The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-01-04
Circulating notss Rates Of
Name Of Bank.
So 500 90


Whloughby Bank, ......... AZ W
Wool Growers Bank, ....... lsS 90
So 500 90
OF the thirty banks which have been closed by the
Comptroller. there a. been second dividend in only
single oastths Washington Bank Of New York In
twenty five out Of the thirty all the securities in
first sale and the entire proceeds divided paid
the bill holders In the of five banks the right
Of the Comptroller to sell certain mortgages called
Queetion the auction and in these the
cages were withdrawn from the sale and foreclosed In
cbancery.
The Hrst Of these mortgage Of 81 AIS, pledged
for the notes of the Bank Of America, at Buffalo The
litigation in this case is not yet closed.
the redemption of tho Of the Merchants Exchange
Bank, of Buffalo. A decree was obtained in this
several years since and after various efforts to sell at
private sales the lot was put up at the land ss of the
Surveyor General at Buf,lo In October last and
bid OH at $4,000, one.halt Ct which was paid to the
Comptroller, and the purchaser will give mortgage for
the other half payable In four equal as soon
as the chancey paper. are perfected so that the Comp
Ia the cas-. Of the Farmers Bank, Of Seneca county
there we're two mortgages contested In one case
the sale Of the farm There il mort gage of $3.50 now
in course of collection and second dividend has been
deferred until the result Of this III. suit 10 known
the Bank Of Brookport also ia the Of collection
The Washington Bank. Of New Yo,k had deposited
with the Csmptrolrr mortgage Of $4,000 which was
contested but the Comptroller obtained decree in
chancery and sold the premises for Sl2 3sl &C. which
enabled him declare and pay second dvidead to the
bill holders of the WxshiD gton Bank, of IS per cent
having in the frst dividend paid only IS percent
lot was and paid for the title to which otsy
sed The purchaser had redress against the State
and he applied to the Legislature for the surplus in the
hands Of the Comptroller belonging to this bank, and
law passed, chapter 259 of ls45 under which he
oeived the list July ls46 the Of $685. CO. which
In the case Of the Merchants Exchange Bank of Buff
fo there will be 100 to divide and in the OF the
be added to this sum $3.50 more The gums be ree-
lzss account of the Bank of America AMI the Bank
OF Brockport, cannot be stated with any certainty
The twenty -fve other banks which have been closed
and for the unpaid centage Of the notesof which
notes for REDEMPTION there is no chance for smother
dividend, unless the Legislature should determine to
divide among those who hold these certificates the bal
in the hands OF the Comptroller aud which have
not been called for amounting as shown In the table to
$22 s2 "a This money belongs to those who have not
yet brought IN their notes for redemption and will
them, tho average 76 per cent Shall the State
Trustee for all the bill holders apply this money to the
of those who have already received their share or
per cent and leave nothing those who remote
from the channels OF BUSH e,s and Of intelligence
Those who hold certificates, and desire TO get second
troler aege that the losses considerable and
badly all have been returned that ever will CONS in
There are not many tes Of these shorvd banks
the holder Of of there notes for five ten
much entitled to his per centags when he does
dend is declared Bill holders subjected to losses
enough without being cut off, by statute Of Imitation
fund placed In the custody OF the State for their
use
It respectfully recommended that this trust fund be
paid into the State Treasury and be reserved for the
payment Of the notes of the ctve banks for which
the pledged until the notes are presented
Twenty banks established since the passage Of the
ao for free banking In 1888 have been closed by their
stockholders In ls4I, act passed, chapter
3l9 which provides as follows:
as when any individual banker, or the officers Of
any banking association DESTROYS of relnquishing the
banking business shall have ut least ninety
per cent OF their circulating notes shall produce
the Comptroller certificate of depose to his credit
in suoh bank he shall approve TO equal amount
with circulating such bank uuredeemsd it
q
all the securities deposited by such bank
or association for tie redemption OF circulating notes
| issued
"Ss. Such association individual banker, after
having complied with the provisions of the preceding
section give notice for two years in the State
per- and also In at least wspapsr printed In the
county where the said association or bank shsl have
been located that ill circulating notes issued by such
association bank be presented at the Comptro
ers Office within from the date OF such notice
that the funds deposited for the REDEEM pton OF the
notes win BE- given up the bank association and
receiving satsfs ctoiy proof OF giving such notice for
the order OF the said association bank securities
which he may hold for the Of any unredssmed
notes of the said association or bank 3"
i Tn provision operates with extreme hardship and
injustice towards such bill holders do not the
tice. Hundreds and thousands of dollars may bs held
by who do not read know of the existence Of
such papers the notices published In Let it be
supposed that of those In coming to Albany
has ten dollar note and In presenting it to mer chant
is informed that the bank closed by the owner
and directs him TO the redeeming agent, the who
appointed to the note at half OF cent by
statute when he presents the note to the agsa he Is
informed that he day too late, the notcs Of two
years bring in the notes expired the day before and
the banker has Withdrawn his funds from the
| OF the redeemipg sgent The unfortunate bill holder
then examines the nUts and finds one end Of i the
following Words" secured by pledge Of public ftocks
and real estate and registered ana in the
Comp, rollers Office Of the State Of New York" He
of the out Of the pledged securities and finds that
he !. day too late; under the act Of ls the Comp
troler has returned the balance in Lis hands to he
person who issued the note and this pledge the face
Of the note Is nus repudisted according to statute
| Gases Of this character have occurred where the
banker entirely responsible and the notes not
redeemed without considerable relucance his part
| and delay and vexatiop to the holder
A great number Of banks are going into operation
where the only who could be looked to for the
redemption Of the notes after the withdrawal Of the
curtes from the Comptroller has very little interest
10 tho bank, and control over It's funds In such
the parties who furnish the stock and the
rsncy could very readily reduce the circulation to ten
per cent give the notice. withdraw the funds from the
Comptroller and leave good share Of the ten per cent
in he hands OF persons who might As well lose the note
remote point in Caaraugus sr Chautauque coun-
ties.
the ols4 before referred ought to be repealed
and when the gers of bank reduce its circulation
to ten Fer cent, they might ibs allowed to discontinue
he redemption Of their notes BY paying the ten per cent
into Che State Treasury to be held the redemption
OF the circulstipg notes whenever pre- sented.
the currency au horsed TO be Issued with a pledge
that the payment Of the s secured by funds in his
hands the holder ought to feel as safe so far ss the ao
ton OF the government IL concerned as he does with
coin stamped at the mint t Is breach Of good faith
to part with sscurites thus pledged leaving the con-
fdpQ bill holder look for the redemption Of
perhaps Of straw located at the most inaccessi
bls point In the State.
| AGENTS ron RGDEEMING NOTES OF TIE SEVERAL BANKS
Statement No. list of the sevcral banks I'm this
State with the place where each bank is located and
the name OF tho agent for redeemng the circulating
otss This list is made out from the record kept In
the COM troll - office. 1t IL Appreciated that in
vsal cases the rsdeeming agents have been changed
without giving notice to this Office required by Law
Ibe officers Of ali the banks whom this report will be
sent desired to examine the list and II the agent
incorrectly gwen, to furnish to the Comptroller the
necessary information to enable him to make the cor
rection.
SECURITY FOR BANK NOTES,
The 9th section article T. OF The Con stuton, declares
that the Legislature shsl provide by law for the
gistry Of all bill. notes issued put circulation