The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1844-07-24


he LIST Of August.
The Greenwich Insurance Co. semiannual dividend
Of 5 per cent payable on the ls August.
Within few months past several banks, formed
under the Free Banking law have gone into operation
Several Safety Fund Banks whose charters have expired
continue business under the law Several others
whose charters are about expiring, intend continuing
their banking business. under the law. In the
course of tme most of the banks in this State be
ganised under this law, which, since the modifca
sions and alterations that have been mode it,
from those objections it previously possessed. The
stock of the State of New York. and that of the General
Government, are only received by the Comptroller
curity for the issues furnished with his countersign
This places the circulation firm basis for the redemp
tion Of which there be doubt One great benefit
arising from this system is the knowledge in the posses
sion Of the Comptroller Of the actual circulation of any
one or all the banks at all times There is not any Limit
to the amount issued the Comptroller required
issue on the above stocks whatever extent they may
be offered We annex the Of some banks recently
formed under the Free Banking Law in this State
Fulton Bank, New York.
Chemical Bank, do.
Unadilla Bank. Otsego county.
Exchange Bank, Buffalo.
Armenia Bank Leedsville
Merchants Bank, Buffalo.
Oliver Lee & Co.'S Bank, Buffalo.
Patchin Bank, do
Suffolk County Bank, Sagharbor.
Whites Bank. Buffalo.
Here is list of ten banks The Fulton and Chemical
Of this city, belonged to the old Safety Fund System but
have changed from that to the Free Banking system-
The others are all new banks owned mostly by few in.
dviduas who carry the business Of the banks They
assume no more responsibility than the amount Of their
deposits with the Comptroller This all the bill holder
requires Those who make deposes in the free banks
have no security for the safety Of their morey The law
makes no provisions for their safety. Nothing but
the honesty Of the bankers themselves their depen
dence and we are induced to think that the reputation
and character OF these individuals guarantees the safety
OF deposes left in their charge securely than the
vaults Of banks having set of specializing directors
UNCONSTITUTIONAL responsibility is brought forward
individuals safer than corporations in money matters
Corporations have no souls responsibility. Those
governing their affairs have not that interest in the credit
and success of the institutions, individual has in
his private business. The security of the bill holder
however is the most important feature in all banking
operations and the Free Bsnking law this State as
is now formed places their safety beyond question:
There are now organized and in operation in this
State sxty'one Free Banks and eighty old banks
The Commercial Bank of Albany, NV doing business
under the safety fund SYSTEM WILL the expiration or
its present charter in $780, continue business under the
new system The advantages Of carrying on the bank
ing business under the law over those of the old
are the limited demand for SPECIE the circulation Of the
precious metals more freely and the absence of those
panics that often occur among bill holders when they
think that the banks may be nsolvent The loss Of
terest on large amount Of SPECIE the safety fund banks
are compelled to keep hand does fall upon the free
banks; their capital is drawing interest regularly
being sound State stocks. The confidence the public
have in their issues does away with the necessity keep
ing large amount Of specie hand dead capital
They not only make their circulation but their whole
capital productive independent Of the business Of the
banks There in
system that appears at the first glance The bill
holder may eventually get the face of his demand
from the fund, but the time from the suspen.
sion Of bank to the redemption of its bills, under
the law regulating banks is great that the original
bill holder disposes of his claims at very heavy
discount and the profits, if any there be- falls into the
pockets othe brokers who buy up the bills Not under
the new banking system If by any chance free bank
should refuse to redeem its bills the bill holder knows
that they good for the they represent and
consequently, will not submit to the smallest sacrifice
This system particularly protects the poorer casses
they realise nearly the face Of free bank bill once
matter what the actual position Of the bank is SO
long as we must have many banksso long much
banking capital can find employment let the public be
cured in the most ample maaner and OF all the systems
yet adopted, the free banking Of this State SO far has
proved the safest.
Those interested in Pennsylvania State stocks CON-
plains very bitterly OF the movements the part Of
those whose duty is to issuecrp for the payment
interest the satedeb scrphas yet been ssuedn
payment for the interest due last February Complaints
have been repeatedly made 10 the issuing department in
Philadelphia and the only satisfaction obtained was the
answer that orders had not been received authorisng
them TO act The fact u.s. the government Of Pennsylvania
have lost what little moral principle they
In the first place they refuse pay the smallest portion
the interest on the State debt After this act they pro-
vide for the issuing of scrip for interest," fast az II
becomes due and finally have refused to extend even this
facility to their creditors Since the passage of the
tax bill, the most sanguine friends Of the State be-
lieve that the interest the debt will be paid on
and after the first Of February s45 but from present APP
pearanccs from the tone Of public feeling in the State re.
garding that tax law from the slight increase in the re
ceips Of her public works and from the little principle
left regards what is due their creditors have not the
fantest hope that dollar Of the interest," for long Pc
Rod after the time set will be paid in cash. Notwith-
standing all this however, there IL why scrip
for the accrued and accrung interest," should not be
issued The government have not heretofore been very
backward about issuing their promises to pay and at this
time, when the creditors Of the State can realize the
scrip due, by submitting great sacrifices there should
be no hesitation in furnishing the necessary supply
There are many bondholders suffering for the small in
the sale Of the scrip issued for interest due would
give'them No one now asks for the payment in cash.
That Is out OF the question. No one looks for such
miracles but trust those having the authority will NOT
place great value their paper issues their po'
misses to pay to keep those entitled to them much lon
ger In suspense.
The report Of the present condition oi the Grand Gull