holders of any such association, whose debts or shares shall amount to one thousand dollars, and stating facts, verified by affidavit, the chancellor may, in his discretion, order a strict examination to be made by one of the masters of his court of all the affairs of such association, for the purpose of ascertaining the safety of its investments, and the prudence of its management; and the result of every such examination, together with the opinion of the master and of the chancellor thereon, shall be published in such manner as the chancellor shall direct, who shall make such order in respect to the expenses of such examination and publication as he may deem proper.

$26. Such association shall on the first Mondays of January and July in every year after having commenced the business of banking as prescribed by this act, make out and transmit to the comptroller, in the form to be provided by him, a full statement of the affairs of the association, verified by the oath of the president or cashier, which statement shall contain

1. The amount of the capital stock paid in according to the provisions of this act, or secured to be paid.

2. The value of the real estate of the association, specifying what portion is occupied by the association as necessary to the transaction of its business.

3. The shares of stock held by such association; whether absolutely or as collateral security; specifying each kind and description of stock, and the number and value of the shares of each.

4. The amount of debts due to the association, specifying such as are due from monied or other corporations or associations; and also specifying the amount secured by bond and mortgage or judgment; and the amount which ought to be included in the computation of losses.

5. The amount of debts due by such association; specifying such as are payable on demand, and such as are due to monied or other corporations or associations.

6. The amount of claims against the association not acknowledged by its debts.

7. The amount of notes, bills, or other evidences of debt, issued by such association.

8. The amount of the losses of the association; specifying whether charged on its capital or profits, since its last preceding statements, and of its dividends declared and made during the same period.

9. The average amount in each month during the preceding six months of the debts due to and from the association; the average amount of specie possessed by the same during each month, and the amount of bills and notes issued by such association and put in circulation as money, and outstanding against the association, on the first day of each of the preceding six months.

10. The average amount in each month during the preceding six months due to the association, from all the shareholders in the association; also the greatest amount due the association in each of the said preceding six months, from all the shareholders in such association.

11. The amount which the capital of the said association has been increased during the preceding six months, if there shall have been any increase of the said capital; and the names of any persons who may become parties to the said articles of association, or may have withdrawn therefrom since their last report.

It shall be the duty of the comptroller to cause the statement required to be made by this section, to be published in a newspaper printed in the county where the place of business of such association is situate, and in the state paper; the expense of which shall be paid by such association.

§ 27. If such association shall neglect to make out and transmit the statement required in the last preceding section, for one month beyond the period when the same is required to be made, or shall violate any

of the provisions of this act, such association may be proceeded against and dissolved by the court of chancery, in the same manner as any moneyed corporation may be proceeded against and dissolved.

§ 28. If any portion of the original capital of any such association shall be withdrawn for any purpose whatever whilst any debts of the association remain unsatisfied, no dividends or profits on the shares of the capital stock of the association shall thereafter be made until the deficit of capital shall have been made good, either by subscription of the shareholders, or out of the subsequently accruing profits of the association; and if it shall appear that any such dividends have been made, it shall be the duty of the chancellor to make the necessary orders and decrees for closing the affairs of the association, and distributing its property and effects among its creditors and shareholders.

$29. Such association shall be liable to pay the holder of every bill or note put in circulation as money, the payment of which shall have been demanded and refused, damages for non-payment thereof, in lieu of interest, at and after the rate of fourteen per cent. per annum, from the time of such refusal until the payment of such evidence of debt, and the damages thereon.

§ 30. The president and cashier of every association formed pursuant to the provisions of this act, shall at all times keep a true and correct list of the names of the shareholders of such association, and shall file a copy of such list in the office of the clerk of the county where any office of such association may be located, and also in the office of the comptroller, en the first Mondays of January and July in every year.

§ 31. It shall not be lawful for any association formed under the provisions of this act, to make any of its bills or notes of a denomination less than one thousand dollars, to be put in circulation as money, payable at any other place than at the office where

the business of the association is carried on and conducted.

§ 32. The legislature may at any time alter or repeal this act.

§ 33. No association of persons authorised to carry on the business of banking under this act, shall at any time, for the space of twenty days, have on hand at their place of business, less than twelve and a half per cent. in specie on the amount of the bills or notes in circulation as money.

State of New York, Secretary's Office. This bill having been approved and signed by the governor of this state, on the 18th of April, 1838, I do hereby certify that the same became a law on that day. JOHN A. DIX, Secretary of State. [See Appendix J.]

E.

LETTER FROM THE AUTHOR TO JOHN W. COWELL, ESQ., AGENT OF THE BANK OF ENGLAND IN THE UNITED STATES.

MY DEAR SIR:

Philadelphia, April 15, 1839.

As you are upon the eve of departure for England, after, as I understand, a highly successful issue to your financial mission to this country, I take occasion to hand you a copy of the "Treatise on Currency and Banking," of which you have seen a few of the early chapters, in the hopes that you will find them, in the main, in accordance with your own views of those important subjects. I am the more inclined to this expectation, from recollecting the tenor of the

frequent conversations I have had with you, from which I need hardly say, I derived much valuable, instructive, and practical information, as well as from a perusal of the unpublished pamphlet, with a copy of which you favored me, setting forth your individual opinions upon the best system of reform for the paper currency of England.

In regard to the latter subject, I am free to confess, that the United States have a deep interest in its discussion, and they will owe much to the political economist or statesman, who shall be so fortunate, as successfully to advocate a reform that shall prevent fluctuations in the currency of Great Britain. It was some years since remarked in our congress, by a member, that the barometer of the money market of the United States was hanging up in the stock exchange of London. Since the conflagration of that building, I would say that the barometer has been hanging up in the "parlour" of the bank of England; and in truth, so closely allied are our two currencies by the ill-advised change in our gold coinage, which took place in the year 1834, that it is impossible that any expansion or contraction of the currency can take place in England, that will not be felt here; in the one case, inviting our banks to extend their discounts, and thereby excite overtrading and speculation, and in the other case, compelling them to contract their loans, and thereby produce a general commercial embarrass

ment.

The plan you have suggested, and to which I have above referred, appears to me to be eminently adapted to accomplish the end proposed; and if the paper currency of this country were under the control of a single legislative body, as it is in England, instead of thirty bodies, as it is, I would recommend it as the best plan I have yet met with, for enabling the public to enjoy all the benefits of a paper circulation, without any of its evils.

According to that plan, as I understand it, the mint