The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-01-09

has huctuated very little, and Incorporation Of the onet
the others has been very safe and regular The cause
state OF the banking system in New England mainly to
be attributed to the long established custom called the
" Suffolk Bank System" This has been check on all
the banks of the interior The Suffolk Bank has been
kind of regulator of the issues of all the country banks
For many years the uncurrent money of New England
has been redeemed by Banks of Boston, in this
A merchant receiving a large amount Of country bank
bills deposits them in the Suffolk Bank day and draws
his check for the amount the next for which he receives
bankable funds. The remuneration the Suffolk Bank
for this business is the of large made
up by deposits from all the country banks for he redemp
ton Of their notes. On reference to the above table ii will
be that for series years the circulation of all the
bsnksin New England very steady. The Suffolk
Bank keeps check this important feature of banking
refusal on the part of the suffolk Bank redeem the
notes OF any country bank almost ruin. The power
held by this institution very great All the country
banks for long time refused submit to the system, blu
were finally compelled to come into the arrangement
which has proved advantageous, by keeping in crcula-
ton their paper away from their immediate vicinity The
benefit every bank from its circulation should be
paid for by the institution directly aided There cannot
be placed banks-here be
great check to their operations. requires argus
eyed regulator always the watch keep them within
proper limits.
This plan is proposed by Comptroller Flagg, and
we coincide with him in his views of its ultimate ad
vanages properly applied in this State Attempts have
been made to perfect something similar, but they have
failed in their ncpient stages. The Suffolk Bank sys
tenn has been tried it has been tested by time the results
of plainly set forth in the above table New Eng
land has not been subjected to those awful revusons that
other sections have They have had revusons but they
were small comparatively to those that spread the
rest of the Union, and caused by the connection
that existed between the commercial classes Of that
ton and those of the whole country The movements Q
the banks of the East have been limited uniform
to create such result speculation has been too ring
that section to have alone produced such change 1t
the force ofthe storm that simultaneously
in New York and New Orleans, and took centrifugal
course the whole union.
The Banks Of this city have very little circulation
Manhattan Island. The country banks have large cir.
cuation in this city, and they should pay for it, The
discount money at present of the
pockets of the merchant and mechanic and in the course
Of year 1t amounts to quite tax Many merchants
daily receiving heavy remittances from the country all Of
which in country money before this be used to
pay bank note, the owner is compelled to pay to
per cent discount on every dollar. This would not be-
very etwice thrice; but it connuathe
draght continually kept up We trust the suggestions
of the Comptroller will meet with that attention the
portance of the subject demands.