The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-06-12

ing Pos Of august 49, is4s. and in the Nsw York He
Ision OF statement which had appeared few days pre-
vousiy 10 the State paper Ths albany Argus, in pub
the New Yort Isps tac ns
nns o. Soo for not having made quarterly report
Vor sd printed article takes the the New
quarterly report and argues length the whole
mere are two points argued therein which have under
thereto The FIRST point relates to the reasons gave in
Deoember 1885, why the 10th section Of the General
admitted By YOU II hs ts to he
rect rs may be seen in your report TO the legislature
provisions Of the law which made L Ssu :, sna
you to deliver circulating to the owner of the
had not filed certificate capital stock IL was
admitted besides, page Al OF the report that the
aeth section refers only to associations and
may not feel bound to report according to its require
ment"
The second point wish to direct your attention TO
ID that which embodies remarks the to abolish
bank commissioners, &C. passed April 10, l9l3 state
thereon that the subject Of reports was taken I'm for
the third time; that what had been enacted before on
that point Of course repealed and that "the ind
vidual banker altogether dropped in the new act
The uudeniable truth of this assertion easy to he
made herewith quote the act itself The third sec
ton thereof provides follows: Every bank and bank
ing association shall make quart erly reports &c. Well
the eight last lines Of the fourth section define clear
and explicit what is meant by bank and banking
association. Bank applies only to an incorporated
bank and banking association applies to banking com.
pany organized under the law of April, l93e-these
eight last lines Of the fourth section follows
And If any bank banking association shall neglect
refuse to make the quarterly report required by the third
section for two successive quarters 1t shall forfeit
charter f incorporat bank and its privileges as
a banking company if organized under the law of April
1885, aad may be proceeded against and its affairs clos
ed in any provided by law in Of
solvent bank banking association
II must be admitted, trust that the above quotations
from the law demonstrate beyond cayi that the Of
April 18th. 843, does not require quarterly reports
from the individual banker mention whatsoever Is
therein of said individual banker and there is no
t,x
which may be constructed to obscure in the least the
direct and clear bearing Of the quotations just made
have the authority of OF the trainers of the
assert, that 1.-The individual dropped" understand
ingly, aud not through oversight There at that
time serving in the committee on banks men who un-
derstood the difference between corporate banking and
individual banking who could discriminate the
proprsty of demanding reports from the former, and
Mt the same time that there reason
The views publicly developed in the enclosed printed
the bank department. it had been called forth as have
already stated by article in the albany Argus and
acknowledged its and inserted an art
Gle from Thomson's Reporter the purport whereof was
to show that the New York State Stock Security Bank
is not bound to make quarterly report conclusion
must be considered granted that the act Of April
1913 does not authorize demand for quarterly re-
port from the individual banker But IN act was pass.
ed three years ago, which requires a short comment
alude to the act Of May 6th 9i4 the second section
of that act takes for granted that the individual banker
bound by former enactments to make quarterly re.
ports This is assuming fact that does not exist and
groundess assumption according to all legal decisions
nuies the provisions based thereon. The act of May
1874 in that part which is relative reports from the
individual banker processes merely to enact penalties
for regulating former legislation but go doing the
trainers thereof lost sight oftwo points, first that the
law OF April requiring reports did not apply to the
individual banker; second that there is necessity
whatsoever to require quarterly report from the ind
vdual banker If they had given the subject due cons
deraton, they would have perceived the material diff
private banking Whenever certificate of capital
stock has been fled it proper in justice to the stock
Of such capital stock should be bound to make
such reports exhibit their operations, that the
stockholders and the public may form their opinion
thereon but when there Is capital stock when there
no stockholders who to ascertain every three
months, whether the Of the banker have either
increased diminished beyond the knowledge of tho
fact that the circulating notes of the individual banker
are amply secured by the pledge Of New York State
further particulars and in the name of common
not sheer absurdty to require said individual banker
to fill up blank statements with such items and in such
u form as obviously apply only to corporate banks
II the Legislature, for statistical purposes thought
proper to demand "a yearly report from the individual
1t provide that he such form of
ment may BIO compatible with tho nature OF his bust
ness The form Of statements which provided
liabilities this Is conclusive prosf that the form of
these statements is intended only for corporate banks
and banking associations whereof the capital stock is
actually debt Of the bank to the stockholders and s
therefore as such properly set down liability But
when there stockholders there captan the
understood and defined in the general BANKING
law and it is very clear that the means con-
shutting the capital of the individual banker constitutes
also his resources and in correct statement of his
financial position it ought to be set down SUCH In
order TO illustrate my ideas this subject enclose
within one Of the blank statements which MIR. Vnn
Zandt forwarded to with auch erasres alter
and remarks, and filled up with such items are COM
patible with my business ut the present time.
should not have taken the trouble Of arguing seri-
ously Mt suchlength question that you understand no
doubt thoroughly had not thought that it might be-
proper ut this particular time, clear up the mysf-
cation that has for years sbrouded the subject Of
ports" This argumentative statement may become
Legislature in they undertake to review and har
onze the discrepancies Of the general banking and
It's amendments. Respectfully, remain, &c.
The quarterly report OF tho Comptroller settles that
question at once certhes therein that the quar-
the third and fourth sections Of the act entitled
Act to abolish the office of Bank aud for
other purposes passed April Is ls43'
The above letter takes up believe all the points and
arguments contained in the letter forwarded by mail
70 the Comptroller on the 10th 18th OF February
published the 10th of Aug, 1913 and stateme mt Of
the financial position of the New York State Stock Sc
curity Bank the LIST day Of February last according
TO the peculiar form which ought be adopted order
bank department has not forwarded to me any blank
statement for the quarterly report Of May last
TO suppose that the Comptroller has given
accordingly and that his views the subject Of
ports' agree with mine. l.. BONNEFOUX
In the annual report Of the Comptroller dated Janua
ry 1882 he says that tho 26h section of the Free
Banking law refers only to assocatons iivduals
who commence the business Of banking under that law
may not feel bound to report according require
ments He recommended at that time that all doubt AZ
to he nicat linn oF M