The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-02-23

under authority Of an at which has passed the
Legislature, he is authorized to exchange the Sc
curities deposited by any bark that has gone mo
quic alton for the circulation Of such notes at par
The notes must be presented ct the Auditors Off %
In sums Of not less than one thousand dollars, with
in twenty days Of the l4sh Of February. After the
expiration Of the said twenty days, the securities
that may remain on hand viii be forwarded to the
city of New York and sold, and the proceeds there
Of will be applied to the redemption Of the notes az
provided for by law.
The Boston Journal furnishes the following sum.
mary Of the annual report Of the bank commission
era Of Massachusetts,, just issued from the press:
Joere are IT, banks incorporated in Massaehu.
sets Five Of the twenty banks chartered BY the last
(Dec that the report was closed. Consequently, the
number Of banks in actual operation 1877, of which
IS in Boston, The total amount OF bank capital in
Massachusetts actually paid In, was S57, 103, S43
The Georgetown Bank, which has had but qualified
expired September go 1851 has now but s347 Of it's bills
in circulation The FINAL dividend to the stockholders
beyond the original capital paid In, was $40 IS per
share.
During the year 1854 the commissioners examined 9s
banks and IS savings institutions. OF these banks %
paid The commissioners remark Of these inst utions
that In general they have been conducted without ha
lS the AND C. 1 M u. tSca
rivalry which exists with regard to dividends prompts
bank officers to indulge in course OF BUSINESS Of cha
racter which will tend TO impair eventually, the profits
from which alone dividends can be made.
The commissioners, in their comments on the banks
In in general commend the provision by
which banks are obliged to make frequent returns They
mention the fact that some banks transcend the liberal
p.oy,ssn :. made By the general banking law for each
qusite for the transaction Of It's business,
not exceeding twelve per cent the amount Of its CAPT
subject Is to be taken as literal restriction, especially
when liberal provision is made for what banks may hold
.nS ca h OF "a
OF the banks make to escape Its operation.
The commissioner alluds to the practice prevalent
among some banks Of losning to each other and con-
denim also the practice OF oaning paper maturing in
other States urging that banks should endeavor far
possible to aid the neie hoorhood in which they
situated. They remarkable is PLAIN that the bank capt
tai Of the State is ~ the least large enough not
any increase at present does Tot promise much ben
eft 10 the business community unless dispensed with
jusl determination"
The increase Of banks excited sharp competition
circulation has of necessity been subdivded much to
the dissatisfaction OF the country BANKS while in cities,
the distribution OF deposits among the increased mum
s rs0u S aI he s ,hamns,s 81 nros nssn
sought to keep up the dividends to the old mark and
the rates Of exchange charged far from being ALE
yntedraies which often submitted to rather than
acqutsced In.
The commissioners give quite lengthy history of the
failure az tn Cochi.uate Bank attribatiag the failure to
the large cunt OF foreign paper la the loan fortified
by worthless collateral and the failure Of the President
$ NJ Allen. They alege that they watched the opera
tons Of the bank with all possible ana regard IL
that the stockholders failed to axe regular
and thorough examinations leaving !: 70 the i've direc
tors to that things kept straight who in tarn
entrusted the management OF the bank worry much to
u President Such the part Of The ok
holders and directors they regard inconsistent With
just policy and pruden forethousht As a crumo Of
comfort TO those who unfortunate as to be
otors OF the concern, they remark-.Tne failure OF
bank s always to be regretted but in this pub
lie will be losers IL at ALL TO but small amount The
fact IL not little gratifying that failure of this kind
has mot before occurred in Massachusetts, for many
years.