New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-01-13

Commercial Bark If Loospor., Loo. port 800 7o2.
Total clrcn alton 20 To3 >5ZiSof
Cucalsiion Outstanding Dec. isr 1851. 3Ie %,
Amount Of circulation rsturaed and o.,
o.snoyed hontc,s ubo have Heretofore
given notice of their intention to close their ousi
ness having complied with the PROVISIONS OF sec
ton S OF chapter 3l9, Laws of lsil, by receemlns
naety per cent Of their circulation nave wltnaiawa
the securities held in trust, and deposited an amount
OF money sufclen 10 redeem the Balance oil cIcuia
ton outstanding.
The following statement shows the amount OF cur
cuJatlon unreoeemed on the lst day OF December,
1851 tne amount Of money held In Uust o. me ou-
perntendent the date OF the first notce to oiilholo-
ers to present their notes for payment and Inc time
when such notice Will expire
ing c,rcT- Cash N D1te Of NOtlce ~H
oOurt a Co Blk $4,000 sSeSs % De, J. 81 Dec :,
SI.1l co Bs M s sS 80 Api 81 81 s Sep +
Village Bsns 500 872 90 May ~. 81. May2! %
Wa ,p CO. Bank $50 48s2 90 Nov & 81 Nov 4. 80
Al the explratl0G Of the ABOVE notices fOr Two
wears the securities held by the Superintendent in
trust may be given up 30 the banker or ASSOCIATION
upon receiving bond win security, conq'.o .,
for the prompt payment of any unredeemed chcu-
lating notes OF such banker or ASSOCIATION II pre-
sented within Elk yeas. IL,
The circulation OF the Walter Joys Bank which
failed III the year 1850, has all been redeemed ana
Cancelled except Sil2 There rs hello IN Trust ior
THIS bank. the sum of 50 900 OIL. arising from the
sale of stocks which we're held In trust for II.
On the first day OF October last. The James Bank,
Rank Of NeW-ROChelle, Farmers Dauh oi NHdu-
tauque Cousty, Western Bank OF Washington
County and Phoenix Bank OF BalnorIdge, permitted
then otes to be prote ted for non-redempslon at
their respective agencies g.,
The powers of attorney heretofore gwen 10 said
banks TO collect interest on the securities deposited
and held In trust for Ihe redemption OF tner cIrcu-
Istipg notes, were promptly revoked. NO DINER
measures were taken 10 protect the bIlholders, az
these banks believed TO be banks OF circuls,
ton only and from the quarterly reports received
fIom ,bsm, 1t is believed that the securities depos'
tied in this department constitute their only assets
Arrangements have been mace oy the Srmefs
Rank Of ChautauGue County, Western Bank OF
Washington County, and PhChx BANK Oh DAHL
bridge, TO redeem their notes as required o. law,
The James Bank, and Bank OF New.k0cheue,
failed to pay their roested notes whla the time AL
lowed by law, after having been GUY noilnea 70 40
so porson OF the securities held in trust for
these banks have been disposed OF at pubic safe, ana
the remainder will be converted INTO money IN
short time and dividend will be made 20 bill hold
ers in January next. The bonds and mortgages hed
in Trust for these bar ks sold at large discount
The Comptroller III his annual report 10 ti'e Leg
slature Of 1850 called It's afternoon 70 the system OIL
banking as pIacuced by many Individual bankers,
Ieeem 1t my duty to again call the attention oil 'he
lie gislatHe to tins subject
The law of 1915 chap $40, expressly provides that
all banks shall be banks OF discount ana deposit rs
well OF circulation and that the usual business OF
all banking associations and Individual banheis
shall be ansacted at the place wnere sch sssocia
ton or individual banker shall be located :.
lis believed that this provision oil the Ia" - III
many cases entirely eyaded. The quarterly reports
,ece'ved show that they are not banks OF discount
and deposit, having neither OF II they have II IS
mere nominal sum incorporated into their reports 10
comply with the form and not the spirit OF the law
| They are mere banks o. circulation, and are es
tablisnec for that purpose alone. The business OF
circulating their notes. is done exclusively through
agents and brokers IN commercial cities distant
from the location OF the bank. Ia many instances,
IL is believed, the banker does not even siSd the
notes issued from this department and put ~ cTou-
lat!on, but gives that power to an agent win power
az f.frf
purpose to deposit securities receive interest on
| The same, exchange securities and mutlaieo notes,
and TO do all acts connected with the bank winch TIE
banker himself could DO. In this manner are eVaded
the provisions OF the law Of 1915. which makes II
obgato, for banks and bankers to transact their
| usual business al the places where ihey are To-
| Gated.
These banks afford 60 facilities to the business
portion OF the community and IN time OF pressure
or embarrassment IN the money market not untre-
quenty allow their notes 20 De dlscredited merely
creating panic aud sutJectIng the Dill holoefs w
| losses
The ysiem Of selling and transferring individual
banks from one person TO another, ano the frequent
changes Of location, has become an eVll when, IN
my Judgment requires remedy
Its believed that some cases individual banks
are transferred 10 irresponsible parties and that the
rca owuers the parties interettec IN the dement's
and advantages Of the same avoid all personal re-
| sponsibility by conducting their business IN me
| names OF other parties
The es,abshin OF individual banks IN parts OF
the State remote from the great thOroueh'ares ana
the general current of business and selling them,
! has come 70 be regarded BY some as a legitimate
Transaction II urged by those interested That IN
a.much as thew are required TO deposit the same Sc
curres foI the redemption OF their circulating notes
as those that do regular business OF dlscountAg
uaper snO receiving deposits, they give equal seCurl-
~ TO the bii holder. Il Is however apparent, taai
there "a great difference III the security Afforded 70
bll hols eIs BIZ the two classes bank OF mere cir
cuiatlon hsvIl CAPITAL Or assets except the Sc
| curis.ts deposted win the superintendent, canot
| be regarded in the same light with bank ha1mg
real csp.tsl and doing legitimate business In the
one case the pubic mus depend entirely on the Sc
| curlties held by the Superintendent In rus! for the
! redemption OF the clrculetng notes tn case oil
failrre) without reliance upon a. sets capital or n
dividualreponsibllEy II toe other case the capital
assets, ami individual responsibility OF STOCKHOLDERS
add much 10 the security of bilLholcers.
Ours stem Of free banking, If fairly and honestly
carried out presents as Perfecta COMPUTATION OF an
the elements o. security to the pubic and 70 Oiii-
| holders as well be devised.
Ii the Legislature shall not deem this sueJecI Of
sufficient importance to ensc. such further laws,
with such Ut nailes rs will prevent The abuses ana
eyaSIOns referred t., and enforce compliance VIII
the obvious intention Of the Law aS Il no" status
upon the statute book II is respectfully recon,
men6et th.t law be passed authorizing Da'1s y
orc 3tlcT, which shan Dc secured by the STOCKS u
the State Of New-Xork and of the United otales'
and cSnai revenue certificates, TO be- OF tc De ilaoo
to Re equal u stock producing SIX per ceI,um per
| a1num 40 taa. Lc other securities shall oe To-
| cevsd by the Superintendent IN trust for Ihe re-
dem piiOn ~ circulating notes 10 be Issued 20 suCn
| osrs or bsikefs
lstelieyec tina. this plan If adopted. will give 20
| the pv bic more certain security and in Case Vi
the isilure Of bank, or banker, 10 redeem 'heu
notes, the trust funds could De more reaoiiy Co..
vered into money giyirgthe bill holders the oenen'
| Of more prompt redemption.
In pursuance OF chapter 33l, Laws OF l5oU, inc =,
fairs Il % LsoyeIt banks nave been finally se.Iy
| On the LIT of May, 1850, notice was giVen oy VIC
Comptroller TO holders OF circulating notes OF .nSse
banks that they must be presented at the BANK ~ q
| for nert
an roles no, presented within the tine thus Specineo
woulo cease 20 be claim on the resi1uary funas u.
his hands belonging TO sad banks. All notes o. So
bsIks VIII n were thus presented have oeen teosI
ed AT the rates specified II the Aforesaid nouce
anaount held ii trust for SAID banks afser pSyhs W
d,yoenos to bill hClcers, was $si.l32 -, wnic.
| DIVIDED pro rata on the outstanding 49, :,
Notice Was given to ceIuhcAIe hol.e for Or Al