The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-03-23
.055,00o

Leaving balance of 100000
OF which, amount the sum Of one hundred and fifty
Thousand is now within the command Of the Fund Com
missioners.
This shows think sonclusively that the indebted.
ness Of the present year cannot be met The means
provided are an issue of 81 900 of state stock 10
be sold under par These constitute the domestic bonds
with which the contractors are to be paid. They are
not worth 90 cents the dollar The real state Of
the that the has but $500 900 to meet 81 $685.
900 between and July, deficiency of ,275ooo.
Mr.. Cornell, the Cashier Of the Mechanics Banking
Association is understand, applicant for the re-
ceivershp Of the Lafayette Bank. There strong OBJ
jectons always to appointing officer of one bank as
receiver for another failed institution for many reasons
Among others the officer Of bank has as much as he
do attend to the of the stockholders from
whom he receives salary. But this is not ALL If such
precedent should be established might lead to colu
sions between the officers Of different banks, which IN
Of ultimate failure, might be forever concealed from
the through the agency of the receiver
For instance we will suppose case. There might be
an individual who director in two institutions A.
and B. Through influence with the cashier Of A., he
may obtain special loan say for 81 OOO and when
visit from the Bank Commissioners is expected, he may
TO meet it, draw check B., and its cashier may ark
good, in red ink in the usual way, although there
are no funds to meet II. This check certified may
then be counted by the cashier Of A. as among the
notes and checks Of other bsnks on hand. The sud.
den appearance OF the Bank Commissioners 70 examine,
might then this check to be sent unexpectedly to
for pay ment, when it would figure among his over
drafts and be converted into special loan by the depe
site OF the stocks Of A. collaersls which may fall
his hands and the bank sustain loss Of half
the failure Of A. and the appointment Of the cashier o.
B. the receiver, Who'll. train Of similar transactions
might be covered upsnd special loans Of all the parties
be swaowe up without the stockholders finding cut
how their money goes. We have here supposed case
in order point what abuses might arise from allow
ing the officer Of bank 10 have the settlement Of the
affairs Of another Institution.
At New Orleans on the 18th, the panic had somew hat
subsidized The holders Of bank funds invested them IN
cotton rapidly possible, which caused an advance
of cent in the article 1900 bags changed hands.
The state Of the currency as follows on specie
basis
BanL1. funds Ito src:ds Imp,t Bs re- ss,o .epe:ds.
M Nun, dS s s,o's Blue back Che 50
Oh Blk fund. sstoIi A.Ssma iaHa' 's,oa
Atchafslaya do IS toss iennesseeo 90 istoH
Exchange on New York was actually at discount
for .pecie In reiatonto the failure Of the Merchants
Rank the following notice was published -
ConMrRoIAL BANK or NATcHEr,(
March 9th, ls4a.
TO THE PUBLIC.
Ne person could have been surprised than was
n, this morning that the Merchants Bank OF New
orleans had the It'll inst refused to pay the drafts OIL
this bank at that time the Merchants Bank was IN
lebed this bank $50 GO0 for deposes made 10
meet drafts and besides held large amount Of bills
belonging to the bank all maturing thin twenty days
Of the dstrutt OF the Nero hsnts' Bank
created by the attachment in January BY the govern
mont Visited New Orleans and while there had the