We know there are instances where the public interest would be best subserved by the incorporation of new banks, and it is by no means our intention to prejudice such applications by the foregoing remarks in relation to the increase of capital. If it were not for the apprehension that our local legislation would be found inadequate to effect the object desired, we should be inclined to add one further suggestion. Being perfectly sensible, as we have heretofore frequently remarked, that public confidence in a paper medium must chiefly depend upon its free convertibility into coin at all times, we think the character of the currency would be improved if there could be infused into it a greater proportion of specie, by gradually withdrawing from circulation our bank notes under five dollars. Such a measure would throw a large amount of specie into circulation among the community, and furnish a most valuable resource for the banks whenever a call for specie should occur. But the difficulty lies in the enforcement of such a law, so long as none such exists in the neighboring States. The legislature can act with effect upon our banks, to prevent their issues, but not easily upon individuals to restrain them from receiving small foreign notes. In the city of New York, notwithstanding our law now prohibits the circulation of foreign bank notes under five dollars, they form a very large if not the principal amount of small bills in circulation. The experiment has been tried in Pennsylvania, and is said to have succeeded reasonably well. It might do so here, but we should apprehend more difficulty in consequence of our much more frequent and extensive intercourse with the neighboring States, Connected with this subject, and as a measure necessary to carry it into full effect, the equalization of the standard value of gold and silver is exceedingly important. The Congress alone has the power to effect it. All the banks chartered at the last session of the Legislature, have gone into operation, and we now have in operation in the State, besides the three branches of the United States Bank, sixtynine banks and two branch banks, subject to the bank fund law, and ten banks not subject to it. The aggregate capital of all the State banks, as will be seen by the statements hereto annexed, is 827,846,460. The bank fund, including the contributions due to it on the first instant, (which it is presumed have been paid,) amounts to about the sum of $290,000. When the payments of this year shall have been invested, as they will be soon, the annual revenue of the fund will amount to about $13,000. The contributions of the next year will probably raise the capital to upwards of $400,000, and the revenue to $18,000; and the increase will be in that ratio until the capital rises to about $700,000, independent of the additional re, ceipts which may be expected from new capital to be created. Albany, January 31, 1834, CHAS. STEBBINS, Bank Commissioners, LIST OF BANKS In the State of New-York subject to the Bank Fund law, in operation on the 1st Jan. 1834. 153,500 42,900 23 503,253 50,000 1,688,822 13 66, 1 BANKS. America, $2,001,200 379,866 719,830 750,000 | 204,908 222,592 112,500 4,126,292 369,496 4,199,218 281,714 91,054 1,625,459 100,744 1,426, 249 82, 822 57,910 38,530 485,928 15,971 37,500 488,037 26, 297 443, 208 10,104 355,744 13,629 99,900 336,400 35,073 182, 904 85,000 5,000 37,700 20,000 77,900 36,592 7,111 20,522 Newburgh, 140,000 234,882 147,161 347, 465 559,299 887,666 52,650 12,700 78,500 50,000 68 | 22,017 24,495 9,848 7,436 7,502 141, 845 5,781 56,380 119,263 9,005 56,191 243,534 9,549 11,298 249,502 252,168 49,050 37,054 4,075 30,376 27.470 |
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