255 



upon which they rule is precisely the same as is followed 

 in our own legislature. Where the power is with the pro 

 perty, it taxes the masses where it is with the masses, 

 they tax the property. In both countries there is a 

 jealousy of the growing influence of the other. The 

 most just arrangement would divide the power and 

 the burdens in some well-considered way between the 

 two. 



Among other points to which a stranger s attention 

 may be drawn, the banking system, as it is conducted in 

 this State, is not without interest. There are in the 

 State of New York 113 banks, all chartered by the 

 legislature. They are banks of discount rather than of 

 deposit, and are organised in a way which is not only 

 simple to the understanding, but very safe both to the 

 bankers themselves and to the holders of their notes. 



The company or individual proposing to establish a 

 bank applies to the legislature, stating the amount of 

 capital it possesses ; and if everything is satisfactory, 

 obtains a charter of incorporation. The party then 

 deposits in the hands of the State comptroller in Albany, 

 deeds, bonds, certificates of stock, or other good and readily 

 convertible securities, for the amount of money specified in 

 the charter, and upon which it is intended to trade. These 

 the comptroller preserves, and he hands to the party, in 

 return for them, their value in notes of various names, 

 engraved with the title of the new bank, and such appro 

 priate design as may be selected. The party now com 

 mences business. Their capital is already invested in 

 stocks, bonds, &c., and they draw the annual interest of 

 these. The notes which represent this stock they again 

 issue in loans, or in discounting bills, or in any similar way ; 

 and thus they make a second profit upon the same money. 

 The legal interest in the State is 7 per cent, and thus a 

 prudent money-dealer may make at least 12 per cent of 

 his money altogether. But if he be imprudent, and 



