The Arkansas advocate., 1834-04-11

nent, are at an end, excepting such sr,eciiaf ones as may be hereafter entered into ha- tween the parties. Banking is a business, and can only be sustained by it's cred;f.- oi what use. therefore, is charter. if they people of this country have confidence in its capital and administration, under mart nefshlp concern, with ample means? I I,e,e IS no law Tn Pennsylvania 10 prevent the present concerns of that institution beino earned on precisely on the same principle as Stephen Garard established andcarried on with undoubted success kis banking estab- ilshment; and no law can constitutionally pass in any State, which shall deprive ei- tizea of his right to accept the agency or attorneyship of that Bank. Let this pro- position be seriously considered, and if there are no insurmountahle objections to ii, we should say tbe question is settled.- The Beak lclll continue Us business as long. os public eoTtdencs IS rePosed ia t.
 TIE SAFETY FUND SYSTEM Very few people, probably, know the meaning of this phrase. The words "Safety Fund.- are made to appear in large letters on the bills ef certain banks in the state of New York. giving them. in the view of the ignorant q fictitious name. The pretence that a."Safe- ty Fund' Bill IS any better than any other, Is all humbug. We do not mean to say .aat these hanks are nsolvent; they may be all insolvent or all perfectly sound; but the Safety Fund is no security. Those who are ignorant of the system, may be enight- ened by the explanation made by Mr. Ew- ing, in the United States Senate Bcston Courier.
 Mir. Ewing said-the system is this.- The Banks which are combined under the safety-fund system each pays one per cent. per annum on its capital. which sum Is set apart as a security for the payment of all debts due from any of the Banks which may happen to fail. If they all redeem their own bills, this fund becomes in the end the property Of the Banks, and goes into their dividends.
 Now, this Is all very spacious on the face of 1t, but here turks the mischief. The banks being thus leagued together, and bound mutually for each others solyency, fail, as a matter of course, to exercise that salutary control over each other which in- depenten! banks always do exercise, by re- turning bills, and forcing the payment of balances; thus checking over issues, or ex- cessiye and improvident banking in any form. One of these banks clearly cannot coerce another, so as to restrain its issues, without danger of driving the improyident bank to insolvency; and, if that be done, the bank that applies the corrective has 10 foot the bill. The only way, therefore, that is left to the bank that sees another is- suing too much paper on its capital, IS to place itself on an equality with if, by iss'l- ing too much also. The consequence ne- cessarily is, that it gives rise to an excess siye issue of paper, and palms upon the unsuspecting public, paper currency, un- supported by a sufficient metallic basis.- This state of things has been in some measure restrained by the operation of the Bank of the United States and the other State Banks; but remove that check, and there would be no bounds to their issues, except those which ayarice will voluntarily assign to its own means of gratiflcation.- Let this system become general throughout the United States, which I understand has been thought of, and, in few years, in- stead of hard money, we shall have a mis- erable rag currency, not worth the paper out of which it is made. This, (said Mir. E.. l should say, was the natural tendency of that system, which l heretofore pro- nounceA, and which ! now pronounce, to be the worst, the most uns'.astan'ial and H.
 usory, that human head ever devised.
 CoUNTERFEIrER pETEcTED.-A few