The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-03-21

market IL large and the prospect prsse Is that
Importation Of specie will soon commence
The leading features Of the blu rep ,rted by the Sc
nate Committee on Banks and Insurance Compa mics,
which passed that branch Of the Legislature on the
10th March, are - annexed:
New YoRK BANKING SrsrEM-INDrvIpuAL RESPONSIBLE
r. LIrY or STOCKHOLDERS.
SrorIsN 1-frovdes that stoc kholders shall be in
dividnaly responsible equally and rs.esbly, for the
amount OF any debt or liability contracted after the
LIST cay of January 1850 with interest to the amount
Of their respective shsres Of stock
SECTION g. Defines what constitutes Q stakeholder
IN any corporation association also the
uty Of guardians other trustees In making invest
nents for miners or Of trust funds
SEoTIos 4-Nsmes aud residsnces Of stockholders,
With the number Of shares owned by any individual
shall be kept subject to public inspection.
SECTIONS s and 6--Psint out the course to be pur-
sued for the recovery of any demand against any
poration or association
any corporation or association which refuses to pay
any demand exceeding one hun"red dollars.
SECTION -Providss for tho investigation of the AZ
lars OF any corporation under In Injunction
SEcrIoN 9-Provdes for the appointment OF Q
oever In tho event Of any corporation proving nsol
vent.
SECTION 10-Any Que or more stockholders owning
stock to the amount Of part Of the capt.
prems Court for an order declaring suoh corporation
!nsolvent or in imminent danger Of insolvency; and
H. on the facts presented such justice shall deem
necessary to prevent fraud SO he may issue an in
junction and examine the affairs sRd books of the
porAtion and II necessary appoint receiver Of the
SECTION 11-Dsf Ne the duties and powers Of receiy.
ere appointed q pder an iDJu notion
SECTION 12-Reguates the sale of assets Of insovent
sEcrIoN Is-Provides first for tho payment Of bills
or notes held by bill holders who shall presented
the same. Any surplus shall b. divided and paid to
the creditors having demands foun ded on any debt
after the sfst day of January 1850 in pro-
portion to their DIS aud any further
urplus shall be paid all other creditors in propor.
lon to their demands,
SECTIONS II and l5-Deiue the duties Of the receiver
fad uhiC
raoted after the LIST Of January 1885, after the assets
the corporation have been exhausted In his report
Justice Of the Court he shall set forth the
smouHt of cash realized by him, the expenses and
allowances claimed, ali payments that he may have
justice true and accurate list Of the persons Who
since the LIST January 1850 of such
and the residence of each 80 far he ascsraned
SEcrIoN 16-Said Justice shall appoint q referee,
with directions after giving notice TO all
cerned to apportion the debts and liabilities Of such
corporation, contracted after January LIST, 1850 and
remaining unsatisfed among said stockholders rate.
ably, In proportion to their stock.
SECTION l7-Provides for otfy ing stockhoders and
Tor tho publication CT the of stockholders who
1nsolvent corporation conducted.
SECTION l8-Gives the referee power to hear proofs
OF oil parties interested in the matter and
TO ascertain the who char Seable stock
holders for the debts contracted aforesaid and the
amount ohargeable to each
necessary, for the examination and iqudston Of the
affairs of any insolvent corporation
SECTION ZO-Wneu the report OF referees has bf
confirmed BY Justice of the Supreme Court, said
order Of confirmation shall be- inal as Judgment,
and executions may be issued against any Of the
stockholders, the same IS upon Judgment in the
Supreme Court, and the money collected on such
executions shall be paid received by the receiver
OF said insolvent corporation
SECTION 21-Money so collected shall, after deduct
ing al expenses, DO divided among the creditors of
such corporation.
SECTION 22-Regulates the compe nsatou Of re-
ceivers and referees
SECTION 28-Stipulstes within what time dividends
shall be made to creditors.
SECTION A-Any surplus, after paying of all the
debts and liabilities, shall be divided ng the stock
helders In equal and just proportion to the
tributed
SECTIONS Is, &C. q, 49, and 20 Relate to the course
to be pursued upon an appeal to suspend or delay
execution, or from any order determination Of the
Justice Of the Supreme Court
SECTION 30-Relates to every security taken under
the provsons of this act, and the disposal and en-
forcemept Of tho samo
SECTION 31.-Ary creditor who shall have neglected
to present his demand to the receiver before the first
the same before the second any other subsequent
dividend, shall receive the he would have been
entitled to on any former diedsna before any dstr
button be made to other creditors
SECTION 32-Every s.u, of or oflaw Joined In any
eut against any corporation association, described
IN tho first section of this upon any debt liab
lily contracted after the fret of January thou
eand eight hundred and fifty against any receiver
ceiver under the provisions this act shall have
ference at the court at which it rha be noticed for
trial. to ell other cause. and evsry case made special
evidence taken such trial and every issue of law
Joined the pleadings in ouch suit, and every
appeal from any order deter uatsn, judgment
Decree made or rendered under the provisions this
act and every special motion relating to any proceed
ngs had under this act sbs have preference in the
hearing and argume mt thereof in court where the
fame may be pending.
This bill is framed for the purpose Of enforcing the
responsibility of stockholders in certain corporations
and associations, prescribed by the constitution,
end to provide for the prompt payment Of demands
against such corporations aud associations This bill
will probably pass the lover 0ouse without any mate
rial alteration and imme datey become law. There
- considerable anxiety among stockholders In tho
banks Of this State relative to the operation and effect
Of the provisions of this actthe general impression
being that 1t will tend to deprecate the value Of bank
eook aud restrict the Of those institutions
1t Is very probable that at st tho value Of bank stock
will be depreciated butwe do not think it will remain
long depressed. It will create csutousness ON tho
part Of those entrusted with the Of banks
and keep them within proper and safe limits the stock
holders will be careful in the election of officers
and EXAMINATIONS and Investigations be frequent
~ made The system Of public credits will be much i'm
proved, and the discount line much reduced. This
law will have very favorable influence upon ndivi-
dual credits and deprive many OF those 7ors which
have heretofore been at times freely extended for
the purpose Of promoting speculation The individual
responsibility system, properly enforced, will act
. check upon expansions, which must have very IA
vorsble influence upon the currency, and upon the
movements Of trade generally. All the laws which
have hitherto been made have failed to prevent the
most disastrous expansions and contractons In the
banking operations Of this State The plan Of making
quarterly reports utterly useless and the law
Gently passed for the regulation Of returns has proved
an abortion. We have repeatedly urged the propriety
Of compelling the banks to make average monthly
ports but the influence Of these institutions in the
Legislature has beef sufficient to defeat the object
had In view. The law, "a synopsis Of which give
atsve Is calculated to regulate these corporations
more effectively than any previously reported, and We
therefore give 1t hearty support The constitution
epjons It upon the Legislature pass such law and
we trust that the lower houfe will at with
the Senate.
Stock Exchange.