The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1852-01-15

lno system OF houiog ana tfnn6forrto9 indtvtduAt
backs HON one person to another. aod the frequso.
chaoges OF location, has become ao evil Whioh, ia
my Judgment, requires remedy
IL Is believed that Ia some casea individual banks
transferred to irresponsible par es aod ia tbs
rest owners, CT the parties interested ia the bsoss
aud advantages OF the same, avoid all personal re-
spousiosltry by cood1ctinS theic business il tas
names of other parties
The establishing of individual backs (in pats Of
the state remote from the great TIA and
the general current OF businsss aud selling them,
has como to be regarded by some as q lsgitim ats
transaction IL IL urged by those Interested, tGas
inasuuch as they are required to deposit the same
securtiss tor tho redemption OF taeir circulating
notes 90 td ose ca do guar business Of disc
ing paper and receiving deposits. they give equal
security the bill holder. l. Is no wever apparent,
that there great difference ia the security at.
fosdsd TO bill holders by tde two classes. A bank
of ccuiattor, having 40 capital or assets OK.
cept the securities deposited witch the Supsrinseo-
dent cannot be regarded ia tbs sams ligat vita
bark having q real capltai and doing o Legitimate
business, In the one case, the public must depend
eatrey he securities held By the Superinte ndsot
in trust for the REDEEM pten OF tas circulating ootea
lin case Of iaiiure) without reliance upon assets,
capital, or individual. responsibility 10 tue oshec
case, the capital assets and individual responsibility
Of stockholders, add much to the security Of bill
holders
Our system of FREQ banking il fairly aad honestly
carried out. presents perfect Gem olnatioo of all
tas elements Of security TO "a: pubic AID to bill
holders as can well be devised
sufficient importance 10 enact suca further laws,
With such penalties as viii proven. tao abuses aud
evasious referred 60, ard eLforce compliance with
the obvious intention ofths Law as it now stands
upon the statute book. IL Is respectfully rssom-
mendeo, that law be passed authorizing BANKS OF
circulation, uhich snail be- secured cy tae STOCKS OK
the State Of New orr and Of the United States,
and canal revenue certificates. to be, or to be mats
to be, cqua. to stock producing Blk per cent per
anlum and that 40 o.her securities sna.t bs re-.
ceiyed by the Superintendent in trust for the red,mp.
ton OF circulating notes e be issued TO sucn baak
or bankers
1t is believed that this Plan Il adopted, viii give
to the public mere certain security and in casa
OF tae failure OF a bank or banker TO redeem their
notes, the trust funds coult be more readily con
verted into money, giving the ou holders the benefit
Of more prompt redemption,
IL pursuance ofchapter 33l, laws Of 1850, the
affairs IF e insolvent banks have been finally set
tlsd. Ca the LIST Of May, 1885, notice was given
by the Comptroller to holders Of circulating notes of
these banks, that they must be presented at the
Bank Department for paypent within six months;
and that all notes not presented within the tins
thus specified, would cease to be claim on the
residuary funds in his hands belonging to said
banks All notes Of said banks which were thus
presented have been redeemed a. tao rates epec.
fed in the aforesaid notice. The amount held in
bil-holders, was ,l32 Is, which was divided,
pro rata, on the outstanding certificates Notice
was given to certificate holders on the 18th OF Fob
ruary 1851, to present their certificates for 6nal
certificates thus presented have been redeemed ard
cancelled After redeemng all notes and certif
Gates presented according to the several notices
aforesaid, the balance of neys belonging to said
banks was $3.50 ST. which has been paid into the
treasury, to be applied towards defraying the ex
penses Of the Free Bank Department, as required
by law
8 The annexed table, marked A, shows the amount
Of circulation at the time Of sale OF securities, rates
Of REDEEM pton, amount unredeemed, cash on hand
after redemption Of notes. amount of certificates is
sued fer unpaid balances amount OF certificates re-
deemed, amount paid in redemption, and the several
balances paid into the treasury.
A large amount Of the notes Of tho banks whose
affairs were thus finally settled had heretofore been
retained in this department in sealed packages
these packages have been examined and tho notes
destro, ed, amounting to 500, 100.
The plates Of these banks, as we'll as of those
which have more recently failed, are still remaining
in this department. The law does not provide for
their destruction 1t is respectfully asked that the
Legislature authorize the destruction of oil plates
held by the department for banks which have failed,
and also those held for banks aud bankers which
have given may hereafter give notice Of closing
their business
TAur s.-stovirg the accounts Of % nsolvent banks
c'osed clap oj laws OF lS0 circulation at
ts oil sale Of securities, rate At which circulation
hand after redeemrg nstes, anourt Of unpaid balances
for which certificates sued pes eertSgs paid on GER
thcatea snount Of certificates redeemed paid
redemption end the several balances paid into te srea