Year: 1876

The incident of the past week has been the unex-
pected dsco on tho part Of the Bank OF the State oil
New YORK. The event is remarkable in two phases
rst that old conservative aud trustworthy an in
Btuton should have been obliged 10 close its doors;
and second that the effect should scarcely have pro-
arced ripple the placid waters Of financial circles
4 few years back, in the excitabe war days, iiko
catastrophe would have been looked upon as among
he possibilities Of the period while to the Stock Ex-
change there would have resulted disastrous panic
To-day when the bolt falls like lightning from clear
sky it scarcely creates sensation. Beyond an ncon-
siderable decline in the share list and temporary tight
cnng IN the price OF loanabe funds, the event pro-
duccd no marked effect the street, and the cloud,
which at the time refer TO would have produced
hurricane swept the market to the gentlest of
airs Tho luck for which Gould is proverbia usual,
stuck closer to him than brother and in fact helped
the share list also for the momenary depression
lbled him to rally the market purchases for short
recount and only to stem the tide, but actually to
turn It, IL is true the shares thus acquired were
speedily turned out again at handsome paying ad-
vance, but the storm had blown over then and all
danger passed.


II Is pleasing to record that, for in his life.
Gould has been Of service to the community, though
there generosity in the action, and the etching
pamn surpassed any sentiment Of public good


There a delay in the resumption Of the unfortu-
nate bank which Is not reassurng and the feeling Is re-
dected in the quotation for the stock it being offered
At So with 80 only bid From this fact would appear
that there some very needy stockholders or some
very dstrustful ones, since the above figures point
to loss of ftwothirds OF the capital instead Of one
fourth, at most one-haf which we have been asked
10 believe The present week will probably clear up
doubts II II does difficulties and the real position
,f the institution will be fully understood.


hold ufoff f1ta lint
and noticeably free from speculative influence,
readily Affected in price when they become the subject
OF purchase SALE and hence the above figures are
probably as much under other circumstances
they might be too high. In fact, the market price
of these properties will generally rule considerably
below the actual value as shown on the books
and is based rather on the customary dividends dc
clared than upon intrinsic worth 1t, nevertheless
somewhat of mystery that, with money ruling
Tor the last two years at average OF certainly not
per cent, city banks have been able to divide
from to 10 per cent among their stockholders, as
many of them do. We have what sort Of Sc
curty the Bank OF the State has based its loans and it
would be an interesting revelation to learn how many
other institutions have lines OF renewal and suspended
paper or 'quecr" warehouse receipts which num-
bercd in the assets each public showing


This bank failure has again revived the question to
the exact meaning OF ''certhed check" BY IL
argued that this action the part Of the bank binds
1t solely and releases the drawer others contend that
In default the part of the former the holder
may look to either or both parties In case which
before tho Arbitration Committee OF the Board,
In which certified check the Bank OF the State had
rendered and accepted, the committee ruled that
he holder must look TO the for redress In
iuestionaby all this is equity but, with reference to
passed upon by the Court OF Appeals in 1873 which
body If remember rightly, decided the other way,
scarcely law. In common view
Of the subject II would that tho
bank simply acts the part OF agent
and obcys the behests of its principal,
who nstrucs 1t 20 receive pay out funds he may
direct II the agent fails in his duty and loses the
money IL is clearly his employer who must pay tho
piper.


II fRobnson, paer fdmiids, sends Brown, servant to
pay Jonos butcher, and Brown, meeting Jones In the
street, tells the latter that he has the money his
pocket and will call at hts shop in hour but before
that time gets rid OF the grcenbacks and is unable TO
paw we doubt whether Jones Will accept Robinson s
plea that Brown having certified to having the money
must be responsible for the bill We fear that pdter
Jamlias would nnd lean larder II he depended upon
Jones, butcher for his further supplies.


STOCK FLUcruAuoSs


Tho foIloxvfng tabe shows the extrcmo 1uctua atona