New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1854-01-03


The number Of banks and banking associations In the
State Of New York s 32l There were "a new Institutions
established last year and ss since December ISL sa @
The U' sum n banking to fh:
%
the impoaiops Of gold from California and other sources
meet portion Of the demand for circulating medium
great number of banks have recently been created
In the different States Of the Union This extraordinary
expansion Of currency indicates highly speculative
condition Of financial affairs which unless checked in due
season, win terminate in disastrous revulsions
deemed 1t my duty to return to the last Legislature.
with my objections to is becoming law, bill which pro-
posed to admit the stock OF cities under certain restrictions
to be received by the Superintendent Of the Banking De
pament securities for the redemption Of bills for crcu
iation.
The Constitution of NewYork makes ii the duty of the
Legislature restrict the power Of municipal corpora
ons to borrow money contract debts and loan their credit
Il this bill should become ST wSad esas s, Ssms
market and create inducement the part OF municipal
corporations incur debts and therefore clearly in
ficf with the purposes of the Constitution.
II alleged in favor Of allowing the debts Of cities TO be
used basis for banking that the stocks Of this State
and Of the United Staes be obtained unless large
premium lie paid for them. is true these stocks command
high prices In the money markets Of the world bat they
sell for than they ntrnsicay worth They can
be obtained at their market value and although they pay
directly but small interest to the holders the profits Of
banking at this time are 90 great that they more than
for any loss of interest the securities pledged
for the redemption Of their notes. 1t evident that these
profits must be limited either by judicous restraints by
multiplication of banks, which will endanger our whole
financial No better safer plan be devised
than that which requires the highest and best security Tor
the bill holders and is argument in favor of cheaper
securities that they will facilitate the establishment OF new
banks and thus initiate the currency Of the country Al
increase Of business makes more capital nece
sary in conducting it, large proportion Of the indebted
the banks at this time, and the great amount Of
bills in circulation the results Of speculative rather
than legitimate business demands.
The stocks of this State and of the general government
have value in the commercial markets of the world and
will therefore furnish security for the redemption OF the
bills at periods when suffer from financial revulsion
while the stocks of cities having only local values and
markets will be affected by the monetary condition
of the country If banking laws are modified to admit
of the use of cheaper and inferior securities they will OF
course be selected deem exceedingly hazardous at This
period Of speculative excitement and pecuniay expansion
10 diminish the security Of the bill holder or to increase
the motives for the establishment of banking institutions
which are already multiplying TO unprecedented extent
If the Constitution of the State shall be amended for the
purpose Of borrowing money to be expended upon the
canals there will be additional amount of State stocks
issued which be used under present laws as basis
for banking This viii supply the demand for these secu
rifles while the treasury Of the State will be benehed by
the additional premium the stocks which the demand
creates.
recommend modification of the usury laws in certain
unfortunate from the exacons of the graspng and sordd
and in instances they valuable purpose
But the severity of these laws is frequently injurious in
our larger cities The City of New York is he nan
cial center of the United States it will ultimately be-
come that of the commercial world The legal restraints
which compel the parties to resort to Indirect measures in
their moned transactions, attended with great evils
and endorsements to commerce. 1t is believed
present usury laws may be modified in certain cases with
destroying the protection they are designed to afford
against extOrtion and oppression.
have been expressed those engaged in
the commerceof the City Of New York. that the encroach
ments by piers which have been made upon the harbor OF
that City, are calculated create dangerous distractions
to diminish its convenience and to make it inaccessible
TO large vessels The subject demanding your atten
op as il effects not only the interests of that City, but Of
no Sfafa md @
of New York and the title 20 its expanse belong to this
State and New-Jersey is the terminus Of our great
system of thermal improvements point from which
the productions of country are sent to foreign and do
nestle markets The people Of the State are deeply inter
ested in preserving its convenience and security for the
purpose Of the commerce OF our State ana
Nation ! recommend the appointment Of proper com
mission to be composed of capable scientific and impair
al investigate this subject and report to you the
results of their examination
In nv annual message to the last Legislature called
the attention Of that body to the embarrassed state OF our
canal finances, and Of our public works AT that time,
there was estimated to be due to contractors and for land
damages more than 100000 For large share of this
amount drafts had been made upon the Auditor, and pro-
tested for the want Of funds This was alike unjust to the
public creditors, and dsreputable to the State.
For the purpose of paying the debts due to the contract
orr TO pevent suspension Of labor our unfinished
canals and to their completion urged tho Legs
laure provide for the payment of the protested drafts
and for other pressing demands and thus relieve the sur
plus revenues romthe liens which these liabilities created
upon them also advised appropriations for immediate
sures to secure the completion of unfinished public
works by the establishment of system which would
secure the application Of at least s0O0OOO annually for
that purpose suggested that this could be secured
either by taxation by oan or by an amendment to the
Constitution.
potant that immediate appropriations shond be made for
their benefit The Genesee Valley and Black River "a.
nails were nearly completed and small expenditures would
bring into use long lines of navigation
also expressed apprehension, that there would be
disastrous diversion Of commerce from the Erie Canal un
less improvements should be made in its channel to fac
tate the Of boats and enable those designed for
the be introduced and supply the want OF
vessels by the decay and destruction OF those
heretofore in use. So =.
our canals or the contractors had been adapted by the
Legislature and as its session drawing to close
sent communication to the Senate and Assembly calling
their attention the reports of the Canal Commissioners
and the State Engineer and urging that the immediate
completion of the improvements which they recommend
ed required by the interests and for the security OF the
commerce of the Erie and Oswego Canals also advised
appropriations for the Genesee Valley and Black River
Canals
The Legislature having adjourned without enacting
laws necessary for the Of the faith OF the State
aud essential TO the public welfare or making provision for
the continuance completion OF our Canals exercised
the power entrusted TO me by the Constitution and con-
yeped them again on the day after their adjournment.
advised the continuance of the session for few days
"whe important subjects of legislation were yet familiar
"to them which would enable them to perfect measures
demanded BIZ the public good and thus prevent great
"pury 10 the honor and interest of the State and the
necessity of renewed examination and discussion at
future day"
Among other subjects again called their attention to
the condition of public works and the
of their finances urged the Importance Of making i'm
mediate appropriations TO secure essential improvements
in the Erie and Oswego Canals their commerce would
be seriously INSTRUCTED unless the improvements
In nv annual message, and recommended by the Canal
I'D fba