The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1851-02-19
Affairs At the State Capital.
ALBANY CORRESPONDENTS.

introduced in the Senate by Mr.. Cook, Oh airmau
of the Committee banks and Insurance COM
panies, compel iRg all banks to redeem their paper
in New York or Albany, at the rate Of oae-fourth
of enc per cent. The law passed in.lSie, made il
obligatory upon them to redeem al one-haif per
cent. After days Of discussion, the bill hnally
passed the Senate, with only lhree dissenting
votes. The late period of the session in which i,
passed that body prevented its consideration in the
House of Assembly, and it consequently "fell
through"
The same bill has been re-introd iced by the,
same honorable Senator at the present session,
and yesterday was taken up 10 committee. Mr..
Cook advocated its passage, and alluded to ths
cent, millions are annually paid 10 brokers, and
banks in the CITY Of New York, in orde. 10 render
par the deprecated currency of the couaIy banks.
Mr. G. Is banker himself, controlling The Ballston
Spa Bank, with its capital of s l00, 900, with a
shTewdness caution, and craftiness, equal to that
of any bank preside nj in Wall street re is per-
fecty familiar with all the modera preclces of the
shapers and shavers, and possesses the ability and
trarlessness of exposing them. Although he pre-
ters at pres ent the exaction Of gu per cent,
ne believes that ultimately par redemption mus
be resorted to.
Mr.. Charles A. Mann, the Oaeda Senator,
during few remarks aga inst the proposition con-
tanned in the bill, moved an amendment, repeating.
the law OF $40, which compels banks 10 redeem
at half per cent. This would have the effect of
producing species OF free trade bet tween the city
and country banks; but would unq ieson ably il-
are 10 the oeneht OF those Ia The city, who would
combine together and enforce just such rates Oh
redemphon as they pleased. This amendment did
not find much favor, although some of The Sena-
tors knowing Mr. Mann to be also connected with
one or n ore OF the Utica banks, were induced to
support his proposi,on rely Ing upon his knowledge
OF banking operations, and believ ing that he un-
dersood what are the true interes, Of those insti
mtions located without the purlieas of w all street
The projected organization Of Inc Bank of The
Metropolis, in the city of New York, with a nam.
mo'h capital OF two millions and James Mccall al
lie mead, starting with a threat to cOerce the cOun-
Try banks after the manner of the Suffolk bank of
Boston, has already created m, ca anxiety among
the small Try in the country villages, Bat there
is this difference between the two institutions.
and their success in compelling par Iedemp.
ton. The banks in the New England States
are all separate. chartered institutions, and by
their charters they are compelled TO redeem
upon them. The Suffolk holds this rod Of terro
rem over them; knowing that when fands are not
provided, an agent is at once despatched with de-
amounts of almost any New England paper could
be collected for such purpose in the city of Bos-
ton. in single day Ia regard to the banks of ths
(sRd nearly all the banks are now uAder it)
a grace Of ten days is allowed any bank, il
pushed, to redeem its paper This time oil
account Of the Metropolis Bank, when j, sends
twenty, thirty, or fifty thousand dollars of paper
10 Chsutauqne or ST. Lawrence, for reiemo;ion
The country banks will say to them" Gentle
men, We shall avail ourselves Of the ten DAYS
grace, and then return our bills our own cOun-
Iers, and they will be redeemed in specie or New
York funds" In this point Of view, alone, the Suf-
folk, al the corner Of Wall street and Broadway
will not find il so very easy or COW. DieD, 10 com
pei their small country rivals to keep ss,amandef
sales illied with Specie in the neighborhood Of the
There is large amount of rascaty on every side
~ every phese OF this matter Country merchants act
Their part OH with much shrewdnefs. When they
intend 10 go to New York to make their purchases
for cash, las many do) they proceed to the village
bank in which their funds are deposited, aud in
stead OF drawing our the paper Of the bank, they
procure draft on New York The instant they
arnve IN the city, they apply 10 broker 10 pur.
chase the draft, which they dispose of at premuD
OF one quarter per cent for country funds the bro
ker himself making another quarter With the
funds N his hands, the country rcnant proceeds
10 the lobDers and makes his purchases for cash.
ne merchant having paper to take w, probably
the very houi after he makes his sale, hirries of
10 the bank TO redeem his note, when he fnds his
funds deficient half per cent He then rroceeds
10 q broker. probably the very one who had an
hour lrevo isiy purchased The draf,, aud account
funds are procured at the discount OF half p.r cent
In this way, halt dozen drafts may be pirchased,
and the same identical bills be redeemed by bro
ker in single day, making himself from four &c
six per cent day.
On the other hand, the country bankers saw our
noes bear the impression upon then face that they
will be redeemed al our own counters a; par, and
DO where else. You cannot compel Us 10 deposit
keg Of gold and silver New ork or !oaBy three
or four hundred miles from usual place Of BUSH
ness, and where our banking house is located.
BRING our emission TO our counters, where we have
pledged TO the public that they shall be promptly
redeemed, and il shall be done. We have no CON
necuon with the brokers or banks OF the large cities
and If our bills get s;rayed away far from home
u ls the duty OF the holders to send them back.
But the most objectionable villany which 10 prac-
used IN order TO prevent The redemption OF paper al
par rs The circulation Of paper p1rpo.ling TO have
beer issued IN some country village 10 Sn, wheG
The actual owner of the concern is either resident
Of Albany or New York. An attempt was made, a
few ears since, 10 break up this barefaced ana
high handed sy stem Of legalized robbery, bu, il
only partially succeeded This is the kind OF paper
with which the State is inundated, and causes
more mischief ia making shavers and unprincpled
brokers, than can be imagined. These shaving
machines can be easily ascertaIned by merely a
reference TO the Comptroller reports and the re-
port made TO the Legislature by the committee on
the examination Of the Treasurer's and other ac-
counts Of the State departments.
Shall the country banks be compelled 10 redeem
then paper at par quarter, or half per cent in the
cities of New York and Albany Will some OF the
able financial men of city and country come to the
assistance Of the present legislature In The shaps
OF petitions and remonstrances upon this important
subject
TnE NEw YoIK AND BosroS MILITARY Col
Newell A. ThOmpsou. nd NJ