Cities of New York or Brooklyn, worth at least double the amount loaned thereon.

SEC. 2. No person shall make any deposit, or have at the same time, directly or indirectly, any interest in any deposits made at different times in said bank, to a larger amount than the sum of three thousand dollars; and no Trustee or officer of said bank shall at any time make or have any interest in any of the deposits of said bank, or the profits arising therefrom.

On the 10th September, 1834, "The officers were empowered to obtain a suitable transparent sign, to be placed in the window when necessary during the hours of business." This is the first record of transparent expenditure ordered by the board. On the 5th of January, 1835, the first dividend was declared which was at the rate of five per cent. per annum on all sums under $500, and four per cent. per annum on all sums over that amount. This was rendered possible by the account of the Butchers' and Drovers' Bank, which showed that there was due from it for interest,

and the dividend would amount to

$880.18

636.76

$243.42

Leaving a balance of

The cash balance on deposit in the Butchers' and Drovers' Bank about this time was $69,369.86.

It was also resolved at this time, as papers had begun to accumulate, that the Secretary be directed to

obtain two trunks for the use of the bank. At the February meeting the President announced "that the Charter having been amended so as to permit loans upon bond and mortgage, it became necessary that a counselor to the board should be appointed." Whereupon an election was held, and the tellers announced that Mr. HENRY J. FELTUS had been unanimously elected counselor.

At the same meeting the board tendered its thanks to ANDREW C. WHEELER, Esq., for his very valuable services as a member of the State Legislature in obtaining such an alteration in the Charter as would tend so materially to benefit the depositors of this institution.

On the 8th of April the Funding Committee reported that they had loaned upon bond and mortgage up to this date, a period of two months, $83,500.

For some reason, unexplained in the minutes, they had neglected to invest any part of the deposits in public stock, either of the United States, the States of New York, Pennsylvania or Ohio, or of the City of New York, in any or all of which they were by Charter permitted: this mistaken policy they had cause to regret as we shall see. About two years later, during the panic of 1837, when the cash in bank being exhausted by the sudden call for deposits, they found that bonds and mortgages were a poor reliance when money was required, during a time of financial distress, although

thirty and sixty days' notice might be required of depos itors before payment could be demanded.

At this April meeting the President was authorized to obtain a seal for the institution, of such design as he might deem appropriate; the next month he announced that he had obtained it, and after presentation and examination, it was adopted as the seal of the institution, and the same attestation continues to do duty at the present day.

In July of this year, the Butchers' and Drovers' Bank gave notice that in future no more interest would be allowed for money deposited with them on account of this institution. The balance with this bank being reduced to so small a sum, on account of the large investments in bonds and mortgages, was doubtless the cause of this notice. At the same meeting the committee appointed to fix the salaries of the clerks, reported in favor of paying the two clerks, COGGESHALL and TOWNSEND, $300 per annum, and the porter, VALENTINE CLOWES, $50 per annum. These were the first salaries paid to employees of the institution.

It was resolved, at the September meeting, that on and after the sixth of October, the bank should be open every Thursday from five to eight o'clock P. M., to receive deposits from females. Before this, the bank held two night sessions per week for receiving deposits, and this additional one to accommodate women, soon became a regular one for all depositors.

December 9th, Messrs. TITUS, PHELPS and GRAY were appointed a committee to consider the expediency of applying to the Legislature for permission to increase the amount of deposits. The deposits were then nearly one-half the amount permitted by Charter, and had increased so rapidly from the beginning, that fears were no doubt entertained that, in these times of apparent prosperity, they might ere long be obliged to turn money away for lack of proper authority to receive it. This necessity, however, did not happen, and it was only in May, 1839, that the restraining clause was finally repealed, and the middle of 1840 that the necessity for it existed.

In January of the following year, a favorable report from the building committee, previously appointed, having been received, it was continued, and invested with power to purchase the bank building of the Butchers' and Drovers' Bank at No. 128 Bowery, which was soon afterward consummated at $23,500. In May it was decided that the salary of the Secretary should be fixed at $1,000 per annum. An election for Secretary resulted

in the choice of Mr. GILES H. COGGESHALL, whereupon Messrs. COTHEAL, LOVETT and SCHUREMAN were appointed a committee to inform Mr. COGGESHALL of his election.

In April of the next year, 1837, JOHN SLOSSON and AUGUSTUS SCHELL were appointed counselors and attorneys to the bank.

In the minutes of the meeting of May 15th occurs this passage: "At this time occurred a period of general financial distrust and panic, causing a draft upon the funds of the institution which justified the following. letter to the counsel:"

"If the Trustees wish to amend the by-laws so as to make payments semi-annually, can they do so? and if they can, what steps must be taken? If it should be necessary to wind up the concern state the mode of proceeding.

Signed,

B. M. BROWN,

Chairman of Committee."

The deposits had been drawn down $158,389 since January, and the drain was going on to so great an extent that the Trustees were evidently in fear that the institution must soon pass into the hands of a receiver. This fear had some foundation for the reason, that, their small stock of cash funds being exhausted, the remainder and bulk of deposits were invested in bonds and mortgages which it was impossible to have repaid within. several months; hence the above letter to the bank's counsel, who replied in due time, giving the needed.