New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-11-14
CnE TAX ON NEw-YORK BANKS

Yolk Danks holding the funds Of the States
BY tho 7,h section Of the nc. Of Congress approved
March g. 1903 10 provide ways and ne 'ns' &c IL ~ en-
no ell that all banks associations. corporations And IN
iyduss receiving deposits of money subject 10 payment
ehsok or drs except savings Institutions, shAi D
suhjec, 30 daty of oHccghth u one per consus cac
hLf year aer April l. 1868 upon the average amount ol
such deposits beyond the average amount OF the cfcu
lG,.ns notes bills lawfully Issued and outstanding ~
currency" 49,
1t has boeore question whether the Banks of New
York IA which the public moneys OF the state are de
.tod nSs subject the duty Of oneeghtb OF one per
COW, each hf year according to the provisions OF this
section.
Thoso moneys arc stated ~ being derived from several
Sources Wis Loans taxes. canal tolls. fees Tor Acenses
State prison earnings. salt dates, &c.
Tie fourth title of Chapter Of tie revised stntntes
defines tho powers and duties Of the state Treasurer
Tho following sections apply particularly to the n9~t
"Ssc The Treasurer shlll depo al moneys that 'Iau
TO bis hands on account Of this state except sun -
loss fund.- within three days ate receiving me
Same such bank banks In the cay OF Albany as IN IN.
opnou Of tho Controller and Treasurer sba be secure ana
pay highest Of to the state Tor such depo.
SIC All moneys directed by law to be deposited N tho
Manhattan Bank tie City NewYork 20 tho ered, Of the
Treasurer shs remain in said bank suseo. to be efs"n Tor 10
tho same may DO required ,,.. 1. A.,
$50 10 Tho Controller m.y transfer the deposits IN ne
Manhattan Bank from time TO time to tho bnk OF bai "a he
CRY Of Albany "a which the moneys O-.onsns 70 th. os
shall be Deposited Tho foregoing ey,t lection OF
this title Omen will be for thc Interest Of ihe state 70
transfer such opposite, bu, tho Controller nay eonnn" 'uch
d.po., IN The m'asaa. tsnt ,e .sa S''s ,I h, pa,
BY IL. ban banks IN Albany IN which The stale d'po
shsl hs made.
$50 II. Tho moneys deposited h,i be piAeed . The
81 The Tr.a,uF.r and b. sh, Keep bank book IN
which ss be entered biz account Of deposits IA and 9u'y
drawn from which such deposits shall - mace
sac ~. The .4d b.nks shs respectively transmit % te
Controller monthly 'i.s"sui' q The ron-{. ~heh :l~ Do
received snI y.i by them accounts u tAs Ifsesufy
The canal funds ~ tho state under the csntrol OF
,ho Auditor II tho Canal Department the Commission
or. q tic Canal Fund and the Canal Board.
The canal tolls are deposited In banks dssgnated oy
the Cana. Board the canal funds are deposited IN banis
sna,ed by the Commissioners OF TIE Cnna una ad
The general nds In bank. designated " the conlsoner
and Treasurer These officers obtain tie Highest rate
Of Interest which they BY contract with to bsnts
except the haEha,tas Bank. which Is relieved VI obi
cation 20 pay Interest IN consequence o rs services ana
responsibilities Ia issuing. transferring anG taxing esTc
u the stocts ~ tho State
Tie 37th section d title chapter o. has relation to
tho Canal Fund snd is admtnlsiration.
post tn. oa.ys su4 sd fund With any safe iDcopo
I-. moned n'H,iou. IL 'h' STATE and may ass "a 90
sgc Institutions fos the Interest aud raj ~
.uch deposits sh be ost pomosvc Of the inief o! sAd
fIIla"
Other provi,ons 81 tho statutes Of tho State require
Al receivers and collectors Of public moneys to tanis
payments 10 such bAnhS Is are authorized y receive Tie
funds u TIE State.
Tho rooney, deposited sutlee, to the drafts OF tho
$>to Treasurer
there arr sotne sixty Eve banks that have boon ccsig
mated by Ito Canal Board 90 the deposits Of ca
nal monoy. collected az different points. These banks
receive ls deposits ccrtain terms and conditions
particularly specified IN contracts made with the people
II the snd atesed by tie corporate seals Of ITO
Among these condition, arc the following;
To ,hal receive the dpo.is' Ia money OF IN ,fe
BIZ. = any bsnA bNiins s,osaiion n IN, sas VEG
Ao,ny Of Troy pu.u.n. law TIE said deposits sa. %
ree, BY u. ssnss" i.sacnty a. tho Collector .l. %
b. passed tho er., 81 tho lIs.sur,r q ID. stats
h n. ssss o s.ss ia: sppon, an s.rS, ct Ii. pse.
~hr. the Col office ocs.d with power receive
tho ds2o.'-iis Tho 'an.o h.o'-''y tho dep''' "'
vi The ban, hall re-, 70, he Of ,.aiS apo.., the
h., day ,ne ID. eo'e q tie dans which tie depo.,
were HaGs Bot tho b.rt .hal all tune, on .s.i
h.T. on hsni N sa, sarerI =. H. benz. q The ely Of
Albany ~sh the irr.sn-r nav Keep no dsPo', OF ne
Canal Fuui Hy.such dl.is NJ 70 be made al tiisF
twenty tho end II tho month within which TIE
moneys dawn fe' w.r. collected, A. c,.,
There are Eve banks selected by the Commissioners
u the Canal Fund IN accordance with the laws Of tbs
state passed IN l,J and amended ~ ls59 Or The gon
era deposit Il moneys belonging TO tha, fund. These
.anks are al IN tie Cry OF Albany except that Of the
n. Auditor y the Canal D,parinei! In his Lat re-
po, the amount Of the canal revenues held ~ ne
State the 9o.h o. September ls62 tobe o. J3 go 81
which was standing 10 the credits Of the State upon
the books Of eighty banks Of this .am $685. 10
held by broken banks was Unavailable.
In aletier received 81 Luciu, Robinson esq. State
Controller dated the ;h Of september las, be observes
and bonds made In puf,uaus o. them and BY The Uniform
bll. ,rs no, mere bank. Il dp., ba, "a. q the e;,
machinery - the stas Treasury md a. such o-sA' no 10 %
will cons. der tho question first In relation % tie
ban.s designated by tie Canal Board rs depostor's OF
tic tolls.
IL was ne. Intended by Congress TO tar State prop.
crty Such has becn uniform construction of TIE eI'
else law ald do not propose ~ depart from Il now
but tho money received Tor canal tolls aiier u Is de-
posted in the banks Designated BY tie Board as dcps
tories tie actual property ofthe Saioi does /. i'm
mcd.ately on changing hands become the property OF
the bunku In all respects undsunT llslAblo RON tLer
other funds, aud subject 20 be pied to such Uses rs
slNi fr~fh Iuf az
holders ~, only TIE statutes Of the state but the con.
tracts made NTH the banks by Tie public unoonaries
having control ofhc funds show that tic hanls are not
considered cutoduns II these funds Tor the use
the STATE but debtors them to tue state FOR
the f amount % tLo received With absolute au-
-ury - their dsgost.onor investment and without
drccon inter ference the part q the State officers
Tie banks that viii give good security for the deposits
ard paw tho lighcst AZ interest for them are ny
law to be preferred - depo'tarcs aud the amount OF
interest II made q subject of special agreement IA
writing daily executed and atestoa by tie corporate
seal at each banking Institution. Am unable to under
stand how state thai let's on: money 10 use and re-
ctlves interest for II. Ike any note or bond cred
iior cnn be held 10 DO owners OF the money loaned.
The banks do not take the money merely 10 heep 10
safely and pay IL u tho state when needed but to
and make prOil out Of II for their own Dement, As soon
thoy receive IL pursuant to contract with tie State
i theirs tT all purposes consistent with the terms 81
their charter and the state oses s grasp upon II and
ali control over t. Tho Treasurer cannot draw for any
part II tl twenty dnvs after the end ~ the month IN
which The deposit Is made. The relation between the
state aud any contracting bank Is Ihat Of creditor ana
debtor, and no, of principal and agent IL the bank
merely agent II would be subject In that charae.
tho directions Of the state Ms 60 the investment OF
the money and the profits Of the Investment IA well IA
the losfcs would be- those Of tho principal Here the
bank controls the Investment and keeps the prohs f0f
Itself aud sustnns all losses IL pays fDf the use OF the
deposits just my other borrower pays the price Of
loan They applied 10 the Same purposes as the de-
poss of private persons AID come within tho scope o.
the rulo The is laid not on the dtposturs oil
fund bu, on those who have tho nse OF H. and u is Ihe
price which the Government sXaets for tho privilege OF
Tho IL may lie that the tnx may reduce the rate o
interest which tho dcpositaTy afford TO pay bus Is
not for that reason imposition tho deposition The
Il. IL L.. H. l.. = A.