The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-10-27

| w
Floating debt %, 500 90
| Total debt. ......."........ COL, O44 90
City revenue for year. $3.50 on
| eAPSises ....H ,S9S w
Balance. Observation-Disclosures. 1915 90
The history of small shinpaster fnancierng in this
country since 1887 very instructive, well
ing If we could divest ourselves of sympathy for the
thousands of poor and hard.working people, who being
accustomed through the absurd action of State egisla
lures to look upon the paper promises corporate
Citations as money become the easy dupes of the design
ing knaves who, for the most part, composed those
associations Up to the grand explosion of 1887
doubted the validity OF engraved paper dollars around
which legislation had thrown its my stical influence
specie became so scarce that almost whsle generation
had grown up strangers to any thing but paper promises
the validity of which their almost superstitious fears
thought treason to doubt When ruin came and these
| promises dishonored strong was the feeling in
favor banks that after year irredsemable currency
numerous body Of the leading merchants of New York
met at the City Hotel to compel the banks continue
the suspension. They actually denounced and abused
those institutions guilty of some great public wrong
when they resolved pay their debts. The banks
ever persisted in calling in and paying their promises
money consequently was scarce Yet, the popular feel
ing in favor OF paper srsng that myrads shin
plaster associations, without corporate powers were
enabled to issue immense quantities Of paper circulate
| as money. The mania run to such height that
individuals in business down to BARRIERS, oystermen &c.
issued their promises All this the result of the long
continued use Of bank paper producing the impression
| that without paper there would be money.
Amid this anarchy of paper Issues grew up the free bank
ing law OF New York The origin the law
by the quantities OF reatesate held by numerous
Spectators overtoken by the revulson Those people
could realize nothing upon their lands; and sup
posed, they could be allowed to associate and issue
money based upon these lands they could realise in
some degree, the.ces Accordingly law pass ID in
April 1885, permitting associations of individuals OBJ
tain from the Comptroller circulating bills upon depose
with him OF mortgages on real estate and State stocks
equal in value to New York per cent stocks Under
this law hundred and fifty three banks started
which forythre now remain; hundred and have
gone to ruin, many ofhem got purpose to swinde
hedepose OF small amount of capital obtained from
the Comptroller the legislative sanction. On this rass
the right claimed to issue post notes. circulate
money similar in appearance TO the genuine notes..
These put out in great abundance favored by the
still lingering prediction in favor Of paper money in the
west where the people were easily deuded by the ap-
pcarance any thing in the shape of New York money
As fast those banks with their various clques and
ramfcations, commenced moving, this paper followed
them no perseveriDgly and exposed their movements.
Gradually The whole system became familiar to the
people, and the operators were obliged 10 a
face This done by going into the eastern and west
States, buying up the charters of small banks for
stock notes. and then issuing bills, purportng to be
deemed in New York. Banks in Maine, Massachusetts
Ohio, Maryland Michigan. Florida, and New Jersey,
were the instruments Of this form of plumber. Our
hitting exposure of these frauds, caused the repeal in
Maine of the delinquent bank charters In Massachusetts
the vigilance of the Bank Commissioners directed to
the the ulurvn nrf RonL he lae
tempt in that quarter. In Michigan the bank charters
were mostly repealed and the door there closed TO
roguery Last winter forts procured the repeal
some eight to ten little banks in New Jersey, and the
voice of the people in Ohio put out of existence most
the concerns there The whole paper mania has passed
away and after ten years of suffering and losses
pie are beginning to that specie can be had and is
preferable to paper a. circulating medium. There is
STILL however lingering disposition among the old spe
culators to revive and continue the issues
paper.
The banking law Of this State has been SO amended that
paper issues be made under it that are OF fully
secured ard the issue of post has ceased Hence the
only plan is to use some irresponsible bank in another
State making its bills rsdeemable in this city, The
Jacksonville Bank at Florida it i'll he remembered
used for time but we followed too closely permit
It get circulation. The Monmouth Bank N was the
next started by the parties who February last
bought part OF it for $4,000; paying down $4,000
gaging 10 pay $1,000 more through February and the
remaining $4,000 in the spring receiving FIVE thousand
DO lars accommodation in Monmouth bills. When the
movement was made to repeal the charter which has
passed the New Jersey lower house. to g. the $1,000
due in February not only not paid but the Monmouth
blswere put upon the market realizing about $500. They
thus $1,000 out Of pocket and responsible for the other
$4,000 Since then, the parties have started the
Planheld Bank, another New Jersey institution VIII CHI
escaped the legislature OF last session. but will
meet its deserts this. The bills OF the a,
present redeemed in this city by person who loars
them out to master mechanics, places OF public
ment and wherever large sums paid out checks
payable in ten days lie thus gets city money and makes
the per cent charged for the pion OF the Paned
bills The operation has two obecs-to procure large
revolutionary then stop; corporate bank
in New Jersey only being responsibe continue the
redempons, and in that case the oftener the bills
returned, the better for the operator For instance II
there acircuation OF $4,000 and oil returned once
week, the profit sa5o per week. or sI2 900 per years
very pleasant operation II the circulation is returned
twice week. III profit is doubled There are one or two
mall free banks pursuing this operation.
In article of the Sd September, we mentioned ero.
Their project sfost by broker in ST. Louis connectd
with Insurance Company in Columbus Ohio the New
Hope and Delaware Bridge New Jersey the Farmers
Bank of Mngton, Maryland, and the Clinton Bank OF
this city, remnant of Of the old skeleton banks OF the
free law this State The alarm sounded on this project
will probably defeat H.
These are the remnants Of the paper bebbes which
have iicted the country, from the late National
Bank, down. The end has however come and the peo
pie will not readily again roinqdsh the blessings Of
sound currency.