New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-01-02
CONDITION OF THE BANKS OF THE STATE.

journed until January o.
CONDITION OF THE BANKS OF THE STATE.
NOT ONE FAILURE DURING THE YEAh-fLAI'
uREs OF THE ANNUAL REPORT
Albany Ian. 1.-The annual report OF wins ..
Paine Superintendent OF the BANKING Dcpa '"on' VI
the state was to-day submitted to the '1s'''''uno
The chief points Of the report are gwen pco" i"o
enormous increase in the number and total resources
-, ,ho h.rLs &c declared 10 be the dearest evidence
nossible I'm favor of the State system During inc
vear twcnfv-Gve banks with an aggregate capiVa Oh
st9s5.COO were organized The 'o'ai III
c,rase in banking canta duisig tne year
auounts 10 sos35O0O Of whch Sio7oOoo
represenfs the capital OF new ASSOCIATIONS
The remarkable statement Is made 'hst '"oio mas
,ot hoen a single failure: or Suspension among the
state banks during the year Three new "",' 'o"i-
NAMES have been organized in 1888, and are now en-
r,ced I'm active business with capt
tal amounting 10 81 100000. Inc to'a
amount Of securities held in trust by the HuPr-
intcndent. the close of the last year was H'o"'-
O1s 90, an increase during the year Of T'4V''o'.
The Superintendent renews his recommendations
relative to the custom in some banks oi ioan'nH
money on pledge of their own STOCK anu 'uSSeS,
that law should be enacted compelling the d'posl'
~ all morers Of the State In the banking institutions
created bv the state The excuse that the National
hanks ara better managed Is no longer In an! FosP'c
available he says while 1t is noteworthy iac' 'D''
there has not been single failure among uio "'""
banks during the last four years.
The law enacted last year for the organization OF
trust companies seems to have met Win gehei" 'p-
naval he saws. -Four companies, TWO III Nc" wi ~
and two in Brooklyn, have been cfca'cu' al Vi "A'
orc nrosperous 1t Is questionable whether IL Is NOT
ayisah,c tbe SUPERINTENDENT adds, so to amend the
loo, that M trust company shall hereafter Do Orlal-
ICED in cities having over 100000 inhabitants WIN
capi,al Of less than SlOOoooO
On the subject of building and loan aSs"ca'onS'
thc superIntentent urges the necessity Oh pac"r al
absolute safeguard around the fund OF suD'onhhe
members by means OF legislative dciloh' i"c o'n"-
ing association system, he says. was originally h'' III
tended for the accumulation OF wealth. DS n'oaR VI
ororpous nroGts or the realization III extraordinary
dividends IFS chief object being the mutual advantage
Of Irs members through the medium of small advances
IN tho nature Of loans for building purposes only.
whcn All association. however. with ie" 'hVusanu
dollars at its disposal, becomes acuafed BY neSie
for enormous profit. and offers loans 10 mo hlGhfS'
bidder for the purpose Of obtaining enormous pro
miums II abandons its original pdrpoSc. S'do"'c"'S
have bcen made In connection with several OF these
institutions during the past year. to The eect 'a'
borr, as high as A. per cent has been
charged 10 borrowing member. Such
condition OF things the report declares, can
mate disaster The probable generalization OF morgase
premises Is another matter of serious Importance. MI
paine urces upon the Legislature the necessity OF
limiting the boundary OF every association at least %
the precincts Of the county In which is once iocae
For proper supervision of these associations two
mans are suggested: state supervision and county or
local supervision.
The effects Of the taxation Of Canadian currency
are discussed at length the remarks being oased OIL @
order issued 10y the Commissioner OF Iniefhai hcNchuo
last January directing the Collector al Buffalo to make
a Thorough investigation of the probable amount OF
Canadian circulating notes paid out by the DahAs
within his jurisdiction. The Collector was also re-
ferrcd to letter from the COMMISSIONS, directed 10
the presldent of the Bank Of Suspension Bridge III
which IL was held that the notes Of Canadian banks
are subject 10 the provisions Of section JAZZ oi mo
United sfaes Revised Statutes. The superintendent
after consideration of the laws. expresses his cohNc-
ton that the original trainers of the law never III
tended that it should be so construed as 10 DC ina"c
annIicable 10 the case in question, because such
construction would be detrimental to the interests oi
tho people OF the frontier. There arc he says On io
Canadian frontier eighteen banks OF deppsit any -
count operating under the laws Of this state WIN az
aggregate capital OF 80 10000. and deposits eAcrt
Ine Sis coo 900 These institutions frequently Decohe
the repositories of small amounts oil OdlaniM, o ,
rcncy, but instead OF passing SAID currency no
usual business channels, IT IS allowed 10 &
the banks and returned 10 the place OF issue III Ias'
sums, unless called for by parties VINO may
casion 10 use fl in Canada. II cannot be claimeu
he adds that the free admission OF foreign currency
would prove detrimental TO our own Issues, Decaust
the iuctuatng value OF all foreign moneys 'lender
their circulation All impOssiblity, except 10 Wy
crcumscribcd extent me Irre eHens 7,
the Inhabitants along the border and ADDS thar INC
ruling Of the Treasury DEPARTMENT pu, mo cAgcu
.Ion would not only DC unjust TO the BANKING In-elt
I'm that section but would also he injurious 10 all INT
people along the Canadian border