The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-01-04


hat hclders Of the safety Fund banks might be
amply secured by the payment annually into tins Ires
sury Of sun equal to ha Of one cent on the eap
during the life charter; this to BIZ invest
ed and the accumula added to the fund.- ami held
by the state =: trustee for the bill holder I'D
tu payment Of the ceuase on the delivery or the
circulating notes to the officers Of the bank and such
provision would ecusly protect the bill holder as well
thes ISOLATED hanxr"-Asssmbly Doc No %, 1916
pages ia
circulating notes and not for the debts Of the banks
generally required by the Bank Fund law Of 1929
the halt cent might be exaotsd only on the amount
of notes issued by the Comptroller to each bank The
sxaction should be ten cent allowing charter for
twenty years. and this on $4,000 the amount issued
by q bank Of 100000 would be $4,000. The necessity
Of paying this into the Treasury, securing its
payment and placing beyond the reach of the banker
would to some extent the tendency
establish banks points where there ID no business
requiring banking facilities The Constitution only re-
qures security for the redemption Of circulating notes
and seems to be entirely equitable that each bank
snoud contribute proportion to the notes
issued aud used for Its benefit Each free bank Is held
to tho .ams rrs by being required to give security u;
circulation.
With paid up capital and ten per cent on the notes
secured to the Safety Fund to be held and husbanded
before suggested 1t is believed that the currency would
bs amply sscured contemplated by the Constitution
This mode OF contributing to a common fund to pro-
vide the rsderming the notes issued by any
one Of the contributing banks which might become In
solvent would the assent of each OF the associate
banks II is fairly nferrable that the Constitution
intended to force bank furnish securing
notes issued by another unless by the Of the
porators associates OF each bank All existing banks
therefore, ought to have the option of continuing under
the proposed Safety Fund sysem or Of securing the
notes which they issus as money by depostng State
stocks and bonds and provided In the gene
raj banking law.
RyprMPTIoNs NEW YORK.
class of banks have established in this State
der the system Of free banking not for the purpose of
furnishing banking facilities he busners Of the places
where they located hut with view Of putting the
notes In circulation In New York at par and
them discount Of half Of per cent, provided
by statute In the annual report OF the Comptroller In
1874 Up 81 to 6s the attention Of the Legislature
called To this subject, an evil which then
mepcng, and 1t suggested that eeotual remedy
would be found in requiring all the banks to redeem
some reform In the has been defeated from
TO year by interests antegonis to sound currency An
pcsite Of fifty Thousand dollars as condition for the
sue Of notes. The incGfcency Of this remedy ~ opps
rent from the fact that nifteen individual banks hare
been established ioithn the last gear, Nth capitals Of
$50 600 more, and many Of them st points fur
moU.d from the principal channels of business it
practicable to hare taem wihoHt opening roads In
almost every the Notes If these 6snks secured by
siocks Of "a. State Of Ntw York; so hst the notes
you'd be hcT per cent batter after the death Of the
The opponents Of par redemptions complain Of the In
The practical effect would be REDEEM tion at only
place And than as to hardshipthe banks crowd twen
ty millions Of dollars OF into the hands Of the
people, which the stockholders drawing than
million Of dollars annually In interest and instead Of
making the return which justice demands by redsemipg
b
lent to gold and silver they content to the ad
ditonal gains the discrea Of their promises
redeeming them at half Of one per cent
1t is commended that half of per cent Is only fair
remuneration to the banks for transmitting funds to New
York to redeem their notes Is 1t to be supposed that
the banks which have furnished facilities for sending
products to tide water Of the value Of seventy millions
of dollars will be subjected to expense
In getting funds In New York to redeem their hottest
In the annual report Of ls 49, statements present
ed which proved that those banks that their
at par in New York had good circulation as those
hat rsAo cd a. Af hale fnu~ snk
When ample security, as required by the constitu-
ton, shall have been provided for all the circulating
bills registered and countersigned amply secured,
and at par with gold and silver In New York. what to
prevent the currency OF this State from becoming
national currency at least favorte medium in that
vast region Of country at the west which contributes
so large portion to our canal revenues, and looks to
New York for q market fjr It's products!
BANK INvEsriGATIoNs
The 9th fection Of the act to abolish the office of
Bank Commissioner and for other purposes passed
for the Comptroller whenever he shall have good and
su ,ent to suspect the condition OF any bank
s sp m o, s
who for that purpose shall have the same powers now
vested by law in q Bank Commissioner "
The authority given to the Comptroller In this
ton has been exercised in reference to the five follow
ing banks viz The Locsport Bank and Trust Company,
IN January 1886 the Bank of Rochester In September
ls45; thu Lewis County Bank in May, 1916 aud In o.
tober lsa7; the Cspsl Bank of Lockport in August
1886 aud the 3 snk CT watertown. in June, ls47
In the case Of the Lockport Bank and Trust Compa-
nv, Thomas M Burt, E,q appointed special gent
of January lsa5 By his report it appeared that the
affairs OF the bank in very embarrassed condi-
ton and that mmedatey after refusal of Its notes at
bank nearly the whole of its assets which consid-
cred Of value were assigned to certain
ditors other than the bill holders There had, however
been previously assigned to the agency in this city
sets to the amount Of sl670l 10 toe payment Of
notes Amongst the liabilities Of the bank was one
amounting to S36e44 81, to the Commissioners of the
canal Fund for canal tolls depositedb the collector Mt
that place The special agent reported that this debt OF
the bank less than any other
the payment Ct which the assignments had been
made
It the opinion Of the then Attorney General th
the bank the legal authority execute these
and cons qu.ntly ne application was made
agent received the officers Of the bank made
rangsments for the redemption Of Its notes and the
ISOLATION still continues It's banking operations. The
debt due to the Canal Fund has been reduced to the
Of $Sl.O72
made for investigation in behalf Of the officers Of the
bank and Of Of the principal stockholders
Charles ssbbns Ea was appointed special agent and
entered on the exRmuation the 18th OF Sept lS4s
This bank rst char in 1924, with capital OF
$25o ooo In Mey ls46, the charter extended for
two ye provided the stockholders asented beoome
personally liable for the debts Of the bank and that IL
should also become n contributor TO the Safety Fund
portion OF the stockholders protested against incur
ring the liability; and it determined to wind up the
bank.
The special agent reports loss of about 500 900 OF
the capital but also reports that 1T possesses the ability
to discharge all its liabilities the public and that he
has not discovered that the said banking corporation
has violated any provision of law binding It. The
agent therefore DID not deem necessary to commence
proceedings in cbancery and the directors have been
allowed to proceed in winding The affairs of the bank
The special agent reports further, that an item Of
$40s2l so charged In the statement to suspense &C
count rspr1ssats nothing of value but consists OF an
amount Of the bank which have been redeemed
from time time, and which appear to have been a,
time fraudeniy i.sued by, or distracted from the
pressons OF $7S plate (s 0co had been put into cir
culatin, which not entered on the books Of the
bank 20 the debit Of the cash account The amount Ia
nov entered to the debit Of suspense account
part Of that item In the statement How these notes
got into circulation il as yet unascerteined
at would hardly seem possible to have been mere
neglect to their issue upon the books In that
case the cash must have exceeded the each account
that amount and Of this there evidence It il al
most equally difficult to account for the fact any other
way, the integrity of all the officers employed in the