The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-01-08
October, 1912, and the balance of notes now ou.s,snd,pr
Sl,05e,4a7

oo"n' 1'S0 us" AofofV
Clinton Co. Bank, loo, 2O3 90 500 e6,3n
Bank of Lyons, 1900 1869 b5,3l3
s~l,Ose,47 s.99.loe sSs0,su
The circulating notes redeemed from the Safety Fund.
notes In Communication for future contributions to the fund,
amount to the sum OF 81 .50l ,946.
There has been paid from the Safety Fund, for the 70.
demption OF circulating notes OF the Bank Of Buffalo, tbs
sum OIL s43s 59. This Bank had Il chartered capital OF
600. This shows that there was a fraudulent issue Of
S233,32 The officers OF the Bank could not have subject.
present system of registry. The possession Of the plates.
under the old arrangement, gave the officers Of a bank
the Safety Fund, by making and hypothecsting bank
bills, for which the fund was declared by law to be
liable.
The 9th section of the act 10 abolish the oARce OF Bank
Commissioners, provides that sit shall be competent for
fcient reason TO suspect the condition oil any bank, or the
correctness of its quarterly report, TO appoint a spscia!
agent TO examine the affairs OF such bank, and who for
that purpose shall have the same powers now vested by
law Ia a bank commissioner"
Comptroller in this section, exercised IN the most discreet
manner. would be OF any material service IN securing. tho
interests of the creditors or stockholders Of banks. Hthe
controlling managers of bank determine TO apply liz re
sources to the advancement OF their private schemes, ne
g9rdless of their obligations to the creditors OF the Bank
and to the stockholders who have selected them to guard
their property, lis in vain to expect that the consumna
Of TIE Comptroller. Some OF the desperate managers, a.
has hocn the case with banks which have alrendy failed,
in the books and false oaths, whilst others were convert
| orphan, as well as the means of the capitalist.
Whilet the exercise Of this power promises very little II
any ulI,y. it may be msde.a potent engine Of svl; 1t
vests the Comptroller with authority TO appoint an unlim-
ite9 number Of emissaries, each clothed with all the pow.
ere heretofore vested by law in bank commissioner, so
Tar al ..iatcs TO the bank or banks included in the commits.
SIGN. Without some urgent necessity or the promise of
sons obvious benefit. a power Of this kind should not be
Il il therefore respectfully recommended that the 9Th
action, before referred to, be repeated, and that the iith.
18th, 18th, lAh, 18th, 10th, l1th. and 18th sections OF chap.
, -, tila - Of the part of the Revised Statutes, which
were repealed by chap II of the laws Of 1850. be revived,
y 10 ,E Ire 0lan TINT AnCe in each wear the D0nkH
! shonld make a statement, according to form TO pc pro
acrihed by the Comptroller; to be signed ny all ,hs airec,
are the only persons who can make up on intelligent
! judgment os TO the condition Of the bank, end whether It's
\ capital is impaired or not. The Comptroller Is required
to withhold registered notes fron any bank which has
I lost any par. ofits capital: How is he to gel the necessary
information TO make n decision. If the directors do not
themselves investigate the matter and give INN me Iue
condition Of the bank 7 A special agent could not ascer.
part Of the ofhcers of the bank TO deceive HIM.
Every bank ought to be so conducted that an exhibit OF
I it's true condition would inspire confidence in its sound
meas. There ia no method OF carrying on the buslhcsa y!
1 banking successfully without actual cash capital. aga
Z hcnsgt directors and officers. The stockholders and the
bill holders should hold the directors responsible LOT the
> Aibtvl administration OF the bank, and not be dsladsd
1 with the belief that their interests are 10 be protected oy
the vigilance of a Commissioner appointed by the Comp
NoaIsY, OK IN any other mode.
been nsJx for the establishment of individual banks At
points remote from the general channels o, business 1ssn,, ana
Many Of these individual banks have originated IN 'e
city o{ Now YORK.
4 l The reuCMpuOn az u disCOuHt VI y Va ~ ="
lowed by law is probably one of the principal induce
i men,s Tor establishing banks Of this description. The
y notos ara signed and circulated in the city OF New York
Z and by fxing the place of redemption at some inscccssi
o bio point, the holder is compelled to go to the Office
whsIe the note W a really issued in Wall street, and pay
halt Of one per cont. for its redemption.
">:;:s no banks in the state were required to redeem
multiplying these sus...- 49, ~-"'i probably be rsmY
y we'd This is a growing evil, and II ue-.
e while it does no injustice to the fair banker, is requiret
v by simple justice to the bill holder.
But without reference to the considerations above allu
deG to, every bank in the state ought TO be required &c
d redeem its notes at par in the city Of New York, Tor thu
notes, in every town in the s.ste. what the bank promi
ses to secure to them, one hundred cents for a dollar =
Is lief that be interests of the bank may suffer by a par re
e ~lemption Can this reason have any weight in establish
ing a currency, which is TO be a standard OF value for tw'
millions ana a half Of peoplel The prerogrtse OF sove
reignty in regard TO the currency is parcelied ont anon
80 interpretations and associations; they are allowed al
the profits arising from the circulation Of ten or hheel
millions of dollars in paper, ON condition Of making
by which this currency can be kept up TO the specie stan
dard in the hands of every person in the State, II ought y
be done. whateverex expense the bank are subjected 10 !
saved by the innocent bill holders.
IS The notes of all tho banks in the New England State
rangement among the Banks themselves in the following
n manner:
The Suffolk Bank in Boston receives the bills of all the
solvent banks in the New England States at par; as
compensation for the labor and ex pense, the banks keep
constant deposit in the Suffolk Bank Of from two to ten
thousand dollars, free of interest. the use Of which hs,
h enabled the bank to pursue the business for nineteen
years without injury TO It's stockholders. The effect on
d he country banks is that the redemption In Boston re
n lieves them in a great degree from the necessity OF provi
ling funds to redeem their bills NJ home. as they are
~ ! seldom called upon for specie, except in very small sums
The amount OF bills redeemed annually for the country
e ranks, r. from one hundred to one hundred and thirty
Il millions of dollars
This system, which has been always sustained by pub
Il lie opinion in Massachusetts, was in the commencement
violently opposed by the country banks and brokers o
Boston. They are now, however, so well convinced
,s hat il operates for their mutual safety and benefit, tina,
is believed the country banks would establish an agency
d, in Boston 10 continue the system II It should be aoandones
IL by the Suffolk Bank
II. equally beneficial and satisfactory TO the same classes o.
in holders Of the bills would be very great II IL IL assumed
he that one hundred millions OF dollars are annually redeem
n. ed in this state at half OF one per cent, II shows an aggre
in cote loss TO the bill holders Of half a million OF dollars,
which is nearly equal 10 'ho net proceeds OF the mill tax
OF Is il not probable that the interests even OF the country
en- banks would eventually be promoted, by giving such .
lis character 10 all the notes issued by the banks oi this
ed state, as would make than a desirable medium, 10 the in
In habi,ants of that vast region Of country which receives
n. us supplies Of merchandise from New York; The people
H. ar, now having n mill tax 10 sustain the character OF
stat. stocks AZ home and abroad, and the banks should
-, ro, hesitate sbou, paying the inconsideroble sum which
NAV be necessar, TO give credit and character 10 the cur.
IA r.ncy issued under the rterogative, secured 20 them by
a the knws OF the state, Of furnishing o currency for the
III people.
Ci,y Intelligence.
Po1ice-Jan 7-RIrunS % a M~uRpLEEh-Willism
49,. 1891 ...l I.Iir. f..-, nal. q, IL. l.-~x..