The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-01-09


During the last tscai year the Comptroller re-
deemed Sl35, $50 If the Bank Fund stock from the
means on hand belonging to the fund. OF this
amount, $50 800 was received in pursuance of chap
ter 332, laws of 1850 The State stock held on ac-
count Of this fund, bearing per cent interest, was
sold, and the proceeds applied in redeemng six per
cent bank Fund stock, ny which gain was pro-
duced TO the fund Of 81 SOC for premiums and dis
count, besides annual saving of $3.50 from the
difference of interest
The Comptroller has issued Bank Fund stock to
the commissioners Of the Canal und for the balance
due from the Watfrvet Bank TO the Canal Fund
amounting on the 23d of September last, TO e72 05S
81 Including this sum- the amount of bank fund
stock outstanding on the Both September, was
S1l59O5 81 Since the closing OF the flscal year,
stock TO the amount OF 424 rs has been issued 10
the remaining creditors of the Waterviiet Bank,
which Is believed 10 include all outstanding de-
mands against that bank A large claim was held
by the receiver Of the Canal Bank of Albany, but
doubts were entertained TO its validity and the
question was submitted, by mutual consent, to vii.
liam l.. Marcy, as sole referee. After a patient
and laborious investigation, he rejected the princ-
pelitem, amounting 10 over $50, 0O0 and decided
that the actual balance due from the Watervliet
Bank TO the Capal Bank is only S2,276 50, for
which sum stock has been issued to the receiver
Assuming that the banks continue to pay their
annual contributions Of per cent on their capital
until the expiration Of their respective charters,
the amountto be realized from this source is $685.
225 90, which will be sufficient, with Judiclous
management, 10 discharge both principal and iu-
terest OF all outstanding claims against the Bank
Fund. In addition 10 these contributions, there
remains a mass of miscellaneous assets of the
Si'y bsnk OF Buffalo. the Commercial Bank OF
Buffalo and the Watervliet Bank.
The amount to be realized from these deplorabe
concei ms depends, In degree, upon the result
Of certain lliigations st pending II is believed,
however, that with proper diligence, about $50 900
may be recovered from the assets referred to. The
Comptroller has made every practicable effort to
secure some returns from them, and with some
effect, but he regrets to Say that his success ha
not been commensurate with his endeavors.
Since the close Of the fiscal year, final settle
mtnt has been made with the receiver OF the
Commercial Bank Of Oswego, and the balance In
his hands being tl,644 33, has been paid into the
fund.
An important question has been raised in rel alton
to the liability OF the banks to pay the annual con-
'trbuton OF per cent on their capital for the last
yesr OF their duration. The Comptroller and his
predecessors have entertained no doubt on this
point, and the pay ment has been made by all ex-
Firing banks, without dispute, until the Bank OF
Utica and the Bank Of Monroe contested the va
lidity OF The claim. The charters of these banks
continued in force "uRtil the first day OF January,
1850" The Safety Fund act and the act of April IL,
ISi2 require every moneyed corporation subject to
the act to contribute one-ha Of one per cent on its
capital ION or before the FIRST day OF January in
each year"
The ground assumed by the trustees of the
banks referred 10 ", that their charters actually
to make the contribution, payable "on or before
the hrst day Of January, 1850. Some other banks.
which made the last payment voluntarily, nov
claim TO have the money refunded on the principle
tbst II was paid under a misapprehension Of the
law.
The question is an important one in it's bearing
upon the Ultimate sufiicency Of the bank fund
II the remaining Safety Fund banks, Including the
Bank OF Utica and the Bank Of Monroe, shall es-
cape the payment Of the contribution for the last
year OF their chartered term the loss to the capital
of the bank fund Will be tl32,742 30, and to that
extent impair the security Of the creditors Il il
feared that so large reduction might render the
fund insufficient TO provide for the payment Of the
stock falling due in IS6S
The Comptroller has considered IL his duty to place
he claims against the Bank II Urica and the Bank
Ct Monroe m the hands of the Attorney General.
and by mutual consent, the question will be pre-
scented to the Supreme Court for decision AZ early
as practicable.
With view 10 protect the creditors OF the bank
fund, and TO guard against future controvers
Comptroller would recommend the passage Of a
law requiring the banks 10 pay their contributions
on or before the last day OF December in each
year.
I1NK FUND.
Balance OF six per cent stock issued, per chap.
ia, laws Of 1916, on account OF the Bank Fund,
outstanding on the 30th Sept, 1850, and redeema-