The New York Herald Newspaper, January 7, 1860, Page 2

2 THE BANKS OF NEW YORK. | Annual rt of the Saporintendent of "the tank De paseenenie ey New York, Bask DePartweyt, praa's Aubany, Dec. 31, 1859. ‘The Superiatendent of the Banking Department, Im accordance with the pees of section Li, of the “Act to organize a Bank Department,” has the bonor to submit, for the consideration of the Legis- lature, the following REPORT. The past year has furnished additional evidence of the utility, as well as the sufety, of the business of banking, as now pursued in this State under the rovisions of the “Act to authorize the business of Banking,” passed April 18, 1838, and the amend. Ments to to the same. The tact that the use of capital in the business of Dapkivg is open to any or all who choose this par- ticular pursuit, or [ may say profession, places it upon the same basis as that of any other invest- ment of capital fur business purposes. The busiuess of banking in this State, until 1838 ‘was trapsucted through special charters, conferring exclusive privileges; and even after twenty yea experience under the General Bank Law, it is dificult to impress upon the public mind the fact that the employment of capital in banking is, and ald be, as free as its use is in any other purss ¢ old system of special charters, by its very ormity, left its impress so strongly upon the public mind, that banking was a monopoly enjoyed by the favorite few, that legislation has been invoked each year either to restrain the action of capital or fet ter it in its operations. Is it not stiange that men of sagacity in all ‘things else, cannot see at agiauce that the business of banking has been, by the act of 1838 and the amendments to the sume, placed on exactly the game footing as the employment of capital is in any other lawful busisess parsuit, The merchants and the mechanics of the city of New York, the farmer of the ivterior, or the village merchant and mechanic would resist, and propert y wo, any oERAS aterference with their busine-s pursuit Would the Legistature entertain, for » Moment, a proposition that all the commercial ricultural or mechanical business of the State p ah be confined in its operations to, say, ouce and a half or twice the amount of actual capital employed in transacting such business? Not fora moment. The business men of the State would Fesist ary interference of the kind their pur- suits, as an outrage upon their private and per sonal rights. Capital, whether employed in rais- ing agricultural products, or in building a sewing machive or a locomotive, or in the business of banking, is entitled to the same protection from laws, and shouid be left, unshackled by legis Jation, for the use of the individual proprietors of i Let us suppose, for a moment, that the capital employed in the busivessyof barking, to be retired from that pursuit und returned to its owners by Jegislative enactment. Would it lie idle? By no means. It would enter uv0n enterprises itself, or would be loaned for bnsiness purposes, and in a few short months would be performing the very functions that now appertain to it,in its present aan nt. In this position it would require ‘no self-constitated board to regulate it in its opera- tions or invoke legislation for its control. The publication of the weekly statements of the banks in the city of New York, and the anakseriy, statements made to the Superintendent, all tend to keep the public eye upon the business of banking im this State. 1 employed in this business ‘and its operations kept constantly before the ple, and assumes @ power and control over the yusiness of the country beyond what it is legiti mately entitled to exert. The amount thus em- loyed is far below that of many other branches of in- ao and the capital employed in those purauits silently and surely performs its daty without at fracting the public gaze or appealing for legisla- tive action to facilitate or control its operations. The employment of capital in the’ business of banking aud the use of currency are made two d s- tinct operstions by our General Bank Law. While the former is entirely unl.mited, and properly 80; the latter is a restricted power, and based upon the single idea of yerfect security to the note holder, ‘The wisdom of each of those provisions cannot be tioned by any one who remembers the suspen- py and resumption of our banks in 1857. The repeal of the restraining law of 1830, by the act of 1837, left every citizen of the State in a po- sition to pursue the business of banking under the General Bank Jaw of 1838; and with the excep- tion of issning currency to circulate as money, aud limiting the lianility of the stockholders when a banking association was formed under its pro- wisionstno new power was conferred by it. The effect of the repeal of the restraining act of 2830 is readily seen in the creation of large indi- vidual banking houses in the city of New York, whose business is exactly of the nature of a bank- fing association. Thes ivate banking houses re- ceive deposits, disc sell bilis ofexehange, and deal in coin and bullion, with a liability that covers the entire fortune of their proprietors. The issuing of currency, as before stated, is a dis- tinct fanction of either the individual banking house ing a-sociation. Each can avail himself of that function or not, as it may c’ e. They ike, and each has the right to pro- ii 18 OWN Way, subject to the same laws and restrictions. a Would it not be a new feature in legislation to have a petition presented to the Legislature to cur- tail the business ot Messrs. Brown Brothers & Co., er Messrs. Duncan, Sherman & Co , to exactly twice the amount of the capital actually paid in by the Yeapective partners of those firms? Such a pro- position would meet the general contempt it would fertainly dererve. Still, as before remarked, men, ‘wise in ail ihings else, yearly press upon the attention of the Legislature the necessity of coa- fining the discount line of banking association to once and a half or twice the amount of their ital absolutely paid in. That this view of the snlinited use of Capital in the business of banking is equally safe to the people of the State as it is im any other pursuit, let us look at its operations Sor the past few years. During the past year capital has, for the first time since the passage of the General Bank Law, eowparatively paused in its aggregation for the pose of pursuing the business of banking. On Bre oi of June, 1857, the amount of actual capital employed in the business of banking was, in round mumbers, #103,000,000, having risen to that amount from $44,000,000, in 1549. During the year ending 19th June, 1858, $6,000,000 was added to the bank- ing capital of this State; and this too, while the entire community was laboring under severe pe- caniary erubarrassment. The amount of capital that has sought investment in that business during the past fiscal year is scarcely a million and a arter of dollars, and of this sum a moiety is in the shape of creased capital to banks already existing; and but $468,825 sought investment dn new associaiions and individual banks. This furnishes clear proof that capital has become alarmed at the risk it sustains in the prosecution ef the business of banking, or that its profits are decreasing, or that other investments are being ‘considered either more safe or more profitable. ‘The desire of accumulating property or capital is more general and more intense with us as a nation than with any other- Still while capital perhaps takes greater risks for large profits, in this country ‘than in the old world, yet with its proverbial timidity ft bas, as before remarked, for the first time since the pamage of our Free Bank law, paused in its ag- gregation, for the pursuit of profits in the business of bankin, The business capacity and sagacity that can gather capital in masses would seem to be able to pre- serve it at least unimpaired in its employment, and make such investment profitaje. A large rate of in- terest and a beliet in the ultimate safety of an invest- ment will,as all experience has taught, concentrate capital in any enterprise whatever. Banking in this Btate until 158 was more profitable than the ordi- investments found by capital. But eitherfrom timaity as to the ultimate security of such invest. ments, or froma belief that the profits are to fall its possessors have comparately ceased to em- their capital in that particular pursuit. e passage of the Free Bank law was resisted ‘upon round that it would lead to excessive ‘ban! if that business was open to all our citi- wens. ¢ evidence furnished during the past year shows the fallacy of that belief. and establishes the great principle that the unlimited use of capita’ im banking, as in any other branch of human in- dustry or effert, is entirely safe to the community go jong aa ita control is solely in the hands of its owners and unshackied by legislative enactments, That capital has wisely paused in the pursuit of profit in the business of banking, the Superin- tendent fully believes; and an examination of the rly Teron of those institutions for the last years will make this fact apparent. The jus profits of those institutions had “grown with their growth, and strengthened with the strength” of their cay until in addition to their declared dividends, it had risen from $7,097,- 000 in 1849, to $13,949,000 in 1857. In 1853 it de- creased, while various banks passed their dividends to $13,563,650, and again, in 1859, to $13,524,418. That the concentration of capital in the business of banking in our State, and its carefal or reckless use in that pursuit, steadies or deranges, in a mea- sure, the business affairs of the country at large, is beyond dispute. The fact that New York city is the great radiating centre of values, or rather the Breat depot from which and to which flows the it mase of the productions of the industry of the Baitea States, would seem to place a respoasibility mpon the ties controlling the banking capital of ‘that city should insure a care and watchfulness im its use, commensurate with the evils por mt ani NEW YORK HERALD, SATURDAY, JANUARY 7, 1860.—TRIPLE SHEET. thet city, and in its operations exercixes a controll- ing influence upon business of those who rely upon bank facilites for its successful prosecution throughout the State. Tt appears to the Superintendent that the man- Sgement of banking capital cau be brought within certain fixed rules, beneficial alike to both the lender and the borrower. In fact that common prudence would warn the bauker that beyond a Certain aud fixed liability he should not advance, ‘That the temptation to bank officers with means in their hands is great to step beyond the bounds which prudence would dictate, is fully admitted, when to this is added the fact that the larger the dividends the more sagacious the officers are in the eyes of the stockholders. It would seem almost idle to endeavor to show by the experience of the past where the bouuds of safety lie in the employ- ment of capital in the business of banking. While the employment o! capitat iv the business of banking is left as free as its use is in any other business—and in the opinion of the Superintendent properly so—it is idle to invoke legislative aid to control it. The desire to accumulate property or capual in the imdividual wan is far safer to the community, aud more certain in its action upon banking capital, and its use or abuse, than the con- centrated wisdom of all past legislation. To exhibit the actual condition of the business of banking in this State, its culmination and its gradual but certain return to the point that will make the investment of capital in that parsuitfa certain and secure source of remaneration to its proprigtors, the following summary in relation to the investment of capital in banking his been pre- pared. The banks, banking associations aud indivi- dual bankers doing businessin this State nad placed upon interest in the shape of discvuated notes, oc rather what may be wore properly called “loans and discounts,” in 1850, 82 97-100 per cent of their liabilities, including their capital, d« posits and cir- culation. It will observed that of immediate mesns but 17 per cent, iaciuding bauk balances, was instantly available. This was usivg capital, and the credit.of deposits and cireatatiun, to the utmost exteut that pradence would admit, consistent with the safe aud protita- ble investment of the actaal amuunt of capital employed. This per centage arose t 84 9-100 per cent in 1851, and fell to 83 34-100 in 1852; was again reduced to 82 51-100 in 1853. It fell again to 78 71-100 in 1854, again rose to 83 75-100 in 1855, remained nearly stationary at 79 during the years 1856 and 1857, and reached the lowest puiut, so far as profits were concerned—77 26-100—in 1858; aud again rose to 78 8-100, within a fraction of the gene- ral average for the ten years, in 1859. It is proper here to state that the per centages above mentioned have been cast upon capital, de- posits and circulation, irrespective of the amoust of stocks and bonds and mortgages beld iu this office as security for circulating notes issued upoa them, this deposit forming a portion of the capital of each bank making such deposit. It will be readily noticed that 1850, 1851, 1852, 1853 and 1855 were the successful years of banking, looking to immediate profits instead of ultimate safety; and it will be seen by the rapid increase of capital employed in the business of banking, how responsive it was to its profitable employment in, that peculiar business or pursuit. , Again, the investments of the banks during those ears show the same result, and that banking, as a usiness, in this State, reached its extreme point of profit during the years 1850, 1851, 1852, 1353 and 1855. During the year 1850 the a; te loans—in- cluding the stocks and ihaniietind Seorigegss in this department—of the banks, banking associa- tions and individual bankers of this State, were $239 for each $100 of actual capital paid up; in 1851, $242; in 1852, $246; in 1853, stil; in 1854, \ $2: in 1855, $227; in 1856, $223; in 1857, $217; in 1858, $192; and in 1859, $1 The figures are given in round numbers, without the fractions. It will be seen that the profitable years for banking capital are again shown to have been | 1! 1851, 1852, 1853 and 1855, eke the year ending on the llth day of June, 1853, nearly $14,000,000 of baukin capital was invested in that business, an during the succeeding year $7,000,000, and in 1856, $12,000,000, and nearly $10,000,000 ia 1357; thus increasing the banking capital of the State trom a little less than $60,000,000 in 1852, to over $107,000,- 000 in 1857. A compurison of the years 1858 and 1859 will show that the efforts of the banks to resume specie payments reduced their yearly iacome or protits to # point lower than the history of bauking in this | State, under the general law, bad shown during the | past teu years, and that a healthy and profitable | use of capital in that business 1s again aproaching. One of the beneticial results arising from the entire freedom given to the employment of capital oy our General Bank law is that the individual sagacity of the owners of it will develope its use in that business exactly commensurate with the re- quirements of the business of the country, thus proving that the immutable law of supply and de- | wand applies with the same certainty and force to the employment of capital in the business of bauk- ing as to avy other business parsuit. « As before remarked, the individual segacity that can accumulate capital is a safer guide to its in- tment in apy business vocation, be it what it | may, than any law which the Legislature can fraine. While no fixed and certain rule can be applied to the management of banking capital in this State, and it is impossible to establish, with any certain degree of accuracy, what line of discounts should be maintained, as compared with the armount of capital, deposits and circulation, still the expe- mence that the past ten “ars furnishes will throw some light upon th vexed question. ‘The Superintendent fully admits that questions of | locality, amount of deposits and circulation, do not | allow the rule of action of each bank to be same fn its tranaactions; still, it Sppearate hi the “Vie fi an approximation to @ safe stand point tained. The per centage of loans and discounts have been given in this report upon the amount of carital, deposits and circulation for the past ten years, taken from the annual Jane statement of the condition of all the banks, banking associations and individual bankers. This is found to vary from St to Eee cent, comparing the loans and discounts with the capital, deposits and circulation. The lowest point was reached in 1858, The tees 2 of specie payments by our bands immediately preceding their June ‘stat ment of 1858, and a large reduction of their liabili ties of course immediately followed their suce I effort. It will be observed thut the tendency wa: from their resumption to an increased use of their capital, deposits and circulation, this per centage of use rising from 77 per cent in 1858, to 78 per cent in 1859. ‘The average for ten years of the use of the available means of all these institutions in this State is'80 93-100 per cent. It would seem that this point should be safe to both banker and borrower, and that this average would be a fair criterion to base an opinion upon, as between the extremes of 1850 and 1859 there were years of very general prosperity, as well as of extreme depression, in the usiness of lected The Superintendent repeats that no fixed and permanent rule can be applied to each bank, whose action must depend upon its locality, the demands made upon it by its regular dealers, the length of time the paper it usually discounts has te mature, the steadiness of its deposit line, and the amount of its Lies ay rofits, Stull, he believes that experience teaches when the line of in- vestments of a bank reaches beyond, say 78 or 80 per cent of its capital, deposits and circulation, it is stimulating the business of the community around it, beyond a healthy and steady action, and pore | itself ea @ prudent and safe use of its capital and credit. If a bank is properly loca- ted this per centage upon capital, deposits and circulation will yield a fair rate of profit to itastockbolders; and as capital will increage its employment in the business of banking as the com- merce of the State requires, the maintenance of this position by the banks will not retard or cripple the growing business of the citizens of our State. The wisdom of our general Bank law is becoming more and more apparent each year. While it gives the People of this State a currency unequalicd in the world, it also wisely allows an increase of capi- tal in the business of banking, at the pleasure of the individual owners of it. This unlimited power of capital, in crates pursuit, once looked upon with distrust, if not terror, by the people of this State, finds its best and surest check in the amount of profits derived from its investment, and it will increase or diminish exactly to the point always found in any busiaess pursuit. “Tf the profits arising from the business of banking exceeds that of other pursuits, capital will, with unerrio, ettainty, be attracted to it, until an equilibrium is established with its other investments. That which was, pein, resity dangerous as a monopoly, loses all its terrors whea open to every individoal citizen, The concentration of capital in the business of banking, is shorn of its power end strength by that universal leveller, in- dividual competition. It is proper for the Superintendent here to state that be is of necessity compelled to base all lis estimates upon capital, deposits and circata- a8 shown to him by the quarterly reports to | this department, and not upon what is called “net deposit.” It is, comparatively, buta few years since the amount of “net deposits” could be ascer- tained, and now enly in the city of New York through the action of the Clearing House in that city, and not operative upon the condition of the in- terior banks, as to their deposit line. Under this view of the deposits, as before mentioned, his esti- mates and comparisons are based upon the quar- terly returns to the Bank Department, as gross de- | sits. PeAnother curious result is shown as the effvcts | w det them- italists of this State. To this time attempts made, and succesefully too, under ite provi- sivna to create instituuens, not for legitimate bauk- ing, but for the purpose of the proprietors thereof making money upon mere circulation alone. Banks were focated literally in the wilderness; notes were signed by powers of attorney, given to irresponsible persons, as presidents and cashiers. Every device was set to work to prevent the return of notes to the location of the bauk for redemption, and they were never issued or signed at the place of business, as stiown by the face of the note itsclf. The entire business was carried on at the agency of the baak, either in the city of New York, Albany or Troy, ‘This was literally comply- ing with the provisions of the act of 1840, which al- lowed, or rather compelled all banks, banking asso- ciations and individual bankers, located out of thse cities, to redeem their notes through an agent in one of them, at one-half of one per ceat discouat. Strong efforts were made to induce the Legislature to reduce the amount of discount to one-quarter of one per cent These efforts failed, although con- tinued during the sessions of 1849 and 1850. In 1851 the act of 1840 was so amended as to reduce the discount upon country currency to one-quarter of one per cent. This act literally closed the door to iileghinate banking in thia State. With scarcel, an exception, that class of bavkiog associations an individual bankers gave notice to close their bust- nes#: and within the year neatly a million of dollars of this class of currency was returned and destroyed in this department, never to be again replaced in cir- culation for the purpose ouly of purchasing it at a discount at their respective agencies. For the first tyme in the history of our bank legislation the Legislature seemed to have ascertained tae fixed fact that homan. sagacity could not frame a law which would control the issue of paper money made solely for the A rah 200 of realizing a protit upon its purchase by the issuer nimeelf, uniess it jade the transaction a source of no protit to the ties interested therein. As before remarked, this act closed, in a Ae Measure, the banks of mere circulation, and the general Bank law began to produce the truits expected by its advocates. y reference to the figures in relation to the per centage of circulation upon capital given below it will be seen that in 1860 the amount of circulation of bank notes in this State was filty per cent upon the entire banking capital of the State. It did not fall off but one per cent in 1851, but immediately after the p ¢ of the act of 1851 it fell oft three per cent upon the capital, while capital increased $4,000,000; and the absolute circulation in June, 1851 and 1852, not changing quite a half a million of dollars, the increase being in favor of the latter year. Thus the circulation of the legitimate banks supplied the place of that withdrawn by the closing of those created for the purpose of circu- Jation alcne. ‘The following is a statement of the per centa; of actual circulation upon the capital of the banks in this State, idciuding ull descriptions, for the pa ten years:— 1860; the amount of per centage of circulation upon capi- 50 67-100 9 49.100 , 1869, This statement is given to present the great change which has taken place during the past ten years in the position of capital employed in the bu- riness of banking, and the currency issied by the parties engaged in that pursuit. The most marked iture in thie statement is the discrepancy between 150 and 1858, and this, too, while the actual circa- Jation ot bank notes was on the 29th of June, 1850, €24.214,341; and on the 19th of June, 1858, $24,079,193, being absolotely $135,148 less bank note cireviation issued by the ks of this State in than inMi850. This extreme curtailment of emrency arose, in part, from the partial resump- tivn of the banks in the fall gf 1857. But it will be observed that the per centage of circulation in- creased to onJy 24 1s-100 percent during the year ending on the 25th of June, 1859; and the actual emouut of currency in circulation, and in use on that day, was only $26,759,915, an_ increase upon that of 1850 of only .2,544,574. This presents a singnlar result. he discounted debt of the .banks was, on the 25th day of June last, in round numbers, $185,000-, $00, aes st nearly $191,000,000 on the 6th day of June, 1857, that being the highest line of “loans and discounts” reached by the banks of this State during the past ten years. Again, the increase of “stocks and promissory notes,” from June, 1857 to June, 1859, was over $1,000,000. This brings the gross earnings of the banks within one or two per cent of the most pros perous year ever enjoyed by them, and too, with a circulation curtailed hearly $6,000,000’ from its highest point in 1857; a deposit line redaced $5,000,000, and an increase of a specie reserve, from the same point, of $5,000,000. The Superin- tendent believes that the year ending in June, 1857, to have been the most profitable year enjoy- ed. by the banks during the past ten years. There are two deductions to be made from these figures by comparison. The first is, that while the banks maintain their present position of resources and liabilities, or nearly so, they will keep the pab- h entire, both in their management and utili- fety to the community; and P tion is one of great strength, and in fact it may be considered impregnable trom any cause arising within our own borders. They hold over twenty per cent of specie upon their en- tire deposits, and the New York city banks have nearly thirty per cent in specie on their net deposits. The banks of this Stale are carrying a line of loons ad discounts within the smatless fraction of eighty per cent of their capital, deposits and ewrculation. In other words, they have on inte- rest, including loans and discounts, stocks and bonds and merigages, teice the amount of their capual. Zo force bank lidhililies, as an aggregate, be- youd this point, the Superintendent does notbeliove to be prudent; and particwarly so, when the importation of foreign goods %8 so unusually large os it has been’ thé present year. While the ultimate burden of payment must tall upon the consumer, the capital of the city of New York must, in the main, stand between the foreign credit- or and any defauit which may be made in the prompt payment by the parties who become the purchasers, if not the consumers, of this vast amount of tle products of foreign industry. Be- yond this single cloud in the horizon of banking, overy indication of safety and consequent pros- perity and ordinary prudence exercise ‘The increase and decrease of the business of the country, arising from the manner in which its business transactions were formerly conducted, owing to the closing of our rivers and canals, made, of nee a fluctuating demand upon the banks for money, thus producing what may be called a spasmodic line of loans and discounts. This is now, ina measure, unnecessary, from facility of transacting business the entire year through chan- nels of transportation that are continually open. Less excuse for sudden expansion and consequent san of bank facilities now exists than ever efore. The best evidence of sound banking is the steadi- nese of a line of loans and onute. It requires but little wisdom in those who cxamine the quarterly reports made to this department to learn in what institutions the custom aswell as the stock- holders, are the safest. ‘The second deduction to be drawn from the pre- ceding figures ia, that the business of the countr: bas in a measure ceased to be transacted t the medium of bank notes. The multiplicity banks themselyes has in part produced this result. While banks were few in number, and distantly lo- cated from each other, an individnal check was not that their present ‘hast palpable, Available as immediate means between parties transacting business, however good the same might be. The facilities now for cashing checks and drafts b; readiness with which any citizen can reach & , if he resides in any part of the State except John Brown's tract, is stch that a bank ac- count is as necessary to one class of citizens, al- most, as to another. The Superintendent does not doubt but that the actual number of depositors in bavks at the present time number twenty te one ten years ago. This of necessity curtails currency, and has in fact reduced it to its present position of performing the same functions as the cdined decimal parts of a dollar; and that comparatively a small one, when we compare the amount of the business of the State with its currency. While unwilling to accede to the proposition that bank eredits are currency, a proposition strongh enforced by some gentlemen who find pleasure, if not profit (which is at least. problematical), in car- recy tinkering, yet he readily admits, that as the deposit is made in the bank to meet a check when presented, it performs one of the fanctions of cur rency in forcing the bank to pay its debta to its depositors, created by sueh deposit, at sach time as he, the depositor, pleases; and that a bank can place itself in a false position by extending too far IS of loans and discounts upon its deposits, as well as upon its circulation. ie one more dan- gerous from its concentration andgcormparative insecurity, while the other is widely diffused throngh the community and secured by a deposit in this department. F Imost unnecessary for the Superintendent at the experience of 1857 and 1858 con- firms his opinion thet the element of- weakness, in our present method of banking, is in stimulating depcaits by the payment of interest, or offering any t extia ordinary inducement to concentrate balances in that shape in our hanks. All the basi- ness of the country which lezitimately belongs to the banks m this State will find its to them | the special detection and ger: in forcing @ line of deposita above its patural channel, from the fact that it destroys the system of individual money lending, and ferces credits down to say thirty, sixty or ninety days. This is assuming peyment of individual liabilities faster, or rather at Shorter dates, than the usual credits npon which business is transacted. This was one of the elements of the panic of 1857, and should be avoided by the banks, Those in the city of New York. particularly, should carry a firm and_ steady line of discounts, based wpon their capital, deposits and circulation; and should remember that while it is easy to expand in ap. parently good times, the necessary contraction ‘meet the changes of our almost certain periodical convulsions in the money ie psa hepa gravale the difficulty under which both the bai and their borrowers labor, when a necessity for such contraction exists, always created Wy a previous expansion. The business of banking, like any other parsuit, being open to all our citizens, the State havin; made it compulsory for those pursuing that busi- ness, to secure beyond all doubt the involuntary creditor (1. ¢., the bill holder), le; ition beyond this point has no more reason interfere with the action of the capital employed in that business than if it was employed in the goods, grocery, hardware, or any other pursait chosen by any citizen or citizens of this State, and its employment should be left to individual sa gacity, as it is in avy other occupation. In connection with this fact of a decreasing cur- rency, as compared with the business of the State, it may not be improper for the Superintendent to refer to another cause which may exercise an influence, although indirect, upon the circulation of bank notes. Still, he has no doubt that its action is pow- ful, and growing more formidable from year to It is evident even to the casual reader of the daily papers tr Caper igetam and Pr bank pod rogressing wi great rapidity, Every "8 cea jence ties us that the are of counterfeit. ing and altering bank notes keep p@e with the efforts of the re; engravers to protect their business by reaching a higher degree of artistic perfection engraving and printing of bank notes, That altering and counterfeiting bank notes does exercise a powerful influence upon their circulation in this State is beyond cavil or dispute. That not only our own coin, but that of foreign countries, is produced with great similitade to the original, is beyond a doubt, and would ¥ dangerous, perhaps, to.the people at lar; not trom the entire uniformity of the coi The fact that each bank, or nearly so, has a diffe- rent design for each note of the same ggnomination, makes the public more easily deceiv@d with coun- terfeit or altered bank notes than with base coin. The art of photographing would seem to be in the course of improvement, although no specimen of a bang note produced by that process has been seen by the Superintendent that would be liable to deceive even an ordinary judge of the genuineness of a bank note, The Superintendent has, under the operation of the law ot last winter in relation to counterfeit bank notes and plates, received the first fruits of the bene- ficial operation of that law, having had retarned to him by the Police Commissioners of the city of New York thirty-six plates for the alteration of genuine and the production of counterfeit notes, and also $14,276 of the notes themselves, all of which have been destroyed. It is recommended again, and from further reflec- tion, that the banks of this State, by voluntary ac- tion on their part, form an association for their own protection and that of the community against the circulation of altered and counterfeit notes, now 80 rife in our midst, after the manner of the New a ae Company. For that purpose a small con- tribution from each bank, banking association and individual banker in this State would establish system for the detection of this crime) which would om beneficial to themselves as well as to the pub- A contribution of $10 or $20 from each institu- tion, placed in proper hands, would soon be effect- ually felt among the orgunized gangs of counter- feiters, and tend to check their operations. The detection of this peculiar crime is now left to th ordinary vigilance of our police, and no special efforts can be expected to be made by them for its detection unless special rewards are to follow a successful eflort for its suppression. An arrest is occasionally made of this class of offenders, and only of the most inexperienced in this peculiar profession, whide the ies who control and direct the operation of producing the article almost inva- riably escape. The Superintendent has no remem- brance of the detection and conviction of the pi or parties actually engraving @ plate for the par- pose of altering or counterteiting a bank note. ihe mere fact that an assuciation was formed for t Sa of parties engaged in this nefarious business, with a detec- tive force in their employment, would exercise a wholesome influence in preventing the commission of this now most common crime. The various changes of location, namo and amount of capital, under special and general ac's of the Legislature of 1869, are as follows :— The Medina Bavk, heretofore an individual bank. has become (by consent of all its stoskholders and an increase of capital, as shown by the certificate of oe aa filed in this offiee,) a banking asso- ciation. Under gaye 156 of the Laws of 1859, the Eagle Bank of Rochester and the Manufacturers’ Bank of Rochester were consolidated, and the two associa- tions were merged into one, under the name of the Traders’ Bank of Rochester. inder epee 84 of the Laws of 1859, the Nia- nk changed its name to that of the River ockport City Bank, and its location from Buffalo to the village of Lockport. The Mechanics’ Bank of Williamsburg, by chap. 222 ot the Laws of 1858, has changed its name that of the Manufacturers’ Bank. The charters of the Ogde: Bank and the Bank of Whitehall have both d during the Jast tscal year. The Bank of Whitehall continues business under articles of association as a free benk. The Superintendent has no knowledge that the stockholders of the Ogdensburg Bank intend to employ the capital heretofore employed by them in the business of banking under the General Bank law. The money held in trust for Walter Joy's Bank, amounting to $4,287 48, and for the Astor Bank, smounting to $48 77, has been paid into the trea- sory under the provisions of chapter 236 of the laws of 1859. The time for the redemption of the certificates of the James Bank and the Bank of New Rochelle having expired, ahe money in the hands of the Superintendent, amounting for the James Bank to $1,532 44, and for the Bank of New Ro- chelle to $1,34] 81, has been paid into the treasury of the State. Under the provisions of chapter 119 of the laws of 1859, the capital of the Kingston Bank, an in- corporated institution, has been reduced from $200,000 to $150,000; and under chapter 53 of the Jaws of 1859, the capital of the Mohawk Bank, of Schenectady, an associated bank, was reduced b: the Superintendent from $200,000 to $51,000, thi amount being subsequently raised to $100,000 by the stockholders, to enable them to avail them- selves of the provisions of the act above men- tioned. The general act for the reduction of the capital of any banking association (chapter 277 the laws of 1859,) has enabled the Market Bank of Troy, and the Onieda Central Bank, to apply to the Superintendent to re iuce their respeetive capitals. That of the Market Bank of Troy was reduced from $300,000 to $204,000, and the Oneida Central Bank from $175,700 to $104,000. In all cases where a reduction of capital has been made, whether under the general or special laws, the duty devolving upon the Superintendent has been performed by him personally. ‘The amount of securities transferred from this department during the fiscal year has been, of Stocks..... $1,193,880 40 Bonds and mortgages. . 456,043 00 Yotal.. ++ $1,679,028 40 All of which have been countersigned and enter. ed upon the books of the Treasur, Depieunect: in accordance with the provisions of chapter 103, of the laws of 1857.5 The increase of securities this year is $1,675,- 238 09, while the increse in circulation, issued from this department during the year, amounts to $1,- 887,438. “This arises from an active demand for currency, and balances due the bai associa- tions individual bankers have been very gen- erally drawn from the department. A noticeable fact is the decrease in bonds and mor es of $250,165, over and above the amount of class of securities received by-this department during the past year. The years 1858 and 1859 are the only ones showing a decrease of the amount of mortgages held by this department, since the pas- sage of the general Bank law of 1838, ‘he total outstanding circulation, issued by this department to incorporated banks, banking asso- cietions, and individual bankers, is $36,581,270, while the ,actual circulation. re; by them on the 24th day of September last was only $27,976,- $68, thus showing that $8,610,308, of bank notes were in the possession of the parties authorized to put the same in circulation as money. The number of banks, — association and individval bankers, in the rogecution of banking business, is 299; and in addition to that number, thirty-five are either closing their business voluntarily or are being closed by the Superinten- } dent, of the various tables _ (Here follows a deseription in the ba ters Aig vg ] In closing this report the & be permitted to congratalate Galagbutne, md interest of the present condition of the bank the grate. While the disastere of 1857 were not a of Comsequence of our fuleram which enabled the banks of the State so speedily and succeastully to resume their corporate citiggsiean renee pia suspension in 1857. OBITUARY. M irabeau B. Lanrar, of Texas, Linn Bo} How | succesfully they resumed and sus sained specie ments their) present cf Kentucky, and Bishop Neamaar prosperous condition fully shows. Ai 7 bisadelphia. the three hundred banks and bankers doing busti- ness in this State, not one has failed to meet their or his obligations during the year, with the sin- gle exception of an individual banker, whose Jailure was permitted for the epee of closing ‘up his business of banking, and whose notes were redeemed at par by the Superintendent the day following their final protestation. That the restless spirit of change will call for some impracticable reforms in our present banking laws, and exhibit itself in the midst of the Logially ture at ita present seseion, is beyond a doubt, it ex- perience teaches the truth upon this subject. ‘The amendment of any general law to meet the views of individuals or localities is ulways fraught with danger to the body politic, aud should not be entertained for a moment, unless it is adapted to every locality in the State, and is of certain expe- diency. The past year has been one of retaeniag prosperity to our citizens and their interests, au the successful prosecution of their various voca- tions are intimately connected with the banks of this State. The introduction of a distarbing ele- ment into our banking system, by unwise amend- ments to our general banking law, cannot produce any beneficial effect, and it may it in unmixed evil, not only to the banks, but to the business of the whole community. The people of the State have not, for several years, evinced, by gees or otherwise, avy desire p make a radical menre in our banking laws. They know full well that ey enjoy * paaee cur- meneg ereaeles in the world; and attempts, for the past few years, to make such change, have arisen from theoretical thinkers, and not from Fe cased knowledge of the working of our system of banking. tis made the duty of the Superintendent of the Banking Department of this State, by subdivision 3, of section 11, of the act to organize a Bank De- Errment “to mares any smendments to the laws relating to bauking, by which the system may be improved, and the security of the bill holders and depositors may be increased.” The Negation of the past two or three 4 0 fome time since we published, among the dea well known persons in this country, the names wav B, Lamar, ex-Preside t of Texas, and Linw who held the position of Speaker of the House of, sexta tives im 1862. We now append sketches of they: of ihese distinguished gentlemen :— GENERAL MIRABEAU B. LAMAR ‘Was born about the beginning of the present ceatu n Jefferson county, Georgia. From bis boyhood he, ren arkable for his brave and steadfast devotion friends and his principles, for his tenacious and oftentin ‘npetuous resentments, and for a disregard of all ish and pecuniary motives, so positive and hal ‘wal as to amount almost to a fault. Ho lo uature and bis friends; but he did aot love books rchools, He learned quick and weil what the world ite events brought beforc him; but no man with his city and acquirements ever owed less to regular Bis peculiar mental characteristic was a stroug Jating and overpowering love of justice, which a bo vural logic led to swift and right conciusions, This | // «xplains the success of bis policy asa statesman. In the summer of 1833 he was in Texas, thea p to dissolve its connection with Mexico. The armisal ‘Mexico passed the frontiers in great force t ch rebele—men who presumed to demand freedom of the pt and of conscience, trial by jury, and laws for their o. security, and who had even gone so far as to.act upon th principles, and had cleared their borders of the forts soldiers which Mexico had placed in their midst to ch the spirit of rebellion and self-government. So sto matters—twenty thousand Texans scattered over a W extent of country, against the seven millions of Mexiody with a disciplined army and rich treasury. The peo) were holding meetings to debate how to meet tho invd sion, but no oue talked of submission to Mexico. In of these momentous councils a stranger, of having placed the internal affairs of the decided bearing, arose, and with arguments as Department on 2 footing that makes it | as they were logical, earnestly advocated absolut both secure and efficient, and believing | sion from Mexico, and a revolution, founa@pal our currency entirely secure, and that nei- ther the people of the State nor the banks require apy mee in our bank laws for their mu- tual protection, the Superintendent most respect- fully submits this report to the Legislature, with- out any suggestions for an alteration or an amend- ment to our present banking laws. All which is respectfully submitted. jas. M. Coox, Superintendent. TABLE. During the last fiscal year three banking institu- tions, with an aggregrate capital, as shown by their certificates of association on file in this office of $500,000, bave Led at the requisite securities and commenced the business of banking, viz:— Names. Bank of Cohoes... the distinct assertion of an independent ality, to be sustained on the batte all hazards and at allodds. The fair-browed, clear-ey stranger was Mirabeau B. Lamar, and his bold ‘were but the echo of the thought that pulsated im free-born heart in Texas. Shortly afterwards the born republic flung her lone star baumer to the Her remaining bistory is well known to the world. Lamar never advocated a man or measure which ‘was not ready to draw bis sword in defence of, and/ soldier in the war with Mexico did his duty more ly or willingly. Un the eve of the battle of San Ji he was elected to the command of we cavalry. battle the decisive blow was struck, and Sante made prisoner. eee Se oung re agen from new republic, ‘The gallant Dattle to the cabinet councils of Secretary of War, sat in judgment when the life Apa was at stake. Lamar voted for his death, on secre the opmion, future events showed the ju sound policy position. General Lamar was elocted the first Vice P Texas under the new constitution. He s0 4 ; The asrociations above pamed have on depoait the following securities, viz:— Do. do. fic thet bie suooemon, to tbe Preshiancy wok # 5 a most F) acclamation. ring: United States do. there were men in his own cabinet who w. Ber grow rich on the piunder of the treasury, bi, ble integrity defeated their plans. It was. udminisuration that the independence of Texas f-] nized by the leading governments obygt A. certain was conspiring to Ly 8 make its future annex ‘Total.. On which has been issu Three individual bankers have also deposited se- curities and commenced the business of banking under the name and title of— Capital. . Hungerford’s 4 enn jerstood portion of Texan history, Ri R. M. Goddard & Company’s Bank, Canton 60,000 | to the incorporation of Texas with the United. Salt gave the iatter the command of the cotton suppl OER ae manufacturing Europe; and with this fact before 108 ‘The individual bankers have on deposit: Mateemen they dared aot interfere, when we Bonds and the boundaries that Tamar bad mamtained New York State stock, § per cent. New. York State stock, 634 per ceni New York State stock, 6 per cent United States stock, 6 per cent.. for which acded first California and then the Gaasen Pg to our pote 4 The last official position which Gen. Lagi”: that of United States Minister to Nicar: Ni Rica, from which be had but shortly return apoplectic fit ended his career, at Richmond, Texaay 1gth of December last. LINN BOYD, Ex-Speaker of the Hause of Representatives, was» Nashville, Tenn.,on the 224 of November, 1800 father afterwards removed with his fainiiy to Ch Te On which has been issued a circulation of. The following table exhibits the total amount of outstanding circulation issued to associa- tions and individual bankers, and the amount and character of the securities bg ory and held in “ ust one redemtion on the 30th day of Septem- | now Trigg county, Kentucky, and settled near th Tr, 1859:— bank of the Cumberland river. The hand of ned Outstand, yulation, $26,490, z z sila savas des ‘was on young Boyd. He was compelied to labor Bonds and +. $6,176,912 79 | father’s farm, but he never faltered or failed in th B'York Satontek, aS panes et charge of the labors or duties assigned him. In th Do. do. do.. 1,087,000 00 of the day he steadily and constantly pursued t Do. do, 6 40..10;679,753 92 oo og | OF the forest, tho field and the mill. The nights Dildsdiiee 0. 6° wae inclement days of winter found him poring ove ‘Do. do. 6 2 7121100 00 dooks and taking advantage of the limited nef 5° struction furnished by the occasional schno cane jag é ‘This was all that the wealth—it may ht Michigan State do, 6 adversity of circumstance—could do fofinn Bd Caeh he made the best of it. Tota $23,068,800 92 | 1p the year 1826 he left the pat the adjoining county of Callowa: which Andrew Juckson, in 1819, secu’ States by treaty with the Indians. Hero with the people, and took part, boldly and the discussions relative to the appropriation an ment of those lands. So early and entirely did the confidence of the people, that in 1827 he was as their member to the representative branch of gislature. Judge James, an old, well known «a ential citizen, was his opponent. Subseq ‘a formed an election district, and for the ceeding years Mr. Boyd was elected to tl position by a vote of two to one over the opposition. What is remarkable is that td career he never made personal enemies of his ag eld in trust for banking as- fociations and individual bankers, Sept. 30, 1868... $26,293,098 83 Increase during the year 1869 1,675,238 09 ~ 28,088,338 92 Amount of circulation outstanding Sept. BO, 1859... ceeeecses sees ceseseee es + $26,400,692 00 Amount of circulation ing 80, 1858..4+esseseeneseeeseseree senses 26,698,198 00 Increase for year ending Sept. 30, 1859... $1,837,438 00 ‘The increaee in securities above noted, viz. $1,675,233 09 —bas been in the foliowing:— N. Y. State stock. $466,850 00 U. 8. stock... ..1,525,000 60 1,991,850 00 Lees decrease in the following — Bonds and mortg’s.$250,165 00 cis Iinois State stoek., 53,606 06 with his competitors, through life, there ever Cash... 12,760 85 sincere and confiding friendshi ——— a6 611 91 1078238 09 | During oe connection with the Legislature The following securities are held for inoorporat- | wnich proved 1 Relics barra bear e ed banks and trust companies, under special acts of Proved peculiarly applicable for thefapp the Legislature, viz:— ‘and settlement of these lands. This jadicious: tected the settler on the one hand, and the legitt§ ests of the State on the other. € Having served the people of Calloway th4 which expired in 1880, he returned to his ‘patg in Trigg county. In 1831 he again became a) on this new field, and was electod by majority ever polled in the the’ fact that he be ever county Bank of Orange county, Goshen (under act of March 12, 1849):— New York State stock, 5 per cent. New York State stock, 6 per cent. x — $28, Cayuga county Bank, Auburn, (under act of April_12, 1848) :— New York State stock, 6 per cent. Bank of Geneva (late hegre yl Cash in deposit uncer act of April 13, 1857..., 19,919 2? Bank of Ithaca (late incorporated), Ithaca— cash in deposit unter not of April lS; 1881.~, 7,006 82 ee eee TS ‘TRUST coMPANTES, he went into, he the “travelling candidate.” At ‘the end 0 sion for which he was elected, Mr. Boyd season from public life. On the 20th of Oc he married Alico C. Bonnett, of his own county forlig sense and noble, quai. in lation, be deve imgelf to cultivation Sabine farm, and there, ike Cincinnatus, iB iy Cojonel C. Lyon during this time was the Congress, and the impression prevailing. th declize at the end of the term, Mr. Boyd-coy ceme a candicate, He was defonted, ty roug great popularity ‘of nd partly through want of his own exert In 1895 ke was chosen member to came at once identified with the admis sident Jackson. The United States Trust Company, Auburn city stock, 7 per cent. RECA! Of eccurities held in trust by the Superintendent of tho Banking Department, and of the circulating notes issued to banks, bank aseociations and individual bankers, and outstanding 80, 1859: ERCURITINS FELD. For banking aseociations and individual bankers.......... For incorporated ban! For truet companies. Tot «++ $28,325,702 95 ho was convicted, under the ‘alien x OUTSTANDING. y”? of what was led as extravagi To banking associations and individual ‘This was finally consummated in 1839. banker#......4. ,490,682 00 | In an hour of seeming peril and Toim banke..... convoked Congress. In this stato of came on, and Mr. Boyd found himself opp mocratic candidate, contending for a Bank q states. The cohesion of his party was to #0 solved, and Mr. Boyd was defeated. On the 16th of January, 1642, he mittee on the Judiciary to report a the barkrupt act, which put a0 Congress. Hi w: Tot... ssseegesssezeese cess gases ese $86,681,276 00 The total number of banks, banking associations, ia- cividual bankers, and closing and insolvent bangs, is'334, vin ‘ated banks. . Incon Superior Court—Special T. Before Chief Justice Bosworth, SUIT AGAINST THE SHOE AND LEATHER BANK. William Smith and Others vs. The Shoe and Leather Bank. ard Othere.—This was a motion for an injunction to restrain the bank from collecting a certain claim from the plaintiffs, amounting to the sum of $118,162 99, on the ground of usury and fraud, and to require them to deliver up the securities which they hold in their hands for the payment of that amount. It is alleged that from Janvary, 1855, to February, 1868, the plaintiffs obtained again chosen Speaker, teing the inj Ceeiet ir. Seale th. teat ofc. D campaign be reccived the nomination for vernor of his State, and was eiccted, had prevented bim from taking any ac canvass. Im politica Mr. Boyd was a prd capal ¢ died at his residence, in Paducah, 5 With of December, 1869, the tagq cf bis death in the Kentucky yatu: various loans from the bank, partly an express con- | "djcurned, after appropriate cu: tract for them to interest at per cent per | HOunced and resolutions passed. anuum for the and that whole usurious BISHOP NEUMANS? interest on the various loans 000, part of we neh wedto. " which was the eighteen per ceut on part of the part ‘© are much grie Tecord, says, divers auins ofaceiey Aaa LS ak alae ik | Prezs, of the 6th mst., the awfully sudded services, Part oa | afternoon of the Right Reverend Jonw N, usurious loans made certain individuals connect! with witeee, eecieen trae 0 the bank with notice, | Reman Catholic Bishop of Philadelphia. A temporary injunction was granted, anda motion was | Bisho;, we are informed through one of made to continue it until the final “of the case. | diocese, who was in bis company at ‘The defendants deny on vere vabensiptan ae eee | n 20, Yained that he had nove: _waury. Preliminary 0nd the Care | eee eae