Portland gazette and Maine advertiser. (Portland, Me.) 1805-1818, 1816-03-26
EoR THs PORTLAND GAzETT,
ON BANKS, No. /.


MR. sHIRIE,,
III E business of Banks having for some time past
occupied the attention of the Legislature and of the
CON immunity, L had proposed to mysef, through The
medium OF your paper, to suggest some hi@s rela-
tive to the origin and principles oil these institutions
and the facilities they afford, when properly con-
dueted TO trade and commerce. In the progress
Of ny remarks may be led to notice some of the
abuses which arise from them; andto bestow few
reflections upon the apparently organized system of
NT,atiqg upon banks, whc has of late been SO ex-
fsnsiyey pursued.
The various wants and exigences OF social life
suggested the necessity of barter and exchange.
The enharras ments attending that cumbersome
and inconvenent mode of doing business, and the
circumscribed sphere, to which it was necessarily
confined, soon led TO the invention of common
medium of trade. The precious metals have gener-
ally served this purpose in all Countries that have
made any advances in civilization. Their relative
security their durability and their easy divisbl-
ity have rendered them peculiarly well adapted to
become a common measure of notice. But as they
are the representative OF the value of every other
thing, it is obvious that If perfect representative
Of the precious metals, predicated upon principles
that mig hit generally inspire pubic Confidence,
could be devised, the purpose of circulating medi
sm might be as fully answered The promsory
notes obligations of bank association OF in
diy,dnals, under public authority. known to have
Competent funds provided for the prompt fuliment
Of their contracts found to constitute perfect
and satisfactory representative of, and substitute
for Tue precious metals. Payments in large Sums
in these notes could be made with more ease and
facily aud could, with the utmost convenience,
be transported to any distance within the sphere of
their circulation.
A banking institution appears to have been es-
tablished in tie con1a,ercia republic of Venicr, "a
lon5 ago as the twelfth ceatury. TWAS conducted
under the auspices of their government, which then
well ,lndefs ood and assiduousIy cherished the in
tere.ls of commerce. The state in its various ext
genc,.s derived the most essential aid from It's
fund /; and i1dvii1als found il peculiarly useful in
their mlitiphed and extensive negotiations. Such
was til Integrity and good filth with which il
cor .ues, that its stock advanced, and continued
for cenFpses twenty and sometimes thirty per cea
above. gRr ; and notwithstanding the glory has
long sucs departed from that once splendid repub
lie its bank still remains monument of its political
and commercial wisdom.
The extensive credit of the bank Of AMSTERDAM
throughout the commercial world, until within a
few years, is very generally known.
The 0aak Of England was established in the year
1894, and has become the greatest bank ofcircula-
ton in Europe. Its capital has been increased
from time to time and il Is the important or
gan of the government in its multiplied and com
pcated financial operations. 1t is the heart to and
from which the vital current Of That immense coln-
merciaI empire circuates. That bank has by act
of Parliament, to secure its credit, exclusive prvi
eyes as a corporation; and no association OF more
than six individuals are allowed to issue bills
notes payable Oh demand, or for less period THAI
six mouths; but within this restriction, Individuals
may circulate paper to the extent of their credit,
Accordingly there are about seventy banking hou-
SEES in London and nearly four hundred dispersed
through the country.
BY the operation of these establishments, almost
l>nl.
are ultimately made in London with the notes OF
the bank of England these notes forming the Cir
culation of the metropolis while these OF private
banks serve that purpose In the country. NO Jea-
ousy or rvalship subssts between the national
bank aad the smaller banking houses in the prsvin-
cal towns On the contrary the latter receive the
fostering care and pr lection of the former. The
precious metals tn be found, which could easily
be introduced into Great Britain would be alto
gether insufficient to answer the purposes Of the
most extensive aud Infinitely diversified domestic
trade. BY her banking institutions this dehcency
is abundantly supplied; and much oil the capna
which would be devoted to the procurement ava
increase of Gold and Silver how be directed 10
the aid of commerce of manufactures, and oil agri-
culture, il is universally understood that these
branches have been carried in that country TO an
high an unrivalled state o. perfection within the
last century notwithstanding the repeated and ar
dunns wars in which she has been engaged ms
effect NAV be ascribed in great measure to her
admirable monied institutions, acting on the man
spring of her complicated machinery, and commu-
nsating by it. elastic force, powerful impulse to
its most distant operations
In 1877 specie payments at the Bank of Eng land
were prohibited by act of parliament. This dan.
serous experiment became necessary by the actual
state of the country. Ihe most gloomy consequeli-
ces were apprehended by her atlest statesmen
Eut measures having been taken g. satisfy the pub
lie of the sovency of the bank, and its issues being
restricted within reasonable hounds, its credit re-
NAMED mistaken and thus the truth OF this pcs
ton has been demonstrated, by the experience
many years in that Country, that sqtee payment
orc moi at all times absolutely necessary to maintain
the credit Of banking institutions. l..