The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-02-16
ALBANY, February IL, 1913.

left yesterday for the Brszos with
0 Ptcayune, FEB. 8.
ALBANY, February IL, 1913.
The Banking System of NeD York-Mouements
in the Legislature.
An interesting and important report, upon the
subject of banking, was made to the Senate, this
morning, by Mr.. Ayraut, the polished and ca
pable senator who has been appointed chairman
of the Committee on Banks and Insurance Com
panies. 1t will be found to be report of great
ability, and Of the utmost public interest it con-
rains brief but comprehensive criticism of the
present system of banking, and it recommends a
peremptory and radical alteration ofthat system.
The revolution which the committee propose is
based upon this principle as the cardinal feature
in system OF mixing; that'to every creditor of
bank, whether that Indeb edn-ss arises from the
note that is put out tor circulation, or the depo.
site taken tor safe Keeping there shall be basis
of actual capital secured IN as safe, perfect and
absolute manner, the most ca utious, far
ing human sagacity will admit Offering nece ssary
| to establish" This is the principle which tie
committee have presented, as the one upon which
all banking operations should be prose cuted. II
may be a very st principle, but though this
HONORABLE. senator processes to be ardently de-
equal rights 10 all - and ihough he pretends to
believe that capitalists, associated for purposes
OF private interest, are no more entitled to pecu-
liar privileges than Individual citizens; yet am
unable to give him credit tor sincerity, because
mis- acts in the Senate have not been in accord
ance with such professions. 1t was but yester-
day that ne recorded his vote lii favor of GER
tain general manufacturing bill.
transmit herewith synopsis of the bill for
the formation of banks, which Mr.. A. introduced
with his able report / also enclose copy OF
the report itself, of which ten times the usual
number were ordered to be printed.
THE REPORT OF MR.. AYRAULT.
Mr.. AYRAuLr, from the Committee on Banks and In
surance Companies, to which referred much OF
to the subject of banks made the following report
That to subject 80 important VIII use good or bad sd
minstration is so intimately connected with the in
erests Of the people, involving transactions having their
influences the trade and commerce and labor of the
people in oil departments Of industry they have endea
vored to give as 1t deserved full and mature consider
alton.
On subject before the public Judgment has there
been greater extremes opinion 80 far apart
and srenuousy advocated that the true theory, the
sound decision has been often among the things most
difficult TO be attained 1t has been vehemently assert
against the rights of the many and that government
alone had advanced far in the progress Of
most discouraged and opposed this pursuit And by the
side CT This error up It's antagonist, holding doc
trine utterly the reverse and contending for the giving
and tho granting of privileges and exceptions and fran
chises ncoD sstent with that equality and simplicity
which essential in the institutions under which 1t 10
The great cot Of your committee has been IN coz
sideraton of this question: and Of their duties
nected with it, to avoid either of these errors and
people require and to which tbs constitution directed
They believe banks and banking are conveniences of
business which be regulated by the well establish
ed practical rules which govern honest
commerce and aborthat there is to be neither mystic
~ or privilege about them but that their duties
other business in @ and that ~SsD acting Within o.
regulated limits they are valuable Instruments of the
movements of society but that whenever than this
Is asked or attempted, and they thrown into the
combat Of political personal strife they become OBJ
noxous, and are worthy Of the dsapprobaton Of the
people, EXPIRE ssed through their laws
All the action on this question which your commit.
tee intend TO recommend, will be based this prnci-
pie as the cardn feature in system Of banking that
TO every creditor Of bank, whether that indebtedness
arises frsm the note that is put out for circulation
the depose taken for safe keeping there shall be basis
manner, the most cautious farseeing human saga
city will admit of being necessary to establish.
The principles which your committee intend respect
fully to Recommend se proper to be moulded into law
this subject will be found to be few and simple They
believe the technical language the complex statement
the perpexing DETAIL which been 60 much u,ed TO
be and that they best
the intelligence and dignity OF the Senate in presenting
their views ne business men-as friends OF such modif
cations Of the Law, will tend to simplify the move
ments and strengthen the sovency Of the currency.
A new constitution, mstured after protracted debate
and elaboration and adopted and sanctioned by the sx
pressed voice Of the people, In reference
pow -rs established principle, and one which is
controlling on the action Of Legislature While it
sanctions the giving Of such powerthe forming Of such
1t has prescribed the method to be- not
specific grant but general law and acting obedience
TO this rule your committee have matursd bill the
institution and regulation Of banks, under which, with
out fayoritism special privilege but with sufficient
guard and abundant restriction, all who choose to
gsnize under Its provisions may do conformity with
the cherished and approved doctrines Of monopoly to
none, equal rights to ell.
fsvorte object Of your committee has been in the
law which they have the honor to report time
in the daily business of the bank the empoym, mt
Of capitals capital paid in In the legal tender Of tn
country, or Its equivalent sod working basis
for the business OF the country always bs relied
net liable to sudden expansion or conr action not
easily affected by spssmodc alarm rumored failure;
kept healthy action In vigorous business pursuits
sod representation OF fafs circulation and an Ell
cent basin for sound system Of finance Examination
Of the details Of the law WILL IL is hoped satisfy tho
Senate that the first object Of the COMMITTEES has besn
make banking system uader which the business Of
the country could be honestly, fairly safely pursued
which the people would eanction approve and give
their confidence.
general NV on The subject 81 bsniips b 81 :pes
protected and accessible, sueisnty yeainsd end ~
sdeduote 10 the puypooGo Of buGn0Uo oomwfftoo