The New York herald., 1871-01-13
THE NEW YORK STATE BANKS.
Report of Superintendent Howell to the Lcas.
Iature-Bnnks Abandoning tho National Sys-
fcm- Suga esiions aud Information.

BANK DEPARTMENT, ALBANY, Dec. 81, 1870.
To THE HONORABLE THE LEGISLATURE OF THE
During the fiscal year ending September 80, 1870,
the following banking associauons have flied
original certificates OF organization and commenced
business under the laws OF this State-FultOn Bank,
BROOKLYN; Security Bank, New YORK; Farners'
Bank, Favetevllle; Merchants Bank, Watertown
German Asmer an Bank New York: Murray uill
Bank, New York; State Bank of Olean; Carroll Park
Bank, Brooklyn (snce closedl.
Also the loowin0 originally State banks. con-
verted into national banks, have, since the passage
OF the act authorizing the same, dissolved their
nection with that system, ana reorganile0 as bank
ing associations under the laws OF th S State. sec
tions one and two, chapter 475 Laws OF 1877
Mechanics and Farmers Bank. Albany; Merchants
Lansingburg; Bank Of No tn America New York
Pacific Bank, New York: Grocers Bank, New York.
Since the close Of the fiscal year the following cer-
tifcates or organization nave been filei:-Nlth
Ward Bank, New York; Exchange Bank of Lansing
burg.
State OF New York still commends Itself the
favorable consideration of the public.
None Of these banks. Of course, issue circulating
notes, the United States tax on sucn issue beng,
"a was aoubtess intended. prohlbtory.
From The general complaint OF the strlngcncy OF
business interests OF the country, and particularly
OF The rural districts, think 1t Will be conceded that
the national banks have failed to take the place Of
our State banks In supplying currency and banking
facilities generally to The business community. Our
State system furnished money enough for the wants
OF trade and internal commerce, and at points
where it was needed. The national system lives us
a circulating medium sufficient In amount, but tails
to supply IL at many po MS where lt Is required.
The currency that should be paid our over a hun
dred bank the interior OF the State TO
sist buy ing and sending market the products of
the country, accumuates largely in New York and
is used, TO considerable extent. In transactions
outside OF legitimate business. Could Congress be
induced to remeve the tax from the circulation or
State banks. and thus allow them to rem W their
former relations with the business interests OF the
country, such le9lsat on would. think, be attended
with results very beneficial to the people OF our
State.
Regarding, as lido, the question or a reorganiza-
ton Of our State banks, upon their former footing
IA one OF great importance to our citizens generally
respectfully suggest TO your honorable body the
seem advisable to secure the repeal by Congress OF
the tax above mentioned.
Should an ensrt to repeal the prohibitory tax OF
Congress upon the circulation Of State banks be at
tended with success, some changes IN the present
law might be found necessary TO meet The revival Of
State banking under conditions somewhat novel;
but these need not be anticipated. nor indeed can
they be.
would however, suggest some slight modlfca-
tlonS oil the existing 80 low ~",ct'n rho
organization OF bank 9tNn, CD 1f taEe eHe elreU.
laton, and which ar Ieg -reA ncrost III tlss Ue.
partment $4,000, me @'3 ts se"AiAs ~ ,tp.f scR
Upon the incepi S ms s'ata s47liar srs
tenn the evidence lci3 ne 12ai.a. FAE
always to be loul ~ rt3 aeppFf ~ s.st altt
10 that mount to ,feui3 inp: '.tf - e
the r. ,t ord, thts ,at4c Ge
evide re the sr sastrdeBs Wgre fiis.
ca s th'taI el tsElnf ~ .velaes
r eA w4. hg II taipb shQU'1 og 6e
sn~. iFeafs ~ Crel etlon, to examine or cause TO
te &.Gsn.a etULl0n OF Lne proposed lnst,tu-
Snn. bee uSlactory evidence that the
as aaoarna Cd, ,Ggislature has been drawn
Ut pft4,n1s PORTS rom This department., TO
.N0ltef se igi..a ct IN the law, In tnat 1t tails
H. Ufoyi6U 4ur ,entive means, beyond making
Is DRE rsO4.t i've, against the reduction oil the
iiei ~ Ink in The discretion OF It's STOCK.
h9#r. Il common thing for banks since their
-f alfft4 mas been cut OIL, to report o reduced
pg}yr3. icaptal, sometimes even an amount not ex-
II 4 ct
p945.inding. II an old bank may do this with Inn
atty, while new, organization must have
ts certainly great injustice in such discrimination.
Believing that IL is not desirable nor expedient TO
tai for an ASSOCIATION and s5o,ooo for an individual
bank, and that there should be perfect equality be-
fore the law between banks Of recent origin and
subject to the Legislature for such action Will
able the superintendent to require full compli-
ance with the law In both fact ana form, or to COM
pei the bank neglectin9 or refusing TO comply 10
close Its affairs as bank and become what IN TACT
1t Is when reporting reduced capla, merely pri-
With these notifications OF the law to meet exist
ing conditions, and such action as your honorable
state baking interests, shall regard the duty OF
the Legislature far relates 10 this department.
as faithfully accomplished.
The amount OF bank notes returned TO the depart
ment and cancelled during the year was $25S s5, OF
which s2l2 10 had been issued BY banking assocla-
poratcd or safety fund banks.
The circulating notes outstanding on the 1st OF
October were, by the books OF this department,
$2,253037, OF which $1,tT4 $40 was secured by de.
posits oil bonds and mortgages stocks and cash. and
$779,297 was issued by Incorporated or safety fund
banks that are not required to make deposit ior
the protection OF their NOES.
The securities OF all kinds held by the Superin-
tendent were, the 1st day OF October $267i 2ss,
of which $2,l45,909 were held for banks and
$525,37 were held for trust companies
The names and salaries Of the clerks employed in
the department at the date Of this report VIII be
found table No. TO- the salaries being liked at the
amount named and without the additional legis-
latve percentage allowed to deputies and clerks IN
other departments.
Respectfully submitted