The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-01-15
Amount of circulation returned AMI

rive INDIVIDUAL bankers, VINO nave heretofore
given notice of their intention to close their bust
ness ha'ng complied with the provisions Of section
8, OF chapter 3i9, Laws of l8il, by redeeming
ninety Per cent Of their circulation, have withdrawn
the securities he'd in trust, and deposited
amount of money su1i ;ient to redeem the balance
OF circulation outstanding.
The following statement shows the amount OF cir
cuation unredeemed on the LIST day of December,
Superintendent the date Of the first notcie to bill
holders to present their notes for payment and the
time when such notice will expire
;ng sirc"- Cash in Da,eof Notice uiu
Co. siSo SO sSs o % Dec ST. Dec s.
Hs.ss re. g. g. 5 sss q sS & 81 4s 4
w. ',sss e s,si ssay ST. sseysi
At the expiration of the above notices for two
years, the securities held by the Superntendcnt in
trust may be given to the banker or association,
upon receiving bond, with secsrty, conditioned
for the prompt payment of any unredeemed circu
latiEg notes of such banker or association, if pre-
The circulation of the Walter Joys Bank, which
failed in the year 1850, has all been redeemed and
cancelled, except s4l2 There is held in trust for
sale of stocks which held in trust for it.
On the first day Of October last, the James Bank,
Bank Of New Rochelle, Farmers Bank of Chau-
tauque county, Western Bank of Washington
county, and Phonix Bank Of cambridge, permitted
their notes to be protested Tor nonredemption at
their respective agencies
The powers of attorney heretofore given to said
banks to collect interest on the securities deposited
and held in trust for the redemption Of their crcu
lating notes, were promptly revoked. No other
measures were taken to protect the bill holders, as
these banks were believed to be banks Of circula.
tion only; and from the quarterly reports received
from them, it is believed that the securities depo
sited in this department constitute their only assets
Arrangements have been made by the Farmers
hank OF Chatauque county, Western Bank OF
Washington county, and Phonix Bank Of Balm
bricge. to redeem their notes as required by law.
Ire James BaEk and Bank of New Rochelle
failed to pay their protested notes within the time
allowed by law, after having been duly notified to
do So portion Of the securities held in trust FOR
these banks have been dispo.e Of at public sale.
and the remainder will be converted into money ina
short time and adyidend willibe made to bill hold.
ers in January next. The bonds and mortgage
held in trust for these bankssod at large discount
The Comptroller, in his annual report to the Lee
eisature Of 1850. called its a,ten lion to the system
Of banking as rracticed by many individual bankers
deem ii my duty TO again call the attention OF
the Legislature to this subject
The law Of ISIS, chap. $40, expressly provides
that all banks shall be banks Of discount and de-
post, " ell as OF circulation and that the usual
business Of all banking associations and individual
bankers, shall be transacted at the place where
such associations or individual banker shall be To-
Gated.
1t is believed that this PROV SION Of the law is in
many cases entirely evadcc. The quarterly re-.
ports received, show that II y are not banks Of
discount ard deposH. havlDg neither; or, il they
have. it is mere nominal en- incorporated into
their reports to comply with me form aad not the
spirit Of the law.
They are mere banks Of cir ,ulation, aad are es.
tablished for tina purpose alone. The business Of
circulating their notes is do1e exclusively through
agents and brokers in com nercia cities. distant
from the location Of the bank. In many instances,
il is believed, the banker does not even sign The
notes issued from this department and put IL crcu-
lRtion. but gives that power 20 an agent with pow
CT also to appoint & substitute o. substitutes Tor
that purpose. TO deposit securities. receive interest
On the same. exchange securities and mutilated
notes. AID 10 % all aou connected with the bank
which the banker himself could do. in this man.
ner arc cvaded the provisions OF the law OF 1917,
which makes Il obligatory fer banks and bankers to
transact their usual business at the places whore
they are located.
These banks afford no facilities to the business
portion Of the community, and in time Of pressure
OF embarrassment in the money market, not unlre-
ouently allow their notes to lie discredited, thereby
creating a pane and suhicctng tho bill holders
10 losses.