The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-02-10
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This is melancholy picture for institution that
short time since Of the best in Philadelphia
the relation to the State depostss the report has the
| Glowing
The efforts made BY this Bank to prepare for the pay
ment Of the interest and to sustain itself under the mon
III timed pressure which came upon 1t, will be seenrom
The of interest to he paid the first Of Feb
rury was $sS4 oa and the premium on currency for
specie.
The Treasurer of the State had caused to placed
the credit Of the in this Bank between
the first OF August ls4 and the 3ist Of January 1884,
times in different amounts partly in checks various
Banks In this place and its neghborhood and Harris
in notes Of and checks on the Grsrd Bank So large
an amount Of these notes received being six hun
dred thousand dollars and upwards that was thought
expedient 10 pay them dep0stors and others
freely possible in order to diminish the amount The
depostes Of the Commonwealsh.have never been of
special character and have been always treated all
other general depostes have been. By this
the circulation and deposes Of this Bank greatly
reduced The Bank being then undoubted in its edit,
II was fny expected that its own notes. then every
where current would be, as they alwayslhad been
ceived in pay ment Of the interest and until the run
January the officers the Bank entertained doubt Of
the payment Of the interest II 10 their belief, that il
10 no nsss
fcuItv would have existed in making that paym ent
To show the character and extent Of this pressure It
stated that on the three consecutive days. the 27th
2sth and 10Th Of January, the Bank paid OF its
Deposites, $4069s6
And Of its notes 6J,692
Over and above its receipts, $466 77s
The following il an extract from the message of Go
Porter Of Pennsylvania in relation to the State
interest -
Late the evening of the LIST February, successful
arrangement was made by which have reason to be.
eve the payment ofthe interest due has been
menced, and will be completed the funds can
De or the Ihs arrangement consists
Pennsy Nv ania, to wit -
Foreign Bills Of Exchange, of the value Of $4,000
Specie 234 600
Bills receivable and soon available, 10000
And the Of re9usition made upon the other
interest due, the whole Of which viii be as.urediy met
in the course Of fortnight or three weeks The State
Treasurer by himself and assistants will make the ray.
ments OF interest at the bank or at the Treasury.
Letters from Cincinnati describe tina. city in state of
the highest excitement in relation to banking affairs
the d nstant-a heavy was kept up the Urbana
Bank. The known rottenrGss Of all the banks, added
to the approaching day fixed Tor resumption, March 4.h,
renders the populace anxious get rid of much bank
paper possible.
The Bank Of Montreal has given assurance by
formal vote that is responsible for the issues of the
Bank Of the People.
In the State Assembly, Mr. Townsend presented me.
mortal ofthe New York Banks charging the Bank Com.
missones with NAL conduct in permitting the Safety
Fund to be wasted and demanding Legislative nvesti
cation. This is most admirable movement. The
Commissioners are appointed to protect the public from
the misconduct ef the banks and TO keep watch over
the banks to close them up when they going wrong
before their capitals SUNK in order prevent
the safety fund.- and thereby inActing loss upon the
well managed banks. Instead Of performing this duty,
however, they have not only allowed bank after bank to
explode after sinking their whole capitals but also the
whole Safety Fund.- and leaving unprovided for be.
lance Of $500 or which the sound banks to be
taxed for years to come. At the same. moment Mr..
Chandler Starr took it upon himself to publish card
censurng this paper for cauonng the public against
those banks which he should in the discharge of his
duty have previously wound up. This is important
matter and well worthy the scrutiny Of the Legsla
ture.
will be remembered, that the first Of January the
interest Of the State ofArkansa its debt was not paid
The interest pay by the Real Estate Bank and the
State Bank in whose behalf the bonds issued The
Real Estate Bank sent forward to meet its share of the
interest," of its assets maturing in this city in
May and june These to have been discounted by
the Phoenix bank where the interest pay owing
to the pressure in the institution unable
to do So and the interest remained unpaid The State
Bank having difficulty in raising money did not re-
ever specie has arrived to meet part the interest OF
the bonds issued TO the Real Estate Bank Of Arkansas
$4,000 were it will be remembered hypothe by
the commissioner Messrs Harris and Brscoe, to the
North American Trust and Banking Company Of this
city, and by them sold to Messrs. Hoford Brancker
Co. Subsequently, in consequence Of the failure Of the
North American Trust Banking Company on its part
Of the contract Messrs Harris Briscoe declared the
contract void and the question of reputation has been
r. r1,a l..
the Real Estate Bank pledged the bonds in violation of
the law, tina. Messrs. Holord Brancker Coare the in.
nocent purchasers and the State bound to Gay the
bonds according 10 their face The following an ex.
tract from the Little Rock Times Advoc ate on the
subject -
"Repuiation,' enys our representative in Congress-
Judge Cross "bas advocates with the honest and just
Of any party any where except in of fraud and
manifest violation Of law and moral right" We agree
with him, and contend that there violation either
"law moral right" in the purchase Of the bonds by
Holford & Co. of the North American Trust Compsny
The violation Of law and moral right" on the part Of
trsry law and in violstion of neral rght towards
the State WIN 10 her security the bonds and bound
to pay them il the bank does not As we'll might the Sc.
curity individual note refuse to pay that gote
because had been sold for fourth Of its face the
State refuse paying the bonds because the bank sold them
for less thon their face.
The followngIs letter from GovcrnorYell of Arkan.
to gentleman in this city in relation to the para
graph here quoted
LITTLE Rock, Jan. 10, 1912.
This is from the organ of of the political parties in
the state Swhg They may g.. bond and ,ssn ,n
10th last deserves and shall have respect
full reply The world all seems topsey turvey.
Yours, A. YELL.
The question paying not paying, with the western
States, is not of WILL but of ability; which ability
may be tested very nearly by comparison of the
of each state with the State Of New York.
which state finds 1t almost impossible to raise money
meet its liabilities We recently gave the report of the
committee Of ways and Of the State Of Indiana
which they their inability to meet the demands
upon the state. From the returns of the
statistics Of the United States, at the actual
resources of each state In estimating the value of the
products must take into consideration that the grains
and other produce Of the west Of much less money
value to the producers who have to pay the taxes
tohose ofthe Atlantic states For instance the price
Of wheat in New York 35 at the west il varies from