New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-01-08

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,hort Of the secures Of the business Of the State
and tbs, this win continue 70 be the long as
bar king " continued s present bssis. In relation
10 mortgages the Superintendent says:
The act Of 1893 a. amended by that Of lS4s settles
IA tern NJ on which bon and mortgages nsy be
received as security for circulating notes: and tae
amendment Of ls49 in relation - the reception OF
stocks aud their kind are nov both IN force ana con-
rC the action Of this department IN receiving those
securities for circulating notes % be Issued thereon
In relation to the reception Of bonds and morga ges
by this department a. security for circulating no%-'
he present rcun bent only relteraes the opinion OF as
predecessors in saying that then reception Ws a.
original error o. he sct 81 1888.
The ipcresse Of ihis class q securities dJrng the Pf
year ia in greater proportion % the actoA ncfeee o.
iecurities deposited in this department thin 10 :ny
former one and II such sc TO warrant the concius9n
that thew are soJn 10 reach q nearer proPor.sn to me
s,.cks now held than at any time since the Organize
tion of our free banking system
The increase OF mortgage securities during the Phs'
fscal wear ending on the 30th September Iast, Is
$40 TO against 478 during the fiscal year end
no Both September 1875. The receipt OF stocks OF
rather the AMOUNT Of stocks held by the depar'men'
decreased during that year 500 ,142; WINE tne Pne
year shows an increase Of tuat oesc' P'''N - 00
Of 50 Cj4 9C8 -.
THE rapid tendency TO raise The amount OF mortgage
secnrties e. basis for circulating notes, is clearly
;nc from the fact that large majority OF ell the
nev Rank that have cone into existence during tue
mast wear have mort cages as part OF their securities.
M the associations ard Individual bankers that have
commenced business during the past year, D4t elgul
have secured their circulating notes by stocks alone,
while seventeen have their circulation secured ny
pledge Of public stocks aud real estate
Within the lss four years nearly s7,WOOVo OF the
sock Of tnis State issued the enlargement and com
,lon of orr various canals, have bee eDsOroed oy
lbs Office and over 81 900 0OO, in the shape OF pfen''
INNS for those stocks have been paid into the rc@ury
Of the State. Another ear must necessarily p.ce uon
esD ffe
Uurpose and which will soon find its way lnto LOO
vaults of this othce
The SUPERINTENDENT does not recommend any en-
argement at present OF the basis Of bank cuculahon
but II INKS that such enlargement will eventually be
necessary TIE Superintendent advises that each bank
.hau be required to make an examination every year
of it. securities deposited in the Bank Department
and ascertain if they correct. The circulation OF
the expired incorporated banks on the 3Oth Sp"noer
was 50. 7O5 05S. The Superintendent says:
NV predecessor in biz last annual report recommends
that the stockholders CT the associ A'n u'iug TINS
cnrteucv for their benefit shsuld be made directly ana
iume dihiely responsible for its redemption Whle the
present Superintendent fully concurs IN the oeueht ey
derive from that circulation ami IN the Justce OF ucN
liability be most respectfully suggests to the Legs
ature that the use of hOse notes by the ASSOCIATION
attaches in his opinion, the personal liability ior uler
reclamation either upon every stakeholder OF me
exnred bank in whose name any such STOCK stOoo az
time the charter expired or those of the asso
cio,;on that has succeeded it. That circulation is
certainly an indebtedness of the one party or OF the
other. ,.: -,
70 anshe the trustees of the old bank 10 close their
tru.t they must as prudent take the guarantee OF
the sssocstion TO that effect may rest IN he ssspe
of special deposit by the trustees OF me ora DahH
which would be paid by is final redemption and
descton under the the act of 1854 providing for the
rftuIn and destruction of the notes of expired Safety
Fund banks. -, IL:
the opinion Of the Superintendent will retire that cur
,er cy without gripping the operations OF the oanks or
exposing the public TO any eventual LOSE fuiy pc
ewing hat personal responsibility rests up0o the
stockholders of the expired bank or those Vi tnI nym
association according to the terms upon when the
transaction lnust of necessity have been made, ain
unable to the reasons which require any ACTON on
the part Of the Legislature 10 connection With eper-
sons liability OF the stockholders OF tne ne" assoe'a-
ton succeeding the expired bank
During the past year two Banks have given notice
Of closing their business. The Superintendent thinks
the Safety Fund viii evenSualy meet all demands upon
il and leave a considerable surplus.
In concluding this Report, the Superintendent r.
spcctfuly suggests to the Legislature mat as lar a Ms
knowledge extends, no deslre has been hamiest1u ef
tLo, NV he peope of this State or the bankerS them
selves for any radical change III the system o. banking
now so successfully prosecuted in 1t. Inc expansive
force given to capital by the General Bank la" seems
10 meet fully the business demands OF our co"uuhly
almost indis olubly in.erWoven with our system OF
banking; they are mutually dependent upon each o'h-
or. audthey are now BIT , prosPerously eonducted'
Tie introduction Of stuIDIng eleneTt mus. a
teri,ly affect their mutually successful operations;
II phst success ip the business pursuits above referred
70 furnishes any evidence of future prosperity, II "oulo
seem that wi.d. III would dictate that stand point
sbould now be- made upon our present banking laws,
and await the clearer teachings of experience as TO
their defects before experimenting upon the powers OF
endurance that the present system may possess 70
meet theorcc and periodical changes, the eHect oi
which can only be tested by the uncertain bat pfaclcA
While the pIc.eut Superintendent lie adverse to chang
ing auy principle practice IN the methOu Oh uaac'
ing the busDess of banking In tins State, YET ue re-
spscuy ask the aid Of the Legislature in perectg
tie dot; IL and practical efficiency OF bis department 10
the foloy;re pa culars which have been referred to
under their pror heads In this report
l. Tic pas If an act making II Ae guy OF eau
hank Lnuilr D.. citation and indiNdu. banker,
through their officers the individual banker IN per
son, Or an authorized sgent duly appointed once IN
each fiscal year TO examine the securities hed IN uat
for each q them in this dePsltment, anu te'e'p' '"e
ssme if found correct, to the Superintendent
> To compel, by fine in case OF f4uuIe, OIL oahGs'
ba1lc ciatios and individual bankers, TO make
their quart ~ returns within fifteen days at'eF haung
Lotcc tcfL 10y the department OF tie day deSghS'ed
upon which 10 make the same.
3 To hereafter compel individual bankers comm nc,
ing bsrC.s m their dealings with this department ana
the public yr secute the business OF banking uhuer
thor own proper names
To enable the devsees Of an Individual banker to
continue 't business and The nsme OF such BANKER IN
their dealings with this Department and the public.
; To enable the Superintendent to appoint an agent
10 witness the burning Of the circulating notes OF any
bank banking association or individual banker, who
sla neglect the same for ten days alter their receipt
by this Department.
e. To enable him 10 destroy the bank mote plates of
all closing and nsoly at Banks in this State.
:. To lay into the Treasury certain balance. OF
closed BaLss.
g. 10 sell or compromise certain securities held by
IT,, B4bk Fond received ir IN the City Bank OF But-
falo Low worthless ia ia, If present. condition.
Those nrnnnsitlons embrace all the legisAtiOn