INCREASE OF BANK CAPITAL AND CIRCULATION IN NEW YORK.

The Superintendent of the Banking Department of the State of New York gives, in his last annual report to the Legislature, the following table as proof how slowly the present system of banking tends to inflate the currency of the

BANKS, AND BANKING LAW OF MISSOURI.

We are indebted to C. C. ZEIGLER, Esq., Chairman of the Senate Committee on Banks in Missouri, for an official copy of an act to regulate banks and banking institutions, and to create the offices of Bank Commissioners, passed both houses February 25, 1857. It is quite elaborate, covering twenty-eight large octavo pages. It is a general one, and is intended to apply to all banks now or hereafter chartered. The main features are embodied in the following synopsis : ART. 1. Every bank chartered by the State shall be subject to this act. 2. Such banks may establish by-laws, be sued, &c.

3. No bank to have a less capital than $1,000,000.

4. They may issue bills of five, ten, twenty, fifty, one hundred, five hundred, and one thousand dollars—and no bank shall receive or pay out the notes of any banks established in any other State.

5. Quarterly statements of each bank to be published in two newspapers, showing amount of capital, loans, specie, circulation, profits, State bonds held, &c. Those established in St. Louis shall publish a weekly statement.

6. Branch banks to furnish similar statements.

7. Books, papers, correspondence, and funds of every bank to be subject to the inspection of the Directors, Governor, Bank Commissioner, and Agent authorized by the State.

8. If, upon examination, the bank be found to have transcended its charter, be unsafe, &c., it shall by the Commissioners be placed in the hands of "Trustees" or Receivers.

9. If a bank shall refuse payment in specie on its notes, deposits, &c., it shall

be liable to 20 per cent interest on such sum, and if such suspension continue ten days, its charter shall cease.

10. The Cashier, Teller, &c., to give bonds, payable to the State of Missouri, for faithful performance of duties.

11. Any embezzlement, &c., shall be punished by confinement in the penitentiary not less than two nor more than twenty years.

12. Books of subscription to bank stock shall be opened at suitable places, and if the stock be not subscribed in three years, the charter shall be void.

13. Ten per cent of the capital stock shall be paid in before the bank can commence operations.

14. Ten per cent of the capital stock to be invested in bonds of the State of Missouri.

15. Two per cent per annum of their net earnings to be set aside by the bank as a "contingent fund," and invested in State bonds.

16. The banks are authorized to dispose of all State bonds held by them, whenever the market value shall be at or above par.

17. The banks must subsequently reinvest the same amount in bonds, whenever the latter are at a discount, (in order that the banks shall aid in sustaining State credit.)

18. Relates to division of shares among original subscribers to stock, whenever a surplus is subscribed.

19. Relates to number of votes to which stockholders of more or less shares shall be entitled.

20. In case of non-election of directors at the stated meeting, another day shall be fixed.

21. Every cashier and other officer shall take an oath to administer his duties faithfully, &c.

22. Bank directors shall not receive pay for services.

23. The term of office of one portion of the directors to expire the first year, and the remainder the second year.

24. Banks are exempted from the operation of the first article of act concerning corporations, passed November, 1855.

25. Ten per cent of bank stock subscribed shall be paid at first, and the remainder within twelve months.

26. The banks may hold real estate for their own uses only; all other acquired by lien, &c., shall be disposed of "as soon as practicable."

27. The weights and balances used by the banks to be examined and tested by the Bank Commissioner at least every five years.

28. No bank shall take its own stock as collateral for loans. No person shall be a director in more than one bank at a time. No copartners shall be directors in the same bank at one time.

29. Every parent bank shall have a board of at least thirteen directors.

30. No bank shall employ more than five-eighths of its capital in exchange. 31. Every branch bank shall have nine directors, one of whom shall be president.

32. Every bank to pay to the State 1 per cent of its capital stock annually, in lieu of all bonus and taxes to the State.

33. Banks limited to 6 per cent interest on bills less than four months, and 7 per cent over four months, with a reasonable charge for exchange.

34. Dividends not to impair the capital stock.

35. No bank shall require a city indorser upon paper for discount when other security shall be deemed good.

36. One-fifth of the stockholders (in amount) may call a special meeting of the stockholders.

37. Banks may issue two dollars for one of capital the first year; two-and-ahalf for one the second year; and three for one the third year. One-third of the circulation in amount to be held at all times in specie.

38. When the State shall hold a portion of the capital stock, the governor to appoint directors, pro rata, for the State.

39. Vacancies in directors to be filled by the board, (except State directors.)

40. Special meetings of the stockholders may be ordered at any time by the board.

41. The first election of directors shall take place whenever the bank is ready for operations. After the first year the election shall be annually the first Monday in March.

42. All bills issued by a bank shall be made payable at its own counter or branches.

43. The banks shall receive only gold and silver coin and bank notes of speciepaying banks in Missouri.

44. All drafts, notes, &c., now drawn, payable in "currency," shall be payable in notes of specie-paying banks of the State of Missouri.

45. No loan shall be made to a stockholder until his stock is paid in full. 46. No loans shall be made by a bank elsewhere than its own place of business. 47. The banks shall not use their funds in trade or commerce.

Chapter second refers to the establishment of branch banks, substantially in the same terms as parent banks.

Chapter third relates to the rights and duties of Bank Commissioners.

Under the new law of the State of Missouri the following banks are authorized-all the banks to be under the same general system-thus avoiding the labor and variations usually incident to separate charters :—

1,500,000

Savannah, Andrew Co.

New Madrid, New Madrid Co. 8,500,000 Reincorporated.

Bank of Commerce, St. Louis.......
Bank of State of Missouri, St. Louis...
Of this capital the State shall own $1,000,000, and private stockholders the
remainder.

ACT OF NEW YORK RELATING TO BANK-NOTE REDEMPTION.

We publish below the several sections of an act passed at the session of the Legislature of 1857, relating to bank-note redemption, which has received the signature of the Governor and takes effect on the first of June, 1857 :-

SEC. 1. It shall be optional with every incorporated bank, banking associa tion, or individual banker, doing business of banking under any statute of this State, and receiving on deposit after this act takes effect, in the course of its or his business, or otherwise, the circulating notes issued by any other incorporat ed bank, banking association, or individual banker, engaged in the business of bank

ing under any such statute, to present such notes for redemption and payment in the manner and upon the terms now provided by law, either to the lawful redeeming agents, or at the counters of the incorporated banks, banking associations, or individual bankers issuing them; but every such incorporated bank, banking association, and individual bankers shall elect to present, and shall present, such notes and all of them, it or he may have on hand at the time of such presentation, either to the lawful agents, or at the counters of the banks, banking associations, or individual bankers issuing them, for redemption and payment, in the manner provided by law, or as often at least as once in each successive week, when more than the sum of $10,000 is held by said incorporated banks, banking associations, or individual bankers.

SEC. 2. If either of such banks, banking associations, or bankers holding such circulating notes, shall elect to present the same for redemption and payment at the counters of the banks, banking associations, or bankers issuing them, it or he shall cause a written or printed notice of such election, attested by the signature of the president or cashier of the bank, banking association, or banker so holding them, under the seal of such bank, banking association, or banker, that it or he will thereafter seal and present such notes, and all of them, that it or he shall have on hand at the time of such sealing, at the counter of the bank, banking association, or banker issuing them, for redemption and payment as often at least as once in each successive week,-to be redeemed and paid in the manner required by law; and when such notice shall have been given such notes so received by such banks, banking associations, and bankers aforesaid, giving such notice, shall thereafter be presented at such counters and not elsewhere, for redemption and payment, until a further notice of ten days shall be given in the manner above provided, that such notes will thereafter be presented for redemption and payment to the lawful redeeming agent aforesaid, within the times and upon the terms prescribed by law. But nothing herein contained shall be construed to prohibit banks, banking associations, and individual bankers from redeeming, presenting, holding, pledging, or exchanging each others' circulating notes in the manner, within the times, and upon such terms as they may agree upon, or may heretofore have agreed upon, and as shall be conformable to pre-existing laws.

SEC. 3. Every incorporated bank, banking association, and individual banker, who shall knowingly and willfully neglect or refuse to comply with the provisions of this act shall forfeit and pay the sum of one thousand dollars, to be sued for and recovered in the name of the people of the State of New York in any court having competent jurisdiction.

SEC. 4. This act shall take effect on the first day of June, one thousand eight hundred and fifty-seven.

"METHODS OF COMPUTING INTEREST."

FREEMAN HUNT, Esq., Editor of the Merchants' Magazine, etc :—

DEAR SIR :- -Your correspondent, "B. S. O.," occupies three pages of your May number with an article entitled "Methods of Computing Interest," in the course of which, for the purpose of illustrating a short rule, he asks, “what is the interest of $630 for eighty-one days, at nine per cent?" and proceeds to solve that equation by the use of twenty-three figures. Practical people, who have much to do, would think it hardly worth while to take so much trouble, but would work mentally thus:-two months and twenty-one days, at six per cent, is equal to one and one-third per cent and one-sixtieth of one per cent, (or one and one-third per cent, and for the odd day, ten cents,) which, on $630, is seen at once to be $8 50, to which add one-half for the three per cent extra, and you get $12 75. This simple calculation is easily and accurately performed mentally, and without employing more figures than those that represent the result-in the present case, four. BOSTON, May 7, 1857.

OLD RAPID.

LAWS OF ILLINOIS RELATING TO INTEREST.

The Legislature of Illinois, at their session of 1857, passed the two following acts—the first amending Chapter 53 of the Revised Statutes of 1845, and the second amending the interest laws of the State. Both acts are now in force :

AN ACT TO AMEND CHAPTER 53 OF THE REVISED STATUTES OF 1845. SEC. 1. That from and after the passage of this act, the rate of interest upon all contracts and agreements, written or verbal, express or implied, for the payment of money, shall be six per cent per annum, upon every one hundred dollars, unless otherwise expressly stipulated by the parties, or unless otherwise provided for by law.

SEC. 2. That all contracts hereafter to be made, whether written or verbal, it shall be lawful for the parties to stipulate or agree that ten per cent per annum, or any less sum of interest, shall be taken and paid upon every one hundred dollars of money loaned or in any manner due, and owing from any person or corporation to any other person or corporation in this State.

SEC. 3. If any person or corporation in this State shall contract to receive a greater rate of interest than ten per cent upon any contract, verbal or written, such person or corporation shall forfeit the whole of said interest so contracted to be received, and shall be entitled to recover only the principal sum due to such person or corporation.

SEC. 4. All laws in conflict with this law, and all laws providing for penalties for taking of or contracting for more than the legal rates of interest, are hereby repealed.

SEC. 5. This act shall take effect from and after its passage.
Approved Jan. 31, 1857.

AN ACT TO AMEND THE INTEREST LAWS OF THIS STATE.

SEC. 1. Be it enacted by the people of the State of Illinois, represented in the General Assembly, That where any contract or loan shall be made in this State between citizens of this State and any other State or country, bearing interest at any rate which was or shall be lawful according to any law of the State of Illinois, it shall and may be lawful to make the amount of principal and interest of such contract or loan payable in any other State or Territory of the United States, or in the city of London in England, and in all such cases such contract or loan shall be deemed and considered as governed by the laws of the State of Illinois, and shall not be affected by the laws of the State or country where the same shall be made payable; and no contracts or loans which have heretofore been made or entered into, bearing an interest at a rate which was legal according to the laws of this State at the time when the same was made or entered into, shall be invalidated, or in anywise impaired or affected by reason of the same having been made payable in any other State or country.

Approved Feb. 12, 1857.

FINANCIERING-HALF NOTES DOING DOUBLE DUTY.

A curious method of swindling has recently been discovered in England, which our cotemporary of the Belfast Commercial Register thinks it will require some care to guard against. It seems that a mercantile house in Manchester received an order for goods, to the amount of £30, to be sent to an address in Masbro'. The order was accompanied by the halves of two £10 and two £5 bank notes. Calculating upon the transmission of the corresponding halves, the goods were forwarded; but neither the remainder of the money, purchaser, nor goods, can be traced. It is believed that the other halves of the notes would be used to pay for another £30 worth of goods.