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

gsas a1ct. lbtt,H 55Tb1o JlJl,st SdoO1
We have two systems Of banking in this state both
sf which believe "a now conducted are sound. The
psn6iDg chartered Banks must of necessity sson come
snder the provisions of the General law as thsr char
LA expire OF discontinue their business. They have
been, by legislation, in messure inlerWoven with
each other.
1hs o.e: principle of the General Bank aw s &C.
surity 10 the bhoder. We all are, from the ne )es'
stv Of our position aud business, compelled 10 reserve
hsnknotes as money. There If no exception II resls
alke upon the poorest az well as the weatles' cIen
Of this State. . .... ..,.,.
M Involuntary creditor of the Banks should be of
Ale most grateful duties Of the Legislature When
Mat is done every facility for the employ ment OF cap
a should be rendered TO those DESTROYS to engage III
Ne business Of banking. , Al.
demand and supply of bank capital will keep pace
nth the wants Of the business community OF the State
The creation Of banks under the provisions OF the
preseut law from the requirements OF 1t In their lorna
Nan never can or will add to our paper curren more
rapidly than will be sufficient TO meet the ever-swelng
s@e Of the trade and commerce OF oar ciuAens.
The formation of free bank upon stock basis
Alone absolutely flor a tme reduces the volame OF
currency in its vicinity as 1t had pad or isthe5 re
Sarled from redemption TO other banks SilO az least
Gar every 500 ii has received ron THIS department
The oniy facility il offer the business men OF the
community where il is located, is in concentrating
sapit above the amount deposited III this office, and
In It's attempts TO fill the vacuum in the currency the
Earchsse Of stock has created and aso by drawing
10 itself deposits that would have remained compare
lively Idle In the hands of parties who from ntees, ill.,
m good will toward the new bank, deposit their sur
Mus moneys therein. This concentration OF deposits
again tends directly to reduce the volume of currency
as the most reliable circulation of bank is in notes
Did aside for future use.
AS proof how slo y the present system OF banking
sends TO initiate currency the table marked c. aud
appended to this report shows the increase Of capital
and sso Of circulation for the last ten years.
II will be readily seen that during the last fiscal
year while capital has aggregated Itself TO the am0an
81 $l22l67l for the purpose of engaging in tie bds
sss Of backing the volume of currency has increased
emily g., 80 69l.
Ii is matter of interest to the bankers of tai. State
% note that under the operations of the free bank law
whose provisions permit capital for banking purposes
30 seek its own location and amount, how swiftly it's
employment develops 'be great source of It's pod;s
S<posts From 1893 10 1913 the capital employed in
baking in THE State neither decreased diminished
= million of dollars aud deposits remained nearly as
stationary. 10 ls49 capital began 10 seek investment
N the business Of banking, and with the exception OF
lsa5, increased with astonishing rapidity compared
With the previous five years.
BY reference TO table II, showing the aggregate
movement of the banks in this State by items for the
hst ten years, from the June ststem-nt it will be
readily that bank capital, whether Increasing rap,
IDLY eluggtshly seems 20 possess the magc power OF
producing deposor. to equal amount OF that capi-
Anl seldom varying more than 80 three per cent
When left TO individual enterprise aud choice of 10.
salty IL steadily and surely creates the eensns thst
sustain and cherish its profits and prosperity.
II would seem that human ingenuity would rest con.
Isn't with system safe and perfect as the present
meinOO OF banking now putsutN III Ae oV7S. w
failure of any Incorporated bank, banking association
o. individual banker has taken place during the past
tvo years, except an Individual banker doiog business
under the name OF the State Bank a; Sscketts Har-
Dor His securities, deposited in this Office have been
sold by the present Superintendent aud the notes
now being redeemed at par. Every other institution,
OF individual banker doing business In this State,
far a. the knowledge ofths Department extends has
faithfully discharged its ooligstio to the puolc
A. before remarked, the two systems of banking
pursued in this State are intimately Interviewer to-
rethcr by past legislation. The Incorporated bauks
are shown by the quarterly returns 10 a sound aud
healthy eondition They must and will gradually dis
appear, come under the provisions Of the act Of
1888 before that clause Of the Constitution which pro
Aibits the Legislature from granting special charters
for banking purposes in this State. Heretofore, with
two exceptions they have filed their certificates Of
seciatoDs in this Department. and continued their
bRsiress under the general bark law. IL would be
tsst in me not TO remind the Legislature that far
&eT circulation is concerned, il is no. gresty
strengthened by the personal responsibility resting
Bpon each of thedI stockholders.
The Superintendent advises srea; caution in disturb
rg the present banking laws and expresses the opin