New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1848-07-17
The Canal Bank Failure.

Whoever NAV be Justly held responsible Tor the
late swindling Bank explosion at Abany-and
we trust the guilty will be faithfully exposed 10
public reprobation if they casnot be subjected 70
farther punishment--we hope it will prevent TAR
Their efforts 10 refasten the Safety-Fund system
upon the People Of this State. Through several
years past, we have been repeatedly compelled
10 protest against successive efforts 10 revive TINS
exploded and reprobsted scheme, and when
popular sentiment had been aroused wmch 10
Legislature could venture TO DEFY, the bill wOuiu
be allowed to drop quietly into oblivion and per-
baps the very next session Monsieur Tonson
would come again, little changed IN garb or gait
or whiskers, but essentially the same as ever
The least relaxation on the part OF lew deter
mined adversaries OF the system would have IN
sured a reenactment though the great mass OF
the People, taught by dear experience were
averse 10 it. Private interest is often too nmbie
for public conviction.
We freely admit that the bills most recently
submitted TO the Legislature embodied many I'M
provements on the old Regency Safety Fund sys-
tenn They preferred some safeguards winch 10
the old scheme were unknown. But the radical
vice Of Furnishing sound and honestly conducted
Banks for the sins OF the rotten and knavish, ana
of drugging public vigilance by the display oil a
vast but slippery security, were not obviated and
could not be- The State can only insure the pay
ment of currency notes issued from Banks by com
pelling those Banks 10 deposit ample security IN
its own vaults not theirs whether jointly or Sc
parately. The State Opposite system IS not val
ued by us mainly because originated by the Wing
party and landmark of its accession TO power,
but because it has worked well and is plainly ac-
cordant with the dictates of good sense No
other basis OF security was ever subjected 10
severer trials; no other ever withstood them
40 well. Personal Liability will brighten
away ten prudent capable men of character aud
means from any investment IN Banks where II
catches one such in its net while knaves VIII
wrigele through it, and for bankrupts 1t has no ter
rors. Safety Funds have proved unsafe aud de
ceptive, and in the nature of things must again
prove 40 If relied on But dollar ut should be
moreD OF good United States interest-paymg
State Stocks in the Controllers vaults for every
dollar OF notes in circulation about the best
curty for Bank issues we have any idea Of aud
such security may be and ought to be made suili-
cient to cover all losses including those incurred
by delay OF payment. II each Bank were re-
quired to keep deposite with the Controller one
hundred and ten dollars worth of interest paying
Public Securities for every hundred dollars OF ITS
notes in circulation, any future loss by Bank fail
ures Except of the relics OF the Saiety-Fund
litter would be morally impossible. We trust
some such improvement will be made IN the
Free Banking system, and that any farther
attempt to reestablish the exploded system, or
to give prolonged vitality under it to the pre-
sent Safety Fund Banks, will be promptly
and emphaticaly put down by the enlightened
sentiment of our People. This Canal bubble has
been kept up for years aiteri it was utterly bank
rupt. although Bank Commissioners were amply
paid for looking sharply into its concerns and 1t
has finally exploded, cheating thousands in spite
of the Safety Fund including Country Banks
which ought to have known who they were
trusting and the State itself which thought It
had exscted ample personal security. The Di-
rectors and officers generally eminent and
have passed for honorable men but as yet we
have no explanations from them of the manner IN
which their business has been conducted SO as 70
involve loss of nearly Hall Million Dollars
Is it not time they should speak