The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-02-16

f.oities must be granted and all proper guards main
tanned have been 80 great as to have on the
Of the duties entrusted to them
The nrst proposition distinctly traced out and embo
died has BEEN that 1t should be open to si-thst the
privilege Of issuing currency (sni assuredly is ons
should be within the reach Of all who complied with tho
's the
knowledge of business or the cunning ingenuity OF the
sharper
not based upon business, vigorous bu-iness In all Its
relations. Our people are a business, people; we can.
not be inactive The swelling tide of trade, of
ami labor must be met, and Institutions
adapted to It. While there Is circulation abroad there
must be facilities at home. While the exchanges
active, 80 must be the depostss The brlon and the
paper must interchsnsei and wherever the bank Is
The bill your committee introduced provides that
publicity be given to the names of the individuals who
to compose the their responsible
tytheir means OF doing businesstheir associations
their characters may be known to the people with whom
through which the currency issued by them is to crcu
late And thus the quiet aDd security Of the public
whom thi. CON dsnos bestowed '''"' A''"s
In system Of banking no measure has been adopt
ed Of greater utility, or more universally approved,
than the registration Of notes issued by the financial
officer of the State 1t 10 salutay guard against frau
dulsnt issues And your committee have embodied the
In the bill submitted, with all the salutary provi
sons Of the present statutes relation it, made ap-
plicabs to the circulation which shall be issued by
banks formed under the provisions Of thislaw
But the committee beg to refer for most Of the
particulars of their plan TO the bill itself IT will therein
be found that efficient taken to protect the
rights of tho stockholdesthe election Of their officers
guarded and the peculiar obligations to the bank Of
such officers, limited to extent beyond present
The property which bank may hold. tariff of oircu
aten such as has been approved by the people for
could operate wise measure Of security has in tho
belief Of the committee, been prescribed And at the
same time, the business OF bank Is 40 defined a. to
make 1t certain that when pursued in legitimate man
ner, by honest and careful men, 1t will afford them fair
remuneration for the Investment Of capital industry
and attention Ifsuch not the features Of the BILL
1t he's been only from the failure Of the most honest In
tsntion that such should be their character
tutons Of our state under whatevsr law formed has
been carefully considered and acting in the spirit OF
the principles Of general law every facility MS os'n
HEALTHY sound action In doing Legitimate business an
unim capital and solid basis to come in and or
has been deemed advisable but the effort has been to
make tho Transition from special charter or different
SYSTEM to the provisions OF the law now reported al
easy likely affect unfavorably the great ls
ness Interests oil the State.
A thorough supervision has been delegated to the
Comptroller. whose department, by this enactment will
have the power at all times to know, precisely as
possible the condition # the entire banking system
know 1t by home examination Of competent men, con-
with the and character of the assets of
the bank with its debtors with all that appertaius to It,
Aud completely every of information made
sccessibs to this ocer that It Is believed that he will
at times be able make the public acquainted with the
true Of IN sSa
security full and ample has been provided in the re-
QUESTION of capital paid in and possessed but TO add
ample fund is created for the safety Of the public to
which all must contributes which fund secured In the
the financial officer Of the State and when the insttu
ton has not by of honorable management achev
greater guarantees provided At homo and abroad,
the bank made to feel that its first duty Is to mGo the
watch the others and the unsulied credit OF the
State in It's stock made the basis of the fund to which
people, for their security would yet have access:
The committee present to the Senate no hastily ma
tured plan. Whatever be its errors they not
those iuattenton. sound currency is the life of
business and Is Of the distinguishing features Of
free people. One OF the FIRST objects Of government
should be- the establishment of wise this
Your committee have not been unmndful Of the obga
lions that due from the banks to the people, created
by them with the privilege Of furnishing the currency
that to be the medium Of the business Of every day
They bound to to it. that all their ha
the obi cations Of the Legislature to enact such laws
shall give to all the departments Of business proper fac
cples like these it Is believed the bill introduced
they commit 1t to the Of the Senate
with the conviction that the visdm Of this body will
correct whatever errors may, in the multiplicity OF
detail, be found in its preparation.
AN ACT FOR THE FORMATION OF BANKS
The People sc do enact as follows:-
SEC. 1t shall be lawful fer any person. resident of
this State or number Of persons associated, ma
'ry of whom shall reside within this State estsb
sh Office of discount deposite and circulation upon
the ter. and conditions and subject to toe liabilities
hereinafter prescribed but the aggregate amount Of the
capital be actually employed the business Of any
such bank hereby created shall not b. l~rs than $780,
SSs . 1 sed W sv
sha have lees capital than $500 Oo0 nor in other
cities Of this State with les, capital than $2eOOoo.
The business Of banking Of any such bank, hereiu
after dened shall be carried the place where said
bank shall be located, and not elsewhere.
The eecond section requires tho person persons
establishing bank to mako certificate, under the
hands and seals which shall specify the name Of the
bank the Lace where 1t to be located and where Its
business is to be transacted tho amount of capital
stock, and the aggregate number shares-the names
S rne % M %
these bsnks is limited to twenty years but they sha
to do business before the expiration of that time
they will not be allowed to withdraw their contribution
in this act directed to be made prior to the sad term of
twenty years.
The third section requires the certif cate above no.
ced to to ed with the Secretary of state and with
the clerk Of the county where the bank Is located
The bank being organized, and its capital paid in
will have power to carry the business Of banking in
The nth and sixth sections make provision for the
election Of the president aat directors of the several
banks
The seventh section forbids the officers directors
OF any bank organized to borrow from It amount
which SHALL in the aggregate Of the Indebtedness of all
such officers, be than fifth OF Its pial stock
The eighth section forbids any bank organized to
take hold any part OF its rtock-except when the
shall be bypothecated, In good fsithin security
for debt loan and in such the shares Of stock
hypothecated shall be sold within sixty days alter
debt shall have become due according the
of such hypothecation and the avais applied
discharge Of the debt and II there shall be than
sufficient to pay such debts the balance shall be paid to
the owner Of the stock.
The ninth section author:ses any bank 90 organized
to hold and convey such real estate shall be
for Its immediate accommodation in the transaction Of
its business such shall have been T3ortgsged to
by way Of security for loans previously contracted
for money due suoh % shall have been conveyed to
it, In satisfaction of debts previously contracted or
such shall have been purchased at Sales upon judg
msnts DEGREES, mortgages obtained made for such
debts upon prior liens may be In
ry Ct such debts The said banks shall not purchase
other purpose.
The teltn section prohibits any such bank from
buying or selling any goods, wares merchandise, or
commodities Whatever or any stock created under any
OF the United States Of any State unless in sell
ing the when ru pledged security for debts
due to such banA except far a. be to
purchase and hold the stocks Of this State in securing
It's Giro ulAtipg notes.