The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-11-01

with noto, conceived with variety of opistolary
phrases, in the discount box the day previous to
that u The Board meeting. whence y j. taken b.
,he clerk. who enters on the offering book"
the name Of tho dealer, descriptions OF hs nores,
their cndorsers, or c0.lascrul may DO the case.
his average balance and amount under Discount
After making these entries, the clerk re-encloses
the offer in its original envelope numbers it and
sends II, together with the dealers memoranda,
before the Board, when 1t is taken charge Of by
the cashier, who reads it. with suitable COM
mentares, to the directors. Dealers frequently
iniure their own chances by . want Of prOpristy
in observing tho prelimnaries of an offering, and
many resort 70 cpistolatory calculations, pro-
ductye Of derision. For instance. one ventures
thus, inadvertently, alludes to official ignorance OF
their own business; another only wants discount
to keep balance; third suggests that he will NOS
aaw .n sr. g sna o. we hs ssn 10 Thy
West, while fifth will draw the discount in small
bills to pay Off mechanics in the heart Of Pens-
syvRnia. Still, with shrewd officers all these beg
ging lodges are "played OUT and are more likely
to exotic prejudice against, than favor for, tho
0fferer.
viously studied the mathematical character of the
bank statement. daily exposition Of the liabilities
and resources Of the institution, and added up the
receipts to be derived from bills discounted for the
coming three days, as entered ON the teller's
ticker" announces each 0fi6r SUCCESSFULLY, and
requests the opinion Of the directory to the pro-
priety Of passing or denying them. This proceed
ing opens the gate to a desultory conversation,
during which are canvassed the business habits,
personal manners general repute and matrimonial
relations of Dealers drawers and endorsers, usually
terminating in g0ssping commentary upon men
and things in general. Unless the ouerer has
personal friend at the Board the discussion closes
with the rejection OF his paper or its reference to
the subsequent action of the governing officers.
II ia during these conversational discussions that
the peculiar opinions of the directors deveiope
themselves in manner by no means creditable to
ftatr acfy pnof tin NJ hVyr m m vtu
81 say, MIR. President" vehementy interposes
Slncum, q pale-faced church member, not notorious
for Sabbatarian proclvities, you don't want Us to
discount paper on the strength of being endorsed
by Dobbs, do yer2 Who is this man Dobbs, I'd
like to know"
. "Dobbs," responds the President, graciously lis
reported to US by the mercantile agency as being
man of propriety and a leading member OF the
Presbyterian church,
"Oli!" interposes Slocum again, hes sound;
thought he was Dobbs, the son Of old Dobbs, who
lived in"
eyes," interrupts Popkins, o director who has
been heretofore in semidose, IL know him, but
then he's married Stubbs daughter"
i" What if he did?' Indignantly resumes Slocum;
hos q perfect rum barrel. Why, I've seen him
:" Have YOUR breaks in sniggins, the funny man
of the Board; "you wouldn't have rum barrel
leak, would you?"
Taking advantage of the ebulition of laughter in
variably following Sniggins salies the President
announces that the paper, endorsed by Dobbs, OF
the Presbyterian church. and not Stubbs son-n-
law, has been accepted. and thereupon marks
capital opposite TO its entry the offering book.
''1he next subject is one Of Smithsons notes for
5000, offered by Dobsoa and endorsed oy another
person. Wen do these"
'.Hold on" shouts Director Bangem, III want to
know about that ere paper. don't often come to
the Board, but when does want to discharge
my duty without any favors to the stockholders"
Mr. Bangem il member Of the firm OF Bangem,
Swetem & Co., whose duty to the stockholders con-
81. 40 oh in hQ viz m he hNh q in
of so OG0 discount and al much more on account OF
Pulley Il Hawley, Of which he is special partner,
and he therefore finds the bank jeopardzed by the
loan of 5000 to a mechanic on treble named paper.
Consequently, to appease Mr.. Bangems notions of
dignified fnanceripg Smithson's offer is thrown
out, while, at his particular request note for five
times the amount is discounted for friend "a little
tight for the hour"
In this wise the Board progress with their labors,
until it is discovered by the Cashier that the funds to
appropriated for discounts have been run out and
all ban0s turn to REVISION Of their work, which ID
narrowly watched by the assembled directors,
through fear that any Of their friends, for whom
they have promised "a good word or two," should
be cut down, when, after q myriad of ingenious
down to the smallest possible limits and its applica.
ton left discretionary with the Presidential judg-
ment. BY this dexterons movement the grOwls,
grunts and anathemas Of disappointed dealers are
while the directors congratulate themselves with
having done the "cleau thing as regards his own
selves and particular friends.
The experience of almost every bank dealer con-
vnces him of the irks0meness of soliciting discount,
he prefers. especially if he be small trader, to
establish credit with private, rather than corpor-
ated bankers for with the one it is the interest to
advance him loans while directors of the other are
remorseless, Unsuitable, although indirect borrow
ers.
Row STATEMENTS ARE FABRICATED.
BY the State law all city banks are compelled to
publish weekly statements of their condition, at
tested by the ai1idavits Of their cashiers, and a
quarterly one declaring their financial position
some day designated by the Bank Superintendent.
this last to fe more elaborate in detail and
further verified by furat, sworn to by
both President and Cashier. The weekly state
mept is Likewise incorporated on the records
of the Clearing House, and should. on this
account, be regarded as more reliable evidence of
banking solveucy, from being open to q corrective
comparison with the daily entries ON the ledger
OF that institution. Being, however, limited to q
statistical exhibition of averages of discounts,
specie circulation and deposits without aluson to
the specific nature of the items thus congregated,
the weekly statement is calculated to afford very
little information to the general stakeholder or
dealer, whose intimacy with the mysteries OF the
Clearing House is equally limited with those of tho
banks, themselves. AZ long as q bank pays its
daily deficiencies at the Clearing House exchange,
il fulils its allotted duty for the constitution of
the house vest in its officers neither executive, e-
gislstiye nor suggestive powers touching matters
beyond the liquidation Of mutual obligations in a
deposits.
It srot to be expected that officials, never par
ticuarly tenacious to the strict Interpretation Of
duties ia their more circumscrbed spheres will
0verexert their consciences in the preparation of
public documents, and consequently even the vague
forualtics shadowed forth in the weekly state
ments are distortions of what was intended by
law to be plain facts, that beyond the item Of
circulation, the sheet undergoes variety of '.doc-
terings' so as to place the institution in the best
possible light before the community. Intact, judg
ing from official statements published con-
formally to the law the soyency Of the Island
City, Bowery and other banks could in
no wise be questioned, and it was only
after the concerns passed into the hands of re-
ceivers managing third parties, that the fictitious
nature Of their sssests and the evasive manner of
their business transactions, became detected.
row Of figures may oftentimes represent deter
mined quantity, while the quality naturally repre-
sented to make up the requisite quantity can re-
main perplexing and insolyed algebraical pro-
blem. Loans aud discounts are, as we have shown
.t.,k.t xf g