The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-03-27
n,347,2oI s,cs2 lat

n.s7,2oi sos2.f 1870 l,7s4sie
The total average above about ll6 per cent
The average list which contains ofthe
and of the best of the western banks 1870 per cent
liabilities than to meet them The well con-
Quoted banks, ikethe Ontario, have scarcely liza
biliiss han assets and reflects the state of bust
ness while others 400 per cent than their
on hand
The Legislature of Kentucky has finally adjourned,
after creating great deal Of uneasness in relation to
their financial affairs The advocates for debts and
rclef" from old have strven hard to carry their
views, but sound principles have in the main trumphed
The debt of kentucky last year So 400 900, indie
pendent of the $75O0o FIVE per cent stock held by the
banks which paid a dividend in excess of the per CT
born by the bonds Hence the stocks Of re-
to the State, which applied to the payment of
thu interest During the year the debt increased $780,
O0O under law authorizing the increase to the extent
of the capacity of the sinking fund to meet the in
erest The Governor in his stated that the issue
suspended for fear of ovsrsteppng that limit. The
sinking fund composed of bank taxes and dividends
and tax of FIVE cents the $780, all of which yielded
$685. 600 This tax law expired by limitation the 18th
February and renewed with additional items Of
taxation added in order make good the estimates and de-
6cency. Every project of relief rejected and the
tax levied by large majority. 1.-THE close ofhe session.
q bank law enacted which to this criticize.
1t makes an important change the affairs of the banks
but is tissue of contingencies. The three banks
under forfeiture for suspension To release them from
those penalties, they required to loan ST. 800 0OO in
sums Of 81 OOe, good security, for three years. ap-
piled for within the year s43, the security good if
these loans made within the year. the may take
back its 81, 900 held by the banks cancel
them If the bank offers them-ifh the State takes them
bank capital may be reduced to that amount. When
these loans made and the bonds given up by the
bank and cancelled by the State the State may issue
like amount Of five per cent bonds able semannuay
in New York. the Governor shall be able buy with
the proceeds Bank Of Kentucky shares $40 less than he
sells 100 of the FIVE per cent stock This is impo
sibe because the five per cent stock is at SO, and the
bank stock 81 per cent? consequently that part of the
law is imperative by its own provisions. This 22d
instance the sssse now derives nett revenue Of about
$6os0o from the five per cent bonds. Those bonds
to be cancelled, consequently that would be
lost but issue of FIVE per cent bonds for
could be sold average Of 10 per cent and Bank of
Kentucky shares bought $50 per share the State would
realize 245O0 shares bearing dividend of $4,000
and not2increase the amount Of her stock now out
at all. All the five per cent bonds now out
are, however, to be returned first and cancelled
The reissue will then be contingent upon the relative
value Of the stocks year hence This part the law
meantime subject to the revision and repeal of the
Legislature The Bank of Kentucky has promptly &C.
regard to the loans The operation of the latter will be
greatly to facilitate the payment of the State taxes and
improve the revenues for the year. Hence the retire
ment Of the bonds certain while their ultimate reissue
is extremely improbable
SYSoPsrs KENTUCKY BArx Law.
Sec. Provides that the Bank Of Louisville shall with.
three months establish three branches or discount and
deposte OF not less than 100000 capital EACH one of
The three branch capitns not to be increased to more
than hafthe capital of the mother bank the branches to
Sec. 2. Provides for the appointment ofhe branch off,
GERS by the direction of the neither bank
Secs Regulates the branch directors
Sec Provides Tor the compensation OF the branch Of
Sec 6. Provides for oath of fidelity by the branch off.
GERS.
Provides for the bonds and security of the branch
clerks and cashier.
Sec l. Provides that the cashiers and clerks shall be
punished Tor dealcation not less than than 20
years imprisonment.
Sec. g. That the officers of the mother bank maychange
he location of branch il it should prove desirable.
Sec. o. Reduces the qualification of directors of the
principal bank to ten shares The number OF directors Il
Sec 10. Extends the rights and privileges enjoyed by
he mother bank to the branches.
Sec H. That in consideration OF the establishment Of
hese branches the charter of the bank is extended to
SS3 provided the stockholders elect at their first meet
ng to have il extended. II the bank establishes the
ranches may have the choice OF winding up going
nto liquidation the expiration of its original charter
he Legislature, after the expiration to haze the right of
epeang the extension Of the charter.
Sec H. Authorizes the bunk to retire S50000 Of its
stock by purchase with Treasury notes hand or
eb.s due from stockholders
Sec. Is. Gives the right to loan money and bills re-
eived on real estate and to take mortgage therefor
Sec. Ia Provides that the Bank of Kentucky the Nor
hern Bank and the Bank of Louisville relieved from
II their penalties and forfeures restored to their
privileges, provided they comply with the conditions of
his act; but the neI Legislature fails to enforce any
egec the part of the bank of the provisions of this
ct then the restoration of the charters shall he com
lete.
Sec TO- These banks shall loan to the citizens of each
ten districts in which there is no bank Louisville
ranch 500 oos not more than $1,000 individual
amount loaned for the two first 40 days the note has
run, and not than 20 per cent for each succeed
100 days providing the apple made before
uly next or within the year ls43
Sec 49, The Bank Of Kentucky to make its loans in dis
lets No. and
Sec H. When these loans are made in addition to the
resent business Of the bank the Governor may receive
ON the bank IL tenders H. 81 900 900 Kentucky per
mt bonds now held by the bank and cancel them, the
INK stock to be reduced the amount provided
bank relieve the State from Sl25OOO claimed by the
Sec 49, The Governor may receive from the Northern
INK $3.50 600 sper bonds when the bank shall have
noe It's loans per this set If all the loans not made
5000 Of loansthe stock of the hank reduced bv the
1ount OF bonds received by the Governor.
Sec 49, The number Of directors in the Bank of Ken
cky and Northern Bank shall be g. five a quorum
State. ''"'' -
Sec 40 The banks may issue notes as low as 81 until
Sec: 81. Provides the Of making the loans in
unties Wv 0"" ~
sec. II: When the bank loans all made and the
rte STOCK they hold all cancelled the Governor
issue OF Ct stock 30 years TO run inter
payable in New York semi annually, and invest the
Pceeds in the stock OF the Northern Bank of Kentucky
PIX OF Kentucky and Bank of Louisville, providing the
rthern Bank stock and the Bank Of Louisville stock
be bought $40 less than the FIVE per State stock il
Tor, and the Bank OF Kentucky shares $40 less. The
purchased to be held by the sinking fund and the
idends appropriated to tsuse
bee. % Allows the Northern Rank 70 establish branch
h capital of 800 900.
Dec. "a IL establishes the branch within 3 months
hall be In substitution Of loan for equal amount