The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-01-03
NEW YORK BANK DEPARTMENT.
Report Of Superintendent Schuyler.
RAax lrpARTMzNr ALBANY Dec % lR6d


BANK DEPARTMENT, ALBANY, Dec. 20, 1860
To THE HONORABLE THE LEGISLATURE OF THE STATE OF
The operations Of this department and the condition
Of the banking system Of the state Of New York win be
comparison Of table NO Of this report with statement
In the report of last year.
These operations and their condition may be condensed
as follows
Circulation returned and cancelled ....... 17sol,a 500
Circulation outstanding Sept 3d. 1907. 27009,419
Circulation outstanding Sept 49, 1885,. 0102 4el
Stocks. mortgages and cash securities de- 4'''''
posted with Superintendent to secure cir
coiation, Sept 80 1865. Is S96, 6co
Seps co aoo1 1893, o Una
STATE BANKS
On The sOth September, 1885, hundred and four
September, 1855, bu. eighty five banks reported -
or these lno longer repoSting) eight have been
mainder have taken stops transfer their assets and
close their corporate organization and are no longer
doing business under the Banking laws OF this State.
The process OF dissolution foreshadowed in the last
report from this department has been progressing rapidly
Suggestive as these considerations are, the causes
OPP rating TO produce them are beyond the power Of
State legislation to effect remove and Congress- which
possesses tho power has thus far mperi0usy refused TO
hope Of any change Of purpose II that quarter.
During the year thirty banks have awaited them
selves Of the provisions Of the law authorizing deposit
Of money with the Superintendent for the redemption,
durns SIX years; OF sher circulating notes. aud have
Other measures looking to retention Of securities In
licI Of making cash deposit, will doubtless be urged
upon the attention OF the Legislature by parties inter-
esied in enccting change.
While the present provisions have proved adequate as
protection TO tho public, and have afforded simple
cheap and efcacious means Of rcdeemng the circula
tion OF closing banks and have imposed considera
BE burden upon the banks themselves, there H. per.
haps, no objection 10 change In the law that shall sl
aokd nnqucstioned security to the bill holders,
weg'ty than that II will tend TO keep In existence this
department beyond period when might otherwise be
dispensed with.
Two banks, the E $. Rich's Bank Of Exchange, an
individual bank. located at Buffalo, and the Ion Bank
bankinS association located at lion, have become in
solvent during the year. the former passing into the
hands Of sssgnees and the latter into the hands OF q
receiver The securities OF each vii! DO ample for the
redemption Of their notes at par
Though occurring since the close OF the fiscal year. Il
proper 10 note the fact Of the organization under the
Banking laws q TINS state or new bank IN the city Q!
New York Gold RxchanUe Bsnk Il i crafty inc tes
mony 10 the simplicity and efficiency OF system OF
free banking that with all the Determinations against
turn TO II as the model system Of the country and capt.
tass organize under 4, wherever the course of bust
ness Is such a. will enable them TO dispense with tho
issue OF circulation as a source OF profit
THE sAFETY FUND.
Pursuant TO the provisions OF an act OF the last Legs
ature chapter 5 the Superintendent has converted the
available assets OF the safety fund into cash and de-
ciarcd q dividend Of forty cenis on each dollar Of the
ouIst,r,.'ae circulation OF The Lewis County Bank,
Yates County p.ak, Bank Of Orleans aud Reciprocity
Bank.
menced pro- eedings against the Superintendent, " sb
plication for mandsmus TO compel the payment him,
the Whole OF the safety fund Believing tho assumption
of the Receiver to b, wholly rnfounded in law and
knowing II 70 be unfoundcd in justice and la direct con-
travertion OF the &C. above cited the Undersigned by
counsel opposed the motion before spcia term OF the
supreme Court s,euben county, and was sustained by
Amer this authoritative exposition Of his duties, the
superintendent felt that he would be longer justified
in delaying to comply with the plain and mandatory
q ert n MAJ w Uau
Justify and almost certainly, expose him to action by
the par for whose protection the act passed, 10
which action be could intepose no valid defence.
The superintendent therefore, entered upon the duty
imposed upon him Notwithstanding the fact Of an ap
has been argued before the General Term Of the su
reme Court bet decision has yet been pronounced
deem improbable na, any other conclusion shP DO
worst result viii be expenditure for legal Services of
portion Of the fund tina, might have been applied to
better purpose but in any event. very clear as to
the correctness OF my official action.
The amount Of cash held for account o the several
funds Is Se9,2io.
u win be seen that the work Of the department. cx
cspt the registration Of notes has greatly exceeded that
year the labor has been very arduous taxing the
gies of all employed to their fules, extent
In view OF the demand for prompness In the transac
ton OF the business OF the department. rendering
glossary at all times 10 have sufficient FOR any
reduce the clerical force OF the department. and
sequence the expenses could not be materially esscned
is however anticipated that some reduction Of this
expense may he practicable during the current year.
DESTRUCTION or RANK PLATES.
Table No = is a lst OF bank note plates destroyed
during the year Quite large number Of plates OF closed
banks now await destruction, which viii receive sttsn-
tion al an early day.
crGRKs ~ THE DEPARTMENT.
The name and liked compensation OF the clerks In the
department viii be found In table No. -.
Tho legislative increase OF compensation Of the clerks
in the several departments has been extended TO the
clerks In this department act Of justice or Indeed OF
necessity. Upon DO the Inconvenience OF depre-
CT tied currency and the burdens of taxation aud inflated
prices fall SO heavily upon those whose support 10 de-
lived from fixed incomes. nc In the form OF salary
Most OF the clerks OF this department have been EN-.
pioyed here for many wears, Of them from ite
organization; and chcerfuly bear testimony 10 the
ability courtesy and integrity with which the duties of
each have been discharged
CONFUSION.
From The statistics herewith presented Il will be seen
that Passing Away Ia written upon the banking sys.
tenn Of tho state Of New York. II 10 useless 70 st in
or to indulge In vain regrets the dissolution
OF system that has so long ministered sccepaby
material prosperity OF the State In the march pro.
gress Of social revelation creating financial oxgen-
clcs II has been swept away leaving to us however
the hope that the larger growth and higher demands OF
bsvc been those Of the closing upon our sight
GEORGE W. SCHUYLER Superintendent.
Since tho above was written the General Term has
Affirmed INC decision Of the Court below.
Court Of Appeals Calendar.