The New York herald., 1878-02-27
1HE STATE CAPITAL.
Albany Statesmen Inquiring Into Irreg-
ular Fnanciering.
WHERE IS THE MONEY 4:
Attorney General SchOOnmaker's Suggestions
Concerning Savings Banks
TBY TELEGRAPH TO THE HERALD. ]

ALBANY N Y, Feb 26, 1878.
Probably In order TO do something In earnest, the
blatant that have been made to the elect
that alter adjournment great diligence would
charactcrze its work, the Legislature tonight held
the longest session since It convened on January
l. 1878. The consumption, or better the waste or
time. was remarkable, and only equaed by the ins'g
uifcancs OF accompl lishment. The Senate spent the
potter part Of arguing whether Grass River
should he improved not. and the Lower House sat
antil nearly eleven O'Clock listening TO the chQike
ratechisng OF Messrs Peek and Hepburn, OF ST.. Law
renee, by Mr. Gilbert OF the same place.
Both Mr. Peck and MI Hepburn made ire
auent speeches In favor OF bill 10 amend
an act authorizing the loan OF certain
moneys belonging 10 the United States deposited with
the State OF New York for safe keeping II appears
that IN 1887 there happened to be surplus in the
United stalos Treasury, and that this surplus was
divided among the different States New York's pro-
portion beng $8 900, ,oOo After this money had been
mado to the State for the purpose specified
state law passed dividing 1t up among the differ
counties, and empowering the Governor to ap-
point Commissioners to loan tho money out on real
estate security.
BAD spEcuLATioNs
Mr. Hepburn and Mr.. Peck explained at great length
that under the system initiated grave abuses had
sprung up, and that the proposed amendment to the
old law intended a They said that the
money had been loaned third, fourth and fifth
mortgages and quoted tho Comptroler's last report
authority for the assertion that between 5000 900
and 100000 OF the original amount had been lost
through fraud ana defalcation; tnat II much OF
the property which mortgages had been taken was
torecoscd upon the deficiency would amount to moro
than hall the original trust The law in favor OF
which they spoke recommended that the RESPONSE
billy be removed from the Governor and located with
she boards Of supervisors OF the different counties
Notwithstanding this very lucid expression of the
aims Of the bill, MIR. Gilbert, who In TACT knows more
about II than eihcr OF the gentlemen on max
ing Inquiries answers to each oi which Contained some
Recommendations for the new measure. As piece OF
ousnessn = was the most complete % yet ps1Gr%ed
appointed BY the Executive were o, a
higher grade and more trustworthy than those who
iound preferment by reason Of local influence Mr.
Avord also objected to tho BILL and his reasons were
aue as various as th ose advanced by the gentleman
irom ST.. Lawrence. Alter speuoing Two hours and a
hall in rambling debate and exercises IN catcchsm by
The House from the Oommittcs OF the Whole, ana on
motion of Nj. Alvord ordered 10 a third reading.
SCHOOL TEACHERS SALARIES
Mr.. William Wood, President OF the Board OF Eau
eatioE, who. by resolution OF Dr. l. l. Hayes. was
called upon Information concerning the salaries
ot teachers anu employees ol Ills department, asked
and was granted further time 10 comply.
NURSERIES,. But SCHOOLS.
Mr. McDonough's oiIi abolshing the public schools
as nurseries was considered and ordered TO tnird
reading The Uill relieves tue teachers in New York
from further performing duties nurses, and pro-
vides child five years OF age shall attend
school IL has long been the custom IN the crowded
dlstrcts oil New 10 utl SCHOOLS Win
fants Mr.. McDonough's bill provides against this,
the Of the educational authorities.
JUSTICE
II would be unfair 10 the Senate to say that II did
nothing more than consider the Grass River bed.
Some Of its time was occupied in discussing scheme
Tor protecting tn ducks and nshes o Chautauqua
Lake IRON dcpredatons OF camp meeting pick
nickers, numerous there abouts IN summer time
OUR SAVINGS BANKS
A communication was received IRON the Attorney
General IN answer TO resolution OF the House ask
ing what further Legislation necessary Tor lurther
toruey General suggests tho following changes:-
Fust--Tne trustees should be required to be actual
residents oil the State and freehoiders witnin the
State. The reports OF the banks should state the
names residence and occupations OF the trustees, and
state whether they are freeholders
Second-rhe banks should be more strictly confined
TO the legitimate business ior which they are created
ana shouIu not be allowed to keep cneck accounts
nor pay dvGends or interest on deposits oitener than
once IN SIX months
be loaned on real estate security might DO somewhat
relaxed, or entirely removed, as other sale invest
ments are difficult 10 DRu.
Fou,fh--It mas been uggcsted that the amount each
person may deposit might be reduced TO $1,000 or
$500 But such limitation does not seem desirable
present une there SHOULD not in any event
be limitation upon deposits arising from judicial
sales or trust iunds-
Ffhh-The authority given the Bank Supcrintcnd-
ent To charge banks ior EXAMINATIONS should be re-
pealed. as contains an element OF danger In the wv
Of extortions Banks might be required to pay q
,mai sum into the treasury W meet such expenses
p the rate oI charge should be limied ana all such
shargcs should be reported TO The Legislature,
These, the Attorney General says, arr the only
,hanges that seem 10 be called Tor AZ the present
gme but he suggests that deposits
aviDgs banks largely made TO escape taxation IT
would seem TO be preferable TO allow citizens to DO
directly what rs now done indirectly. This can be
done by modifying The tax laws as v exempt from
taxation bonds and mortgages heid by private persons
and receiving not than five per cent annual in
ierest This measure ho says, would be an aet OF
Justice as well as one OF sound public policy.
ExcIsE BILL.
Tho DAILY New YORK Excise bill was made the
special order for next thursday.
+. ..1s.. COURTESY.
nh. u.a Of ,ha chan,hor on rhuredav ovanino wae
ed n Ia Military Association.