New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1860-02-10

ASSETS.

Further legislation being expected on the banks
working under the general barking law, and it
having been, trust, satisfactorily demonstrated
to the Joint Committee on Banks and Banking,
which have recently been in session in the city, it
is not out Of place to remark that article 1lS OF the
constitution does not restrict the character and
nature of the security for the circulation of any
bank. We will take up an old fogy idea, perhaps,
and assert that bonds and stocks lodged in the
hands Of the Auditor as security form q very in
adequate protection to an immediate demand of a
bill-holder. What would these bonds command in
panic or reyulsion2 They might decline IN twenty
four hours 80 or rs fact when the bills receivable
the porte feuille y of a bank, would command
dollar for dollar The constitution says not word
about depostors other cash liabilities although
the general banking law covers depositors and
other voluntary creditors. Well, then if we take
the constitution as guide or standing point, the
security of the circulation or the bilholders is to
be the controlling point. We will concede to the
State authorities the privilege and right to control
the circulation. This can be arrived at by the
registry and recording of every note issued to the
extent or amount Of the respective capital of each
bank, to be secured by the deposit of Id bonds
with the Auditor; ID coin to be on hand in vault,
and I'd in ninety day paper. We will now, how
ever, suggest another form, bringing banking down
to what it should be on the coin basis. Abolish
and do away with the deposit of bonds and require
every bank to have and hold on hand at ali times
so get. Of its circulation in coin. This will give
efficient security and that of the strongest kind to
bill-holders or involuntary creditors. Depostors
as class, can take care of themselves; il they
cannot, they ought to. There can be no danger
arise from the adjustment of the bond require
ment, because every note issued by a bank will
have to pass through the ordeal Of the Auditor or
| State authorities. The Board of Currency has a
watchful and very close supervision under existing
statutes, but pass additional statutes enforcing
penalties of the most stringent kind, If necessary
4 The weekly return Of the banks to the Supervis-
ing Board or Board of Currency is open at all times
to the public. If depositors do not choose to in
| form themselves regarding the solyency of the
| custodian of their money, they will have no foun-
| dation for complaint only their own negligence.
We insert again the article lis of the constitution
regarding banks:
Corporations with banking disconiag privileges may be
1f s sa es a sa e pfos re- registry Of
al bills notes Issued ar PIT y r MONEY nd Shall
they do not desire 10 issue notes. but conne their
business to discounts and deposits, assuming that
the capital of any corporation located in the city
and parish Of Jefferson should not be less than one
million Of dollars and in the country not less than
a half million. Regarding such corporations the
Constitution is silent, and 20 is the General Bank
ing Law. There are banks in New York. one with !
capital Of ten millions of dollars, which do not
issue any notes whatever for circulation. We win
suppose there were no bonds or public stocks in |
existence, how would banks Of circulation be or
ganized according to the General Banking Law? |
The country and public in general desire banks, |
and will have them, In some way or another. Tho
question now is, and will come before our Legisla-
ture, how can the General Banking Law be amended
SO as to give the banks working under its pro-
visions an equality with the four old chartered
banks? It is not expected that all the advantages
the old banks have will be conceded to the free
banks, nor do the free banks ask for them, psF-
ticularly in the way Of circulation, the old banks