The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-01-06

| tain legal notices to be inserted.
The opinion quite prevalent that this branch Of
the public service is susceptible OF material and
fu change, and that such change Is demanded by
considerations connected with public economy and
retrenchment. fat r..y l.
The printing for the Legislature and the several
departments, and the annual publication Of volume
OF laws is In all respects a mechanical duty, and
see reason why it should not, like every other
branch af business which involves the expenditure
OF money be the subject OF contract, based upon
Just equivalent for the services rendered The State
paper would then only have the insertion of legal
notices, most OF which are paid for by the indivdu
alsfor whom the services are rendered.
In connection with this subject it has occurred to
me that the pnblic interests would be essentially pro-
NOTED by providing for the publication of ali the
laws which shall be designated bv the Secretary of
State as OF general nature, in at least one newspa
per in each OF the counties of the State, together
with such laws OF local character may be of in
terest to the citizens of the particular county where
they shall be published.
This would bring home knowledge of the laws
to the people much more effectually than the pre-
sent practice OF combining the publication TO the
State paper. The expense would not be very large
and 1t would be greatly outweghed by the more
general diffusion OF knowledge of the laws. The
additional expense would be more than saved by
the change which has been suggested in relation to
the other public printing
The impression is very general that several of the
public officers in the city of New York, particularly
those who connected with our inspection laws,
are extravagantly paid for their services This ulti
matey operates as tax either upon the producer,
or the consumer, or both. There may be other pub
nc olflcersawhose compensation exceeds justequv-
alent for the services rendered Should you find
such to be the case, you will apply the proper
rectlve
The privileges granted to banking institutions
doubtless had for their object the public accommo
datlon tor any other purpose they would be entirely
inadmsslble All Legislation on this subject should
be IN reference to the Accomplishment of this end,
and the banks should be made to do their duty to
the people. A bank, while it pursues the fair and
legitimate object OF Its creation, has the power of
aiding all the business relations of the country; but
when 1t is converted to the purpose of accommo
dating stockholders, directors, spectators and mo-
nopoists, to the exclusion OF business men, it be-
comes curse to any community, and can hardly
imagine a greater evil. Such system is calcu-
lated to make the rich richer, and the poor poorer
The banking institutions should at all times be
subject to the control OF the legislature, who cannot
well be too watchful in checking their natural ten
situation that diverts its from the legitimate
purposes OF banking, should be promptly deprived of
ts charter Every institution that faithfully fulfls
Its duties to the public, should be sustained and pro-
tected.
The bill holder does not participate in the advan.
tages resulting from the privileges granted to bank
| ing institutions. He has authorised agency in
conducting their affairs, and is the instrument of
giving clrcu alton to their issues, which results in
benefit to the stakeholder. Under such circum-
stances, with power and duty all on side, no.
tHlus can De more JUST, tndn tndt the Dill holder
should be effectualy protected from loss and incon-
venlence.
The safety fund system was designed mainly to
accomplish this end, and while the fund remained
certain redemption Of the of insolvent banks,
and gave greater security to the bill holder, than
| any other system in practice in this country.
Until recently, the public have doubtless felt
come so much impaired by the failure Of several
banks that it is now unable to meet the immediate
calls upon it The contributions required by law
will not provide for a complete redemption Of the
bills OF insOlvent banks until the LIST of January 1919
| This estimate is based the suppostion that no
part of the bills of the banks that have failed will be
paid from their assets
The facts developed in relation to the insolvent
banks show that there has been, in some instances
| great abuse in their management, and reckless
disregard OF moral obligation. How il should have
happened that a bank could so improperly conduct
its affairs TO total loss TO the stockholders
and leave no assets for the redemption of its bills
circulation, and yet escape the timely observation of
| the Bank Commissioners, | am unable to imagine
II may have resulted from the of proper means
| tor ascertaning the real condition Of the banks
But whatever may have been the cause it is quite
evident that the appointment of commissioners has
not answered all the valuable ends which were anti
| cipated from the measure.
II has been ascertained that the issues of some
banks that have failed, have greatly exceeded the
| amount authorized by law. To guard against such
| an abuse in future, renew the recommen daon OF
my predecessor, that the circulating should be
registered and countersgned by public officer
| The peorle have already suffered so much from
the frauds and insolvency of some Of these institu-
tons, that the subject demands your careful aen-
| ton.
| In almost all instances, the malpractice of these
institutions be traced TO the neglect fraudu-
lent of their officers; and within the last six
years. there have been several extraordinary cases
| of peculalon and fraud. l recommend that provi.
sion be made by law for furnishing all future trans
gressions of the kind by Imprisonment 10 the State
| prison.
| The stockholders have no means of etiec,ually
guarding against Encouragement, but they ought to
regard themseves as responsible for proper seec-
| ton of officers
In recommending the most efficient measures for
Protecting the public against the frauds alluded to-
it must not be understood that feel any hostility to
well conducted banking institutions. Our banks
were among the first in the Union to specie
payments after the general suspension in 1887, and
the sound institutions have steadily maintained that
position ever since.
| would make no change in the present system,
merely for the sake OF change, or in spirit of hos
ty to banks. No restrictions should be imposed
that calculated unnecessarily TO embarrass the
banks; but every solvent institution has a deep in
terest IN the adoption OF such measures will re-
vive and restore public cor fdence in the banking
system That system has become interviewer
with the affairs OF the people, that II cannot be aban-
doned without great public inconvenience. But the
banks only be supported by such thorough re-
form OF abuses as will give the people sound
rency, always convertible into gold and silver with
| out expense or delay.
| Eighty-fve associations and individual bankers
have deposited the requisite securities and received
circulation notes therefor under the general banking
law. Seven of these have been closed by their own
officers, and have redeemed their notes at par ex-
ceptng 81 ,l0S now outstanding, for the redemption
of which an equal amount has been deposited with
| the Comptroller. Twenty-slx have been closed by
| the Comptroller that had at the time of failure a
circulation of Sl,l97 500 90
Securities of these banks consisted of bonds
and mortgages deposited, s4l9,497 So
| State Stocks, l,lll,2O0 90
Sl530697
or which the Comptroller has
sold and realized see,7el 20
And received from the receiver
of the Bank of Western New
York 400 90
Bonds and mortgages arc now in
suit for collection, amounting
| to sl,eIS 90
And bonds and mortgages are