New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1856-03-06
Mr. wADswORrH moved to lay the whole sub

Of the Whole took up the bill fer the better protection
Of the elective lranchi,e in the City Of New-iork.
Mr.. N0X0N took the floor and argued that such
law Needed IN all the large ctier in the State He
then made constitutional argument in favor of the
bill and concluded by charact rzing its provisions a.
wise jus, and obtaining nothing but what the Con-
stitutiOn approved.
Mr.. RICHARDSON replied coutendng that the
hl was unconstitutional Rot only in particular but
in all lis main features.
Mr.. SICKLES then announced bs desire to be
heard in oy5o ston to the scheme, tomorrow, AMI
uoved that progress be reported, which carried,
after Mr.. BROOKS had remarked that be hoped it
would be the understanding of the Senate to come to
decSied CONCLUSION on the blu then.
FxFcUTIyE sEssIOS-BAsSs AND BANsERs.
brief Executive ) sssOn nov took place and upon
the opeIrg Of the doors the Committee of the Whole
took IN the bill in relation to Banks Banking Associ
atiois ard Individual Banks, the Bank Department
and Bank Fund.-
Tie fifteenth section prohibiting Banks Of Issue
fem acting as Savings lnstutons was stricken out,
il having been rendered unnecessary by the introduc-
ton of separate bill proyiding such a restriction
Mr. BROOKS moved to strike our the nth section.
Mr.. KELLY remarked that if this motion prevailed
it would reDder nugatoIy of the main objects OF
the bill. Why, Sir this same section, If enacted, viii
prevent those rapid and injurious expansions and re-
fractions in money market of which the Senator
fom the With (Mr. Brooks few ds's ago COM
planned, and introduced resolution of Inquiry "a to
the cause. He assured the Senate that nothing ever
affected money market half 50 much as does the
leaning OF money upon the nypptnecdtlOn oi
This section provides that banking association or
banker shall loan at any time, upon the pledge or
hypotheoation of stock aud bonds of States mu-
nicpal or private interpretations or associations or
either Of Them an amount exceeding fifteen per
cent of the capital stock of such banking association
or Individual banker. This bill had been close scru-
tinted by many of the principal spectators OF the
State, he was informed that they had said the
Legislature might ps this bill for aught they cared;
for although il pIohibited them from loauing beyond
fifteen per cent of the capital of the institution
which they presided they could discount paper on tue
bypothecaon Of stocks to as great an extent as they
pleased. To meet this, he moved TO amend the Sec
ton by adding &" or discount"
Mr. NOXON could rot understand the utility OF
this amendment. He thought II would operate I'M
Justly and GENEROUSLY 10 prohibit one Bank from loan
ing at a ratio of than heea per cent OF hs capi-
tai upon the stock of another Bank, however solvent
it might be. He thought that not only the Banks OF
New-York City, but those of the interior, and in fact
the entire business community would loudly protest
against the provisions OF this section.
MIR. KELLY replied that possibly the provisions of
this section would act GENEROUSLY IN certain cases. But
when the Senator from the XXlld MIR. Noxonl To-
stanced bank stock as being peculiarly good, aud,
therefore, loans upon il should not be restricted be
should remember the Empire and knickerbocker
Banks Yet il was not bank stock only that |" a.
aimed at in drafting this bill Everybody Ano vs. now
easily stock is created in IN % raI,oaS
creating sio,k there dearth Of that food for
srccrn1ors Ii was such kind of stock that this bill
Would particularly affect, and all sensible men must
he agreed that loans, By banks, upon them should De
strirgently restricted.
Mr. N0XON replied that he did not consider the
exigenc,s created by dealings in these stocks sufficient
TO require law placing the best and most reliable
stocks upon the ssme footing with those alluded to by
the Senator from the With (Mr. kely.)
Mr. SICKLES considered that the exigences of the
case demanded that Banks and Banking Associations
should be restricted in their loans upon the hypotae
cation of stocks and pretty closely too. He consi
cred this section the most essential in the bill and
trusted It would not be stricken out Perhaps some
Senators did not know how these expansions and con-
fractions were created. II was done thus: certain
kind Of stock-Erie for instances Cup" to-day,
and any amount of money may be borrowed upon
it, cashier Of bauk may be seen going around
among the brokers, bat in hand, pressing them
to take loans uPon the stock-the holders OF
which, of cOuse, congratulate themselves upon
being in possession of the fayorite stock and bor-
row largely upon it. This is very wei, 80 long as
it lasts. But in few days, perhaps the very next
day the borrowers informed that the money Dor
rowed, always, on CALI for which they have pledged
their stock is needed by the bank and must be imme
dately paid. How they to raise the money |!
They may say to themselves e" Ii Is only this partcu
lar bank that calls for the money; we may take the
stock to the next bank, and borrow upon it." They
do So but are met with a shake Of the head by the
cashier. He il doubtful with regard TO Erie. They
take it to another bank, and are met by still
doub tful sbout Erie. r. their establishment they
find that the Y cannot realize loan upon their stock
which is fviced upon the market. Tho consequence
of all this il = at Erie foods Wall street.-The holders
Of forced to part with it at great sacrifice, and
none but the knowing OperatOrs-who have plrposely
produced this sudden change-gain by 1t; but they
gain both WAYS. Now, he conended that this money,
instead Of being almost entirely used for such opera
tons, should be appropriated more generally 70 legt
mate CONNIE rcial usesshOuld be loaned 10 our mer-
chants and mechanics for the benefit Of their legt
mate business who are really, aud in the spirit OF
our liking system, entitled TO the facinties
LII from aueb n
Mr.. BROOKS followed IN opposition to the bill, re-
marking that he would go as far as any other Senator
To prevent the violent expansions and contracons n
Which our money maket i subject; but this bill would
have no such effect. On the contrary, this l7th sec
ton especially would only emban our Banks, with
out securing any corresponding benefit to any class Of
our citizens. He had dozen letters from bankers
and merchants of New Ork City, all OF which earnest
" protested against the adoption OF this 18th section
Mr. HALE followed announcing his intention to
support the bin, which he thought would have strong
tendency to restrict, at least, the Immense gambling
operations that daily performed in Wall street.
He in possession of the opinion OF several bankers
of the interior all Of whom agree that ITS PROVISIONS
as they now read, will operate benehcialy upon the
banks and the money market.
Mr.. SlCkLES was again heard IN explanation, after
which
Mr.. SPENCER highly eulogized the New York
bankers a. q class.
Mr.. KELLY agreed with the Senator from the
Fifth Mr. Spencer in the high character with which
lie had invested the New-fork Bankers, as class;
but there were exceptions In this as in every Other
and be venured to say that there those bankers
who. according to the Senator from the Sixth, (ir
Brooks protested against this bill, seated in the
Senate chamber, with all the responsibilities Of legs
ators upop their copscience they would go for this
very bi-ii- nth section and all II was quite differ
eut to stand behind bank desk and express an
opinion upon bill affecting the operations Of bank Of
which arnani an officer and comingup here, with the
responsibility of legislating for the public welfare
had ffrbf IN agkf rurnu nj IN Ore
leniency than they show their deb ors and yet were
the Legislature to mete mercy according to that
measure. how little would they receive at our hands,
In conclusion Mr.. X. stated that the Bank Committee
e oti .taf hat hayu ouid