Article Text
reDuring the last fiscal year the Comptroller deemed $135,850 of the Bank Fund stock from the means on hand belonging to the fund. Of this amount, $35,850 was received in pursuance of chapter 332, laws of 1850 The State stock held naccount of this fund, bearing 5 per cent interest, was sold, and the proceeds applied in redeeming six per cent Bank Fund stock, by which a gain was produced to the fund of $1,806 for premiums and discount, besides an annual saving of $350 from the difference of interest. The Comptroller has issued Bank Fund stock to the commissioners of the CanalFund for the balance due from the Watervliet Bank to the Canal Fund. amounting on the 23d of September last, to $72,059 31 Including this sum, the amount of bank fund stock outstanding on the 30th September, was $715,905 33 Since the closing of the fiscal year, stock to the amount of $5,424 78 has been issued to the remaining creditors of the Watervliet Bank, which is believed to include all outstanding demands against that bank. A large claim was held by the receiver of the Canal Bank of Albany, but doubts were entertained as to its validity, and the question was submitted, by mutual consent, to William L. Marcy, as sole referee. After a patient and laborious investigation, he rejected the principalitem, amounting to over $30,000, and decided that the actual balance due from the Watervliet Bank to the Capal Bank is only $2,276 50, for which sum stock has been issued to the receiver. Assuming that the banks continue to pay their annual contributions of 1/2 per cent on their capital until the expiration of their respective charters, the amountto be realized from this source is $994,225 60, which will be sufficient, with judicious management, to discharge both principal and interest of all outstanding claims against the Bank Fund. In addition to these contributions, there remains a mass of miscellaneous assets of the City Bank of Buffalo. the Commercial Bank of Buffalo and the Watervhet Bank. The amount to be realized from these deplorable conceins depends, in some degree, upon the result of certain litigations still pending. It is believed, however, that with proper diligence. about $50,000 may be recovered from the assets referred to. The Comptrollor has made every practicable effort to secure some returns from them, and with some effect, but he regrets to say that his success ha not been commensurate with his endeavors. Since the close of the fiscal year, a final settlement has been made with the receiver of the Commercial Bank of Oswego, and the balance in his hands being $1,644 33, has been paid into the fund. An important question has been raised in relation to the liability of the banks to pay the annual con"tribution of & per cent on their capital for the last year of their duration. The Comptroller and his predecessors have entertained no doubt OR this point, and the payment has been made by all expiring banks, without dispute, until the Bank of Ulica and the Bank of Monroe contested the validity of the claim. The charters of these banks continued in force "until the first day of January, 1850." The Safety Fund act and the act of April 12, 1842, require every moneyed corporation subject to the act to contribute one-half of one per cent on its capital "on or before the first day of January in each year." The ground assumed by the trustees of the banks referred to 18, that R8 their charters actually expired with the year 4849, they were not liable to make the contribution. payable "on or before" the first day of January, 1850. Some other banks, which made the last payment voluntarily, now claim to have the money refunded, on the principle that it was paid under a misapprehension of the law. The question is an important one in its bearing upon the ultimate sufficiency of the bank fund. f the remaining Safety Fund banks, including the Bank of Utica and the Bank of Monroe, shall escape the payment of the contribution for the last year of their chartered term, the loss to the capital of the bank fund will be $132,742 30, and to that extent impair the security of the creditors. It is feared that 80 large a reduction might render the fund insufficient to provide for the payment of the stock falling due in 1866 The Comptroller has considered it hisduty to place he claims against the Bank of Utica and the Bank of Monroe in the hands of the Attorney General, and by mutual consent, the question will be presented to the Supreme Court for decision as early practicable. With a view to protect the creditors of the bank fund, and to guard against future controversies, Comptroller would recommend the passage of a law requiring the banks to pay their contributions on or before the last day of December in each year. BANK FUND. Balance of six per cent stock issued, per chap. 114, laws of 1845, on account of the Bank Fund, outstanding on the 30th Sept., 1850, and redeemahie BR follows
