New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-06-21
NITIONAL BANKS DON'T LIKE IT.
\ DECISION BY CHARLES ". PRE;TON As TO
STATE BANKS RESERVES.

STATE BANKS RESERVES.
Charles NJ Preston superintendent Of the Banking
Department OF the state OF York, has Issued
circular letter to the presidents Of banks under his
jur>dction in relation TO the new law governing
the keeping OF part Of their lawful cash reserve In
other State banks. The circular Is also reply TO
the request from OF the banks that they Ic
permitted ia keep the money heretofore In the
National banks which net their agents In TINS
city. The circular Of the superintendent reads
Banking Department.
State OF New-York.
Albany June u.s. 1892.
Sir: have received your communication. together
with a numbr Of other communications Of State banks.
asking that certain National banks be designated
dcpositarcs for lawful money required by
Section a. Chapter 6S9 Of the Laws Of 1892.
In reply thereto beg that all the Information
which Department has concerning the condition OF Ma
tionel banks and rumo do not feel
that be justified IN designating National bank as
depositay lawful money reserve unless such BANK
should voluntarily submit TO examination OF its affairs
for purpose by the examiners OF this Department the
actual expense OF examination 70 be borne by the
bank examined.
A certified copy OF the last official examination made
by the direction Controller OF the Currency II made
within six months from the time am asked to designate
such bank would be received and considered in lieu OF
On made by the direction Of this Department
A National bank while acting as d,posiiary FOR
State bank reserve, will b. required 10 send To this De-
partment duplicate each report made 10 the Controller
Of the Currency.
Any National bank complying with the foregoing ~
ourements and whose condition Is found 20 warrant H.
WILL upon the application OF State BANK u ue'leha'i
os dcposary for lawful reserve as proVdcd by
the section above quoted. Very truly yours.
CHARLES NJ PRESTON. Supcriltend'nt
The National banks are not at all pleased with the
supcrntendent's reply The president OF one oil the
large National banks In speaking Of Mr.. Pfcs'olS
decision last evening said: St" regard Mr.. Preson's
refusal TO permit a state bank TO continG to keep
mari ~ lis Lawful cash reserve IN National bank IN
this city. except on impossible conditions, as great
orror NJ Judgment on hi, part. OF we should
have no objection to furnishing him with the sworn
reports but could not give the state Department
&, copv Of fle Eank Examiners annual report be
cause we do not have copy Of IL, ana because IL Is
confidential to the Controller By the examiner ana
only that official can give it ont. II has always been
held by the Controller that those reports were con
gdentia and their contents could not be disclosed, not
oven in RESPONSE TO legal process. should think,
however that the sworn statement Of the officers "i
National bank as its condition backed by INC Iact
,,,, n Is n member Of the New-York Clearing House
ud he sufficient proof o! its sOlvency TO enable the
state superintendent to approve 1t rs the deps'ay
for mart Of the lawful cash reserve N IA state BANK
" Inc rigorous character OF the examination OF VA
,,ooa banks by examiners cmplSed by the Controller
w ,he Currency Is well known and II that
0hcm the banking Depa tment Of this state has earned
n similar reputation for Us cAhnh'tIoIN vi t.e p'.'As
under its supervision 1t VII be time eloug 10 ,nalst on
,he National banks limiting u what virtually would
Wv n an examination y state bank officials before belns
Dermttcd become or continue uep)sta1es ior inc
re9ci IT, Gcc, Of the ,upcrn,endents decision will be-
tlik 10 drive the smaller state bank, III the state TO
keen their collection .ccjant, WIN inc ota'c pdhh' III
,hi, city," said Henry Ccw,. .,,o,, a,,r...e ,.,..
kept large cash reserve In :her vaI ,ne' a ,c
rcdnired do unier this new "A VIII OF c6se T,
,tIrc 10 Keep their collecti,n accounts "hcre 'neS
please The National han. VIII a pr%p ,be state I,mhs
~ New-York will probably continue their account