The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-02-20
me New York banking system IN sn E"g.
Iish Point Of View.

lirorn the London Times, Feb. IL
The superintendent Of the Banking Department OF New
fork roquired % make annual report to the state
~gslature. Mr. J. " Cook, the present holder OF the
ce naturally taken the opportunity Of the recent
pspenson OF cash payments 10 publish a considerable
ensh his views the theory and practice OF banking
here s nothing more remarkable than the aptitude OF
very American for the discharge OF any duties which
nay be imposed upon him by the accident oi popular
kvor. Mr. Cook neither lucid nor grammatical IN his
kyle of composition, but he has evidently applied his
and ~ business Of his department and after study
NJ The history of recent events he has formed
ctnite conclusions, and expressed tnem IN Ian
mage which may easily be translated INTO nte.-
Arbors in which the Superintendent indulges,
Ter the fashion Of his Countrymcn. Is seldom opaque
ocush to oonceal has meanine Europesn eilc.as would
lways been the barometer by which the banker sailed
a. bark. lie could remember, perhaps, when he was
t.yen the wall by foreign demand coin; but he
tar dreamt of a mutiny in mis- own ship, with the very
.sth teeming with agricultural wealth" II might be
fhcuh 10 explain how mutny could Affect the
Arofneter be influenced by la rablc harvest; but
hc reader understands that banks which spprehend
anser only from abroad might be taken by surprise
kben a run occurred home The banks were. seems,
one period 1.-THE great balance wheel that steaded the
rade and commerce Of the country They must occupy
position. Nature settled the fact when she creaoed
asshasn Island and the harbor with which is sur.
whatever may have been the intentions Of TO
anks balance wheels, she forgot 20 furnish Mannat
m Island with sufficient aepost OF specie 70 meet t
bundant crop OF liabilities Mr. Cook defines in terms
unusually precise the test Of successful banking in the
-
rgcSt a, b, OF good paper interest upon the smallest
mount OF dead weight SPECIE oquUe another para
yaph "t Is ncurring the igreaiest amount OF debt
nyablc on demand with the smallest amount OF money
coin) 10 pay the when demanded" The result OF
uorte dir ted such object has been lately witness
The rivalry " competing establishments accelerated
he process of weakening the foundations OF credit and OF
verloading the superstrucure. The city banks OF New
FORK keep an account with the Bank ~ America which
ally adjusted the Clearing House. The balance
3rpescd at this institution forms the collective
pscie reserve of the banks. and before The recent
rises amount had been gradually diminishing 10 1857
he specie held by all the banks between sixth aud
cventh uart of the amount OF their liabilities In June
He7 the specie only sufficient 10 ay one dollar 10
DIN " eight dollars aud eighty nne cents OF nme
late aud pressing demand loans" The mutiny was
ow imminent, Notwithstanding the abundance OF the
rope and the failure of the OHIO lite and Trust Company
nth large business connections Of New York AMI OF good
redt was the 0rst distinct muttering OF the storm which
vortook us The country banks began Ia the cosse OF
he autumn 70 demand the return Of portion OF the sccur
les which they had been compelled by law 70 deposit
efore commencing business in the state Banking Depart
pcnt The superintendent naturally held that the claim
Ess opposed w the spirit OF the law but Il Is cOnsOla
ory 10 end that New York as in Insand the Iegis
ature sometimes fais in expressing its intentions The
ourts decided hat the law required that the securities
hould be deposited but not that they should remain
ctosit The provincial banks accordingly obtained a
emporary relief at the cosof "fearfuy depicting the do
s OF those IN the city and this too of that siccny ami
uiet kind the most desirable and reliable In their posses
The superintendent attributes the ca,as,rophe p,i,c
ally 10 the modern practice Of paying interest on demo
it's but also calls attention 10 the general c
xury and expenditure, and especially TO a remarSebie
culary in the recent progress of New York Rp uaan
$40 AMI 1855 the population Of the state had ncreasad
hy NO less than q million, but not single Apricuitnra
istrict had shared In the increase Agricultural
pdustry and all rural forms Of production must
lined The great expansion Of the tewpJ and