Seneca have frequently had &C.
casion mention ofe most conspicuous this class
obtained from farmers in Monroe and the adjoining countless
mortgages to large amount for which equivalent has been
rendered Soon after the managed to obtain small
amount Of circulation from the Comptroller and then started
bank but having active capital they could not main
tain circulation able demand therefore commenced the
issue of post notes at FOUR six eight and twelve months
They principally TO the West for circulation but
many of them protested in Indiana and refus
ed payment called the "Clinon Bank in this city,
although made pay able there We published the
facts with regard this concern but the Wall Courier
hired to puff them, and to encourage the public take
the fraudulent paper The result that large of the
notes the hands of innocent third parties
protest merchant Of this city had certificate of de-
posites for $780, this bank drawn favor n Jacobs
and by hi endorsed This fell due about three weeks snc
and sent to oTulus for collection 1t has been
protested Claims Of similar character the hands
lawyers in that vicinity the amount of $4,000 The bank
in charge of an elderly who TO know but little of
its affairs in the absence of the Cashier Mr. Charles Oakley
and others in this city, forcing off these bills and cert
Gates for description of property they get for them
One succeeded getting coal to the of S9oso
The Bank has out probably dollars in this fraudulent
paper Mr.. Fenton the Cashier has been in the city,
and has TO Philadelphia to endeavor to raise money
the above described mortgages pay the protested notes.
An agent also here endavorng TO force off other notes.
for the purpose The securities held by Mr.
Fenton not "woh abutton equiv alent has been
rendered for them He will probably not succeed in
any funds although many nd luals here anxously wait
ing his return The Courier can perhaps tell them when
their will be paid
OF SUBJECT oil much
interest to the whole community The greatest evil which has
bealen merchants has been the
value Of the circulating medium. Although all the banks the
State have continued specie during the year, yet their
bills have varied at times from per discount Tore
NEEDY tins evil many legislative have been proposed
and bill is before the Legislature the country
banks to keep their bills at the city However desirable
this object be- do not think be obtained by egs
latve action One of the greatest for disordered
state of the currency has been the Encouragement of
the State funds The money collected from the canals,
and other has, in former years. been deposited
in certain banks by the collectors and remained there for
considerable time, at interest OF a per and long
the of the State exceeded its erpendurehes
funds gradually withdrawn and RENTED by the country
banks, to New York and Albany by drafts and remained in
the city banks 81 cent discount The OF these
funds hand generally s3Ooooco The regular
of this large formed the for that system of redemp
ton conducted by the State Bank Last year. however, the
influence Of Mr. Rusgles and the Walls Clique began be
percepble in the financial affairs Of the State Mr. Rugges
made his glorfcaon report Gov Seward mmended
loans the expenditures of the canals rapidly The
depose banks called promptly, for drafts the
cities in order the calls of the This pre-
vented the Banks from continuing their loans to the shippers of
produce and the of tolls sensiby diminished This
the first step towards arrangement Of the old
TEN. At the same time, the banks under the law
had far strengthened their circulation TO affect
roasy the safety fund circulation, and prevent both the
and old banks from discouniing The deposie banks
being safety fund institutions, refused TO receive the bills
banks nsquenty the collectors would receive
for tolls The demands for money frequent from
Canal that there the
red money consequently they refused altogether la the
progress this state OF affairs certain OF the safety fund banks
became embarrassed that absolutely that
they should receive assistance stop The consequence
that the Bank Of Sana had permission to retain the salt duties
and the City Bank Of Buffalo, obtained loans also, the
Bank Of Oswego and others About this time the Canal
borrowed from the Manhattan Bank $500
and nducemen for them TO make the loan, they
fered from III. State Bank another fund OF S735 which
would be required until August sio The effect Of these
transactions immediate Buffalo bills became plenty
in Wall street. that in the LIST week in September they
by the State Bank and when the fund
ferred from her the Manhattan the whole sysm Of
dempon blew up. These facts published that time,
and the Albany Evening Journal with the unbush
ing impotence, denied the truth Of them.
all these Of the State officers observe the
control Of Samuel Ruggles directed By the Baak OF Com
merce clique That clique has BEEN since the ascendncy
Of wing party urging the State ndures and the
or, alton stocks in order that they profit by their nego
atoms Since Dee stock has been issued and
taken by Prime Ward King The last loan f5r 81
taken BY them, pay able az folovs;-
pei, cent on the 18th Eeyemscr, 1893
18th December, 1899.
~ Ist January, 1870.
18th February, 1890.
Balance on the LIST June, 1870.