New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1853-06-02
VETO OF THE BANK BASIS BILL.
Message from Gov. Seymour yetOing the Proposed
Extension Of the Basis Of banking Capital.

Message from Gov. Seymour yetoing the Proposed
Extension Of the Basis Of banking Capital.
The following Message from Gov. SEYMOUR, was re-
nived in Assembly yesterday:
Hon. WILLIAM ii. LUDLOW, Speaker Of the assembly:
In pursuance with the provisions of the Constitution
,surn TO the Assembly with my objections its becoming
,aw the bill entitled An Act TO amend an act entitled an
"A to authorize the usness Of banking, passed April
l;ss" The bill was received by me Immediately before
M adiournmen Mt of the Legislau e. the l5h of April
had therefore no opportunity hat time to examine its
,oyisions and determine upon the proprey Of approving
is passage As received large majority 10 each branch
Of the Legislature desired to give respectful consid
t,.ton and therefore retained until the reissembng OF
he Legislature.
The bill provides that Hereafter the stocks Of the incor
red cities Of this State may, subject to certain re
scons be used as basis for banking and be received
securtes for bills to be issued in pursuance Of the Gen
,l Banking law The constitution Of the State makes
he duty of the Legisl ure TO restrict the power Of
rtpa corporations to borrow money contract debt and
han their credit 1t is evident that this BILL should it be
come law would cause demand for the stocks Of our
cites add largely TO their value in market and create
an inducement on the part of municipal corporations
10 ipcur debts / have with reluctance signed bills
permitting some of cities to borrow money for objects
which are deemed Of great importance to their interests
but this bill is clearly in conflict with the purposes of
he Constitution of the State it offers direct encourage
men 10 local corporations TO contract debts Is it
pdept thstime when highly speculative state of feeling
ryades the community to encourage disposition to in
cur liabilities by converting debt into q circulating
medium
his alleged in favor Of allowing the debts Of cities to be
rsed as basis for banking that the stocks Of this State
,nd of the United States the of which banking
bi is now authorized by awcannot be obtained for that
purpose But it will be found, from the following state
nstt that but small proportion OF these stocks are new
psdoed nj the Banking Department. securities for the
bsnk hills which have been issued and are in circulation:
M Funded Stock debt Of the United States amounts s6il5o57
ne Funded or Stock debt OF the State OF New-fork -
amounts ~0S'oO<
ss7,SC6 75e
gss.ocL General Government now pledged az the
n. s sloeis Of the State Of New.YOfk pledged
for the same purpose
lsvDs the amount of Stocks yet applicable banking
10
From this sum there should be deducted the amount Of
Mock used in other States security for Bank bills which
S s absorb s'00000OO 0i the ''' ""u 0' "' o"''
h true these Stocks command high prices in the mon
ymalket of the world but they sell for than they
are minscay worth Their high values and the fact that
ihey deemed safe and desirable for investment make
Then better securities for the bill holders as they insure
prompt redemption under all circumst These Stocks
can Be obtained at their market value, and although they
P Directly but small interest to the holders the prons OF
banking Institutions at this time are so great that they
more than compensate for any loss of interest on the secu
ues pledged for the redemption OF their notes IL Is evil
een that the profits of banking must be limited either by
Jeoieous restraints or a competition resulting from multi
heaon Of banks which viii ondanger our whole financial
system No better or safer system for limiting the profits OF
banking can be devil than that which requires the highest
and best security for the bill holders and is argument
hyOr of cheaper securities that they will increase the
onts Of banking facilitate toe establishment OF new banks
md thus initiate currency of the country Ii Is true the
increase Of business makes more capi'a necessary m con
sucng IT, but large proportion OF the indebtedness to the
banks at this time and tho great amount of bills in crcua
eon the results Of speculative rather than OF legitimate
Business demands.
There are now in this State three hundred and ten banks
on barking associations Twenty five of these institutions
have been established within the psst six months besides
ten safety fund banks which have recognized 1ndor the
Provisions Of the general banking law. This IS about equal
10 the entire number which established during the
he Superintendent of the Banking Department that the
aggregate capital Of the bant Of this State on the st Of
Dec ber last s622072l6 At this time the capital Of
these institutions amounts - over si0O0OOOO. show
ng an increase ii ab0u. eight millions within six
months The profits Of banking have recently
been annually large, and numerous associations
are now forming in different parts OF our State for
The purpose Of engaging in this business II the number
OF Bsnks and the amount OF Banking capital shall increase
hereafter as rapidly they have during the past SIX months
will give an annual increase of more than hny Backs
With capital amounting in the aggregate To aeont
<l6000o00. While these institutions are multiplying VITA
alarming rapdity can see no good for giving any
hsw impulse TO their creation by Increasing their prohs
and lowering the character Of the securities required oy
pur present law for the protection Of the bill holder
The stocks Of this State and OF The General Goyernmen
have value IN the Commercial markets Of the world and
sltherefore furnish security for the redemption OF the
Oils at periods when suffer from financial r,Vnlslons
hle The stocks Of cities having only local value
and MARKET, viii be affected by the monetary con-
uis q the country. Ii our banking laws are modified
a n - II fnnI