The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-01-07

ger, in forcing line of deposits above its
Daiura channel from the fact that it destroys the
system of individual money lending, and ferces |
credits down to say thirty, sixty or ninety days.
This is assuming payment Of individual liabilities |
faster, or rather at shorter dates than the usual
credits upon which business is transacted. This
was one Of the elements Of the panic OF 1857, and
should be avoided by the banks. Those in the city
Of Neao York. particularly, should carry firm
and steady line Of discounts, based upon their
capital, deposits and circulation; and should
parenly good times, the necessary contraction TO
meet the changes Of our almost certain periodical
conclusions n the money market, wia only ay-
Srdraie The difficulty under e1hich both the banks
ard their borrowers labor, cohen necessity for
such contraction crisis, al,cays created by
precious expansion.
The business of banking like any other pursuit,
being open to all our citizens, the State having
made it compulsory for those pursuing that busi-
ness, to secure beyond all doubt the involuntary
creditor q. e., the bill holder), legislation beyond
this point has no more reason to interfere with
the action Of the capital employed in that
business than if it was employed in the dry
goods, grocery, hardware, or any other pursuit
chosen by any citizen citizens Of this State, and
its employment should be left to individual sa
gacity, as il Is in any other occupation.
In connection with this fact Of decreasing cur
rency as compared with the business Of the State it
may be improper for the Superintendent to refer
to another cause which may exercise an influence,
although indirect, upon the circulation of bank
notes. Still he has no doubt that its action is pow
erfu, and growing more formidable from year to
year.
papers that counterfcitiDg and altering bank notes
is progressing with great rapidity. Every days
experience teaches rs that the art Of counterfeit
ing and altering bank notes keep pSee with the
efforts Of the regular eDgravers to protect their
business by reaching higher degree of artistic
perfection in the engraving and printing of bank
notes. That altering and counterfeitng bank
notes does exercise powerful influence upon their
,l.ttr int 10 rovi1n
That not only our own coin, but that of foreign
countries, is produced with great smilitude to the
original, Is also beyond doubt, ana would r -
dangerous perhaps, to the Reepie, at at
The fact that each bank, or nearly SO, has ditfe-
rent design for each note of the same denomination
makes the public more easily deceived with coun
terfeit or altered bank notes than with base coin.
The art Of photographng would seem to be in
the course Of Improvement although no specimen
of a tank note produced by that process has been
seen by the Superintendent that would be liable to
deceive even an ordinary judge of the genuineness
of bank note.
The Superintendent has, under the operation of
the law OF last winter in relation to counterfeit bank
notes and plates the first fruits Of the bene
fetal operation of that law, having had returned
to him by the Police Commissioners of the city of
New York thirtysix plates for the alteration of
genuine and the production of counterfeit notes,
and also sl4,276 of the notes themselves, all Of
which have been destroyed.
1t is recommended again, and from further ref1ec-
ton, that the banks OF this State, by voluntary ac
ton on their part form an association for their own
protection and that of the community against the
circulation of altered and counterfeit notes, so
rife in our midst, after the manner of the New
England Company. For that purpose small con-
tributiop from each bank banking association and
Individual banker in this State would establish
systemt tor the detection OF this crime, which would
be beneficial to themselves well as TO the pub
lie.
A contribution of $40 or $50 from each institu
ton, placed in proper hands, would soon be effect
uay felt among the organized gangs of counter
feiters, and tend to check their operations. The
detection of this peculiar crime is now left to the
ordinary vigilance Of our police, and no special
efforts can be expected to be made by them for its
detection unless special rewards are to follow
successful effort for its suppression. An arrest is
occasionally made Of this class Of offenders, and
only of the most inexperienced in this peculiar
profession while the parties who control and direct
the operation of producing the article almost inva
riably escape. The Superintendent has no remem-
hance of the detection and conviction of the party
or parties actually engraving q plate for the pur
pose Of altering or cOunterfeitng q bank note.
The mere fact that an association was formed for
the special detection and punishment of parties
engaged in this nefarious business, with o detec-
tive force in their employment, would exercise
wholesome influence in preventing the commission
of this now most common crime.
The various changes Of location, namo and
amount Of capital, made under special and general
ac,s Of the Legislature of 1859, are as follows -
The Medina Bank heretofore an individual bank,
has become (by consent of all its stockholders and
an increase Of capital, shown by the certificate
OF association filed in this offee,) banking asso-
citation.
Under chapter l56 of the Laws of 1859, the Eagle
Bank OF Rochester and the Manufacturers Bank of
Rochester were consolidated, and the two associa-
tons were merged into one, under the name of the
Traders Bank Of Rochester.
Under chapter "a of the Laws Of 1859, the Mia
CARA River Bank changed its name to that of the
Lockport City Bank, and its location from Buffalo
to the village of Lockport
The Mechanics Bank of Williamsburg, by chap.
222 OF the Laws of 1858, has changed It's name to
that of the Manufacturer Bank.
The charters of the Ogdensburg Bank and the
Bank Of Whitehall have both expired during the
last nscal year. The Bank of Whitehall continues
business under articles Of association as a free
bank The Superintendent has no knowledge that
the stockholders Of the Ogdensburg Bank intend to
employ the capital heretofore employed by them
in the business Of banking under the General Bank
law.
The money held in trust for Walter joys Bank,
amounting TO 4,2s7 As, and for the Astor Bank,
amounting to $4S Il, has been paid into the trea-
snry under the provisions Of chapter 236 Of the
laws of 1859. The time for the redemption of the
certificates of the James Bank and the Bank of New
Rochelle having expired, abe money in the hands
Of the Superintendent amounting for the James
Bank to 1882 A, and for the Bank of New Ro-
cbee to 81 ,34l ST. has been paid into the treasury
Of the State.
Under the provisions of chapter ll9 of the laws
Of 1852 the capital of the Kingston Bank, an in.
corporated institution, has been reduced from
$500 COO to sl50,000; and under chapter 50 of the
laws of 1859, the capital Of the Mohawk Bank, of
Schenectady, an associated bank, was reduced by
the Superintendent from 5000 900 to $51 900. this
amount being subsequently raised to 500 600 by
the stockholders, to enable them to avail them.
selves of the provisions Of the act above men,
toned.
The general act for the reduction of the capital
of any banking association Chapter 277 Of the
laws Of 1850 has enabled the Market Bank Of
Troy, and the ONEIDA Central Bank to apply TO the
Superintendent to re luce their respective capitals.
That Of the Market Bank of Troy was reduced
nom $500, coo TO s204 900, and the Oneida Central