The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-05-24

WE Way BANKS are Managed I'M Oon.sCoeus.
prsn shs Esv Havsn ooorisr, ~ ~
VI he BsAS CcSn,ss,onsrs Report for ne ysaTj ca
Ne conna.sss.sr rsssr IN The se y.aes V Ne an.s;
"a Outstanding circalsscn q $40, ooe the sudden
vxAArawN q public eopndsoce osused sudden contrsc
Z he Saars Of this sass IVES oo5; the arst q
sv.r & 900 coe, .sd mos. Of vasS pace between
the hrst August and the first OF November Inc eoy
,hs,r c.somsSs under contrs so uuprecedeni
Cd exhbted q degree OF soundness and stability which
must place them high in the confidence OF the public OF
Wan but few exceptions they continued TO redeem
their Boston and New York, and 70 pay specie q
tGsir banking until the general suspension Of the
banks New York and Boston, which took place on the
l4h Of October On the 18th most Of the banks Of this
continued their redemption Boston Ne York. thus
keeping currency Of this State from depreciation and
w.a IN ME Bqadaacn Of their debts without suffering
loss from the currency Of Connecticut OF the nine banks
Iy ae ss ~ Ssy ns "a RAM Of
NoIwAlk, have gone into operation.
Prior 70 the general suspension several banks became
embarrassed The Hartford County Bank, - carly a.
September, unable provide for outstanding cir
susron Of $40 600, and examination showed great
nsmansg mept sDd dupciy the part OF the directors
Large claim amounting In instance 10 $50 900,
had been emit r,ly by being placed tnenames
q responsible parties under An agreement thAa hsy
In ether intaI ces large amounts debts the charac
W Of whsh the commis could know nothing about
without Investigations out Of the bank, were re.
pressntsd by the directors 70 DC good AN, AND
:v.aSe when in h fact , Sss evident ne 70 ns%
Notwithstanding this the directors declared dividend
last July, whe reupon the commissioners obtained an in
Junction and naa receivers appointed. BY good manage
the bank has been relieved, with the oss Of half it's
capital has been allowed 70 resume ia business with
$500 900 stock. II question Of importance to de-
krniDe who shall pay the So 600 or 81 900, i
Of this bank stolen by W. s. Carter clerk in the trea
The Bank Of North America, at Seymour, which had
been The subject Of remark in The previous report OF the
os % Ss ap
leaving the bank without the TO redeem its crcua
ton liz general Management Was bad, Suspended debt
increased, and capital stock impaired It's immediate
liabilities SO 600, and they had hand only
Sl,o72 specie An Injunction issued On the 10Th
had reduced the aslles OF the bank for circua
ton. deposits and balances down to $4s5 The assets
a the bank now amount 10 $l6e 200.
The mmssiones say that the Exchange Bank Of Hart
ferd had carried heavy amount OF protested paper OF
MON that the bark should have ceased to make dividends
more than two years ago dividend was passed In Jan
T., :n " o. INA: year ar. ,SS per
fhs capital the commissioners consider 70 have been in
judcious and illegal further examination developed
defAcatOn Of about $2b 600 in the accounts Of the
cashier This velopement indicated great carelessness
- The part OF the officers and directors Of the bank, Tor
the deAcation had extended through several years. and
might have been exposed had the orthly
been examined and tested with their books. At
tkDe tne Dirk was eDJOned 1B uaDlluee announced u
$3.50 oOo and their specie funds were reduced
so $50. When the bank resumed spec payments its
liabilities were reduced 70 Sl M and their available
ultimate loss by coliateras has from the beginning
ndsssd n .hs illegal 1nG dangerous practice Of Suyns
dividend though had on hand over 100000 OF pre-
tested paper.
The Mercantile Bank first embarrassed by the failure
Of ito correspondent in New York. will not sustain losses
sufficient to seriously impair its capital.
AZ 70 the Colchester Bank the commissioners ater the
changes administration. direction of the e.
gkla,ure still asned with its condition. In Sep
tebeY ceased ts rede in Boston and was dscre
ded In New YORK. Its general circulation that time by
h looks S4 000 Of which So goo had been redeem
I'd by New York banks but this was evidently not the
real condition Of anare On the Sd OF Decem
nioatou again, aud found that Cashier
Jones had caused TO be printed from the original
plates. by nrm OF photographers In Hartford bills
amounting to Slol fact of which the president,
essbier and directors must have been fully The
commissioners looked upon this fraudulent
applied for Injunction Jones arrested In New
York but be before proper papers could
Se procured rom We governor j. d. Buell. the former
without keeping record Of the amount number and
Aaa Jones han taken them away promi sing 70 deliver
regular issue supposed 10 be so0 0c0 but only
5000 OF has been presented for redemption, II has
probably not beer put extensively into circulation. The
assets Of the bank Will be sufficient protect creditors,
but the stockholders Will suffer largely 1t Is being
rbe Granite BaIk swindle was one OF the most delibe
rate frauds ever undertaken In this State The nrst 10
per Of the capital paid paid by d.
rcctors and the payment Of he 40 per ga
pret.pce" the money used being the bills Of broken
bsoss and worthless checks on backs out OF the STATE
tue managers who furnished the means Of pay
msrt 10 the nomOa stockholders In Voluntosn resided
eo, o. the sate rue bank pretended tsn had ssued
cal could not be prod iced. Outside parties dis
rbutog these uils rhe headquarters Of the concern
OF Prescott, 4 Co Samuel Wagner, Of Ohio, Alex
asoer Miller, Of Buffalo, ana Roswell C Peck Of Bart
Of wmdham county as parties connected Win the Granite
Bank An injerot granted the l0h OF last No
vember its circulation s reduced 10 5000, and the
rse and unpaid stock viii enable the receivers 70 protect
the public from loss
The LRchaeld pank started irregulary without bona
tde capital The commissioners checked It's operations,
and caused change in ia officers and the payment OF
sna foe cash capital Of $4,000, with which IL Ia
doing q legitimate business
One Of the fragrant violations Of the banking laws
Of the ssie in he Of the Quinn ebaug Bank Nor
weh, which uniformly keeps . lcss amount Of specie
hand than the lav requires II also loans great
amount 70 individuals and parties the state and
last December had l25 under protest. wal IN
ksss, viii be large. The snetuctet, Norwich, UDcas,
Iron, Norfolk. Wnsed Saueasuck Farmers (ridgepert),
rass1 ss e,Dy sd1 n
sasots and ksnufscturers' l1artord) Home Neriden,
Clinton, City (Briogepertl, Whaling, Commerce, Mystic
RIVER. Jeweu City, Rockville, Connect cut River, and
Stafford Banks Also reported having, lees,
frequently violated provision provisions Of the
the state keeping little ,cce and buying brok
ere paper al large discounts The Pnrnx BANK Of Hart
70 berry D~ight ard Chicago and Missssippi
Railroad, FRI which must Jesuit large loss and which,
M me op bon OF the oommnsOners made the OF
dividend lat March Of doubtful expediency, II not H.
legal
% the banks In New Haven the commissioners say
The condition Of the New Haven County Junk has not
materially improved since was FIRST repsried 70 the
Lag stature In 1855.
sumo portion Of the due the bank have been ad-
luTed by taking therefor direct interest 10 the real
late located In m okyn w. " This arrangement covered
10! Sb OF the Dwight debt and 70 protect This interest
NE bank Obliged pay ~ proportion OF the interest
spon the nrst mortgages the property; also, IL
snare OF axes and Assessments for improvements These
flenR raDidly and N
Which n,luded, however, small payment 70 the fret
MOI tageee
The directors have been careful at ali tmes 70 keep
command available sufficient 10 protect The bill
holders and depcstors But M not IN harmony with
UNIFORM policy Of the state 10 slos bank greatly de-
pecsied " represent large q capital In the
opsoion Of tie cnmissioners the capital Of the bank