New-York daily tribune., 1859-01-08
REPORT OF THE SUPERINTENDENT OF
THE BANK DEPARTMENT.

Octooef 1857, tims has shown, Was sniSt,n'is sna
permanent resu pIticn of hir corporate oodga'ious
The Suspension and res sumption of specie payments
by the banks OF tbs STATE in 1857 With the snrr"uha
icg circumstance have simply brought out into bold
relief the perfection o tree bstk system in It's con-
ne sction with ,nr currency
interior banks accumulated 10 the City Of Nev.York
within the time see,isd ~ the resclnton o. the Clear
ing House ~ tie srh November, lS' with 40 ooca-
for ns gn.cani anoan, since PAID,
clearly elbows thst they were n"s only strong IN csP
tal bot thu. their ability 10 hqulda,e that debt Sis
opy eoualed by tneir desire to enter apoc course of
p.cy that proc uce speedy resumption o' s-eie
payments, clearly oreenauo"ed py Tue PaS'1S0 Va s1o
resolution referred 10.
TIE pafssye of thot resol lton the incpient stop
,ovaro u Resumption, and the willingness with ~hca
the interior banks met the obg a.ious imposed oy u,
r. fleets great credit upon tire ciiy and country lostl,i
tinIs Inc enir g. 90 Oo0 was by the terms ot the
resoutop 10 be pad in morthly ostsnents OF ~ per
cert With interest vt SIX per ceot, commencing on tae
let Of JanusIy, 1898. THIS would rene tee eneite
smuun, d, lstoi May. Tney Sso to r'dee m ther
ourstsadDs currency IN the usual terms AFTER 'he -''n
of November. .
The press uIe preceding the suspension hal returned
to the bsrks curirg the qnarter eniirg oct?o'r l,
1851 = mhou and quarter Of dolars uf their peg
securities held in tl,s office, Of which at le sst
million was WITHDRAWN By those located II the interior
o. the State. d,
How vigorously the ieterior backs went into the
ser is shown by the feet thar be'wee1 the lst oi
O. ,ober and the st of April 1926 600 OF securities
were retired from tie Batk DepsIt9eut; ana the
Supcrrteudenr believes that nesIly SiWOWO oil thst
au ouut was used ny interior banks TO restore The
.ou,,ib-iun between those of the City Ot NeT-lotk
az II enselv.s the loss Of ~hch was occas'oned by
te holiitg Of country oncy 10 tha ciy. AS an e'i
Dc zee Of the OF tue belief expessei aoove
be would ray thai the cisc luntsd cebt .. th" banks
out If that city, re-uced only $50 80 nom
Dec inter 20, 1897, 10 M-rch is, 1913.
Tti, ecuaizpg accounts between the city and coun-
try bar ks the work OF OILY i've no9ths 10 adoa
To meeting he,r o-dirary apd daily hahlics aud the
ertre debt of 81 go coo was paid, netting W per
cent pe aunuu upon the investment OF tho city
baus in country cuiIency.
The whole 'far rae, on between the interior banks
apd Il ose OF tie CITY If Ne-Yok in relation to the
nov accuuu ted 10 that city after the diasers OF
a. Fail oe ls57 was highly credltsbe tn both, ,nd
catuot but add greatly to their confidence in each
others capacity AID soundness hereafter
Rut five associaiious have been formed during the
mast s al Year fer the purpose of pursuicg the bust
iers Of heLkirc; aud oi these is the
o an corporaed bank whose charter cSpredJ ahusrJ
|, 1853. =,
The actual increase If cspital iurog thc the
formation of Lew INF int ne, is s5?OO
Stl more marked is the feet that no individual
bar X. hss eIced business durng the paet yHtf'
In connection ~th the unusual dearth # rev bsnk,
and the small amuuL. OF capital eWpl yed by them,
ecmss tie astonishing fac. that while the acLutl ~
crease Of capital by the formation II banks has
been only S2Oro0 there uas been ,dded 10 the 'ak
ing captai Of t.,, St.te The sum ui 81, lSS,S9l.
One Of the causes which tsrdrd to produce the sus
ptrson of 1851, the Superintendent believes and 80
-tstsG in his report of that seal, was The mntph'y
Of banks of anal capitals Still he believes too oink
cenitl of the St,te sualler than il required by the
n nal bus:r..s Of citizens. Their relef canDot be
locked for in thu multiplication Of small banks, but IN
raising the capitals Of those already 10 existence,
wien located ia Jaces vhsre lncrGasDg ousih - war
rants additional b.lk facilities.
T. tr,sept condition ard account Of tie Sc ,urtes
held by ioi- eDaitm-Dt for the s7demptlon OF tue
currency Of the free bass OF this STATE gave renewed
and sirunp dedication nf the stabhty OF s currency
The total su QUOT of securities belc by this decar-
n.ut ON the 3h CT s-p..mber 1857 $50 @ 63l "a
Amount hsd the SOh Of september ls53 zb55's' 81
Decrease OF scu,. during fiscal year. sssio 553 "A
The total snouut Ot CIR uaon issued to ee - ~ 49,, 40
banks ousapciui Sept 5' is'7 vas =! 10
Tke total Of oircu alton issued 10 ffoo -. -.
banks and ou,sfsnens s"t jO 's5 "a'''' 2i"S w v"
Deere.se 80 40 3s3 70
A reduction Of circulation Issued the incoroo.
rated hanks took place during the same ne oi Lsoff %
Making the to,sl amount Of reduction during
the S$oso.7fl 20
This 1t items Mt shows steady contraction during
tie pas fiscal yc.r OF the currency issued by this de-
psrtm.Lt Still greater is tae contrast Of the actual
circulation Of al the bsnks, including the chsrtered
and free banks, following the suspension o.; October
1851.
The extreme point Of actual bank note circulation in
this State by our Institutions was reached on tho
2Nh If SeItember Is56, amounting az that date to
49, Gl9 633 T. fell during the year previous TO the
D,ion TO 81 10 9Ol this being the actaa circu
lnilop ON tie 26tn oi September 1857 seventeen days
previous ~ the suspension Of specie piynea's.
sieaoy aud constant reduction of tue yOdne Of our
actual cunec cy followed; aud on the 13h Of the fol-
lowing March, it bec-ne reduced to s2I7o5s or tas re-
ouct of currency amounting datns tae year y
s44lli6 occurred betwe, the 2Sta Of tmoe 1857 s1d
the 18th of the following aafcn.
TIE woro ba. b-eo he etoore taught through heorec,
orirots OF po,es eco"oms that sasI n;3a OF 'pesie
SIGN Of paper money tse oct meusi aud demor.zg 10 the
pub bile the ter dent loss upos ssuspensOn Of
he Interests o our pop be nos re'psc,uy .nogt. th,
tse evil, arising from non IN this State, comr mt ON
III der secured currency b., from REDUCTION %
that voou- Of u-c.'t, by The backs in their Ell TO
An Eff r, 5urns the last session Of the Le,are
aecordaDc With udsson o. The sao-fin:endes
for crulsiir note. from hi. office. IL sgnay f.st
De the xperree Of be Superintendent teaches nm that '
impossible pee. upon tue Lesstlre the ot-enc- be-
tie necessity Of immediate eonVetbiy ard ultimate
s+.urty .
the st, b. d.. M eons and morssgs Mt - sm2s
'eu, required by the Cenu,i'n for IN. redemption of r
re.ug his objections TO their reception upon
q cir JcouvsItbhty sole ht be deems due T. himself 70
pr,tt to ne the iaet mat zoe Nv
snf ro,tce to large poron e' N" bnE' aud oaassrs
eree OF tie supetend.bt in converting .ecues he'd in
By lin INTO soste to redeem the notes OF
III. "a . "a ~istion 10 description OF securities
BE- ~ih bu qures tee ~ the stat te.
shall be Nr-Yorf State stocks Ia al cases ~ BE- or
70 BE- nad- 10 be -sa. 70 stock ptoda'nz oef eeI per
hs tns aEou5t 30 drpos ted al al D. In
the sfs'e II New York br- tn-Dsonec .Gd
e1ce.oDs baf 10 tots Of tee United stse Ia all
BE- made % BE-. equa % ses proc ocns an
Of snG shan no b. swfllfor
Sopsrptsroent 10 stocks ats above their pf
value their srAet vse Or the socufi
b. than Ia such stocks aud half
bonds ard m0rtsasss improved productive uonenm'
bred sn5s IN tins ss- exu,ise o. b1enss sh-reon,
aripg iLt. Of tHs cent
Der aud sxceecug t~ohf;rs the value
Of Ian - See s. Laws Of 1919 AID chapter SD,
Laws oi ieig.l