New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1851-01-10


most favorable circumstances After much refeS-
ton. the Comptroller is OF opinion that the stocks
heretofore issued by the cities of this State may
safely be admitted on the same footing with New
York and United States stocks. The principal
amount of city debt now existing in this State,
consists of the stock created by the City oil New
York for the construction OF the Cr0tOn Aqueduct.
The security and availability of this stock is un
questionable. The smaller amounts issued by
Albany, Troy, and Buffalo, are considered equally
valuable and substantial. No objection is per
ceiyed 10 the admission Of stocks which may be
issued hereafter by cities, provided the Legsla-
ture will first pass law, las required not only
by public considerations of policy, but by the ex-
press Injunction Of the Consttution,l restricting
their power of borrowing money. The debt TO be
created by city corporations should be Limited TO
q certain per centage on the assessed valuation
of taxable property, and it should be made the
duty of the authorities to levy an annual tax Tor
the payment of interest. Under such restraints,
their bonds cannot fail to be sound and convertible.
The Comptroller would also recommend that
the banks be permitted to deposit United states
stock exclusively, instead OF requiring an equal
share to be in stocks of this State.
The high premiums offered by State and Gov
eminent stocks, and the difficulty experienced In
obtaining them has turned the attention OF bank
ers 70 bonds and mortgages as basis for clrcula'
ton and the amount Of these securities offered at
the bank department is rapidly increasing: Bonds
and mortgages on improved and productive real
estate possessing en- intrinsic value are consld-
cred safe security for bill holders, and many
considerations may be urged in favor OF system
which gives 70 landed property some OF the iacl'
tiles incident to other forms OF capital by making
it an element of security in the creation and regu'
lation of a paper currency. But, In receiving
mortgages a rigid scrutiny is requisite to ascer-
tain that the title is clear and the value unques'
tonable. The Comptroller has aimed to exercise
the utmost vigilance in this respect, and TO ex,
clude all securities which were not deemed
amply sufficient A careful investigation OF the
nature and value Of the mortgaged property, IS
made peculiarly necessary IN consideration OF the
fact that some of the banks are mere banks oil
circulation, carried on in the names OF distant aud
irresponsible parties, while the real owner acting
under powers of attorney, avoids personal liaol-
tv, and no capital is employed invested for the
public security, beyond the stocks and mortgages
deposited in the bank department. which IN many
cases are purchased exclusively from the pro-
ceeds of the bills obtained thereon. 1t is IN
doubtedy proper and eXpedient that mortgages
should continue TO be received 10 the extent now
allowed, and under the restrictions now in lorcei
but the Comptroller is of opinion that any change
increasing the proportion of securities OF this
description would be prejudicial to the system,
and impair the public confidence in the stability
of the currency.
The Comptroller deems it his duty to call the
attention of the Legislature to the growing lmpor-
lance Of the bank department, the extent OF its re-
sponsibilities and the magnitude of its labOrs.-
When viewed in all its aspect it may be regarded
as one of the most responsible branches OF the
State administration. The duties devolved upon
it are ardous and delicate requiring business ca
pacity of high order, frmness and integrity SUI
peror TO all temptation The people must rely
upon the intelligent and correct discharge of those
duties, as their only security for the protection
and integrity of their circulating medium. To all
who are familiar with the extent ana the compH
Gated functions of the Comptroller office, 1t must
be evident that it is physically impossible for that
officer TO give to the bank department the personal
care and supervision which should be exercised in
the discharge of sponsibe trust. The present
incumbent deems it due to his successor and to- the
public TO ask the Legislature to relieve the Comp
troler from this portion of his official labOrs. This
should be done by organizing the bank department
into separate and independent office to be placed
under the charge Of a commissioner clothed with
all the powers and responsibilities in respectto the
banks and the currency, which are now vested IN
the Comptroller. Many considerations might be
urged to sustain the expediency of such a change
Originally, and for many years, the duties OF the
Comptroller's Office were within narrow range,
and almost exclusively fiscal In their character
He was the auditing and accounting officer, ofth
State having a general charge of its finances, in
GLIDING funds and debts receipts and expenditures.
With the progress of the State in wealth and 20.
pHlation, these duties have been enlarged and
multiplied. New powers have been conferred from
time to time, until the incidents have outgrown
the original office.
Asa member of the Canal Board, the Comptrol.
Ter is requredto devote nearly one hall OF the year
to that important branch Of the public service. AS
| Commissioner of the Canal Fund and of the Land
Office, he is charged with important and laborious
responsibilities. Add to these the supervision OF
several millions OF investm ents held for the School,
Literature, and Opposite Funds, the accounts and
correspondence with county treasurers, loan COM
mssiOners, auctioneers, Indian agents, State prl-
son agents, and other officers, instructions to as
SCISSORS the auditing OF claims against the State
the return of nonresident lands end the collection
of taxes, the distribution of public moneys, the
management of the State debt, the decision of
questions arising from these complicated affairs,
examinations touching the sufhciency of foreign
and domestic insurance companies, and incidental
duties too various to enumerate, including the pur
chase of fuel and stationery for the Legislature ;
and all must perceive that the proper discharge OF
these diversified vocations is sufficient to engross
the time and attention oCthe Comptroller without
imposing upon him the further responsibility at
tendant upon the issue and reissue OF forty mil
lions of currency to several hundred bankers.
All experience proves that the public interests
are liable to suffer from an excessive accumala
tion of powers in the hands of single officer
Each prominent and distinct branch OF the public
administration should constitute an independent
Office, especially where the details are so compli
Gated and multifsrious as to require constant
supervision.
The Bank Department, in addition to other
grave responsibilities, includes the custody and
safe keeping not only of many millions OF securi,
ties, but of large sums of money, for which the
head of the office is liable The officer charged
with trust of this magnitude should be enabled
10 devote his whole attention to its performance.
He should be selected with reference his fitness
and qualifications for the peculiar duties imposed
upon him no conflicting obligations should be
permitted to withdraw his services; and being
thus invested with full control over the daily opera
tions of the Office, his responsibility to the public
will be direct and personal.
In view of all these considerations, and others
which might be more fully presented, the Comp
troller would respectfully recommend that a new