New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1856-10-03
q,f4E; BANKING sYsTEnr or LOUISIANA.
The New orleans Canal and Banking Company
( CON oLuDED.l

u 9
III taking cursory view Of the financial condition
HUI the city at the period alluded TO- and ealing 70 our
aid the general statistics stored up as y were ~ oot
memory with some figures which are on record, we
ind that the citizens Of New Orleans, perhaps We
nav IL wall embrace The State Of Louisiana, were in
debted to the sixteen banks Of New Orleans in Jan.
uary 1883, the round sum of millions four
hundred and seeea thousand dollars. In the name Of
the Great was this not sufficient to ruin any
community Of modest or limited pretensions At the
same time the sixteen banks of the city had specie on
hand to the amount of 50 729 $685. and creulatonof
81 55S, 46s. The line of deposits was trile over
Ss7 0o0000 the amount Of capital paid up, was $780,
943,Ooo the nominal capital was $52, 100000. The
amount Of Indebtedness due from the community,
the illusion and we may say the deluson Of the day.
created the impression that good city reached us
eliminating point about the time Of which we write
that was hopelessly and rrerevably ruined, that
there was nothing to redeem or relnstate IL IN the
world of commerce finance and trade. In 1855 the
value Of sugar and cotton received in New Orleans was
ss4 900 600 of which 100000 was sugar, leaving
$40 5ao 900 as the value of cotton; how much was
file product Of Louisiana is difficult to say 1t will
he observed that the Indebtedness Of the people was
fv per cent of the entire value OF the two great
staples In 1912 the whole value of the produce Of
all kinds received at New Orleans was s53 900 0O0
Compare this amount with the amount of the season
lust closed and croakers and agtators, with the de-
sponding if there are any Of this latter among u.s.
can decide whether orr city is retrograding
In 1886, 1887, 1885 1880, and 1910, the average
line of deposits of the Canal Bank was from $4,000
to SI50OOO The canal was not making any returns
nor did it till after 1885, in fine it had been and
then a real mill stone to the working and movements
Of the bank In fact, the bank was in state of col
lanse The incalculable benefit and advantages to
accrue from the canal, began to be manifest during
the eyentfu year Of 1887 at which time it opened
or business The results to the bank did not rebound
10 its rood-it was not receiving the least return
equivalent for the immense outlay. The public at
large the commercial agricultural interests the navi
cation Of the lakes the social relations Of other dis
tricts and other States were the recipients OF the
vast good and benefit derived from the completion OF
the canal and basin.
The wear. 1912 brought into existence the famous
law revving the charters of the banks for our Legs-
ature had previously declared that every bank in the
city had forfeited its charter and privileges Still
they were suffered to go from 1887 to 1s42, be-
coming every year hopelessly involved, paralyz-
ING the energies coruptng the morals, and setting at
defiance laws and statutes Of the land. The Legsa-
tlre and the Executive of the State could not har-
monze on course for the relief OF the people. The
I notes of the various banks were estimated and sold
for coin at from 10 to so per cent discount. Public
1 meetings were held to deliberate the monstrous
and gross perversion of credit, justice and faith,
4 which led to a forced compuson to coin payments
/. Two of the banks the Bank of Louisiana and State
Bank. commenced to redeem their issues i'll specie
could not receive deposits of the notes OF other
banks only to be returned or paid in kind 1t will at
once be observed business could not prosper or move
on under such state Of ailirs-two or three banks
doing business legally, and dozen more illegally and
4 unjusty. s97 "
The generally vitiated position Of the currency, the
growing depreciation of all interests commercial and
social required strong measures to aid in rcdeemng
the general credit of the country This was felt by
the Legislature of Louisiana. Several OF the most
prominent financers contended that return to coin
payments on the part of the banks could not be eff
fected without the aid and cooperation OF NATIONAL
bank and some managers seemed determined to wait
1 for the incorporation Of one by Congress.
It will thus be seen what state of chaos and con
fusion the general financial and commercial interests
Of our State were in at the time Of the passage of the
| Bank act. # a& sa
The act itself was severely denounced, being con
sdered arbitrary and unjust. Old fnancleis, Ole
bank managers asserted thatn banking institution
1 could move or work under its provisions Results
however have proved that they were wrong in theil
| views hasty in their conclsons-no statute has con
terred more good on Louisiana than this Bank act
4 The bank act, as before remarked, found the Cana
and Banking Company in an insolyent and apparently
1 hopeless condition. majority OF the stockholders
at a meeting to decide on accepting the act deemed
4 it advisable to accele to its provisions AN entlr
change in the Board Of Directors considered re
dusite which resulted in making Mr. VIM A. Gasquet
one of the largest stockholders then and now in th
bank President of the Board. He found the affairs
the institution in such desperate circumstances tina
he retired after brief administration. The currel
report of the day that he was discouraged at til
position of affairs. In fact, there was not an II
. dividua stakeholder who felt disposed to take til
responsibility of relieving the bank or to brngit on
Z Of the cloud of insolvency which hung over it. i
J However, at the solicitations Of Northern and res
dent stockholders, and the desire of the Board Of
rectors Mr.. Glendy Burke then occupying the highes
commercial position in our State with great ARA
of friends strong credit and large social Influence
accepted the Presidency, and it was but q short p'
e Rod before the Bank, the community one and al
began to feel the results Of his administration of il
affairs. Instead of combining the business of the Ban
to the contracted Office on Magazine street, with on
or two clerks the building where it is now locate
was purchased from the Commercial Water Work
there removed, and in short time the good effect
of Mr.. Burke's administration were manifested in til
increase of business of the Bank; growing credit el
hancement of the value of the stock, together Wit
an entire revolution in the management OF the cans
and basin of the Company which resulted in revelu
. of per cent the 81 100000, denoninated in I'll
dead weight of the bank as public improvements; an
L really and truthful the outlay be called publ
improvements and are such as were never undertake
and completed by any banking association in IL
country.
J. The Bank is commended for the perseverance an
g energy displayed i'll fulfilling the requirements of
charter 1t has continued perform its duties to tt
o public, though at times its administration, like q
i. public institutions, has been censurcd. II any nco
If poration is closely identified and interviewer with OF
If community it is the Canal Bank. Its largest stoc
e holders are among the most extensive owners al
Nc proprietors of real estate in city, some SIX
seven of them particularly so, and it is extremely ha
to create the belief that individuals so deeply int
lie csted in the general welfare and prosperity of Nc
I'd t.,.4 l, IlnN