New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1856-10-01
rFE1l BANKING SYSTEM OF LOUISIANA.
4TB45AE + ". III
me new Orleans Canal and Banking Company,

the banks working under It's PROVISIONS laHe hihi
tanned in the paper circulation of our State with the
extended and general benefits and advantages they
have conferred on the agricultural and commercial
pursuits connected with the commerce and prosper
ity of our city. Fsff 55s8 n !5, Fs& 84
The day is past to undertake 70 prov e that banks
are unnecessary and are not essential 70 trade ana
the general interchange Of the OF ne ofd
II NAV lie contended that they great evils II 50,
tbey are necessary ones That they like all things
which owe their invention and organization to human
ingenuity liable to abuses, and some of them Of the
greatest kind cannot be denied The millennium may
be said to have arrived when anything can be found
which is not subject to complaint.
The grand feature of the Banking statute of Lou
isiana is the organization of q Board q Currency,
the members Of which must possess the following
qualifications n ,lssa3+.i fa
lst To be citizen Of the United States and 81 the
State Of louisiana and to have resided four consecu-
tive years therein. ! h .3Y
I'd. Not to be director or commercial partner OF
any bank director or officer Of bank.
5S Sd. Not to be a money broker, bell. rt
The duty Of this Board Of Currency is to take care
and guard that the paper money issued by the banks
he not depraciated For this purpose they are vested
with the following authority !: &a.
TO supervise the charter and bylaws of all banks ;
10 thoroughly examine the affairs Of any bank when
ever they may deem it expedient to do so to require
of the president and cashier the following state
ment Capital realized; amount Of dead weight un-
der the respective heads of real estate, loans on
stock long loans and all assets beyond ninety days
movements of the banks, which are loans or paper
payable at maturity and intended to meet the two
thirds of cash liabilities not represented by specie
circulation, deposits and other cash liabilities. e
Il This statement from each bank has to be regularly
filed in the office of the Board of Currency every
week. and on the last Saturday of each month gen
eral statement has to be completed, signed by the
President Of the Board of Currency, and published
on the first Monday in each month. The Board have
also many other powers delegated which we shall no.
tce hereafter; that there cannot be any violation
of the bank act without it exhibits itself Immediately.
This places the banking system of Louisiana on as
safe foundation and security to the public as can
well be devised, zs..fs 45 ls --...F jg -eta-.
OF sixteen banks which were in existence on the
passage of the bank act, five only were in condition
to sustain themselves and comply with the requisi-
lions of the law and which survived the nquistoral
mandates of that power, the Board of Currency.
These five banks were the Bank of Louisiana, the
Louisiana State Bank, the New Orleans Canal and
Banking Company, the City Bank, and the Mechan-
ics' and Traders Bank. The Union Bank made an
attempt to work under its provisions, in fact made
good rally, but public prejudice had been so strong
against the banking system after the year 1887, that
the managers deemed it advisable to place it in qui-
. dalton, which they did subsequently to the passage
of the act The movement turned out well for the
State and stockholders. ,-E .@.5
4. The hunks which were placed in liquidation, or
rather forced to close. much by the increas-
ing demonstrations Of the public as by the require
ments of the law, were the Citizens Bank the Con
soldated Association of tile Planters Of Louisiana,
(anoher institution founded on the bond and mort
gage system, which system owes its origin and in.
PRODUCTION into Louisiana to the late Jean B. Nous
sier) the Commercial Bank, alias the Waterworks
Z. the Exchange and Banking Company, alias the old
( st. Charles Hotel: the Improvement Bank, alias the
St. Louis Hotel and Steamboat Association; tie Gas
Light Bank alias the Gas Light Company; the Atcha-
falaya Bank, alias the Atchafalaya Railroad; the
Merchants Bank, the tender and subsidy of the
United States Bank of Philadelphia the Carrollton
! Bank, alias the Caroton Railroad Company; and
the Bank of Orleans. The charter of this last Bank
, ought to have been saved.
In enulnerating these banks we reminded of s
splendid constellation of fnanciers for tea party.
q Among the banks which received more than an or
Qluuly SHARE WIutil, WIS tilt
Canal Bank at that time and often since has it hat
the maledictons of those who did not agree with its
mandates or perhaps who that they parted
: with the stock that they held i'll the institution al
very low prices. --.5--4.-e ts
: To understand the question of the Canal Bank it
is necessary to go back years anterior to the pas
} sage of the famous bank act of 1912.
It's not unknown to the commercial history o.
New Orleans during the territorial government
of the territory OF Louisiana that a charter wa
!, granted and body polite created under the title
i the Orleans Navigation Csmpany-thc rights o
j which were, full and unlimited authority over tn
natural water course known as the Bayou st. John
= with capital of 900 to endure forcrtr. Til
company thus duly incorporated commenced its opt
rations by excavating and making the basin and
which has its location on the line of Toulouse an
q Basin streets and the Canal Carondeet, so Gale
from Governor Of the province before the cesson
a the United States. This canal was completed abot
a the year 1878.
is Tonnage duty fees for using the Bayou from tt
', mouth to the Bridge, one dollar per ton for csc
measured ton, and from the Bridge to the Basin V
4 the Carondelet Canal, the further sum of one doll
Ike per ton and the charter only required the Compal
C. to maintain depth of water not over three fet
The limited commerce of the city paid these eNactio
at for several years. when about the year 1920 the
il for the entire route was reduced to one dollar al
le, twenty-five cents per ton. Subsequentyit was
et duced to seyentve cents, at which rate it ma
tanned for years. u. .,v..
va Towards the year 1928, this tax had become an
ws tortion from the difficulty vessels had in entering
m. getting through the bayou and the canal Among
fol- old nayigators of that day who largely engag
in the trade with Florida, was our old and respect
cry citizen Capt James Forsyth.
o is The exactons of the Company continued to ncre
ont as it were by the increase of the trade with Aaba
:. Mississippi, Florida and our Lake parishes. Rem
as strances and pettonswere presented to the Compa
M but no redress whatever was obtained insult V
added to injury, and the public dctied The char
be- of the Company was perpetual. In the year IS
lies the late Maurice'W. Hoffman conceived and bron
for forward project for n railroad to the Lake, VIII
resulted in the incorporation Of the present Pontcl
Dry. train Railway. But the Orleans Navigation c.
las pany, in its charter not to be frghte
pos by railroad particularly this only the II
'ch, railroad projected in the United States.
lesS About this time (lS3l) the late Samuel Lverm
e influential citizen, stockholderand directorin