The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-02-16

1t will be observed that the Louisiana law requires
much larger minimum Of coin than the New York
SYSTEM but the latter permits greater discount line of
specie to be held in than the former Although
the New York banks are nearly up TO the maximum Of
the discount line Of the Louisiana law they (by
cumulatng con) expand under the New York system TO
any extent which the wants Of commerce and trade
require
The system m, which was formerly pursued by
governed by any principle of banking which expe-
rience in this country or in Europe mad proved TO
be either sound or conservative; ana the great majority
York system the Louisiana law or the principles Of
Banks of England and France, in full gaop TO-
ward an imitation as great ard disastrous as that OF 1851
II obvious, therefore, that our CITY banks, holding as
they do the deposits of the Interior should place them
selves upon the eoundest and conservative system
that experience dictates They are already within two
millions OF the minimum reserve proposed by the new
system; and If the contraction Of last week falls TO
increase that reserve there DO other alternative but to
continue the contraction until the accumnates to
an extent sufficient to meet the increasing demands OF
trade and commerce.
There feature about the proposed New York sys
TEN especially worthy OF notice. Its movements cores
pond more nearly TO those which would take place II the
currency were wholly metallic than those OF any
of the other systems allows only expansion in loans
OF dollar for dollar of coin beyond once and hall the
amount OF the capital
We observe that Mr. George Opdyke of this city, has
introduced bill into the Legislature at Albany requiring
that the capital Of all banks hereafter to be Organized
shall be fully paid up in coin before they can commence
busnesS ana tat an anuavt 10 mat elect s1a DC naue
to the Superintendent Of the Bank Department and for
bidding all banks from loanng on pledge of their own
stock. Loans, when made by bank on its own stock,
virtually reduction of its capital to that extent, and
take from the deposrs not only part Of the guarantee
given by the capital but also means, in the oanng of
which they should have the preference as 1t from them
that the profits Of the bank mainly derived.
The principal objection to free banking, and the only
one worthy of consideration has been the creation of
more banks than needed, many OF them being simply
organized borrowers OF money The restriction proposed
by Mr.. Opdyke will render it more difficult to establish
such organizations and the principle has been recognized
by the banks Of this city in their refusal 10 admit bank
to the Clearing House until its capital has been fully paid
We notice the organization in Brooklyn Of bank with
the name already established in this city.
We refer to the Nassau Bank Of Brooklyn We
have already the Mechanics Bank and the Atlantic Bank,
both Of New York and Brooklyn, and the similarity Of
names has been the Of much annoance both TO the
banks and the public II is obvious that there should be
but one bank Of the the State The Superin
enden Of Banking has objected to it, but there being no
law under which he could refuse to certificate Of
organization, he yielded that may expect in time
to have in Brooklyn duplicates of all our banks.
The exchanges at the Bank Clearing House to-day
amounted TO SIS $40 1893, and balances 81 o32 $751;
The stock market today shows the morous and
distrusul spirit it has done for some time Outsiders
won't buy aud insiders begin TO tired OF their con-
tnued efforts TO buoy up the market There is no pros
becoming worse. One or two stocks showed some
Improvement. Beading advanced under search
were made between boards at 80, but at the
second board the price closed at 49, seller threan ad
vance Of g. The stock Of the Norwich and Worcester
Railroad advanced TO % in the morning and 80 the
afternoon in consequence Of reports of increased
ceips the road. and probability ~ Of dividend
being made next July. Pacific Mail Steamship stock also
advanced u from the extreme low price OF yesterday
after the second board hundred shares sold
49, seller thirty The company has large surplus and
fully resolved, the directors say, to contest the line
with Commodore Vanderbilt rather than submit to his
exorbitant and unjust preensions. New York Central
was the most active stock aud steady at yesterdays
prices Michigan Central declined u Chicago and Rock
n y Chicago
Michigan Southern guaranteed stock advanced u. ILL
nois Central declined Is; Harlem, Il. There
few sales reported of Cumberland preferred stock, but
these were merely among the brokers themselves few
leading speculative brokers being the sole large Of
the stock Outsiders are only Sellers and the stock is
thus maintained. In State stocks, Missouri 6's
tive at Yesterdays prices SO California rs.
United States now SIS OF 1874 declined Il. Tennessees
and Vrgnas were steady. In railroad bonds La Crosse
land grants were active at 24 buyer co. and at "a for
cash Illinois Centrals declined a. Erie bonds were &C
tive at yesterday prices New York Centrals Of 1876
were firm. Bank stocks demand for investment,
and very firm. 1S9 shares Sold The shares Of
twelve banks were dealt in, all at previous prices.