The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-01-08
Total pvnbey and ameups
for Free Banks .,........" 1,ooA 10
se,ss,Aio


1olal ....s.sss'. Asossocs $s,oo9,AAv
pssrRUcnos os nUuIAlsD HorEs.
me above Table presents The dollars ven
a. ho number or rnus.ed notes, counted and destroyed
by burning lhx department during the past nsoA year
.,bity resting upon d OIL second only % the safe
ice Ping OF me securities depoeed tnereic The method
Row followed s believed 70 be secure FOR the banner az
each bank ID count end witness the destruction Of s
notes (oonntef ako by the depertmen, would 70
dev lyipg uson th Office Quite NUMBER OF banks
have regular siept In their empEy Tor thai purpose
wtile large proportion Of them either depend upon their
pull pore Of witnessing she counting and destruction OF
angle package Of pctes
This having wiess the pars Of the bank ,lssli 70
the aesruo. o its notes absolute necessity for the
secuIiy the so,srDiendent and notes do
stroyeo but htr burning Witnessed BY 90 onces Of the
sanl an seent OF tho same and MA ceruncste Il the
The app TINS nj Of different individuals ~ diTsren,
oSSs 20 Ibis ocs The notes .re receivea sD pcsd
the vault await, the convenience Of the banker ne
desires 70 witnerG their desfuc I'm PaTeocay and 70
Al he ofce Tar. to,krsss tho mesh way in which
he duties Of the .Dice shooid be performed.
The amount OF work required IN 10 nss reached point
hist secnrscv can only be obarsd by the certainty wan
which tbe duts Of each day are compleet and with the
ree 10 ycpder the performance OF those dutes certain
ircursC, and rapid, tie present superintendent most
fully copcurs IN the recon- mendson Of hs predecessor
askng the Legislature 10 give him the power 10 up
ONT suitable and dsoree person 10 WITT - the
Ing burning Of muteed bank notes cent to this oace
destruction when that dusy has been mes lected by
bank bAbsipg association or individual, banker for
ten " after Their receipt by the depsrsmepA
mir rover would much facilitate tho business o, she
Cfce we'll enable the kev 70 receive his notes
vkh greater certainty and deepaich.
CAPITAL sro0A 10 NJ iAiD ~.
Ny immediate predecessor, Ia his last annual re
port recommended to the Legislature the passage, or
making ID obligatory or each association 70 spoory
the sneuni OF capital 10 be pa'd IN before ootn-
mencng the business Of banking sod that the scperln
,endent sbould he prohibited from ssuipg circulating
poses uu, furnished with proper evidence ihnt the oap
tai stock named their articles nsd IN fact been paid up
The present superintendent cannot see any ns,y
applying the principle OF paid up capital, Of q gwen
amount 10 association, that 10 not ~ ier ble In III
pcsioH 70 an individual banker. Pner position s pre-
m by Of the barker apples 70 hss entire property. while
that Of the banker 10 The again OF the
amount Of stock held by him In Of the insolvency OF
he associa. Ion presumed tina, Il upon this ground
That tee hale applies tho principle OF paid
up capital opy 10 ASSOCIATIONS.
Wrh due florence 10 his opinion, appear 10 the pre-
sen: super dent that he lost sgtt OF tho great prnc
pie embodied In Ee general bank law and the esest Of
Any general law updcr which corpo -aton. bnsi.
10 dea IN persrnsl property can be safely Great
ed The general tank law, true, provides that u
capital OF every association shall not be less than
$to 0o0 as distinctly rays thai shall not receive cir
onisIg notes rom this DEPARTMENT unless &c depshs
$780, In The fecufties required by law II certain
y lair TO suppose that those securities are worth par or
they should net DO taken, upon .he rests the credit
attached 10 The circulating noes nsued upon their recs R
The Only requirement OF tie general bank law hey ad
the capal u, thai the amount shall b,
named in the certificate fled u tins office, beyond which
that caral fna not be increased. and even this Is
rule OF the department under its construction OF the law
IN the quarterly made TO this department by
the banks, banking associations and individual bankers,
The amount Of the capital Of each 10 s,ad and sworn 10
these the general bank law ignores
the question OF capital The whole scope intent aud
meaning Of that Law land v.sely So IN Tho opinion Of
the present superintendeni-to secure the circulating
notes nsued 10 banking association, or individual
banker.
To carry The provisions Of that law beyond tna. point
merely effort TO place The voluntary creditor OF An
ASSOCIATION individual banker upon q footing In ad
vance IL the protection legally Afforded 10 al creditors OF
The Must fund he'd by this department cAnno, be
strengthened weakened by the amount Of capital OF
association, whether be TrcAs or small for the simple
that the capital under the control CT the owners
thereof, and ust within the Jurisdiction OF the supern
tcnseat
bank a,ls only when It's capital entirely exhausted
This Is peculiarly 30 az all corpo ATOMS created
under general laws whose capital or w employ ment,
conBocted with personal property.
The connection OF capital with general laws for It's ON
poymen which does Dot invest II 10 real estste sim
Ply reliance Upon the integrity OF tho corporssors them
selves The caraciy and n,egry OF the corporatora
the only eyiden.e eDHtl!ng hem 10 credit.
THIS should be 20 beyend question and !: would be
ss reasonable 10 REQUIRE that mechani: or merchant
81 ouId have nx,d capital, according 10 law, TO prose
cute his bu'ittss o. o free banker.
49,. ria ..,r,c,,on ~ .e,n ccr,ssn
crcusiir notes received from this ce, which he pro
poees TO circulate ~ moaey and the only Greas or para
mount nsefest tho public have In him, or them, n An As
soclacn Ia tbat theee notes which convenience and ne
osshy ooDpe thai puoc 10 use and receive In tnor bu
sns's ,boud be amply secured or in other words tner
anl redemption for The amount for which they were
issned tecured beyond q contingency
Ire great mxake relation 70 the spirit and operation
need or require any protection beyond the securing the
bank notes Issued under tat law, and circulated - mo
ney. The use Of these notes Ia necessity. and when
they created by Law, the power that thus creates
them should protect the community from any loss by
thai use.
F,ery a,emp, beyond lhis under The general laws Of
the description heretofore referred TO- is simply giving
hc;itous standby and credit 70 self made corporAuons
which dtceves the public and renders hen an easy prey
10 frauds occasionally perpeuHied upon them, whether
under the name OF an insurance company or bank.
The mere possession Of bank notes ssued by thh de-
partner. should no. o. Me give any .aal9na crsam 70
In The vaults OF this department certain securities Tor
which circulating notes have been issued 70 them 70 use
morey. They have In TACT purchased ana paid for
ose notes and securities under which they 90
isned In III possession. the mere possession and
,sn 70 r.n,lsr them The o.iy reSss 70 Ss.soss
superinisndsst
Others that the Inauguration OF the General Bank law,
created entire revolution IN the connection OF oapa
Win The business Of banking in RELATION 20 circulating
potca The Old system not only nDsd the cAvtAl- bu,
also settled the pr1roiplc thai an noreae Of required
lesp alton " make the same va d. while the general
lac lec zes The parsa Of that busacs oy any and all
ohsens Of this STATE leaving them the OF .cosi,oa
the settlement OF TIE amount n capita ,i,yed, aud
the unlimited OF the currescy upon ceposi, Of
tan ccuritos, ossrg the erire business banking 10
this Fate upon the single idea Of secvring tns puoic
from Dss upon The currency empsoycd In conductsng
thai business. No Qualification no location, eapsta
beyond the mere depcsn CT slot 90 by sssocaor
and 5000 By Individual barker are required, except
socr1ug 10 his o. their votton. BY toe ceoers
law u s enphAjc,ly tree oAnsing aud o. necessary
but hook n NJ gle ses7lt, security sw orouls.ns
poes-
II may seen q ssrsnge idea oS the supcinteadsnt OF
the BANKING Department 70 advance ovi he divcs
hmeeu Of ths oynlou tsi me true end sai air Of tina
av, be .tns aud terminates vim this single oojcct Of
curly 70 The note holder. and properly Every o,hsr
crcd,or q ASSOCIATION individual banker a. 70 say
the kast, o voluntary creditor % the deponsor
In bank voluntarily pAyts, when be makes the deposit
with security tba sa 5bes itself 70 the pc,es be places In
the bank and puse himself upon the vi q ore
dtor - he bad loaned has money 70 an individual.
he prompted 20 this sci oiscr 10 promye bis corvs
ueocs the probable enployncn, Of his ,ney sbe
zn 10 not Of puston Ike We original receiving Of
the notes spd In The opinion d the supern,eusnf r.
Just reasonable, beaore slated 70 CERTAIN
amount Of capital 70 be pad 10 bT provision 81 Aw 10
conduct mercantile mechanical business thai Of
banking while its pursuit " len a. open soi un4ram