The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-02-25
Total Feb 843 47O4 975 SOL 2Oe $780,
asst report 95 3729 226 57 1888 34l6 1875 9l0 900

Ts'1 l.p Tss ''''
These banks resumed specie payments in June last,
when the notes discounted have ncre and the
bills diminished This fact has undoubtedly been owing
in some degree to the non-payment of the bills, which
consequently extended in the form of notes. In
aton to the decrease in bills the committee remark
"The result is not produced by the policy interest
Of the banks but marks the decline in the business Of the
country The interest and the policy Of the banks would
have led them to have renvesed this money in bills
able in foreign market. and based upon the actual
shipment OF property to that market Rut the business Of
the country did not require and the bills were not to be
| procured, and thee apital remains unproducfice
1t is undoubtedly that there has been less demand
for bank facilities than formerly, but is not owing to
diminution Of real business, fact abundanty proved in
the unusually large receipts of Kentucky produce obac
&C.. at New Orleans and by the low state of the
changes Acash business has been done through known
private houses and consequently the banking business
has declined The committee, however. after admitting
the above fact that bills for discount not to DO pro
cured because the business Of the country does not
qure il, state as follows -
"They have also conferred with the President and Drec
tors OF the Bank OF Kentucky and Northern Bank of Ken
lucky and have made an with the directory
OF each of those banks to aid the productive industry Of
remaining eight congressional districts, not supplied by
the location of the two branches of the Bank Of Louisville
stated above by loan Of not less than hundred thou.
sand dollars in each congressional district in sums Of
than thousand dollars to each applicant, to be
paid by the expiration Of years. in calls of not
than per cent EACH the two first renewals Of
hundred and twenty days. and then in calls of not more
twenty per cent for additional hundred and
twenty days the said loan shall and herewith report
bill to enable the Legislature, if they agree with the
committee, to carry the arrangement into effect"
If the business" of the country does not require the
bank loans to whom they be nader To embarrass
ed individuals and Spectators 1t is precisely similar to
the old relief law of of Alabama which has ended in the
loss of and which Alone according to the
cent publication of the cashier Of the Mobile Bank may
the disasters of that State be ascribed Mr. Helm Of
the committee dssented from the report and stated that
the banks could make these loans and maintain specie
payments.
The Bank ofKentucky and the Northern Bank of Ken
lucky have each State subscriptions to their caFa the
former institution 81 100000 which the State pays five
per cent and the bank declares dividend paying the ba
lance to the State During the two years and half when
the bank suspended its dividends in consequence Of the
schuylk fraud, the State incurred debt to the bank
for the interest the 81 amounting $l25
The business of the banks has fallen Oft that they
cannot employ their funds, and has proposed to the
State withdraw its 81 900 bonds from the bank; in
consideration of which the bank will forfeit the interest
due them and make the above loans proposed in the
report the committee The Northern Bank holds $780,
600 State bonds under the circumstances and pro
poses to loan $500 OOO il the State will withdraw the
bonds The operation is to diminish the bank capital by
the amount of the States subscription and employ por
ton OF the remaining capital in long loans doubtful