New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1856-11-07
THE BANKING SYSTEM OF LOUISIANA.
The Bank of Louisana.--No. l.

visions OF the Act OF the Legislature OF lo43 re''S
the charters of the Banks of this city, we commune
our remarks on the Banking System of LOUISIANA
The Act requires that it shall be the duty OF TIE
Board OF Currency often as they shal ascertain
that any of the revived banks shall 1al or refuse
to comply with the conditions OF the Act 10 notliy
said bank to enter at once into liquidation on the
conditions provided for in the Act, and on such bank
refusing or nesectng to do so within twenty days
after such notification, it shall be the duty of the
Board of Currency under the penalty of one thousand
dollars for each member, to apprise the Attorney
General of this neglect or refusal.
Section ll-Reads That shall be the duty Of each
member of the Board of Currency to report to said
Board any infraction of this Act that may come to
his knowledge and every director of a bank who
shall be guilty of any such intracton shall be held
responsible in damages, and shall be liable besides to
fine of five hundred dollars for each offence, to be
sued for by the Attorney General on the notification
of such nraction intractons by the Board Of Cur
rency.
1t will be seen that the checks and guards of the
banking law render it almost impossible for any de-
Walton to take place. The great feature-the grand
conservative restriction over the banks-is the
powers given to the Board to call on and Investigate
the affairs of any bank whenever they deem it eNpe
dent. Should any director Of bank see proper
to enter protest against the action Of majority OF
the directors it is made the duty of the president and
cashier of such bank to furnish the Board of Currency
with copy of the protestas is entered on its
minutes. The Board of Currency is also required to
lay before the Legislature i'll the first week of each
session. full copy Of all proceedings at meetings of
stock holders 1t has also the authority to call
meeting of the propreto1S Of any bank to take cog
nizancc of its affairs whenever it may think proper
Nothing has tended more to elevate the credit and
strengthen the soyency Of this community, financial,
commercial and social than this admirable banking law
It is one of the best devised most ucious in all its
parts and requirements that ever was conceived and
brought before the country. Not only is it a great
protection against encouragement by banks, but is
useful and beneficial to the banks themselves.
It protects the banks from repeated opportunities
for loans and discounts, checks investment in unpro
ductive property, prevents undue speculation, for
when bank has its line full from regular business,
applicants can be referred to the bank law and Board
of Currency as why their applications can
not be granted.
Among the many stockholders Of the several banks
there were none more opposed to oreNpesse0 stronger
doubts of its utility and efficiency than the propre
tors of the Bank OF Louisiana, although this lnstltu-
ton has attained the highest niche in the financial
and commercial world, having returned its capital to
stockholders three fold: still it under suspension
4 in the great crisis of 1887 This bank WAS ncorpo-
rated in April of the year ISL under the State adj
ministation Of Governor Robertson, with capital OF
four million of dollars Of which two millions were to
be subscribed the part Of the State, and two mil
= lions by the public at large. The State authorities,
$ OIL the opening of the books Of subscription III
the month Of May, 1874, Immediately took the
amount allotted to the State, payment for which was
made in bonds of the State bearing five per cent per
annm interest, payable six hundred thousand dollars
in ten years six hundred thousand dollars in fifteen
years. six hundred thousand dollars in twenty years,
and six hundred thousand dollars in twenty-five years
IS total two millions four hundred thousand dollars
l. which were paid to the bank at the rate Of eighty
3 three dollars thrtyhrec and onethrd cents for each
one hundred dollars Of stock say at discount ofsN
teen and two-thirds per cent The terms OF payment
: on the part of the private propretors were easy
l. being one-fitth twenty dollars fifteen days before
# the first election of Directors twoths in one year
i after it went into operation, the remaining two-tiiths
in two years. after the payment OF the previous two
l. ifths. These were easy conditions on which to Or
e ganizc and start Il bank The first election for dircc
e tors was in june 1921 and resulted in the election OF
Il the following persons tie part Of stockholders
If Andrew Lockhart, William Brock, foreign commits
Il the house of Morgan, Dorsey & Co.. Samuel "
o Oakley, dry goods merchant; james Hopkins, planter
s J. NJ Fortier planter; Samuel Livcrnorc lawyer. o.
i the part of the State there appointed Bcnja
y min Story merchant John Linton, Of the house 0
wilkins K Linton, cotton factors (hc largest cottol
fuctolage house for years previous and years subse
l. oent till 1885, in this city and Nachez, where Mr.
Wilkins resided y Iucicn Lahranche, John B. Hump
It phrcys sugar planters Martin Gordon, clerk Of one
e of the courts, and Barthelemy Grima, lawyer 0
these thirteen gentlemen, there only two now liv
/, ing, Messrs Hopkins and Bennett Benjamin Story
was elected President, and our venerable citizen
0 Joseph Saul, who was rcputel to be one Of the
a best tnancicrs and bank officers of the day, hay
ing been in that capacity for over twenty years pre-
vioIs to 1923, was appointed cashier Mr. Lverlnore
counsellor, and Hugh X. Gordon, notary. Thus or
gauized the next most important step was the diSpo
sal of tile bonds The bond business was then in Al
incipient state, in fact, it was the commencement
the unsound and artificial mode (sysem it can hardl,
e be caled) of banking or raising capital for bankn!
y purposes, which has caused much ruin, bankruptcy
" and dcsoation throughout the country and the St
of Louisiana may lie said to have been the first which
s. encouraged and gave life to banking on paper. Al
e. though these bonds partly paid for in Sanisl
s. milled dollars Il share realized by selling cX
d. change Oh New York, that is, drawing for the pro
70 ceeds.
The form of the bonds may not be out of place, 4
few of the present generation how bushes
I'd conducted thirty years ago although bond
he Of States and interpretations thick Us the leave
d, Of Louisiana live oak:
or al. 81 Know all men by these presents tAat tn
its State of Louisiana acknowledges to to the Pres
d. idcn. directors and company of the Bank of onis
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