The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-01-08
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s~Ar~ Avn RraGurCgs.

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| OF es.h ut the respective ce,-s ABOVE mentioned
lao nrat era IN me huiofy q banbEy in this state ~
| tho les underwood commenced with tAe chsv
YER YER o. ,ae hapk o. New lorA, Y lha year i7d fes
money cr the pCrPose n purrvng Ae bi1ircsl 5r DAo
ing by an scra rso up osptsl 20 be pslagat by ,tua
teoT under the Of directors TINS halc consuasd
but vale reepnint oa The c1rr5saors ana vas eDqs
reuty created soleiy fOr thc purpe OF Dung ts6ss
rsls from se,aonsl inability for TIE debts md .onts1ts
| Of the institution.
The sniy resrc,opr placed upor % ,c- were N,
cap al 10 oe employed wg hxeo No definite sum Ia
could h,ld estsss except tic. occupied by s.e
bank hJs such ssen By Il az security or n F7dS
fscap fey Ddaote iness 20 The same end thai tie io5sS
due the corporation sIoci1 no, cxoeec ttFeo 1a ths.y
actual amJan OF capital tO which amc Ept could atitA
q debt el,h Ia the c,ocoY depos,tea "a ;hsir vasiw
Their brsrsss opnnncd (or rather teir operii0us
Of droouct md deposs 20 he place d1Fgna.ed n tie
charter, ana Dot elsevnere
These ~ercthe main c,nd ,oos upor witch chrg,egs
for banking yvsrtei with :iigh mOdAoA
lions and III pfDyemenio un''i 1899.
1hs system son'aned tno csnt Mt, ~ - doetrru
,are berdspg 90 .he popuc- wS 1879 PISSED tue lsw
e,tsd An aci 50 Great seD9 Tor the LepaN. Ot ne
con inoa OF certain mono Ct corporations "a, Ots~
purpo~ So monty oeocyrilart the ss'ev Fund At
1s was oreane second ora % the busrefs Of back
irg rod acknowledge thc yre,s principle c securirs
t5e bill boiders under aE1 E ,rcuus ca o the
bar- msfortune OF the bn'.ler AT the se.t,s
OF the Legislature wnnh crosed the "ssety iccd"
ly thirty oNnk charter we're granted or renev-f
Su JUS, to cay ibis sysism fully susthrcd the
wisdom hopes 9r'ts four serr and the U1sitsrna
i's Of zoe public y assa srI,'y nosrrg,os ~ bns,,
The stitio0 OF single seoticn TO shat eS now
in force under tue net of 1873, requiring 'nc sovu
s1iag registering oil their notes pfss-
tsed .h,s depl rirent would heyc perfected IL and
pre- ventsdiss frauds by which ihs .had for nns
exhausted. through the over Of eAnk ao<ea
whoI u AoN, by several fralcu,snt aud tnsclv9ns
ins,tn,Nrs
The ,hsrd era commenced with re eu,c,u,ent N .hs
"Act IN author,se the busin@s OF BANKING" In 1894,
connoo,y known m the seners 8s's s~
The ca1ss that produced that ao,, were not 'ect ~
faith then existing Dnbtc nj al 20 toe secTfV
tine crcu,s.pg notes OF tho chartered bsnss uudsv
the ssiety turd system Their engagement mad Scsys
met ihsy Rad Just passed through suspension Oi speis
payments, covering the snoe United states, and N IA
fuzzy resumed and sustained resumption OF those pay
pen,s "a ns'sls year sna N .ivAnoe Az s' oinsr por,s
ed credit
Two thpgs ccsised each in ITSELF alone sufcieus -
tstapiso lhe general bank lA~ OF 1898 rhs first
growing fee ing ssoug the OF our citizens agsasa
any exclusive grant OF powers or privileges TO any
citation OF wasever In fact the value or bant
could lie calculated 10 dollar The ousines~ o<
banking yedse large profits and Is became the svo'tH
special chArev ooniapiss banking privileges psods
Investment rho sais OF the Stock ~ss Ger
tain The Lesse nre srHntnx such privilege wAa ute
ra,y voting money sso the pockets OF TO parties vns
controlled 'he irsocbiso.
Tho capitalist, This stale OF things. eiihor sra,s
politician, called 10 bt Al more needy than hiIl
self, occupying snppOsed 10 occrpy promnea p,Lae
IN tner party cooperate upon tue hopes caus
Tnc Io,sla re was beseg0d each session with spy4f
cabts ior banbi3g privileges and the people spop
amt uotod mereJ "a grating peeunNy aivantAg,s % .
favored ~S
IA coobcLton with lbis state nj tnuss. fhs don1s&
party scon learDe1, hsi AZ element OF power cxs'ei0r
der the idex Il Uad arncs u,ed Tue rord psssncei ~
aiding ans btsuess ci ine state Toe nority Sss
Ascosain.d thar under the tniri ruls. rtqnroE
Is votes the Nocst and ~ n the Aonab sUuAly vot
lsg sye 10 pa,ss . abar;sr} could be esuiet fr
political services The grantpg of chart.r tor bs1xias
purposes became Juhidy 10 the tnen Two rresl p0at
cal mates of lne tay st is uor,on a. the leaders
their .eeI eCve ocals ss bad the strength sixth
,hoif resp cave cfces hs,rus and doaot Of iosss
loo not legislators iacn.evos, soon bccane prom
nent -nong she thinking fohec,n. the Sts.s
and tno d,wn,si sp.csi chArtefs tor banging pnrpss
ess looked upon ~ rorcvirs great source OF Pos.cS
aad Tfriy corruption IRON 9g tue bsh u legsiaios.
1ha. tnn ieliug "a, preya -ni IN our STATE you 1y
need reminded that ths consttGiinN coag0n 10, "a
is+t, oy IN unEisN Wse Vtle, 'ooA ~ ekpres' icrs
he cwcr OF gTsntnk special charters Tor nAs eng
poscs from al iu,ure lext .tsTes
The las oi isiS author ing the bIsincIz OF b.uxc<
although dce1i!sO Of rs deIsis 10 impertrS
sbla noaumoa; Of he wisdom Of the frAn1rs OF n, -
well ss to the i2gisis,are I'm, enacted q
lime and o1persnce nave rcmeficd most of It's deieA,
Tor tic rsft time since IL creation, mas survived
a impaired uselulnsss year without An AmcndmCrs
90 an alteration while he supernendent 10 the per
Iormsuce OF he luiy y required ny statute sussON
ans an, ndrcp 10 ths lac felays 10 banking by winch
lhe,ys1em may DO inUoved and tic security o. me
bill. bolders and depcsiOr Increased, he feols An Ia
peTapve suy say that no suooc, oi legislation shouts
be enored Ipon with iessr care and dehbsrsuon msl
chspsi1g oar lsrs In regard ~ os1fingy
We have Two sys,eDs Of bansng In ihis state bo.n
which besose rs conducted are sound Inc rs-
naining ctArferei bees must Of necessity soon cors
under The provisions oi the gAnsra a~ 80 their charters
expired. or dstoninuo Their bu.iness They have 5e9c
BY essaIon Ia ms11re ir'er~oven .n esca othS
IN ther contact wilh this dorartmen with tne razs
oepcn o. placing ,ceg,ity or ther cirtals'rg notes
,be hands ofthe supcrnienieAi tay have been sssss
lated an far M u 10 sYpar.ntly possible.
Ibc great prle3ls Of the sanersi bsak law security
TO the tJ holder We all are non the necessity q eur
postoa and business comoelled BAN nosss
a. mrrpy Tntre y 40 o,cep,ou 1t rests Alike upoa
poorest as wen az lie weatAiod ctzea Of t1s state.
rorro,sc and ss.sd IN The mos ssriogcn' manner no
invousiayy creditor OF the hanks sboad be OF sbo
moot sra,eu' cni.es Of the Legislature. when thst
done every racliJ %, ise erpoymeoi Of esgi.. shov
barking No complaint no maze Of exclusive pryt-
lego. being held sy any pogton Of our crens and tns
aud srjoyncnt o. franchac granted 70 special locArv
and D. Particular ,3dvijrsls.
Uader ibe opcrarcns % .ae sspe,si osak Az tns -.
wra's OF the brsiaess community o mo STATE Aet-
by o excessive SsasEg although toere may be nsau.
tsns badly a.co. n Atvsnoc OF the ses ~
rariouar vc.sitlcs n whcn tnsy are Psced, rorf ss
c reared . ne icuch,tobs u pro and oss 70 the pro
prieDrs will inevitably correct either cincrs Q, "a
Of bspf iaeiliS, FOR the bu-nsss sieres, y 'ss
sale
Tno crs,cu OF bangs under ,be trov ,ons OF ,he we.
sw. frcn the reorfemsos Of IN Their iCrmatcs.
o. wi add q paper currency more rsr'ty
than viii Be uacnsio nee, tho ever s~eiling uis
the trade q u commerce Of our cit'7en..
The iorrafcn OF q FREE bsnk upon Jork bsss ac-s,
absolutely (lor urf) reduces the vcsumc u ccTtpcy
10 ~ vciri.y, m ai paid, rather returned .or re
demp,ion. 20 other tapts si1e est, for every sls
has rc~eTci from this derartm-rt Ibs ouy iaciLy
osr toe busir mon Of the community wsgrs 4 .
iccai,d, 70 coneertsi'ur capital above tbs .nourt
dtposioi IN ths c'cc ard !, 4, ssmr's 70 "a TIE ~
cutri !, TIE Curreacy the purchee Of vs. -tecks As
cTestcd rnd nso BY c,sving 70 ai deposit. rat vout
ta,e r1sred Comparatively Tie n Tie hancf ci os uts
VINO from interest 10, ~ good ~il ova-cs, ms sea
bsnk lelost iser .urgrs uCrsys there a. ms coo.
rtston q deposits again cnd1 directly IN rsdsco tte
voivue of cUrrfncy, a. uc rncs reliable roularcn
brfk is 10 ooi - la,d ns5c Tor f.furo
rs proof how slowly tho TScsent syricrr a Dalsur
tends 10 n is'o currcnfy tho s ic NAKED G. snt
spytrdtd o this repcf shov the Increase ~ csrN tad
$50 of on sualor Tor the lssJ tsn ytas
II viii be readily scs thst during ne sst fsc, ygr
While cspiia has assrcsstod leei 20 tae anou,d
.lS III rn the ~