New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-07-12

associations are ut liberty TO eceive uncurrent pan.
bills at q discount And 'url appears, has pen N''
practical construction he etIfore given 10 We Ais
The right 10 rece.e bank notes issued py a 800
bank at a discoult which shall reduce tne'h al.
current value IL the place where takep, 80. rnu.,
pensabls ~ the transaction OF bufinesh sucn 10, he
either s tai en- Al their actual value, or they 80
take. a, ali Jtis not expected they will DC takony
BE- oks az par when they are worth less man pa lien
ket II might for short time, best pronote ~ hi,I.
aton Of the country banks thus 10 exclude ,sx
fro N banks In the Cry Of New-York, but II rout -.
heavily the commercial and industrial Int e'o .,
ciety and bring about state of things mol
by our present system, and one that to prevent so
mischief, would demand an entire and innmou'''
chasse of legislative policy. 5000
The statutes regulating banking seem to imply thai
bsnk may receive deprecated osnk bills al thslr ou
rent value The third section OF the "act concsthhs
foreIpn bank notes. passed May T. 1899, proniou any
banking association from lending or peying ou GL P
per discounted purchased by them any Dank oli %
note, evidence Of debt which 10 net recessu ~
by the said association for debts due 10 the ssd
hon This fairly implies that bank bills may DC re-
ceived below par II is only the paying out that pro
hbIted-it being expected that the bank so taking e
will return them TO the bank Issuing thein, of '" ~
agent, for redemption. -.
The statutes regulating the redemption OF bsnk no,es
at a discount by agencies established in NeH-forK' Al
bany or Troy, have bearing upon the question I'M
der discussion their object being: First TO preventa
depreciation of such bank bills below onefourth OF one
per cent and secondly, 10 prevent a bank making
profit out Of the depreciation Of It's own paper Inc
statute In nterfere3 win the pu1cnHoc VI TO
ctivng of such paper by other banks, at its current
value which under the present system, cannot be at
discount Of more than one.fourth of one cent
1t charged in the complaint that the deiendan:
had been in redeemng country bank notes Oh
this State for banks for which II was not the legally
appointed redeemipg agent But that charge Is iuiy
denied In the snswer, and 10 entirely unsupported ~
evidence -
The question discussed Is the important and CONTROL
ing one in the controversy, out of which this action
has arisen Another point was however, m ide IN be-
half of the plaintiff the argument VIZ that the is
fendant Is not bank OF circulation, ana that no organ
iZation can be complete, 10 confer banking pow
ers on an association unless II Is bank of circulation
ss well as OF discount and deposit
On the argument however, affidavit made on toe
same day by James Mccall the President Of the Metro
poIitan Bark read by which 1t was shown that I'm
medat after the organization OF that bank the sum OIL
100000 was deposited by 1t with the Controller as
security for the circulating notes which should be issued
by said bank and that order had been given by the
bank 70 the head of the Bank Department for an Issue
Of the bills of said bank and that as soon as they could
be got ready for such purpose they would be put 10 cir
culaon II Is not stated when the order was given, or
what has been the cause Of the delay.
By statute passed April 10 lS4S, amendatory OF the
Get authorizing the business OF banking was enacted
that all Banking Associations shall be banks oil discount
and deposit well OF circulation. Inc evil tails
statute designed 10 remedy was not that banks OF
discount and deposit established, which were not
banks Of circulation; but the contrary viz: That banks
OF circulation only In existence which had no bank
ing house and transacted business of discount and
deposit The object of the statute TO break up tue
practice OF issuing circulation merely for the purpose OF
Tedeening II al a discount that afforded profit do
not my self the evil of allowing the establishing OF
banks Of discount and deposit only which notbanks
Of circulation. The language OF the statute may per-
haps be broad enough TO sustain the legal position taken
by the plaintiffs counsel If so, however some fixed
amount Of circulation ought 10 be specified, so that
mere nominal circulation should net be deemed com.
plsnce with the requston
Buf whstever may be the true construction OIL the
statute cannot feel warranted on the facts before me,
and mere chamber motion, TO issue an injunction
that sha entirely suspend all business operations Of the
defendant sm not satisfied that under the con-
stTuction claimed, the defendant Is amenhble 10 any
depoited with the Controller Immediately on the or
gRDzaon OF the bank security for It's circulation,
and that such circulation Is be issued. If there
has been Misrepresentation OF the law hitherto In this
respect from which one has suffered the correction
can be readily made. The neglect does not ytste the
previous organization IL could In no way promote the
public interests but would be greatly to their dethment,
10 close the doors of the bank snd wind up Its affairs
because of the nadverten omission of act not uris
dicons, and which the defendant Is ready to remedy,
when those concerned in ii would have the right
TO re0rfapiZe institution. shall not, there
fore, award the injunction prayed for on this motion,
but shall leave the plaintiff to claim such an injunction
on the trial Of the cause when the facts can be moro
fully developed and the question fully examined,
II, by amending the peadiDgs otherwise the question
can be then properly raised.
The motion vacate the Injunction must be granted
and the motion for further Injunction denied
In Michigan, where the attempt has been made to pay
the notes presented by the Metropolitan Bank sIngy,
taking the money for each small bill separately from
vault thus occupying day In paying specie for han
dred dollars the Courts have decided that no such dia
tory process be allowed and that is equivalent to
refusing payment The Metropolitan seems so far to be
ahead OF all its enemies.