The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-12-09

The Currency Controversy i.

from the New York Courier and Enquirer Dec III
orn Basns-ors.t complaint Is made that our banks
are TOO stringent In thu they pureuiug and
that II must inevitably result In failures and consequent
loss to the banhsthsmseves, How far this may be cor
would remind our correspondent "Curreucy," that
dsnuucstious which are gsnsr. seldom just That
there banks badly conducted tho directors Of
which appropriate to themselves all the available means
of the institutions which they preside there Be
be avoided By honest men .. they would avoid .
psstilsnos But ths great majority Of banking In
banks, where the directors and stockholders make Ma
point Of principle not tn avail OF the privileges
r.. in ike
The evil Of existing system, ID apparent IN the
power which 1t gives one or two sousss institutions
entirely for tho convenience OF CERTAIN drec-
tors the Of all tho other banks In the
city. Thus at this time certain institutions contract
oomp.s the Others In self defence to adopt similar
courses and In running the race Of and our
the usual facilities to tho community find Themselves
driven into TO which they opposed In prtno
Another evil Of our system arises from the very foolish
rule that single director may at his pleasure reject
any paper offered for discount instead Of making the
fate Of application depend upon the decision OF
majority Of tho board This gives apowsr to individuals
never contemplated by law, and at variance with the
what Ia termed log rolling Ia legisstion, and makes
good and liberal minded responsible for the con-
oomplish selfish purposes are willing to pjure the
character of institutions which they permitted,
Illustrate this practice BY snscdots point
In 1887 gentlemen In this city failed, owing TO the
National Bank nearly hftsen thousand dollars His
endorsers failed at tho time and the bank would
cheerfuiy have compromised for twenty cents the
dollar But the party failing detsrminsdt al should
be paid and so assured the bank. He made payments
from time to time and nusy got discharged under the
bankrupt act from all his liabilities including his In
charge he assumed the whole Of his debt to the
bank, and has reduced his Indebtedness to thirteen
hundred dollars having paid the institution upwards Of
twenty thousand principal and interest," since his
3ture-not dollar Of which could they have COL
leoted In suit at law.
WELL on Monday this debtor took to the National Bank
his note for fifteen hundred dollars endorsed by Of
best houses In this city he had paid the In
cuar since he had received discount OF
oent-clsmed discount Of 90 small Q sum. The
President promptly recognised his claim and assured
the applicant there doubt but bis note would be
discounted 1t went before the board yesterday and
Such Is the National Bank and such the legitimate
workings Of the existing system Four nfhs Of the d.
rectors Of that institution feel warranted In saying
desired to the discount asked or but or tive
directors who had occasion for money Who
pledged to give II to the directors Of other
bank who had taken them In other lnsttuions
said and thus made honest men responsible for their
| want Of principle. e .. fey.r
| For the truth Of the foregoing statement
ponsibe; and give It, TO exhibit tho evils OF our
| banking system, and to expose the manner In which
some Of our banks ars managed Butthe good must no
complaint at the course pursued by our banking ns-
tutops at this juucture but 1t 10 because the few ma
nAged, selfish purposes, have tho power to compel
those Veil m.nsssa 70 pus:Ts So. sS 70 Tn,sl
gentleman Of high character and honest purposes, ~
thrsefonyths Of them controlled BY or two wht
laugh principle In banking and pervert the nsttu
with which they arc connected entirely to ssnsl