Daily American telegraph. [volume] (Washington [D.C.]) 1851-1852, 1852-02-25
Editors Correspondence.
From our New York Correspondent
Worlds observation-disclosures
kers and the metropolitan bank.

= o.
kers and the metropolitan Bank.
NEW YORK, Feb. .23.
The amount required to be raised by taxes in
this city during the next year for all purposes is
over $3,60O,0OO. Among the items are, for
schools, 100000, of which over $40O, 900 is for
the city alone for the alms-house, $3.50, 900
This is under the control of ten governors, equally
divided between the two political parties, and wht
render their services without pay. Police abou
$500 900.
The project for Worlds Fair here seems tt
be assuming definite form. Several highly re
spectacle citizens are endeavoring to obtain q
subscription to the amount Of 100000 for the
erection of the building, and payment of expense
of transportation, &c. The inducement held out
is division of the profits among the subscribers
But do not find that there is much interest felt
in the subject as yet and doubt whether many
capitalists will advance money for such an object.
In England, the government to some extent, took
part in the undertaking. and it was regarded by
all other governments as a national affair." and
many of them sent special agents, and furnished
funds for the purpose of transporting articles
But this will be regarded as private specuh-
ton, and it will require no ordinary amount of
bolstering to give it a national name abroad.
| went on Saturday to see some friends off on
the steamer Pacific, and was invited on board the
adjoining vessel, the Baltic, which is to be sent
round to pay your city visit some time this week
probably on Saturday. She is in fine order and
will give Congress good idea of the enterprise of
New York ship-builders.
The capital invested in banking institutions
here is now over $3.50, ,OO0,0 900, and new institu-
tons are being established every day. One of
the most interesting of these is the Metropolitan
which was started about year ago, with CAPT
tai Of So 900, 600, for the purpose of correcting
the complaint so long made about discount on
the rates of country banks not ordinarily received
at the counters of the city institutions. The
plan adopted by the Metropolitan is to receive
them all on deposite, and Immediately return them
to their issuers for redemption This institution
is now fairly in operation: an immense number of
accounts with depositors have been opened, and
the effect is seen in the security felt by merchants
who are offered the notes of New England New
York. or New Jersey banks, in payment of goods
They are not obliged, as formerly, to go to a
broker to get bankable funds, paying half to a
quarter of one per cent. therefor 1t is the in
tention of the institution to enlarge its opera
i tions gradually-in a word, to make the famous
Suffolk Bank system of Boston applicable to as
many currency makers possible. Most admi
rably would it operate in keeping check upor
! your individual bankers who issue notes withou
security in Washington; and in course of tim,
perhaps they will find the demand for redemption
coming in so fast that little capital will be ne
cessary before they impose upon the community
too great flood of redeemable in Virginia pa
per- bills. In this State the Metropolitan sys-
tenn was not called for so much for the ultimate
security of the bill-holders, because no bank can
issue bills here without having deposited security
for an equal amount in United States or State
stock. But the difficulty has been, that vast
numbers of banks have been established for no
other purpose than to issue bills and make money
by redeening them at discount in Wall street,
and shaving notes upon them.
You must know that, where country banks are
called upon to redeem their paper at agencies
which they are required to establish at either
New York, Albany, or Troy, they are allowed to
deduct percentage, formerly one-haf of one,
now one-quarter of one per cent, as a considcra-
ton for the necessity of redeeming in two places.
Of course they must redeem at par when pre-
sented at their own counters. But where the
bank is at some small place-in Chautauque, OF
other out-of- -the-way ycounty-comparatively few
notes are ever presented at the counter, for the
very simple reason that the bank, though nomi-
nally there, is in reality in New York, and owned
by the broker who acts as redeeming agent, and
who has power Of attorney given him by some
lawyer and grocer in the village from which the
bills are dated to sign their names as president
and cashier. One instance came to my khowl-
edge of a president of bank Of some six months
standing with some forty thousand Of circulation,
who had never seen note of the institution over
which he presided The notes are issued at New
York by the broker from whom some "hard-up"
customer takes them on note, which the broker
shavcs for him at one or two per cent. month ;
| they are paid out to aborers or workmen, and
after time, find their way into the hands of a
merchant who wishes to make a deposite in bank
to meet his checks: but the city banks receive no
notes which cannot be returned to the issuing
banks on the same day-those at New York and
Brooklyn, for instance. Consequently our mer-
chant must run to the "redeeming agent" and
pay the discount Of one-half Of one per cent.
Thus the broker makes the shave on the note,
which is afterwards deposited for collection
in some bank, and paid in city funds or spc-
Gle; and he also makes the discount on redeeming
the note-a nice operation, nice that vast many
adventurers had gone into the business, and the
wildcat bankers, rs they are called had become
a subject of general complaint. Efforts were