The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-01-08

Desssd - par Every other iostsuvou - iodivssssi
n her scss ousDess N tns sssse fax ne NE ssow
q o. " espaI men. H.eDd aas i-iih uly discharged
AZ before remarked, the tee system banking puT-
Dsss kgMiasop Tue n oovpossted ban are Is sboru
y The qosrsriy re'urrr, 70 sound healthy onod
Ecn They mvst and sih gradually d. ppesv. or
0ter the pr0vriors Of she act OF 1888 re mai clause
4 the constitution wnen prohibits In eslsisaure from
RrsnspR special charters for bankp purposes IN tos
RtNe Heretofore, wnh two except,o ~ hey pave ne'
>Aetr certNcstc- NJ 1scBsous In tn oepsrtpent and
ssnthsed insis buspess under Inc 60 81 bank iss
would be unjust w me poa 70 remind Legislature that
~ fsr es sLei circulation ooDooTpei, IL greatly
siren e,henso BY ire persons respop bby resting upon
seAn vi their Etor kbo,dere.
mo entire combined system Of bach hing IN th Sts'e
~ believes 70 be in sound aud safe
sspditscn GO has ever been spcs ncspssoo.
5beye minor details a'oh Will be referred
6oseeftey 10 uecSon with This
- improved reybaps by legiss I've enAcAmonts. Tue
oanhs have edapt' themseives In then books and me
I'D OF doing business, 10 the Lac a. exists and in the
aniou OF the present perintendent Is would DC far
better 10 leave the system ~ Il stands untouched
oen % take NE sk Of disturbing ~ Tor isnc'ed
Dsovemens based op0o theory instead OF Q PRACTICAL
know ledge o. the real working present NEIL ID OF
banking &c pursued in this state.
ne ,emptatton TO amend bsak law with great
proe upon each succeeding Leg slasure Tpsre is no
ssnlecs upon which exsts great diversity Of opinion
= We meaper IN vhco bank,T shoald be resiraiued
Ausaesed Zach locality and would almost that
h Individual b~hness has some theory psAcioe
which deemsd desirable To NEE. MIS- pso,isr business
Dooeeswks or hie Individual location I'm the hand
You mees Individual capital with s demands ior restc
I'm and limited currency, while the act've business
maA calle aouo for increased bank fac,ldies.
Banking the child OF Individual credit obeys the ,uev
Able lew OF s creation, ir uu), and endless attempts 10
seNle the vibrating balance between and
anpttS That balance must AID viii prepondera,s 10 VI
aaee side the other, from the changing, Doreas
~ and diminishing OF value among us
1ha1 capital al times overtakes commerce IN this ever
cstsuins rsoe, occasionally, but seldom eviden bn.
~ sNmu)sied by individual enterprise, fosered by tie
ysry nature Q. he =. well as me social ,s
wed effort IN IN the struggle Capital CALI
srrercy ns s,d and with whs II present the
sses Of eu,nos paper In our commercial emporium dis
. The Arm belief Of the present. supern.endeut shs,
80 legitimate currency Of the STATE ar shorI Of toe ne
es e. Of be business Of the ate and tns; az long as
esnkpg pursue upon ~ present basin will 30 re-
main Az evidence Of tie iscs that cor present paper
0Nvency far short Of what would be siriy supposed
- be It's legitimate use, The xchabges made between the
banks h Abe cksrmg house In New York, those ca
oAohGss existed In The notes VI The banks themselves,
vssld bring into daily ana maibtsin there seventy
~ per OF the entire Circulation OF banks In tins
ane The circulation oil bank notes or sber the notes
0eDseives, form bui sm 81 element In the business
1abeactiops Of ciHDe To the banks the city OF
NV Ycrh they 're merely or very nearly 90, oonve
nnce she element Of tneir proof Nee mainly 10 their
SsDsss, and muss 40 rensu While the present bank 10
h maintained.
ne people Of ths. state now en- oy paper currency
ussquallea In hese United States wth ,acst would
sesB thai mpediment in the sy OF restr,oLon
ssenopel tna onoroos requirements should DC made oy
h66isbop upon the employ Dent OF capital In The bust
lite o! banking.
may csotistical TO soy ,out n rs deemed duty
0asy laws remain in force fear need be entertained
~ s:ve banking In this State These operate
Strain them from making excessive proht Blinking
TIE result Of rsthr IT, existence TO this question
u profit make The latter excessive aud The former
proximasss Immediately to IL: the condition 10 In
svab result Of the other Protect the borrower from
- szactons Of Aggregated capital and proas and loss
ploy men; o. capital IN the business banking more
0usely Than eRsh tive wisdom
spRrrxs 10 NJ EscKvrp roe CIRCULATING wore. NY rgs
HaAN mn
The lc OF 1885, amended by tina, Of lsi5 settles the
eRns upon which bends and mortgages may be receved
security Tor circulating Boses; ana the msndment OF
Del9 relation 10 the reception OF KIND,
~ ncv eoh in force ard oonuoi the scton Of this do
DAslmert In receiving those securities for circulating
nees 90 be issued thereon.
relation to the reception Of bonds ara mortgages by
fss oepas 'mepi az security for circulating notes the
psesebt only RET srtcs the OPINION Of his
aeoeesors 10 ing. that thor reception was original
OF the act Of 1885, IL unnecessary bore 70 en-
sssvor 10 show that fas. By an ugumtni Tue expe
ysssoe Of the past ie,ohes every person Am,r With the
working Of general BANK the truth Of toN asser
20. fhey have become q part and parcel Of our bank
~e system and any change, however desirable, In the
nson Of The Superintendent, or rather viii be- over
1ydden by the present high prioe Of tue public sscss
ansved 10 be taken by him security Tor circulang
Dsaee.
n psesepsng the foregoing opinion the proprety
- mortgage being received IN this department may
- proper bore 10 prevent msappsehensoo 10 state The
1sas ecpDtct3d with the redemption OF the notes o. the
s1aie Bank n sackeus Haroor rne notes OF THIS bank
redeemed by this department 81 par, although co
sarcd BY public stocks and resl estate" Tns " he.
hsved 70 bc tbe fret nsano. Of the positive Insolvency
- baak With lie notes thu occurred When the securities
were sold q, public Aucion from The proceeds when
Ne sotes were redeemed at par.
MS ssusassory result was proiu ed DOT by tue sale
~ Ne mortgages which only SIS per cent but by
she premium obian upon the stocks seove The amount
~ rosts ssued upon them and tue fst that ory 30 par
which sold 81 ~ per cent premium II Will be
rss4D that the superiority Of the stock securities
800 In Uust for that banr relieved rather compea
saaeA for the depreciation In the m Srtgng,s.
me increase Of this class o; securities during The past
year GREATER proportion 10 The soiva Increase o. o.
0urtaes deposed n this department than IN any formH
49, and such ~ 10 warrant The conclusion that they
soon 70 reach nearer proportion 70 the stocks
nst ,hsn 81 any time snos ies organization OF oar Tree
Ths Increase mortgage securities dung the past
sscai yeay cndipe on TIE soth september last, s42
esmber 1886 The reosip OF stocks rather the
stocks held by the department, decreased durnE tina,
q hat description of securities Of s.. od, sos 81
me rapd tebdescy 10 Tsss the snoun, OF mortgage 30
Ssn The .et ,hst ars. nsr, Of eli the ne. BANKS
1--we into c1siepce during The ran year have
1ses - part Of ibcr sewttes. OF the assccistIoo'
I'D individual bankers thai have nsnced business
taShg the past year but egai have secured their
hSns note, by siooAs alone vhe sevcriesn have their
ssceison secured ~ pledge Of pseS stocks and rec
vas With th. teudcssy Of ncr-sase securities before
~, have no doobL hsi ny inDscias Preseoessor
h~uufed and rnere rsi rules 10 rclatoo 70 The ~
ssVsson Of mortgages by ina department. These nee
safeguards thrown arouBi the Of tbs class o.
nAspoent with siooere desre 70 place this Of
sormes nearly ~ possbie ,ron par viii toer rea
ssd intrinsic value AM scing o~sre 81 me rsioa df-
cun,es wb ch surroupd them. rules vii be rgdy
I'D fearlessly Enforced by The present superintendent
vSs such other restrictions a. sspersncs may sDo~
psoessA'y ana s1ccfga protect the holder Of potes
se~ured by pledge Of pushc tees and rcal ost,te.'
may be proper for the -upernsnsenl bore 30 rate
sai sny Grange basi, The secarcs I'D for
enanpe no,es not IN hs opinor neossAyy NJ thi-
oOe. OF 81 lesst sny snsrgcspDt 0f that bans, by
suaocsing The recepsSou CO different securities than
Snse nos allowed 70 5e received by this depart.
Oent Tor circulating nosss That enlargement
- The BASH o. securities = 20 bscDf1e svsoiusl
secsssity. the rapid iHcr-Ase Of the buslns~ Of
he Ssae requiring a nore extended carrency so~
~ successful pros@cutr q w use that iNnef
vtshn boroe0) u citary evidsnl ~ even q casual
Shpervey Of the businep 5enAI A Of oar c,tzsns
whhm the lest four yar Dsariy s.. oco,c0o % toe
sssck Of this STATE n ned w soe enlargsrsn, con.
peon Of csosis have been % tn.
once and q rbou n tolsrs. zoe shscs o. PIE
nuns for tboee stocss have essn PAID Into treasury
az The stale Another most seoess~ry piaoc npcr
abe market 81 $50 900 81 sck ssoeS To- the ptr
and which srd trs1 The va1rs a