The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1846-08-18
The securities thus pledged for The redemption Of the
.irculafin9 nntea of the ahoxa hanka conaist NJ

Alabama CONFINED to one bsnk) .. MSSS M
Michigan !ansctns 10 bank, soo,aas 90
Sash IN deposit ''r0m SIX oanks). ....... 2s,4l3 90
Toth ................ s7462 ass 90
The only securities in this list upon which the face OF
me amount could DO realized the New York State
the United States Stocks and the cash on deposit
The Comptroller does not state in his report whether
tne STOCKS oil the other States included in the list were
taken at par or at recent valuation as that would
make very great difference in the security of the bill
holder All Of the other State stocks are below par and
some OF them are only worth between thirty and forty
cents On the dollar AT this rate only about third Of
the amount of each would be realized
1t appears that twenty nine banks established under
the FREQ banking law have failed to redeem their
by reason OF insolvency otherwise and have
quently been closed the securities sold and the pro-
ceeds applied to the redemption of the circulating notes
oil each bank The nominal amount Of securities depo
sted with the Comptroller by these twenty nine banks
was 81, 655 S3s 90
Amount received from sale OF securites. e5s 37l rs
Circulation at the time Of suspension l,233374 90
circulating notes outstanding, June 20, a6 1851 90
If the amount of notes outstanding (sa765D be dc.
Quoted from the in circulation ct the time of fail
ure Sl,2s3 374) 1t shows difference of 81 2O5 s23
which is the amount Of notes surrendered to the Comp
troiier; but this sum greatly exceeds the
ally paid to bill holders from the proceeds of the secu
rites Of the banks single will be given to ex.
plain how this difference arises IAN individual pre-.
ssats for redemption q twenty dollar note on a bank
which pays only 10 per its circulation from tho
avas OF Its securities in the hands OF the Comptroller
This person Is paid SIS in money, and gets certificate
that he LAS surrendered $40 has been paid 5 and that
there due him SIS from the bank which issued the not
IN no instance has any thing been realized from the
eeiver OF free bank to pay these certificates in two
three cases where securities in the hands Of the Comp
trollsr left out of the first dividend have
been had and the certificate redeemed in W hole in
part from the avas Of such securities.
The law requires that ell mortgages taken security
for notes, shall be improved productive, unncum
bered lands, worth, independently of any buildings
thereon at least double the for which they are
taken: Appraisers have been selected, and their es
mates were made under OATH and yet when the va
lue of these mortgages have been tested by forced
sales the average product of nineteen banks exhibits
loss equal to about 30 cents the dollar The average
loss Now York State stocks and bonds and mortga
ges taken together is about l6 the dollar These
the only securities authorized to be taken for
the redemption Of circulating notes
The twenty mine banks before referred to had deposited
with the Comptroller: securities in
State stocks and mortgages to the
These produced on sale. ........ 053 ,37l rs
Showing loss on the securities Of =. 89l 965 Is
On the circulating notes the payments equal to
an average of 76 per cent the total loss bill holders
being S292 344 &c. 1t is thus shown that while the banks
have lost $6o 1866 u.s. on that portion of the securities
deposited with the comptroller the holders their notes
have lost $292 3A &c. fraction less than tw enty.
four per cent, the in circulation at the tim
the suspensions.