Portland gazette and Maine advertiser., 1814-10-10
KINKS.

ing alarmed over much on account of some of
he banks, in not paying with promplrude. spe-
Gle tir their Bills An understanding of the
subjec, would certainly. have 'endencYto IN
d ice a m )re LIBERAL confidence. People IN gen
=; al seem not 10 be aware Of The nature Of Ban
sios Institutions. Indeed there is scarcely an
individual not in the direction IF a 5ank, WHO is
Capable OF unfolding the MYSTERY. 3u the state
II the public mind is now such, that plain il
l lcidaiIon has hec one indispensable.
BANKING Companies are established by acts of
ricotpoiaion. Same have mo and some less
capital stock varying 1om one hundred tbous
nd TO ,bree m,llion Of dollars. Those in Port
lani, foe ins, snce. have each three hundred hou
sand dollars. Before they can proceed To do he-
stness the Stockholders are required 10 Pay in
,oston the whole q their respective shares
o. he stock. fee whiclrtbe Directors proceed
u loan the amount, SO paid IN, 10 md yiduals
who may apply Tor IT..
Bat in order that q profit should he deti.
we'd rom the business IT i, never exne csed thai
10 moge than the capit.i psid in should be loaned.
II no more than he calIs 81 should be loaned sim.
lie interest could not be realised. The expen-
les OF such sn establishment are always coss,d-
ersbie. The 6 ,vernmen, have levied tax of
one per NJ Oh The capital sock annually: SO
that 1t Bank should realize from lie Ion OF
stock enough to leave, over and soove the char
gessttend,ng The business,sx pea ccni, the gov
B-nant by he tax would take one OF it le,v.
O., gu. five per cent to the Stockholders.
will be eviden, then hat the 3snks must have
some way OF making money besides loanng on.
the amount OF the capital stock psid ia. For 90
set Of mch wou'd turn her money in o bank stock
if they were to make but fse per cent wn.u
they can get Sax by iosning ,oindis'dusls.
The capral stock being paid in, Bank Bills
ava made, and put in Circulation ins,e All of spe
cie. The confidence in the establish me nts Is
such hat these DIls psss as money For every
DILL, thus put m circulation, The d ank receives
an equivalent. When one bundt ed thousand
dollars thus pu; in circulation. The bank then
has that amount IN addition TO i've capita, ock N
It's ysu.,s. Besides, individuals who have mon
ey, which they do no, wish to use Immediately,
aoe in the hab,, OF depusltlng II in The Banks.
nd d awning II out only. as they have occasion
or ii. The whole amount so deposned may be
rue hundred thousand dollars moae. The indi-
glduas who Ike these deposns are drawing
hem cut and fene wing them such manner
la n less ,bsn the ABOVE sum will constan. y
rema,n 10 ne vaults. In thls way another hGn
j ed thousand dollars is added TO the capital
,,ook, making the whole amount IN tle vaults,
say 500 900 dollars.
F'om long experience, the Directors sscer.
an wnst smou"t u bu.s hey can rely upon hay.
ING cons antiy " Calculation snd Of he sra )unt
o. hand II hey find that from these W sources
two hundred thousand dollars viii cons ansiy
remAn on hand, H. follows that they msy ne sids S
their cspUsi Stock VENUE 10 loan = portion o.
whoie Ut ,ba. sum. And il is in ,hls W y, anu
m this wsy only, that Bank. can ever avail t,,e,
elves Ut an income So u def ay ,er oii.rges ,
pay per cent of ,hes cap,s al sock tor lax.
es, and divide six per cen prJiis.
TO liiuCid.te he sub,ect ,In more Gle srly we
WILL he. al 4 III A
iSal SOCK IS 100000 dVars LIS U,i,s N circuiA
non are, doubtless, 100 O00.doi!ars. Its de ,osts
ase, doubti>s,, 100, WV d MARS moe We viii
supp'se 1t had fouad. by ex ,erience, tAsi for
ten or hfe years last past, MI iess han 200
OU0 do,iArs wee constantly IN ito v.ui,, .rls,ng
tom lie ABOVE sources. Du,ng he greater pat
OF that tune IT had 1sned, Say l50,oJO dollars "
yer and above tts Capital sock. Aus Is accord
ing TO what 10 expecsed of all Banks. rne lie
sslatHIe, and au wnO unders,.nd zoe suplsc.,
know thai ,i,s is part OF The p.niiege, wa,ci,
tney are 10 exercise; and withou, the exercise
ofswhici u Banking incorporation is no pr,,,iedse
at ALI.
Now af.er proceeding IS alb v for ten OF fl.
teen years and tnd,ng. dus,na that time, TIA.
no essential vsrIstion opk place 1t could not have
oeeD considered mpruden,, or in any degree rep
rchensitie, by one acquainted with the Du ,,nes,,
II they slousu sui CJn iaue 10 ioAa Isl, 200 dot.
lars OF the zoo ,0J0 over and ABOVE ,ur capt.l
sock.
Some have pretended to censure the Banks
for iosaiug TO government Bus the fact wa,
that VI lie capital ok, aud OF the sums receive
ii ior onis and ~ WY OF depos,ts, making 500
0J0 al lne whole, HJ. mare than 25J,uuU plt.,s
WAS wanted by individuals. The income VI iha,
sun. over and aoase paying the tax, and bank
charges wouid not nave neAied the s,uc khold.
ess more Than three per Cens per Anu. Inc
Government, fhea, presented the only Chance tor
ue residue. 10 individuals ,ney would have
oeen Jusihed IN ioauins 200 900 iolia.s more,
had'l oeen asked tor On soou security. To GOV
c,ninen,, therefore, they iosu. ssy ISL, 600 dol
lars ot ti,.t sum. When this Was done the oauk.
thr0u6 hou< The Distric, OF Name never suppu-
Sc ,he mseises AL = safer situation nor M less
danger vi Being called upon Tor more OF ,neir
phis and deposlls than ,hey could instantly pay.
But IRE misfortune OF The times is only ,he,r
misfortune Ia gre.ser degree. A par, OF the
Dlsrict wassuudeniy ana une xpec,edly IN. AGED
ana suoJusateu 10 iorelyn pow~a. lhe Clam
was general. Tue cnen,y Was expected NJ XXI al
Portland. lhe whole amount OF ali the oils of
all banks IN Gre uiai. ca cut Of The Distric,.
were Instantly cr.ed down; their circulation
stopped: Aud they were collected IN large
sums and sem hume and specie demanded
hose VINO had uep. si,s, At The same moment
rreAentet themselves also, as ii by ctncett; and