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

Chess Of creditors, Zoe BIN holders MAI c'asS sea
shas Of ths porstors themselves.
ne AZ ~ si n ospssl Of association Individual
banker rests win the cheers OF Tho ono snd sbe iod
ydual volion Of the other vor his remedy EXITS
10 beyond the control OF the legislature iss uni %
an attemps should made 60 special ohastess
updcr vbeh the location The amour, Of capital cod so
the amount Of circulating notes vao liked thus crooiog
and cop6npe capital 10 the standard Of legislative acon
GsveSpes by The trade ana sssl&erce Of sasn ocsiay
tself In other words, resaftDg 70 the Cd system OF
ehaerrs banks the original object OF the fras obee
being to exempt the corpora from personal labny,
and make the Of capital for banking purposes de-
perSen, upon legislative snac,menl rsn ,ods1oaeg
sble the cOpsi uson IN article eight section odT,
rays 1he Legislature snail have no power 70 pass any
n 81 AIN saws. section sx same article: me Lee ssure
ha provide by law Tor the registry OF all bls and noses
ssusd or put in circulation az money and shall require
am ole recury for The rei pOn Of Inc Same ia sps
AND 10 settle or rather ntI odrce no the or gaoc
s~ Of tho State the great and pervadDg principle o. me
gene bankf law further states, 10 section oght u
the article in Of the insolvency Of any bsuk
king association the bill holder thereof shall be on
u.ed 70 p. se,ense payment over al crsdSors OF 'uoa
The Superintendent asks this " nct conclusive evl
G ard with the single idss Of 81 oil
bnsards and AZ any sacrifice Of the rights (r may use
the ierm) OF al osbcr creditors OF banks banking asso
cAt'onu, Inc individual bankers, the currency OF our
State?
h !. nos clear thu, the question Of capital (wtb NE
cepou or the see 600 necessary for 40 association to
commence busness) y one beyond the control Of ahe
legislature Itself, without striking blow at The sprs
jce eieht Of tina, ps on nt literally 10 cnn word 10
convey my meanDg) oonsiitui0nAlisee the prominent
provisions of the general banking lswf
Js not fair deduction. AGAIN repoeA, nom bosh soc
conuuon and the law that the true intent and moan
rg OF the general barking law looks 70 the scge object
should deg for the public veal and the Of Ed
vidua enterprise the employ ment Of capital In VIE Boa,
ness Of banking, a. free q ~ use IN any oher branch Of
human ipdustfy or enovT
And In concluding this branch Of the superiniendeDts
report not the fact that during the psss TIN years
The employment Of capital 10 the business Of banking bar
reen $40 90 eco 70 S97 00o while currency has
ory advanced from So COO 70 $3l coo o0o and bs
parity between their u,e; the increase Of capital being
during that time, $l22l6,7 Ill, while currency bas ~
vsDeed only ~ CLEARLY ds%onsse n@ so ',
capital is acting in perfeN harmony WITH the business
and prosperity OF citizens, by leaving III EN-
answering law Of supply and demand and that our
Jency follows that employ ment convenience instead
Of . necessary oono0mitant 70 ~ success.
constitutional ~ wen 20 . legal preference given
to every BIZ holder Of any bank banking association aud
individual banker that no legislative enactment can over
change and the fact that the capital Of every
tree bank banker has disappeared (amost without m
exceptiop) upon bis failure 10 redeem their
dhnno,ly shows that any Ate mp to III the amount o.
capital to be employed IN banking circumsoribe iis
sciion by legal povhicps uiuccessul, viii create
myth 10 nise al and decerve the public.
The same rule OF credit should be applied 70 banis
banking associations and Individual bankers Except 10
circulating Doss) that obtains stsinst individual enter
v,duS liability, integrity, experience and ca oacy OF be
party parties engaged In the business Ct banking.
rHs DESTRUCTION OF BANK NOTE riAna
TIE adjournment Of the legislature last winter without
action upon tho recon mendAtOns OF my predecessor,
conpeh 10 call attention to such - relate 70 the
operations Of this department at least such as meet my
concurrence He under the belief that the
resolution OF 1852 oh not have the force OF law land
~ should be given the superintendent BY positive enact
men destroy the bank note plates Of oil banks cIosins
Ths nrc,sr, resrscnn,,v ashs the me
tent Legislature 10 authorize him to cesroy all plates IN
the custody Of the department whih, In hts opinion wl
ncut those Of broken q Wen Is closing banAs, and
those Of the present existing banks that worn 20 - TO
may not be cut Of place here to ,Ay that Of Tie
exhArg banks have applied 70 him 70 destroy some Of
custody he has net e au.no,aed 10 comply WITH seir
wishes. The action Of the Legislature earnestly In
voked upon this subject
r1PRip rooRroRArIp RANKS AND rHux CIRCULATION.
Tho table upon page 10 Of This repor, exhibits the nun
Der Of banks whose charters have expired
the amour Of circulation which they had ontsar dir ~
Ire ea prraten OF their spect charters and
Of such circulation on the aoth OF September 1885, st
There notes are used by the association that has
ceeded the expired bank With the exception Of the
Bank Of Monroe and the Livingston County Bank every
expired chartered bank has been spcoeeded by .
barking association with substantially the same stock
holders
banks ether for their own benent these noiee or
countensnce their use BY other parties
IDe OuBtADd ding Clrcualion OF tncSe expired
the 3oth Sep ember, 1885 S., sSl, 30
Add 10 th Q the circulation oil The Bank OF Che
pspgo, Ontario Bank and Ontario Branch
Bank expired during the past fiscal year. 4os $50
Total. 81, sos, Sss
Circulating notes returned and burned during
the pest tscsi year, under chapter las Of the
Lvs oil lse4.......... ....'..'''''''''.. Aivssso
still outstanding IS, 7Os oss
Ny predecessor In last annual report mends
hal the stock OF the association using this
currency for their benefit should be made directly aod
Immediately responsible for IL redemption. While the
present Supernen cent fully concurs In the beneht hey
oerlve from thai circulation and in the justice OF such
hAby he most respectfully suggests 70 the LeGhasure
that OF those notes the association attaches IN
his opinion the personal liability for their redemption,
either Upon ever sockhoder Of the expired bank In
whose any such stock stood al the time the charter
expired those OF the association thai has succeed
edit That circulation certainly On Indebtedness Of shc
one party or OF the other.
II The new one has assumed tbe final redemption OF n,
TO enable trustees Of the old bank 70 close thek trust
they must prudent take The guarantee oil me -
sccA,ion 10 that effect or may rsst IN the shape %
special deposit BY the trustees Of he old bank, which
would be pald by i,s mai redemption and destruction
under 1854 providing for the return and de
srucucn Of the notes of expired safety Fund banks.
The provAsoos Of that law are enncntly Just, and In
the opinion Of The supsrniendsnt VIII re<re Aas currency
Without Gripping the operatives Of The banks o. ex
posing The public 70 any eventual boss. fully be-
heving thai Q persoaal responsibility sesn upon
The rochbolders al the expired bank. % those
Of the new according 70 the terms upon which
the usnssosoo must Of ncoesssy have bean nads, am