This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1903 Excerpt: ... requiring the country banks to pay this amount in monthly installments of twenty per cent., with interest at six per cent., commencing on January 1, 1858. Their outstanding circulation, outside of the $7,920,000 held in New York, was to be redeemed as usual after November 20, 1857. This plan was carried out in five months, and the entire debt of $7,920,000 was paid, netting the city banks 5 8-9 per cent, interest. In order to accomplish the result the country banks appear to have borrowed to make the twenty per cent, payments; and, having secured their notes, returned them to the Comptroller at Albany, and took out their securities, from the proceeds of which they paid the loans. Between October 1,1857, and April 1,1858, securities amounting to $4,325,000 had been drawn out. The payments were effected with a very slight reduction of discounts and, consequently, less pressure on the business community. In his report for 1858 the Superintendent of the Banking Department remarked that, in previous crises, the suspension of specie payments had been the signal for an increase of their issues by the banks; but, in this instance, there had been a gradual and steady reduction, amounting to $4,412,746 between September 26, 1857, and March 13, 1858, at which latter date the total amount outstanding was $22,710,158. All attempts to obtain a law excluding bonds and mortgages failed, notwithstanding frequent recommendations of the Comptroller and Bank Superintendent to this effect. The suspension of specie payments by the New York city banks soon after the beginning of the Civil War is referred to at length in another part of this work. Revision And Consolidation Of The Banking Laws. In 1880 an act was passed by the Legislature providing for the appointment of three co...