The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-04-02

Bankers bills England, at sixty days, 1861 l06X
three days lo7H 1o7N; commercial, 1o5K a 1oex;
bills Paris at long date 81 30c short sight, 81 2Sc
on Hamburg, 35z S5%; on Amsterdam, 40 4ox; on |
Bremen, n Tx; on Berlin, 7ok 7oA; on Frank.
fort, 404 q 40H.
The large receipts Of cotton at the porsthose for the
week being reported about as 900 bales-have had
tendency rates In combination with the firm
of the Liverpool market, which Is stimulating
ports More sangune expectations at the time
gaining ground to the extent of the next CROP The
receipts in this city for the week ending on Friday
evening returned at S92 bales and the exports
from the port for the week ending the 9th ult at
10, 900 bales. There Is a frmer and more hopeful
feeling felt the dry goods trade alike with the general
merchandise markets, although material recovery in
prices has taken place. This is mainly attributable TO
the turn Of the gold market.
The money market has been extremely easy ct i've
per cent, with exceptions six for call oans and the
indications favor prolonged case
The recent numerous bank failures in the OIL regions
resulting from the suspension Of Culver, Penn Co.
in this city TO indicate the existence OF class Of
irresponsible banks throughout the country suggestive
of the wild cat establishments Of former years. against
which 'Lons John Wentworth" waged war SO success
fully In Illinois 1t is not generally understood that the
national currency act afforded peculiar facilities for the
establishment OF banks In different parts Of tho country
In the interest Of capitalists at this subordinate
financial CENTRE and that tho notes issued BY obscure
country banks less likely DO returned 10 them for
redemption than those Of banks occupying central posi-
IONS Once put in circulation they arc kept moving
from hand to hand and State 70 s.ste without nnd.
Ing resting place. the bonds pledged security Tor their
redemption at Washington inspiring confidence enough
In their value keep them par without their actually
bong legal tender unless in the payment Of 70
the government or in payment Of debts due from
national bang 70 another. Ths gives suchabsnks the
fu dso OF the currency 10 which they entitled by
law the maximum Of which u ninety per cent Of the
par value Of the bonds deposited BY them with the
Treasury, while al the Same time they draw interest
upon the latter at tho full rate OF interest in coin
paid 70 ordinary fund ho'derA A . more spccula-
lion banking under such circumstances hold
out strong temptations TO capital. But when We
add 70 these facilities the prestige Of nationality
associated with these banks and the confidence thereby
inspired In the minds OF dspositor the inducements
establish national banks Il viii be vey strong
popular idea has gone abroad that some how other
the liabilities OF national banks guaranteed whereas
Is only tho circulation that is 70 the extsnt Of the
bonds deposited against It The deposits Of the banks in
the petroleum region that have just closed their doors
entirely unsecured under the National Banking
law they had been in the hands Of private individ
uals and hence the credit Of . national bank much
OF private depends upon cnaroctor
individual proprstors and managers
In the case Of one OF tho suspended banks-%has Of
the Petroleum Bank Of ritusvnie Ps-direcs misspre
scntaton appears to have resored convey tho
idea that IL q national bank, whereas II was not
Tho Herald Of that says chat had obtained
permit Notwithstanding the fact that the sign "Petro
icum National Bank" was conspicuousy posted upon
one side OF the building That the solvency Of
thirteen country banks should have been dependent upon
that OF q single private banking nrm in New York
argues q very unsound condition OF tho Affairs OF
siderable number OF other local banks II The business
OF those suspended institutions had been properly
ductcd Culver, Penn Co s failure could hardly have
seriously affected them and tho fact that did 20
TO show that they deeply involved In the for
tuncs OF that house than In justice 70 their depositors
they should have been.
Great dissatisfaction prevails among the stockholders
OF national banks with the decision Of the Supreme
Court declaring the shares OF such Institutions liable 10
taxation under State authority and various opinions
expressed TO the soundness OF the opinion and the
working OF the law thus interpreted. Section Of
the act OF June 90 1904, says s-"A bonds, Treasury
notes and other obligations OF the United States shall DO
exemp, from TAXATION by under State or municipal
authority" So far the direct TAXATION Of government
securities by the States concerned the law n thers
FORE clear But that national bank stocks In
-
from the following provision In the National Currency
act
Provided that nothing In tins act shall be construed
20 prevent oil tho shares In any OF the said associations
held by any person or body corporate from being In
corporation In the Of taxes imposed
BY under State authority at the place where such
bank Is located and not elsewhere but not at greater
rate than u assessed upon other moneyed capital In the
hands Of individual citizens Of such State. Provided
further that the imposed under the laws Of any
STAT upon the .hs s o. any o. The author
Tho shares In any OF the banks organized under authority
Of The state where such association rs located
In another section Of tho same act Is also provided
that
The president and cashier OF every such association
sha 10 be kept 1t all times full and correct list
Of tho and residences Of oil ths shareholders In
The association, and tho number OF shares held BY each
IN me ONCE where iis business transacted and such
hst shall be subject 70 tho inspection Of al the share
holders and creditors OF the association and tho osers
authorised TO taxes under State authority during
business hour Of Zach day In which business may b
The Court, in ne opinion, very properly held that
these two provisions the providing tina. nothing In
the act shall DO construed prevent the shares from
being included In the valuation OF personal property IN
the assessment OF taxes imposed by State authority and
the other providing for the keeping Of list Of the names
and residences Of the Shareholder among other things
for The inspection Of tho State oce not only recognizes
In express terms the sovereign right Of State 10 ax,
but prcscribes regulations and duties 10 Inc
with q view 10 dssmbarrass the officers OF the
State engaged 10 The exercise Of the right Nothing
would SEEM could b made palmer or moro direct and
comprehensive on the subject Tho language OF the
several provisions s 20 explicit and positive o. scarcely
10 oail for judicial construction -.
The great powers aud privileges enjoyed by the banks
organised under the act were referred 10 By the Court