class="x-ebookmaker-pageno" title="[Pg 38]"/> Lodge and State streets, was sold by the Commission. By chapters 2 and 150 of the Laws of 1837 the Comptroller was made the custodian of moneys received from the United States, since known as the United States Deposit Fund. Theoretically this money was not given to the several States, but was to be subject to repayment whenever called for. The National Government will hardly, at this late day, call for these moneys. If it did not feel compelled to do so in the trying financial straits of the war it is not likely that it will do so in times of peace. But these moneys have always been kept as a separate fund, substantially as required by the act of 1837, and the principal, through all changes of, and losses from, investment, has been kept intact.

By chapter 260 of the Laws of 1838 the Comptroller, to guard against counterfeiting, was authorized and required to have engraved and printed in the best manner, circulating notes to be issued to the incorporated banks of the State, and to countersign the same; and a system was inaugurated for the deposit of securities in the Comptroller's office which should be a guaranty for the notes issued by the banks—a system very similar to that later adopted by the United States for National banks. One feature which would be regarded as a most unwise one to-day formed a part of this plan; the banks were authorized to deposit one-half the security in bonds and mortgages. The bill also provided that banking associations should file with the Comptroller a semi-annual report of the transactions of the bank. This was practically the inauguration of the supervision of the banks, which was later transferred to the Banking Department. The Legislature had, in 1829, at the time of the creation of the safety fund, authorized the appointment of three Bank Commissioners, whose duty it was to visit the banks, examine their condition, and report to the Legislature. The office of Bank Commissioner was abolished in 1843, and the power of supervision possessed by them was then transferred to the Comptroller, and he continued to retain that power until 1851, when the Banking Department was created. It was during Mr. Flagg's first term that the great financial panic of 1837 took place, and the State's financial condition at that time was not all that might be desired. There was a large debt, mostly incurred in the construction of canals. The revenues had very much decreased, and a new way of raising funds must be used to meet the liabilities of the State and maintain her credit. Matters financial in the State went from bad to worse. In 1842, after long debate, the Legislature passed an act authorizing the laying of a tax of one mill upon every dollar of real and personal property in the State, and pledging the revenues of the State for the payment of its liabilities, and suspending all public work, except where great loss would come to the State by such suspension. In this manner the credit of the State was made secure and its obligations met. This act was prepared and advocated by Mr. Flagg. The significance of this legislation is found largely in the fact that from 1826 to 1842 no State tax for general purposes had been required.

The long lease of power which the Democrats had held in this State was broken in the fall of 1838 by the combined efforts of the Whigs and Anti-Masons, and, accordingly, on the 4th of January, 1839, Mr. Flagg was removed, and Bates Cook, of Lewiston, a lawyer and an Anti-Mason was chosen by the Legislature in his place. Mr. Cook's only previous official service of note had been as Member of the Twenty-second Congress. His appointment was largely due to the influence and representations of William H. Seward, then the Governor, and Thurlow Weed. He had been associated with these gentlemen in the prosecution of the abductors of William Morgan, and, like Mr. Seward and Mr. Fillmore, received his political start from Anti-Masonic influence. Mr. Cook soon had an opportunity to show Mr. Weed his appreciation of the favor done him. Chapter 1 of the Laws of 1840 authorized the Comptroller and Secretary of State to enter into a contract with Thurlow Weed to do the printing for the Legislature, executive offices and various boards, at prices not exceeding ordinary prices in Albany.

This seems to have been the first time these officers were intrusted with this responsibility, and it was not until 1846 that the general power was definitely conferred upon them. Subsequent legislation has added to the printing board then created the Attorney-General, so far as legislative printing is concerned; but as to department printing, the Secretary of State and the Comptroller are still clothed with the authority of letting the contract.

By chapter 295 of the Laws of 1840 the Comptroller was assigned quarters in the State Hall, together with the other State officers, and that building was made the headquarters of the Canal Board, and there both still remain, although the Comptroller, from time to time, as the needs have compelled, has taken to himself more rooms, so that his offices now occupy the entire first floor of the building.