Showing a nominal balance in favor of

the bank of

15,985 06

$148,595 06

The above exhibit does not embrace any interest on those debts denominated doubtful. Of the debts represented doubtful, the sum of $105,241 53 exclusive of interest, is the proper debt of one single individual of the city of New York, of which the sum of $36,858 is represented to be to some extent secured on property in the city of Buffalo, subject however to other liens upon the same property previously existing.

The officers of the bank stated that the security had been represented to them to be ample. They however did not pretend personal knowledge of the fact thus represented, nor confidence in the representation. Whether the property is of any value, therefore, beyond the previous liens upon it, is merely matter of conjecture, and with me is a matter of great doubt-and if it were of greater value.it would be difficult if not impossible for the bank to pay and discharge the said liens and avail itself of the excess of its value over the liens. The sum of $20,000, part of the sum due as aforesaid from the New York debtor, is a bond signed by said debtor and by two other individuals, and the officers of the bank stated that an attorney to whom the bond had been committed for collection, had expressed an opinion that the bond was good, and had so certified in the receipt he had given for the bond. However, the officers did not incline to mark this demand as being in their opinion good, in the schedule furnished me, in which I believe every other demand is marked either good or doubtful. The sum of $48,386 53, the balance of said sum due from said . New York debtor, is without any security. whatever, beyond his personal responsibility, upon which I should think very little reliance can be placed, since his foreign creditors have made the des perate effort to secure claims against him by an attachment of his shares in this insolvent bank. An individual of New Jersey owes the bank exclusive of interest, the sum of $35;824 50, which is a part of the sum set down as doubtful in the means of bank, and I did not learn from the officers of the bank that it was deemed by them of much if any value. The residue of the means represented as being doubtful, are debts due I believe from the citizens of New Hampshire-so of all the debts above set down as being good. The officers seemed unwilling to admit any debts due to the bank to be worse than doubtful.

I would now represent what in my judgment is the actual con

dition of said bank, based upon the best means in my power or within my reach.

Actual available means of the Bank. Debts due the bank represented by the officers as good exclusive of interest, the probable losses and expenses of collection equalling the interest, Specie,

Personal property, value of it,

Real estate, banking house, value of the same, Debts due the bank cla sed doubtful, real probable value,

Showing a deficiency of means probably, to meet its liabilities to the amount of,

Liabilities of the bank before stated,

$2,296 46 53276

150 00

2,000 00

15,000 00

$19,500 22

113,109 78

$132,610 00

$132,610 00

The officers stated under oath that the bank had paid and secured every dollar of its circulation in its state so far as known to them, and that the bills of the bank unredeemed and not secured rest in the hands of persons in the city of New York, and that the bank so far as it has redeemed at all, has redeemed its bills at par. They also stated under oath that the bank was not then put ting or attempting to put any of its bills into circulation, and that they should not attempt so to do while their embarrassments should continue, but we doing every thing in their power to take out of circulation the bills of the bank already in circulation, and they expressed a hope and belief that eventually they should be able at least to redeem their entire circulation. The cashier of the bank seemed unwilling to admit that a formal demand had been made at the bank of specie, for the redemption of its bills, which had not been answered, but stated that at times persons who held some of the bills of the bank had informed the cashier of the fact, and requested their redemption, but were told that the bank had not the funds, but that this occurred at places other than at the banking house.

The bank has accepted the provisions of the act of the Legisla ture of 1838, relating to said bank, which constitutes an acceptance of the provisions of the act of 1837, "relating to Banks and Banking and to establish Bank Commissioners."

All which is respectfully submitted.

ANDREW S. WOODS, Bank Commissioner.

REPORT

OF THE SELECT COMMITTEE ON THE SUBJECT OF DIVIDING STRAFFORD COUNTY.

The select committee to whom was referred the bill to constitute the counties of Belkuap and Carroll; and also the resolution directing them to inquire into the expediency of dividing the county of Strafford into two judicial districts, together with the "Act to district the county of Strafford for judicial purposes," have had the whole subject under consideration, and have directed me to make the following report:

It appears in evidence before your committee that the subject of dividing the county of Strafford has been under consideration ever since the year 1832, and has frequently been presented to the Legislature in various shapes, but no satisfactory action has ever been had thereon. The inhabitants of that county complain of the great distance which they have to travel in going to their county records and the inconvenience to which they are subject in sending to, and receiving communications therefrom. They further complain of the enormous expense attendant upon litigation, and the great delay in obtaining judgment in their judicial

courts.

The extreme length of the county of Strafford on the easterly side is about one hundred miles, and on the westerly side, about seventy miles; and the greatest breadth about thirty-five milesand it contains a population, according to the census of 1840, of 61,119, and the valuation is $12,777,282. It also appears that, by reason of the Lake which is situated near the middle of the county, and extending in length about 24 miles, and in breadth, varying from 3 to 12 miles, no central location for the county records can be found that will accommodate the people. The committee were therefore of opinion that it was expedient to divide the county, but the question was, how shall the county be divided so as best to accommodate the inhabitants thereof?

The committee took into consideration the propriety of dividing said county into two counties so that each might contain about 30,000 inhabitants; but they finally come to the conclusion that in consequence of the Lake, inhabitants of the northerly section, if divided into two counties, would not be much, if any,

better accommodated than they now are, and that, therefore, it would be inexpedient to divide said county into two counties only. The committee also considered the subject of dividing said county into two judicial districts, but were of opinion that no permanent benefit could be derived from such a division; but that the result would ultimately be the division of the county into two or more counties.

Several propositions were submitted to the delegation of the county, but they were unable to agree upon any thing definite upon the subject. The committee, therefore, upon considering the whole matter, have come to the conclusion that it is expedient to divide the county of Strafford into three counties, and have directed me to report the bill constituting the counties of Belknap and Carroll, in a new draft.

IRA ST. CLAIR, for the committee.

REPORT

OF THE STANDING COMMITTEE ON THE

JUDICIARY.

The standing committee on the Judiciary who were instructed to inquire into the constitutionality of the law passed July 4, 1838, entitled "An act in amendment of and in addition to an act entitled an act providing for the disposition of the public money of the United States which shall be deposited with this State," approved January 13th, 1837, have considered the subject, and submit the following as the result of their investigations.

The act of January 13, 1837, after providing that the public money shall be deposited with such of the several towns in the State, as shall vote to receive the same, pledging the faith of the town for the return thereof, provides, "that any town as aforesaid, may loan said moneyin such sums, and to such persons or corporations as they shall think proper, and may appropriate the interest which shall accrue on the same, to such objects as they shall deem expedient." The act of July 4, 1838, repeals this provis ion, and provides, "that all the public moneys received, or which may hereafter be received, by any town in this State, by virtue

of the act aforesaid, may by such town be loaned on good security, in sums not less than twenty-five dollars, or appropriated to any purpose for which said towns may lawfully raise money."

It cannot be denied, that the act of 1838 curtails the privileges enjoyed under the act of 1837, and if the relation in which the State stands to the towns, within its jurisdiction, were the same as that in which individuals and private corporations stand to each other, the act of 1838 might, perhaps, fall within the provisions of that clause of the constitution of the United States, which provides, that "no State shall pass any law impairing the obligation of contracts." But the relation in which the towns stand to the State, being different from that in which individuals and private corporations stand to each other, the rights and obligations which attach to that relation, must be different; and in the present instance it is believed, there are wanting parties capable of contracting in the sense contemplated by that clause of the Federal Constitution to which reference has been made.

Towns are public corporations established to subserve the public interest. They are the creatures of the State, brought into existence for purposes of public utility, and no other. In their creation and dissolution, exclusive regard is had to the interest of the State. Their powers, their duties, their very existence, depends, at any moment, upon the sovereign will. Privileges may be granted or taken away, burdens may be imposed or removed, at the pleasure of the Legislature; and so long as this interference is confined within the sphere of the objects for which these institutions were established, it will be no infringement of the rights of the corporation of the citizens. This results from the very nature of a municipality.

Such being the relation in which the State stands to the towns within its jurisdiction, if the act of 1837, entrusting the public. moneys to the care of the several towns, conferring certain privileges, and imposing certain duties, was constitutional,; that is, if it was employed about a subject in relation to which, certain privileges and duties were made to attach to them as public corporations, or municipalities, the act of 1838, although it may have abridged these privileges, was no infringement of the rights of the corporation, or the citizens of the town, as guarantied by the constitution. If the act of 1837 was not constitutional; that is, if it was employed about a subject in relation to which, privileges and duties could not be made to attach to towns or municipalities, the act of 1838 could not divest the towns of any right, inasmuch as none had vested.