New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1855-03-03

The friends Of Mr. st. John we understand, admit
that in the Gaze of the Excelsior Rank he had no
legal authority for his action, but they Justify hun,
simply by precedent. This is certainly very weak
iustncation for dangerous and illegal discretion
assumed by public officer, and in the case oil one oil
the smest incredible efficiency claimed for Mr. ST.
John by his friends, the plea becomes absurd IL
will be made to appear, we understand, ALEC thst tue
Union Bank Of Watertosn was legally organized at
the time TIE certificate of deposit was made TINS,
however is OILY enc of the collateral issues, aud not
important The material point must not be over
lcok cd by the public which is. thst the Superntend-
ent gave Up stock securities without particle
Of authority of law, arr received instead
certificate of de oost for fory per cent OF the crcula
ton of the liquida.Dg bank If he assumes the dis
erection 10 DO this for forty per cent? be might with
equal propriety for eighty or for one hundred per
cent; and if TIL law be thus violated in one case
with in punIiy it may be in twenty. There Is really
no practical difficulty with a superintendent holding
such We've to have the entire currency OF the STATE
secured by certificates Of deposit in ths various
bank and thus that principle of perfect security
recognized as the paramount idea of the Banking
Law be entirely nulhed by the discretion assumed
by the Superintendent who administers it. We do
not suppose that any such extreme case could pos
sbly occur, but it might naturally follow such a
free and easy administration OF the Banking Law,
as this case of the Excelsior Bank. Such Liberties
with the requirements of the law, even backed up
BY precedent, should not be allowed to pass unre-
buked In the case Of another Bank which had had
$50, 900 circulation, Mr. ST. John gave up $50, 900
of stocks or 90 y cent stock certificates of deposit
Such transactions these must newt ably destroy
public confidence in the security Of State circula
ton. Under such an administration OF the law, the
public cannot know what securities are pledged for
the circulation Of the free banks II is understood
universally that the Bank Department contains State
and Government SOCKS, and Bonds and Mort
cages, pledged for all the free bank notes, and
the note holder sleeps securely under this in
PRESTON yet under the latitude assumed by the Bank
Supe half the free bank circulation Of
the State may only be secured by certdc stes of depo
its in some of his pet banks If the Superintendent
had right TO secure 40 per cent of the Excelsior
notes by deposit in the Union Bank of Watertown,
he had an equal right 40 per cent of the cir
culai n Of some other bank, by "a certificate OF de.
posit in the Lewis County Bank which went out a
abort time since with 81 in cash, in the vaults. Can
any one contend that the Free Bank law ever con.
tempated such security as this Again in the
Excelsior Bank Gaze, the liquidation was not carried
out in good faith but the notes when redeemed by the
Union Bank were reissued, until they became 80 rag
ged that they could not be circulated aud seat
in perforce to the Department. The Superintendent
allowed this game 10 90 on for more than year, so
that in Sept 1885, twelve month, after the cert icafe
was teken there were It'll 900 Of the s25 900
Of notes in circulation Wound up in good faith
there would not have been 5000 outstanding three
months after comm encing liquidation.