15260. Bank of New Rochelle (New Rochelle, NY)

Bank Information

Episode Type
Suspension → Closure
Bank Type
state
Start Date
October 1, 1851
Location
New Rochelle, New York (40.911, -73.782)

Metadata

Model
gpt-5-mini
Short Digest
d0ffe9f8

Response Measures

None

Description

In early October 1851 the Bank of New Rochelle permitted its notes to be protested for non-redemption at agencies (brokers refused to buy uncurrent New York State notes during the panic). The bank did not redeem protested notes within the legal time and portions of securities held in trust were sold; a dividend to bill holders was anticipated in January 1852, indicating permanent closure/settlement rather than a temporary suspension and reopening. Dates derived from newspaper dates (panic Oct 1-3, 1851; Comptroller report Jan 1852).

Events (3)
1. October 1, 1851 Suspension
Cause
Macro News
Cause Details
Part of the broader October 1851 panic over uncurrent New York State country bank notes when brokers refused to buy/redeem state bills, leading to non-redemption at agencies and protest of notes.
Newspaper Excerpt
The following banks are all which have actually suspended the redemption of their notes at their agencies; ... Bank of New Rochelle, N. Y, secured by United States and New York stocks, and bonds and mortgages.
Source
newspapers
2. October 2, 1851 Other
Newspaper Excerpt
The following are the Banks not purchased by the brokers: ... Bank of New-Rochelle ... (brokers refused to receive their notes).
Source
newspapers
3. January 13, 1852 Receivership
Newspaper Excerpt
The James Bank, and Bank of New-Rochelle, failed to pay their protested notes within the time allowed by law, after having been duly notified to do so. A portion of the securities held in trust for these banks have been disposed of at public sale, and the remainder will be converted into money in a short time, and a dividend will be made to bill holders in January next.
Source
newspapers

Newspaper Articles (11)
1. October 2, 1851 The New York Herald New York, NY
Article from The New York Herald, October 2, 1851

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MONEY A E T. WEDNESDAY, Oct. 1-6 P. M. The market opened heavy this morning. and, after the adjournment of the first board, prices became much more depressed. The excitement relative to the nonredemption of uncurrent money, no doubt had a great effect, and was the principal cause of the deeline. As soon as it was known that the brokers refused to redeem country money of any kind. crowds began to assemble in the street, and holders of bills were anxious to get rid of them at any rate. There are all sorts of rumors in circulation, and the names of half a dozen banks were posted as having failed. It was also reported that the bills of more than a dozen banks had been protested in Albany. What the result of all this panic will be, time will determine. The following banks are all which have actually suspended the redemption of their notes at their agencies; others are reported, but there is no foundation for the rxmors:Bank of New Rochelle, N. Y, secured by United States and New York stocks, and bonds and mortgages. Farmers' Bank of Mina, N. Y., secured by United States and New York stocks, and bonds and mortgages. James Bank, N. Y., secured by United States, New York and Michigan stocks, and bonds and mortgages Western Bank, Washington county, N. Y., secured by United States and New York State stocks, bonds and mortgages. These banks have failed to redeem their issues at the agencies; and they are, therefore, reported as having failed. It is stated that the bills of more than a dozen banks have been protested at Albany by the Metropolitan Bank. The agencies at Albany offered to give checks on New York; but the specie was demanded, and nothing

2. October 2, 1851 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 2, 1851

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WEDNESDAY, Oct. 1-P. The market for Stocks had scarcely opened, and the Board had not proceeded beyond the first call, at which, prices were buoyant, than the announcement of a combined refusal on the part of the leading Uncurrent Money brokers to buy uncurrent funds of New-York State, precipitated the market again, and we ROW are where we were on Monday afternoon. The market has been an active one, though at a considerable decline. The sales of Har lem, Reading and Erie, were especially large. Harlem declined 1. Erie Reading Canton, not withstanding, shows an advance of 1. and Government Sixes of 1867, 1. Early in the day it became known that, owing to the pressure for Money, in connection with an increasing difficulty on the part of some banks to redeem their circulation on presentation, the Moneybrokers refused to buy New-York State bills. It was known, also. that this refusal extended to Philadelphia, the brokers of which city had rejected all New-York State as well as Eastern Money. This diffacily lasted two hours, causing considerable excitement, when an influential party connected with the banking interests arranged with a leading broker to purchase (with one or in exceptions which we notice below) the country .currency of this State The broker in question sent round to his fellow-brekers a notice to this effect. which allayed the whole difficulty, the effects of which, it is to be hoped, will quickly pass away. The following are the Banks not purchased by the brokers: The Farmers' Bank of Mina, James Bank, Bank of New-Rochelle, Cayuga Lake, Western Bank, Saugerties Bank. In Freights there is more offering, and higher rates have been obtained. The engagements have been some small lets of Flour at 7@8d. (3d. now asked :) a few thousand bushels Wheat 3id. (4d. asked i) 400 abls. Oil Cake, M. 221 hhds (113 tuns) Tallow, 9s. 20 tuns maple, & 10s. Cotton in small lots, id. and 154 pkgs. India Rubber (10 tuns) on private terms. 25,000 bush. Wheat, 31@4d. To London, 500 bbls. Flour on private terms: 700 do. Oil Cake, 2s. and 200 tuns do. Its. 6d.: 2,000 bbls. Naval Stores, 2s. and to Glasgow 1.000 bbls. Flour, 16d. ; 00 bush. Wheat, 4ld. To Havre, the packet to-day is about full at : of a cent for Cotton, t for Whalebone, and $6 for Bark To Rotterdam, the Lelia takes 500 bales Cotton at : of a cent 500 bbls. Ashes. 17s. 6d . 600 Resin, 2s. 20,000 Staves, $14, and $19 for hogshead and pipe: honey and oil 2. and spirits turpentine 24 ceats. To Hamburg, 1,000 bbls. Resin, Is. 6d. To Marseilles, an Americ n bark took a cargo of light pipe Staves at $12, and a Sardinian a cargo at $14 P M. From Honduras to England, a German bark engaged Mahogany at £3 5s. A bark for Kingston, Jam., took a cargo of Coal at $3 P tun. To St. Croix, a brig an assorted eargo, Machinery, &c., $1,200 for the run out. To New-York, from Ragged Island, a cargo of Salt was engaged at 10 cests. To Glasgow, from St. John. N. B., an Ameriean ship Deals at 67s. 6d., and another from the same

3. October 3, 1851 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 3, 1851

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SECOND BOARD 74 100 Erie R. R 86 $2,000 Erie Conv 5 $60 b30 54 1200 Ports. D. D 200 Read. R. R 50 N. O. Canal B. Co. 90 100 N.J. Min. Co. $60 81 b4 90 66 do 25 5 Hud. Riv. R. R 510 90 50 do 74 100 Erie R.R 64 200 Harlem R. R do 50 opg 75 s30 64 do 100 74 do 25 64 do 50 74 do 25 100 Morris C. Co. b60 14 $30.74 do 100 b30 75 do 100 100 Reading R. R. b30 54 53 do 100 74 do 200 do s3 74. 25 THURSDAY, Oct 2-P. M. The influence of the uncurrent money panic has passed away and stocks have resumed their previously improving tendency. The market has been scarcely so active as it was yesterday, but the transactions show generally higher prices. Erie Stock shows an advance of two Pencent., an advance, owing, however, as much to the favorable statement of the receipts of the road which we published yesterday, as to the subsidence of yesterday's panic. The Convertible Bonds improved Harlem advanced 11 Erie Bands, 1859, H Reading,1 Long Island, 1, and Canton The Money market shows a feeling of gradual ameliortion. No Gold is going this week to Europe, and the declining rates of Sterling Exchange indicate the probability that little or none will go next week. Sterling is offering at 91 @101 P cent. for the best bills, and the supply is likely to be increased largely from the South before the next steamer sails. In Freights there is less offering, and the rates are hardly so firm. To London, 5,000 bushels Wheat was taken at 5d. to Liverpool, Flour at 7@ 7dd. Wheat, and Cotton and Heavy Goods at former rates. The Brokers have generally returned to the discount of our State money for the present, all uncurrent money is bought @@ P cent. higher than usual quotations. John Thompson publishes the following list of Broken Banks I P. M. Oct. 2.-Broken Banks.-List of Banks Already Failed James Bank, Saratoga County Bank of New-Rochelle Farmers' Bank of Mina Western Bank, White Creek Peoples' Bank, Paterson, N.J. Commercial Bank, Perth Amboy The Bank of Salisbury, Md. The Bank of Cayuga Lake, and State Bank at Saugerties are regularly taken by the Brokers to-day. The New-York Agent of these Banks has published the following notice The Bank of Cayuga Lake and State Bank at Saugerties are wholly secured by United States and New-York Stock and redeemed by Washburn & Co. at Peent. discount in specie,at the bank at par.and received by the Brokers at the current rates. The Albany Evening Journal, of last night, states that There was a little flurry in the street this morning, caused by a rumor that the bills of three free banks were not redeemed at their agency in this city. The rumor was true but the absence of funds will only be temporary, and scaused by an unusual and unexpected rush of the bills of these particular banks. They will, weare informed, probably be redeemed as usual, to-morrow. Or if they should not they are just as good as gold, inasmuch as they re secured by anabundance of first rate stocks." In respect to the Commercial Bank at Amboy, The Newark Advertiser states "We understand that an injunction was granted, Saturday last, against the Commercial Bank of New-Jersey. The injunction was served and the assets taken by Receivers on Monday morning. No full investigation of the affairs of the Bank could yet had, but it is the opinion of the officers, and those best acquainted with the matter, that there are assets more than sufficient to redeem the circulation, in which case the holders would do well not to sacrifice their bills too suddenly. The following explanation of the unfortunate occurrence has just been communicated to us: "It is said that the stoppage of this Bank was a perfect surprise upon its officers and Directors. The Mechanics Bank in New-York were its agents for redeeming $10's and upward. On the afternoon of the 24th of September, the same day on which the People's Bank stopped, Thompson's Bank Note Re. porter appeared with a notice pasted on it, that the agents had ceased to redeem the bills of the Commercial Bank also, which was not the case, but it, of course, created anxiety to dispose of the bills. The Mechanics' Bank had that day what was supposed to quite sufficient for all redemptions that were to be anticipated, and had besides in their hands some $40,000 of excellent paper for collection, and as secu-

4. October 4, 1851 The Republic Washington, DC
Article from The Republic, October 4, 1851

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THE REPUBLIC. STOCK MARKETMONEY W ASHINGTON, October 3, 1851. In our last remarks relative to the money market we mentioned that there was a panic in New York in regard to the New Jeraey banks, since which we have had to report a similar feeling in regard to New York State money, and which has been disastrous to the following banks, and all reported failed: James Bank, New York. Bank of New Rochelle, New York. Farmera' Bank, Mina, New York. Western Bank, White Creek, New York. There are also rumors affecting the Union Bank at Dover, N. J. The Farmers' and Mechanics' Bank, New Brunswick, N. J., reported failed, is still going, and their notes are redeemed. Brokers have refused to buy the notes of the Merchants' Bank, Ellery, N. Y.; Ocean Bank, Bergen, N. J.; Phonix Bank, Bainbridge, N. Y. The above-named banks are mostly banks of circulation, and the heavy losers will be the note-holders; but in regard to the New York banks, their notes are secured by the public stock of the State, and should not be sold at a great sacrifice. The failure of 80 many banks (though not important banks) is very much to be regretted, as It will weaken confidence and may disarrange the whole currency of the country. Foreign exchange is dull, and the shipments of coin the past week have been small By Monday we will have an arrival from California, and a large amount of gold dust is expected.

5. October 6, 1851 The Southern Press Washington, DC
Article from The Southern Press, October 6, 1851

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MONEY MATTERS IN NEW YORK - The panic has partially subsided, and the brokers are purchasing the bills of all the interior banks, except the James Bank, Bank of New Rochelle, Western Bank at White Creek, and Farmers' Bank of Mina, which were the institutions put under ban yesterday. After the brokers had refused to redeem any country bille, yesterday afternoon, and the excitement was at its height, a gentleman deposited $100,000 with his agent to purchase the notes of all sound country banks at one per cent. This seriously interfered with the plans of throwing suspicion alike upon all these institutions, and the brokers immediately re-commenced receiving the same notes themselves, throwing out only the four banks noticed above. For the information of the public, we are authorized to state that the Metropolitan Bank has never demanded specie for the bills of any of the regular banks of the State which are redeemed by the banks at Albany, but have received checks on this city from their redeeming agents. For the bills of the brokers' banks, or banks of mere circulation, and which are redeemed by brokers in Albany, specie has been demanded if the 1 per cent. discount was taken, or checks on this city if taken at par. These banks have had the offer of redeeming their bills here at 1/2 per cent. discount, at which rate a large number of the best banks redeem here. These banks, therefore, have not been forced to redeem their bills in specie, and it cannot be for this cause they allow their bills to be protested. There is therefore no reason why confidence in the regular banks of the State should be shaken.- / Eve. Ed. Jour. Com., 3d inst.

6. October 6, 1851 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, October 6, 1851

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SECOND BOARD. 25 Harlem R.R 65 |250 Erie R. Ropg 76 200 do .b30 65 |100 N. J. Zine Co.... 8 100 do .b2 65 |100 do .b30 9 100 Edgeworth Co 8 |25 Nor. & Wor... $30 48 100 do .b60 8 |50 do .s60 48 150 do . 8 |50 do .b30 49 200 Erie R.R 75, |200 Reading R.R 534 150 do .s60 75 |100 do .630 54 50 do . 75 |200 do . 53 50 do .b20 76 |100 do .660 55 50 do .b30 76 SATURDAY, Oct. 4-P.M. There was a much better feeling in the Stock Market to day, and all the fancies improved. This feeling was especially observable at the Second Board, where the upward tendency was very strong. The transactions were large, especially in Harlem, of which 4,000 shares were sold. Erie and Norwich were the most buoyant stocks, the former closing at 76, an improvement of 2 cent, since Friday, and the latter at 481, an advance of 2 P cent. also. Har- lem advanced, Reading 1, Canton 1, Stonington 1. Long-Island, Morris, New-Jersey Mining 250. share, Convertibles and Incomes. Government Stocks were in better demand, and the Sixes of 1867 improved cent. State and Bank Stocks were also firmer, but not active. The improvement in the mar- ket to-day has perhaps been too rapid, but the move- ment indiented that the operators begin to see day- light. The Exchange Market continues dull, with a fair supply of Bills. Sterling is 91@101. Francs, 5.15@5.12. In Freights there is not much doing, and the rates are heavy. Engagements, 10,000 bush. Corn, 3d. Flour, 7d. Within a few days there have been engagements not before reported, to London, of 3,000 bbls. Turpentine and Resin at 2s. 5,000 bush. Wheat, 5d.; 2,000 bbls. Flour, part 1s. 9d., and 2,500 bxs. Cheese, 30s. To Liverpool, 10,000 bbls. Flour, 7d.@7ld; 300 Resin, Is. and some Lard, 12s. 6d. To Glasgow, 2,000 bbls. Flour, Is. 3d.@ls. 4d; 10,000 bush. Wheat, part 4id., and 1,000 bxs. Cheese, on private terms. A British ship from St. John to Liv- erpool, at 62s. 6d for Deals and 25s. for Timber an American from St. John to London, 78s. for Deals; a British brig from St. George, N. B., to Bristol, Eng., 75s.; a bark, 330 tuns, from Bonaire to Boston, wita sait, Ile.; a bark to load for St. Marks, 8 foot; two brigs from Jacksonville for Navy Bay, with Lum- ber, $14 P M. a schooner from North Carolina to Barbadoes, with Hhd. Staves, $16; and a schooner to load for Brazos, Texas, 90c. bbl. In Port, Friday- Steamers Ships Total Barks. 22 Brigs.. 177 Schooners 114 104 103 ...520 It will be seen that the amount of shipping in port is very heavy. The notes of the broken State Banks are bought by the Brokers at the following rates: James Bank....25 P cent. discount. Bank of New-Rochelle25 cent. discount. Farmers' Bank, Mina.10 cent. discount. Western Bank, White Creek...10 cent. discount. The receipts of the Harlem Road con- tinue to show a very favorable increase. The figures for September are as annexed: 1851..$59.005 09 1850.. 46,222 46 Increase 30 per cent$12,782 63 The Western Bank announced as sus- pended is not the Western Bank at Lockport, N. Y. The Receipts at the Sub-Treasury to- day were $66,712; Payments, $59,156, Balance in the Treasury, $3,722,092. This has been one of the heaviest days for payments into Banks of the year, probably the heaviest, and the merchants have met it, as far as we can hear, without any important failure. Pre- paration has been making for this day's payments for some time past, and considerable apprehension has been felt for the result, and we are happy to learn that it has passed over without any important disaster. If any defalcation occurred it was not maće public. One Bank had $400,000 to receive, all of which was punctually met. This promptness, under such a stringent money market, shows the general soundness of the mercantile community. The payments of the month of October will be very heavy up to the 25th, and we trust to be able to re- cord similar promptness throughout. The Money market continues very strin- gent, and large and irregular prices have been paid for Money to-day, temporarily, but the impression is almost universal that next week will afford some relief. The increase in the Coin in Bank has given the managers of these institutions more confidence, and the discounts to-day have been considerably larger than for some days past, which has somewhat relieved the street. The arrival of Six Hundred Thousand Dollars of Gold in the hands of passen- gers and on the freight list of the Prometheus, and the announcement of about Two Millions more at Panama, will tend to foster this improved feeling, especially if the shipments of the week should not exceed a million. At present the prospect is that they will be much less. The shipments last week were only $63,603, including the Washington, for Bremen, which took $13,600 of Silver and $2,000 of Gold. The discount on State Money is back nearly to the point it stood at before the panic. Brokers are buying at @Pcent., and it is begin- ning to flow in its usual channels again. The effect of the furry will, however, be felt for some time in the reduction of the volume of the currency, large amounts of which have been driven home, sent to the Controller's office, the stocks withdrawn and sold. The Winfield Scott, from New-Orleans, brings $27,249 in Specie, as follows: To Order..$12,000 G. S. Robbins & son. 10,000 Jacob Little & Co 2.178 Corang & Co... 2.336 Clark, Dodge & Co 735 We gave yesterday the imports at this port for September. We now annex a table showing

7. October 23, 1851 Jeffersonian Republican Stroudsburg, East Stroudsburg, Milford, PA
Article from Jeffersonian Republican, October 23, 1851

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-goin Resumption. We have been informed that the Western Bank of White Creek, Washington CO. NewYork, one of the Banks which suspended during the recent panic, is redeeming its liabilities, and that the bill holders will be able to have their bills taken up at the usual rates for sound State Banks. This leaves only three others in New-York to make good their liabilities, viz:-the James Bank, Farmers' Bank of Mina, and Bank of New Rochelle.

8. November 11, 1851 Richmond Daily Times Richmond, VA
Article from Richmond Daily Times, November 11, 1851

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NEW YORK MONEY MARKET. The monev market has been rather feverish during the week. The advancing rates of foreign exchange, and heavy shipments of specie causing some uneasiness to capitalists, while the more heavy receipts from California are looked upon as a matter of course. Still the market cannot be noticed as much more close, for the offerings at the banks are not comparatively larger, and money is not difficult to obtain in the street, at former rates, where the security is unobjectionable, but there is less inclination to invest in paper having a long time to run, or to otherwise trammel capital 60 that it cannot be made speedily available. Loans on call may be quoted at 6 to 7 per cent, and first class endowed paper at 7 to 10 per cent, according to the time at which it will arrive at maturity. In uncurrent money, the rates of discount for Southern notes may be quoted at about half of one per cent. better, the tendency of exchange as the crop begins to come forward, being in favor of the South. For Canada money, the discount is a quarter of one per cent higher. In Eastern and Western bank notes there is no change. In our own state money, the onIv alteration in the notes of the Western Bank of White Creek, the arrangements for the redemption of which have been completed by the bank, and in a part of the notes of the Bank of New Rochelle. By the official notice in the advertising columns it will be seen that that portion of the notes of this latter 111stitution which are secured by the deposite of stock only will be redeemed at par, on presentation at the Mechanics and Farmers Bank at Albany. The portion of its circulation resting on bonds and mortgages and stocks, though delayed at present, will, we presume, be ultimately redeemed with little or no loss to the holder, as the bonds and mortgages held by the banking department as securities, amount altogether to less than eighteen thousand dollars. [Com. Adv. of Sat. evening.

9. January 13, 1852 New-York Daily Tribune New York, NY
Article from New-York Daily Tribune, January 13, 1852

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Commercial Bank of Lockport, Lockport. 65.107 $1.255.759 $312,964 Total circulation Circulation outstanding Dec. Ist, 1851. 312 964 Amount of circulation returned and $942 805 destroyed.. Five individual bankers, who have heretofore given notice of their intention to close their business, having complied with the provisions of section & of chapter 319, Laws of 1841, by redeeming niasty per cent. of their circulation, have withdrawn the securities held in trust, and deposited an amount of money sufficient to redeem the balance of circulation outstanding. The following statement shows the amount of circulation unredeemed on the 1st day of December, 1851 the amount of money held in trust by the Superintendent; the date of the first notice to billholders to present their notes for payment, and the time when such notice will expire: Outstand- ang circu- Cash in Date of Notice will Banks. lation, deposit. notice. expire. Courtiard Co. Bk. $10,000 $10,000 00 Dec. 1, '51. Dec. 1, '53 Franklin Co. BK. 2,811 2.680 37 Apt. 6. '50. Apl. 6, '58 Henry Keeps' Bk. 2,359 3,859 00 Sep. 17, '51. Sep. 17, '53 Village Bank. 866 872 00 May 22, '51. May22, '53 Warren Co. Bank 4.352 4.852 00 Nov. 4. '51. Nov. 4, '53 At the expiration of the above notices for two years, the securities held by the Superintendent in trust, may be given up to the banker or association upon receiving a bond, with security, conditioned for the prompt payment of any unredeemed circulating notes of such banker or association if presented within six yea's. The circulation of the Walter Joy's Bank, which failed in the year 1850, has all been redeemed and canceled except $412. There is held in trust for this bank, the sum of $2,966 01. arising from the sale of stocks which were held in trust for it. On the first day of October last. The James Bank, Bank of New-Rochelle, Farmers' Bank of Chautauque County, Western Bank of Washington County, and Phoenix Bank of Bainbridge, permitted their notes to be protested for non-redemption at their respective agencies. The powers of attorney heretofore given to said banks, to collect interest on the securities deposited and held in trust for the redemption of their circulating notes, were promptly revoked. No other measures were taken to protect the billholders, as these banks were believed to be banks of circulation only and from the quarterly reports received from them, it is believed that the securities deposited in this department constitute their only assets. Arrangements have been made by the Farmers' Bank of Chautauque County, Western Bank of Washington County, and Phonix Bank of Bainbridge, to redeem their notes as required by law. The James Bank, and Bank of New-Rochelle, failed to pay their protested notes within the time allowed by law, after having been duly notified to do so. A portion of the securities held in trust for these banks have been disposed of at public sale, and the remainder will be converted into money in a short time, and a dividend will be made to bili holders in January next. The bonds and mortgages held in trust for these barks sold at a large discount. The Comptroller, in his annual report to the Legislature of 1850, called its attention to the system of banking as practiced by many individual bankers. I deem it my duty to again call the attention of the Legislature to this subject. The law of 1848, chap 340, expressly provides that all banks shall be banks of discount and deposit, as well as of circulation, and that the usual business of all banking associations and individual bankers, shall be transacted at the place where such association or individual banker shall be located. It is believed that this provision of the law is in many cases entirely evaded. The quarterly reports received, show that they are not banks of discount and deposit, having neither or if they have, it is a mere nominal sum incorporated into their reports to comply with the form and not the spirit of the law. They are mere banks of circulation, and are established for that purpose alone. The business of circulating their notes, is done exclusively through agents and brokers in commercial cities distant from the location of the bank. In many instances, it is believed, the banker does not even sign the notes issued from this departmeut and put in ciroulation, but gives that power to an agent, with power also to appoint a substitute or subststutes for that purpose to deposit securities, receive interest on the same, exchange securities and mutilated notes, and to do ali acts connected with the bank which the banker himself could do. In this manner are evaded the provisions of the law of 1848, which makes it obligatory for banks and bankers to transact their usual business at the places where they are located. These banks afford no facilities to the business portion of the community, and in a time of pressure or embarrassment in the money market, not unfrequently allow their notes to be discredited, thereby creating a panic and subjecting the bill holders to losses. The system of selling and transferring individual barks, from one person to another, and the frequent changes of location, has become an evil which, in my judgment, requires a remedy. It is believed that in some cases individual banks are transferred to irresponsible parties, and that the real owners, or the parties interested in the benefits and advantages of the same, avoid all personal responsibility by conducting their business in the names of other parties. The establishing of individual banks, (in parts of the State remote from the great thoroughfares and the general current of business,) and selling them, has come to be regarded by some as a legitimate transaction. It is urged by those interested that inasmuch as they are required to deposit the same securities for the redempton of their circulating notes as those that do a regular business of discounting paper and receiving deposits, they give equal security to the bili-holder. It is however apparent, that there is a great difference in the security afforded to bill holders by the two classes. A bank of mere circulation, having no capital or assets except the securities deposted with the Superintendent, cannot be regarded in the same light with a bank having a real capital and doing a legitimate business. In the one case the public must depend entirely on the securities held by the Superintendent in trust for the redemption of the circulating notes (in case of failure) without reliance upon assets, capital, or individual responsibility in the other case the capital, assets, and individual responsibility of stockholders, add much to the security of bill-holders. Our system of free banking, if fairly and honestly carried out, presents as perfect a combination of all the elements of security to the public and to bill-holders as can well be devised. If the Legislature shall not deem this subject of sufficient importance to enact such further laws, with such penalties as will prevent the abuses and evasions referred to, and enforce a compliance with the obvious intention of the law as it now stands upen the statute book it is respectfully recommended, that a law be passed authorizing banks of circulation, which shall be secured by the stocks of the State of New-York and of the United States, and canal revenue certificates, to be, or to be made to be, equal to a stock producing six per centum per annum, and that no other securities shall be received by the Superintendent in trust for the redemption of circulating notes to be issued to such bank or bankers. It is believed that this plan if adopted, will give to the public a more certain security and in case of the failure of a bank, or banker, to redeem their notes, the trust funds could be more readily converted into money, giving the bill holders the beneat of a more prompt redemption. In pursuance of chapter 331, Laws of 1850, the affairs of 23 insolvent banks have been finally settled. On the 1st of May, 1850, notice was given by the Comptroller to holders of circulating notes of these banks, that they must be presented at the Bank Department for payment within six months, and that all notes not presented within the time thus specified would cease to be a claim on the residuary funds in his hands belonging to said banks. All notes of sald banks which were thus presented have been redeemed at the rates specified in the aforesaid notice. The amount held in trust for said banks, after paying the dividends to bill holders, was $21.132 45, which was divided, prorata, on the outstanding certificates. Notice was given to certificate holders on the 12th of February 15to present their certificates for a final

10. January 14, 1852 The New York Herald New York, NY
Article from The New York Herald, January 14, 1852

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Daniel Webeter from Niewragua, brought more than half a million of California gold Just, and the Chagres steamer, now over due, will probably bring between two and three millions more. Our receipts this week are likely to exceed our exports more than & million of dollars. The Albany Exchange Bank has declared & semi-annual dividend of three and a balf per sent; the Watertown and Rome Railroad Company a semi-annual cividend of five per cent. The Tremont Insurance Company of Boston, in winding up its affairs, will pay seventy-five dollars the first dividend on It by a report of the Planters' Bank appears per share, being discounts Its of amounted Georgia. capital. dated December 9, that the line of to $641,813; exchange maturing in Northern banks $288,020; deposites, $339,986: circulation, $710,313; specie on hand $208,257; the amount of notes discounted, lying over and in judgment. $10,103 of which is considered doubtful $1.633. The capital of this bank is $585.400. Of the five free banks of this State which suspended on the 1st of October last, all but two redeemed their notes within the time after protest allowed by the law. Of these. the Bank of New Recheile and the James Bank, a portion of the securities were Bold when the report was made. and the remainder either are now, or soon will be. A dividend will be made to the bill holders during the present month The aggestions of the Secretary of the Treasury, in relation to our gilver coin. deserve the immediateattention of Congresa, and not a week should be allowed to elapse without the passage of a law for the regulation of the mint in conformity to his proposition That the evil should have continued 80 long, and no member of Congress * could have discovered it and suggested the remedy is a matter of surprise; but now that the evil and the remedy have been so clearly pointed out by the proper officer of the government. and brought to the notice of Congress, any longer delay is an impeschment of their intelligence and capacity for the station they occupy. Not only is the whele nation subjected to serious inconvenience, by the want of silver cole-espeeially those States who refuse to their banks the use of small notes--but that we should stupidly continue to coin rilver to be inevitably exported out of the country as fast as eatned, is the height of folly. Assuming the relation of silver to gold, by our laws, to be as nearly sixteen to one, while the commercial relation is but fifteen to one, we offer & premium to its export to Europe. Instead of reducing the weight of the fine silver in the dollar and its fractions five to ten per cent, we continue oure the old, worn Spanish coin, which is probably abraded twenty per cent. and send our new coin to Europe, at a less not only of part of its value, BB: its use: The Safety Bank Fund of the State of New York was transferred from the charge of the Comptroller to the Superintendent of the Banking Department, on the 28th of June last. The condition of the fund, oz that day was as ennexed NEW YORK SAFETY BANK FUND, 1851. Amount of six per cent stock issued on ac$820,451.69 count of the fund, outstanding Amount of assets of insolv't banks. $25 623 3 14 604 Bonds and mortgages 26 919 50 Money in the Treasury 67,147 53 Debt of the fund, on the 28th day of June, 1851, exclusive of the six months interest falling due on the same on the 1st of July, 1651 $539 801 14 The receipts into the Treasury on account of the fund, from the 28th June to the 30th 514 35 September. 1851, are The payments from the Treasury on account of the fund, during the same period. viz:$18,408 For interest on stock 500 00 For redemption of stock $18.908 25 The condition of the fund 00 the 30th day of September, 1851. was as follows AMOUNT OF STOCK ISSUED ON ACCOUNT OF THE BANK FUND, AND REMAINING UNPAID ON SEPT. 30, 1851 Amount Amount. Redeemable. Redeemable. 1852, Feb. 1 $55,822 82 $24.414 CO 1859 Feb. 1 1853, 100,047 25 77.213 31 1861. " " 1855. " 13.863 08 1866, 41,511 13 1856, 169,550 " 1858, Total 144,000 00 $625.951 69 Applicable to the payment of the interest and principal of the above stock. the Superintendent of the Banking Department holds in trust the following:$25.023.32 Assets of insolvent banks Bonds and mortgages 14.072 55 8,525 60 Money in the Treasury Total $18,221 Debt of the fund, for the payment of which the contributions of one half per cent an-nually on the capital stock of the several $577,730 2 Safety Fund banks are pledged There is due to this fund the sum of $6,348 from three banks whose charters have expired, the payment of which is resisted Suits have been commenesd by the Attorney General against the Bank of Utica and the auv was DAUR of Blonroe, to recover the institutions. which have not been decided Should these suits be decided in favor of the fund. it is pressured that other banks, as their charters expire, will pay the amount due from them without further litigation. The annexed official statement. compiled in the Banking Department at Albany, exhibite the whole amount of circulating notes issued to associations and individual backers. outstanding on the 1st day of December, 1551. showing also the character of the securities held in trust by the Superintendent for the redemption of those circulating notes:FREE BANKS OF THE STATE OF NEW AND SECURITIES

11. January 15, 1852 The New York Herald New York, NY
Article from The New York Herald, January 15, 1852

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Amount of circulation returned and $942 805 destroyed Five individual bankers, who have heretofore given notice of their intention to close their business, having complied with the previsions of section 8, of chapter 319, Laws of 1841, by redeeming ninety per cent of their circulation, have withdrawn the securities held in trust. and deposited an amount of money sufficient to redeem the balance of circulation outstanding. The following statement shows the amount of circulation unredeemed on the 1st day of December, 1851; the amount of money held in trust by the Superintendent; the date of the first noteie to billholders to present their notes for payment, and the time when such notice will expire:- OutstandCash in ing circuDate of Notice will lotion. notice. Banks empire deposit. Cortland Co. BK $10.00 $10,000 00 Dec. 1, '51. Dec. 1. '53. Franklin Co. Bk 2811 2,080 37 Apl. 6. '50. Apl. 6, '52, Henry Krepa B1. 2,859 3,859 00 Sep 17, '51 Sep. 17. '53. 866 Village Bank 872 00 May 22. 51. May '53. Warren Co Bank 4,852 5,852 00 Nov. 4. '51. Nov. 4, 53. At the expiration of the above notices for two years, the securities held by the Superintendent in trust be up to the banker or a bond, with security, upon may receiving given conditioned association, circufor the prompt payment of any unredeemed lating notes of such banker or association, if presented within six years. The circulation of the Walter Joy's Bank, which failed in the year 1850, has all been redeemed and cancelled, except $412. There is held in trust the for this bank, the sum of $2,966 01, arising from sale of stocks which were held in trust for it. On the first day of October last, the James Bank, Bank of New Rochelle, Farmers' Bank of Chautauque county, Western Bank of Washington county, and Phoenix Bank of Bainbridge, permitted their notes to be protested for non-redemption at their respective agencies. The powers of attorney heretofore given to said banks, to collect interest on the securities deposited and held in trust for the redemption of their circulating notes, were promptly revoked. No other measures were taken to protect the bill holders, as these banks were believed to be banks of circulation only; and from the quarterly reports received from them. it is believed that the securities depo. sited in this department constitute their only assets. Arrangements have been made by the Farmers' Bank of Chatauque county, Western Bank of Washington county, and Phoenix Bank of Bainbridge. to redeem their notes as required by law. Tre James Bank and Bank of New Rochelle failed to pay their protested notes within the time allowed by law, after having been duly notified to doso. A portion of the securities held in trust for these banks have been dispo.ed of at public sale. and the remainder will be converted into money in a short time, and a dividend will!be made to bill hold. ersin January next. The bonds and mortgages held in trust for these bankshold at a large discount. in his annual report to the Leof 1850, called its attention to of as by many gislature The banking Comptroller, practiced individual the bankers system I deem it my duty to again call the attention of the Legislature to this subject. The law of 1848, chap. 340, expressly provides that all banks shall be banks of discount and deposit, as well as of circulation; and that the usual business of all banking associations and individual bankers, shall be transacted at the place where associations or individual banker shall be 10cated. It is believed that this provision of the law is in many cases entirely evaded The quarterly reports received, show that it y are not banks of discount and deposit. having neither; or, if they have. it is R mere nominal FUN incorporated into their reports, to comply with the form and not the spirit of the law. They are mere banks of circulation, and are established for that purpose alone. The business of circulating their notes is done exclusively through agents and brokers in commercial cities. distant from the location of the bank. In many instances, it is believed, the banker does not even sign the from this department put but that power to an agent, notes lation, issued gives and substitutes with in circu- pow for er also to appoint & substitute or that purpose; to deposit securities, receive interest securities and to de all acts connected notes. on the and same, exchange with this mutilated the bank manwhich the banker himself could do. In ner are evaded the provisions of the law of 1818, which makes it obligatory for banks and bankers to transact their usual business at the places where they are located. These banks afford no facilities to the business of the community, and in a time of pressure or in the money not allow their notes to be portion quently embarrassment discredited, market, thereby unfrecreating a panic and subjecting the bill holders to losses.