The Feliciana Democrat., 1858-02-27
THE BANK REPORT.

I"''Nmpho wv posipoHc 'Hc uNy vi puyHcHb, uhu 'ic
general explosion, of which the effects spread over
both continents. 1t takes pride in the strength with
which New Orleans, alone of all the great CONNER
cia cities breasted the storm and the readiness with
which her institutions and her merchants recovered
from the damaging effect The strength of New Or
lean is attributed, primarily, to her geographical
position as the great depot of the immense staples Of
the West: and, sccondarly, to the forest gh, pru-
dcncc and frmncss which guided the cousck Of those
who presided over her moneycd institutions.
The report then reviews the condition in which the
criss found the banks of this city, and attributes the
giving way OF the three free banks and the partial
snspc ,son of the Citizens Bank to M unreasonable
and totally unfoundcd panic; and IL adds that no
bank in the world. except one purely of deposit,
could meet ut once, all the demands of bill holders
and depositors. The committee in passing, offer the
comment that The people, in their run on the banks,
showed their preference for chartered over free bank
ing tcstilying their dstrns of the latcr--thus ius-
tiying the opinions entertained in financial quarters
OF high repnte, MS to the unavailaby Of bond de.
posts TO secure the immediate convertiLty of hank
issues"
Ihe report proceeds to state the figures, with which
our readers are familiar. showing how thoroughly
solvent the banks were during the crisis week by
what steps and with what aid from the community
they rapidly recovered position and the proofs that
they were managed with irmncss discretion and in.
tegritv.
II is admitted that in their recupcrayc efforts the
banks violated some Of the restrictions Of the laws
but the committee hold that these were done invo.
UNFAIRLY or from pressing necessity under crcum.
stances which, regarding the spirit of the laws, would
4 make il neither Wgp politi, n, II. ~
penalties they may have incurred
I They think tie banks might have been more gen.
eral in the distribution of their accommodations bu,
that 1t is hardly TO be wondered mt that the directors
being one hundred and six persons members general
~ OF commercial firms should have had liabilities TO
the banks drawers and cnlorsers to the amount of
one third of the entire discount line The commit
tee have several amendments to propose TO the bank
ing laws Of the State
The first has recrrcnce to the suppression Of small
notes which they recommend as corrective in some
degree OF the tendency of paper to Danish gold and
silver ana thus derangc exchanges but principally
IN social point OF view. protection to the work
ing classes, who under any monetary rcyulsion how
eyer ultimately safe q bank note may be- are always
losers by depreciation.
lhry recommend therefore, tie suppression Of all
puik hotes under twenty dollars.
The power to compel the banks TO withdraw the
smaller notes is too doubtful to be exercised The
Committee, therefore, propose to concedc certain pr
vilegcS to the banks, a consideration for their ac
ccptlng the restriction What they have agreed upon
Is to exempt the free banks from municipnl tox,ou.
and to egualizc the privileges of the two rns.rs Of
banks, in regard to interests by allowing the char
tered banks to take the same rate of interest s the
free banks for all loans over ninety laya and the
Tree banks to take the same interest as the chartered
banks on loans over one hundred and twenty days-
Tie withdrawal to be gradual--namely five dollar
notes after the first of October next: and ten dollar
notes, or rather all notes less than twenty dollars
after October LIST, 1859. 1t is to be accompanied by
very stringent provisions against the introduction
and circulation of bank notes of these smaller demo
innatons, from othct States
In a subsequent part of the report the committee
recommend an amendment to the 10th section of the
general banking law, by which receiver may be an
pointed on application of any holder of n protested
oIil. lhey think this section might be used to the
more harassng and serious injury of the bank and
'hat II Is capable OF being used by the bank TO the in
Jury OF the pnblic. They therefore recommend that
the law be so amended to allow no proceedings to
be instituted for forfeiture but by persons directly
and that when once commenced thcv
may not be discontinued except under the sanction
'i law. The action of the Bank of New Orleans in |
'ctober, IN taking the lead of its creditors and an.
pointing receiver for itself is quoted rs transac
ion which had no improper motive or evil effects
1ut was precedent that ought to be prohibited t
rom recurring @
Another recommendation of this committee. from, $
which DR.. Delony, the member from East Feljciana G
ilsscntcd is, that more banks be created undcr t
he free banking law. They hold the present bank t
ng capital to be sufficient for the commercial wants
If the State, and that if increased the Legislature
lavc the power to give special charters. But they
10 not state that special charter must have, "under
he constitution" the "depost feature of the free
'anks, and the proposition is only one that banks =
houd be close corporations and not open to asso 7
latlon under general law. \
The committee further recommend that If the gen j
raj law be not suspended, the clause which allows II
ndividuas TO bank be cxpunged 1t can now be A
lone without trouble there is no individual bank
xistng under the law. l
The report contains careful review of the cond G