New-York tribune., 1884-01-03
sl,35g,777T 10

The net increase securities during the year was
S142l 30 OF those held by the superintendent s-3
bankers, guaranty OF good fath ~ II 30 Is held
for the redemption Of outstanding circulation; SLIGO,
-- % held for trust companies; the balance Of $-,
1TG subject to withdrawal upon order OF its owners
The SIppTi1tcpdent calls attention in emphatic terms
70 the .dymoralzug Influence" OF banks which adopt
corpOrdtcd names and invade the business OF the regular
Is INCORPORATED banks without being they are subject
TO the supervision control of the Banking Department
In connection with this matter he says: 81 desire TO
add il believed that the amount Of capital employed by
+hs interest equals the used by both the regular
state and National banks 1t is ;he Imperative duty in
my Judgment Of the Legislature to compel private banks
10 advertise themselves such private banks and 10
do business a. such They corfe tor ne business ot
the regularly organized corporations "mc buDrct 10
few OF their burdens; and is remarkable fact that
win realization Of the benefits to be had by pre-
serving name, the credit Of which was obtained whie
carving business an association created IN pnr-
smaIIce with the terms Of the Free Banking Act they
have in many instances aN1u.ncu luc go, 70
while they possess nothing OF corporate existence IT
one OF those private Ddhhets h'.luR I.PpoLile nduo
f,rrc tbc uuthuking portion Of the community IN this
state and the better informed elsewhere naturally ara"
cnncusio To the dsparagcment OF our regular "aocla
lions: a conclusion unjust In the extreme"
ness under corporate names The report recommends an
amendment to the laws OF lSi9 which made the RESPONSE
Iity nf Stockholders depend upon circulation. Says
Supfrniendent Paine: "As nearly every state bank
issued circulating when tins act was passed s pro,
ios afforded valuable safeguard FOR the protection OF
the creditors Of state banking Institutions But congress
sional legislation in the year 1865 imposing tax OF zen
r ceufIm ON the circulation of State banks, has resulted
I'm driving such circulation out or existence Hence e
provisions Of the act of lsl9 the language OF Wnic e
Inc responsibility OF stockholders depend upon Cllcu-
ton no longer affords any pIacca Dtneht 10 such crt
t"rs The law should be explicit that the shareholders OF
every banking association shall be liable for the debts OF
the bank to an amount equal to his stock NJ the par Nae
thereof and i'm addition 10 it, such an amendment, while
it would perhaps, be Of no avail to deter officers RON
wrongdong but fair. To the end that depostQr- ah,
other creditors NAV be protected to the extent Indicated
lie also recommends tnat the laws should be 40
amended empower the superintendent 10 make an
examination Of the banks, banking associations lndl-
yIua bankers and trust companies, personally or Oy
coUccut pcrsOu be designated 10y him, whenever ne
NAV deem II proper Ho advocates also additional
ann, udmcu prohibiting the appointment OF any person
ia receiver OF "A bank, banking association individual
banker OF trust company, who has acted examiner
thereof report concludes with the following regua-
tions concerning state deposits: think It my duty TO
add that know OF why moneys OF the state
should not deposited in state institutions. submit
ft he course that has obtained OF keeping moneys Of
the state In National banks when our state banks are
quite as strong il not paying the latter the compliment to
which they are reasonably entitled"