The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-01-04
The ComptrOller's Annual Report-Astomt
Ing Bank Dcvcl0pe nents.

The Comptrollcr's Annual Report-Astomd-
Ing Bank Dcvclopcnncnts.
Last evening", we received by express, in an
ticipation of its regular appearance in Albany,
the annual report of the Comptroller, which was
prepared to be presented to the Legislature on
| Friday last, and will probably be before that
body to-day or tomorrow. Next to the message
| of Mr.. Polk, or the report of Secretary Walker,
we believe the document which has proceeded
| from the Comptroller of the State of New York
| is the most important that can be presented to
| the people of this country. We give it at great
length, IN this morning journal, and particular
| ~ request the public-all classes-to study its
contents with attic ntion and care. On the SUBJ
ect of the public debt of the State of New York,
and the condition aud management of the nu-
merous banks, of all kinds, it cannot be too
| carefully read or remembered
This report is the last that will be presented
by Mr.. Flagg, and it presents one of the most
astounding Developments ofthe system of bank
ing In this State which can be found in any
other State Of our country.
BY this document, it appears that among that
class of banks called Safety Fund" twenty
of those institution have broken to pieces, and
cheated the community out of nearly six mil
lions Of dollars one-half of which has fallen
on the industrious and Woodworking classes of
the people. AS substitute for the dishonest
principles of the safety fund system, it will be
recollected that what is called the free banking
system was established Well, out of this batch
of banks, since their birth in the world, ice haze
the shame, already, to number thirty that haze
broken, and cheated the community out of nearly
million Of dollars yet this class of banks are
.Lo 1, Lo>
world as better than gold and silver, or any other
system that ever was devised The hard work
ing classes have already lost by those banks
nearly a million of dollars; and out of the ag-
gregate number still in existence, the ratio of
breaking amounts already to six per annum; and,
probably, during the present year, we shall see
dozen or more of them 60 to the wall. Accord
lug to the prices of stocks at the Exchange. the
value of the securities of those banks still in
existence is about two millions of dollars de-
ficicnt, as compared with the amount of their
circulation in the hands of the Teople. In fact,
every free bank bill now in circulation is hardly
worth eighty-six cents on the dollar, according
to the statements and facts presented by Mr.. Flagg
in this valuable report. During the last year, too
| about thirty new free banks have been started
in various places in the State of New York,
nineteen of which are located in the wilderness,
far away from the bounds of civilization, and
| impossible to reach without opening new roads
| TO them. The motive for establishing banks in
places without population, or with population
that don't require them, cannot be honest or
busiuess-like. The inference Is, that all those
engaged in them must intend TO cheat and plum
der the community, either by the system of re-
dcmption, or by the final blowing up. Even, al
ready, out of those banks established during the
past year, two have actually failed and cheated
the community 10 large amount.
These are some Of the leading and astounding
facts presented in the remarkable and valu-
able report of Mr. Flagg, late Comptroller
They demand the careful attention of the whole
community, and particularly of the working
classes, who receive such bills in payment for
their labor, and who have to expcnd them for
provisions and clothing for themselves, their
wives, their children and dependents. Accord
ing to this report, and the facts presented, the
system of free banking is system of petty
shaving and swiadling, and nothing less; and
those engaged in the practice are better fitted
Tor the penitentiary or State prison, than the
banking parlors, or the respectable pews OF n
respectable church.
Out while the banking portion of thA document
presents such gloomy feature of the past, and
also OF the future, as regards the currency, we
are grained to note that the finances of the
state are In most prosperous condition. Dur
ing the last two or three years the public debt of
this State has been diminished nearly five
millions OF dhilars. The whole debt now
amounts to twenty-iour millions of dollars
and the prospect is that the revenue of the
State will, in the process of time, gradually
wipe it out altogether. This is encouraging
aud cheering and shows that ~ active indus
try and prosperity o. the State are in the hes,
condition, and that nothing presents an aspect of
dread or alarm, except 1t be the iaetiicicncy and
dishonesty Of certain portion Of the banking