New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1885-06-05
NEW PUBLICATIONS.

80 .o rrovide for the compilation ana re''''on
of the laws affecting banks banking "n' S Flo
.omnanies Governor Cornell Ill puIsu" Vii,
.ct Amounted George y. Sloan, OF oswoSo, :.
: paine of New-York and David c. van Co''' -
RroolIyp as the Commissioners to revise SUI CO
subsequently Mr. Sloan resigned ana Nj. 'a -
ceased to act with the commission " =: NJ
of New-York was selected by the "oVo'"o, -
S,oo,,s Mace. and Messrs. Paine and powd ooEau
c'o~- as o,u,n;lotion and revision. Mr.. Dowds
rnow,edoe of backing affairs was of great pract'cal
-olue as bis associate cordially declares Du' 'I0
,ost ,ahorious part of the onerous duties OIL ''o
oamm;.sou naturally fell to Mr.. Pane because u
his long familiarity and connection WIFI 'neoo "u
coanate subjects The act prOVldeu tnaV ' W
mission should serve without pay. ana trole "0 ~
necuniary return to them for their iaooi''
results Of their work were presented TO inc heSis
ure in 1882 and On July of that year .ne Tt!
became q law. While engaged upon tne io,'9. 81,
AR PANE appears to have become impressed WIN
49, ,a"a.s;tg for work which should present not
olous the new law as it passed the Legislature .o
s,,rces from which it was compiled anu .N0
changes made but also practical dgese Vi 'io W
cs;ons Of the courts affecting the various seo'''
49, p.nL;ng Act The result has. been the prep
orot;,n and the recent publication oil tue aoo'e eh
titled work .,,o.orrblv
The task has been accomplished IN tnor"uS"iy
painstakiny and careful manner. Inc oouS u w
syor, IL devoted to the revision itself. Under oach
section is reference 10 the old statute WHOSE p0
II takes. with an explanation whore any important
CHANGE 10 made Then follow the citations from
osss hearing upon that section These are features
that will be appreciated by the practical banker as
wall as the lawyer. The work IS rendered iiuo"
more complete and valuable by the iusereon "a VIZ
Iowsof 1881. 1875. 1873 and 1888 relating 10 the
safe deposit companies aud similar institutions
constitutional provisions and generai 's'a'u','
affecting banking in this State; the National paA
ing Act and cognate United States statues
Not the least interesting portion of Mr.. Paines
rork ia the Historical Sketch" of banking IN TINS
state with which he prefaces the more technica'
conn;,at,on The supremacy which, almost from
Tho foundation of our Government. TINS ota.e
attained and has retained in money auairs VIII
largely account for the interest TO DC 1eit Ill " "o
told story of the struggles, difficulties and successes
of its great financial institutions IL may SURPRISE
many persons to be told that the State OoVerno"'
had been in operation nearly fourteen years oei"i
any one of the banking companies doing business III
this State was permitted to conduct us BUSINESS
under an act of incorporation. But II VIII not
annear so astonishing when it is considered th't
+be first hank of the United States was lncorpo-
rated in the same year. and the second one not tl
1916: that the Bank of England itself hao thon
been in existence less than 100 years and the BANK
of Ireland was barely eight years Old MI raho
fnds sufiient reason for the fact in the condition
of affairs that then existed.
GThe Continental paper money system nad cause"
such severe losses that the representatives. Oh tho
r.onle were unwilling to countenance the creation
of a corporation, the establishment Oh which
seemed to favor, however remotely, the issuing OF
-,onor monev nv any association whatever" And
the charter of the first New-York incorporated
hank expressly stated that ait shall not be lawful
for the said corporation to emit any notes or con-
tract debts which shall be payable in the bills oil
credit emitted by the laws of this State
The charter given to this bank-the Bank OF
New.York-was the model for all granted in the
State before 1925. None of them set forth any
specifications of banking powers. the Legislature
relvnp only on tie restrictive clauses inserted III
.ooh ehorter All of them contained unequivocal
declarations that trading in anything except Dull
;on forsign coins and bills of exchange was not
bankpg: and that the power to traffic IN stocks OF
merchandise was not "either necessary OF tx
pcdlent 20 accomplish the purpose for winch panks
ore instituted" . -,
The story of the establishment OF the Manhattan
Company which still carries on its business III an
old-fashioned, conservative manner III TINS Guy 10
Singular and interesting enough to be prih's" DIT
length as Mr.. Paine tells 1t.
"a While nothing of political character al nrs'
entered into the establishment of banks, that
feeling soon manifested itself, and under tile CIT
cumstances very naturally so. In l7o9 Johh
Adams was President, and another Presidential
election was imminent. The Bank of New-fork
was in Federal hands aud the Republicans nat
urally wanted bank of their own to CONTROL Dn'
the Legislature was in the hands ofthe federals
who were Jealous of rnoneysd institutions, and The
prospect of Republican bank seemed dubious al
least. II was then Aaron Burr's fertile brain came
co tho rescue New. York had been visited by thu
yellow fever and it was believed that this maladI
vas induced by the lack of wholesome water il
that city. Here was the opportunity. 1t was pro
posed to incorporate the Manhattan Company TO
the benevolent purpose Of supplying New-Iori
with pure water; $2,000,000 would do this; an'
rs these water works might not absorb the entlr
amount, the petitioners asked Tor q provision
authorizing this institution to employ It's surplu
capital In the purchase of public or other STOCK
or in any other moneyed transactions or operations
not inconsistent with the constitution and laws o
this State or of the United States And as Tn
object was to supply want that would Away
sxist il was not unreasonable that the grant Shoul
he given in porpetuity. This corporation with 1t
unassnming title, was too late seen TO be a bankin
institution, with a charter of the most liberia
character The charter passed (ch. s4), the Fed
erals discovered their political mistake.
We believe that this bank still maintains grea
tanks from which it is proposed to furnish spur
water" to those who will pay for it.
On January /, 1929, there were forty incoI
porated banks in the State with combine
paid-in capital of $15,000,000, with loans an
discounts aggfegating more than $4,000. 900 an
with liabilities for about the amount. Nj
Paine thinks that the I" Safety Fund " law whic
was passed that year, in accordance with tn
suggestions of Governor Van Buren,, and whic
La,Ir