New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1858-01-06

ana IN the 6Dtiiry OF the Dthkf 70 eneCt
resumption, amply indicated By the spoutspsou. re-
turn to their regular course Of business Of ell the
banks Of the City Of New-York. on the l6th Of De-
cember within tr Months Of the period of their
pension. The bsDxs of the whole State followed the
lead immediately and those Of other ctes and Ss,ss
with few exceptions, did likewise and now the ha-
bities OF the banks are redeemed on demand in COIN
as quietly and surely though interruption had oc
cured.
confess 10 some pride q citizen Of the State Of
Eew-York, in such an exhibition, alike of the high
of duty Of the integrity and Of the solvency of
the banks, contrssted moreover with the necessity
which recently forced the Bank of England TO ask and
TO avail itself Of the intervention of the Government
for is relief although armed with defensive power
which our banks have not, of raising the of die
count to percentage that may become prohibitory
II s just cause of satisfaction that banks. par
taking Of all the freedom Of political institutions
after yielding for brief space, yet, Of their
tion vigor and sense OF duty, triumpied like diff
fculties without Aid from the Government. 1t would
BE- unwise, however, TO let the present opportunity
pass without seeking some preventive ofthese period
icsl cOnyulsions so raught with disaster both to in
diydusls and the public
The effect Of tho recent arrangement in business has
been 10 bring about general settling up Of accounts
and No period could therefore, well be propitious
for the Inauguration Of any provisions having for
their object the greater security and steadness OF the
business of banks, which combine, % ours do, the
character both of banks issue and banks of discount
and deposit. With regard to the issues Of the banks
propose change. for l perceive no necessity for
apy. The bank notes circulating money are now
10 we'll secured and firmly established in pubic
confidence, that even the suspension Of specie pay
ments did not, have seen, sensibly affect their
value, and though not at the moment redeemable in
coin they conts ued TO pass current as before These
arrangements in tho money mark ct have their source
not in the issues, but in the deposits of banks Great
competition exists among these institutions to
secure large deposits at low ratio of interest.
These deposits become the basis Of extended and
urt ftable discounts, thereby unduly expanding the
circulation. Various eXpedens, more or less compli-
Gated have been to guard against this dan
ger But rimple and etfectual course would seem
TO be- to require each bank to keep on hand fixed
relative proportion Of coin 10 the total amount OF its
cash liabilities exclusive Of its notes and to impose
adequate penalties for the violation OF this law This
would 60 to the root ofthe evL for the cost OF keeping
in the vaults so much reproductive coin would be
certain There would be less desire, therefore, for
large deposits; and those would be more equally dit
fused among many bGnksof itself an advantage, In
stead of being Is now, monopoized by few. Enter.
tanning these views submit, for the consideration OF
the Legislature, the expectancy OF requiring, by law,
under adequate penalties, that every bank shall keep
on hand twenty five per cent in CON- OF the amount
of all it's cash liabilities exclusive Of its notes. In
order 10 avoid unnecessary inconvenience in carrying
such provision into effect, might be 20 graduated,
as TO time, a. to reach the minimum by progressive
monthly percentage; but Whenever reached, at
day to be Fixed not to be departed from. Under
law similar 10 this the chief banks of New-Oleans,
alone of all the banks Of the country were enabled to
resist the pressure of universal suspension elsewhere,
together with the weekly statements, under OATH OF
the New-York City banks-now 40 judciously required
TO be publshed-sDd the operation of the daily settle
ments at the Clearing. House would, 1t is believed.
60 very far prevent catastrOphes such "a that from
which are just emerging. can perceive no oo-
lection in eapedisncy or equity to such restriction
upon the banks, which, a. creatures OF the state may
md should be required TO conduct their operations
ms that the public safety shall not be postponed To she
desire of adding to the profits of their private stock
holders 49,
he communicated 70 you at an early day by the SUI
po,iHtoudep. Of tho Hawking Department. 10 which
would beg leave to refer you for such further inor
nation as you may desire upon these subjects.
The condition Of the finances OF the State IS such as
to require mconsraned 70 say, continued taxation
in order to the maintenance Of the public credit and
the due provision for the ordinary expenses. The Ca
nal revenues again deficient, and it becomes duty
to express the opinion that under existing crcum.
stances the Legislature may with equal fitness and
justice, repeal the lag Of 10th of July, 1851, entitled
" An Act TO abolish tolls Railroads" and then, by
further act re-cstabsh the tolls on competing rail-
roads, which had been pledged, by the Constitution,
part Of the Canal revenues for the security and u-
| innate redemption of the public debt. =,
be 10 desire to deal in illiberal spirit with their
owners and managers. 1t is for the general safety
and convenience that those who invest their money in
such enterprises should be permitted to derive there
from just return Of profits but always in subordna
ton to the public good and the rights OF others 1t Is
| in this view recommend, as an equivalent for re-
establishing the tolls freight, that railroad COM
panies, paying such tells be permitted 20 make such
equitable increase in their present charges for the
transportation Of passengers as the Legislature may
| authorize.
There will doubtless be addressed to youapplications
for grants of money to various deserving enterprises
and institutions; but is ny duty to say that in the
present condition Of the Treasury deaf ear should
lie turned to all such applications; for can only be
through the exercise OF the strct.st economy ana o
rerencbmen wherever retrenchment can properly De
IL -t.u l.. n 90 nrfi ~
pendure and to fulfill obligations to those State
institutions which habituslly rely upon our annual
The reports annually presented to the Legislature
will make known 70 you the general condition OF the
State, of it, eeemOsynary institutions, of its Houses OF
Refuge its Prisons and Pententiaries and to these
| refer without reproducing their statements here.
The Superintendent OF the Onondaga Salt springs
reports to that the inspection Of salt manufactured
the Onondags Salt Springs Reservation, during the
past year is 432 900 bushels. This is falling OIL OF
the production Of the preceding year of about i0o'
600 bushels. The Superintendent ascribes tins aling
of 10 the recent general arrangement of business IN
the country but expresses tho confident belief tat
| th. important staple will speedily recover from ita
depression and go on Is heretofore, with steady Ia
crease.
OF the Canals, however, l must speak at some
length and with entire frankness not concealng what
there may be Of disappointment and discourage
ment in the statement to be made but a. certainty
not doubling nor depending either as TO ability the
obligation or the expedency of persistent efforts and
sacrifices if need be, speedily to complete the enlarge
men; and therein and thereby put the State in pos,
session Of system Of internal navigation unsurpassed
in s extent and completeness, and unequaled in ITS
productveness. The net tolls Of the past year, e1-
lending from Oct. /, 1885, to Oct. 1857 fell shori,
A by the annexed abstract from the report to
me ~ III. Auditor 6: the Canal Department by slio,'
9si 40 Of the sum Of H. 100 900 required by the C9n
titution to be annually set apart from the surplus
revenues Of the canals as sinking fund for the re-
demption Of Ii. canal debt as II existed in 1876 The
Constitution further requires that $3.50, 600 be annually