Vandalia Whig and Illinois intelligencer. [volume] (Vandalia, Ill.) 1832-183?, 1834-02-13
ONE OF THE PEOPLE.
FOR THE WIG.
NEW BANKING. 9.


According to the acknowledgements
of the bank advocates themselves, the
state is too much embarrassed to furnish
the amount of capital required to estab-
fish a bank, and of course they rely on
the aid of foreign capital. As there
can be no reason to expect that. forelgn
capitalists will invest funds in an instAu-
ton under the management and direc-
ton Of the State Legislature, lis propo.
sed to place the management of the in
stitution in the hands Of the stockholders,
reserving the right to the State to sub
scribe small amount of stock, and to
appoint a certain number of directors
not sufficient to control the institution,
but merely sufficient TO avade consti-
ftutional prohibition, and that it may
correspond in its name and designations,
at least with the words Of the ,constitu-
ton, which are as follows:
: "That there shall be no other banks
or moneyed institutions in this state but
those already provided by law except a
state bank and its branches, which may
be established and regulated by the
general assembly of the state as they
may think proper"
Here, then is plain prohibition a.
gainst the establishment of banks; and
the only question is to determine what
kind Of banks were intended to be pro-
hibited. 1tappears that there,were two
chartered banks already in existence
when the constitution was adopted; one
of which (the bank of Shawnetown) wa:
regulated by charter, the safest fol
the community Of any in the world
1(holding the stockholders liable for the
debts Of the bank in their Individual
capacity yet the constitution prohibited
the establishment Of all other banks
whatever, except State bank and
branches. For any person then 10 con
tend that the Legislature have the pow
err to incorporate banking companies,
is to destroy the whole force of the pro
hibition. But if any doubts can remain
on the subject, we have only to rever,
to the history Of the times Immediately
preceding the formation of the State
constitution, and the reason t. propriety
of the prohibition becomes apparent.
1t will be recollected that, after lhs
close Of the last war with England, and
during the years l7l5, l6, and II, the
rage for banking prevailed to "A great ex
tent, and the country was inundated
with deprecated and worthless cur.
rency, thrown into circulation by moor
porated, specializing banking companies
the evil effects Of which were soon ap
parent; and ii is highly probable tina,
1t was to prevent recurrence of those
evils, that the clause was inserted with
the intention Of prohibiting private bank
ing companies, and combining the power
OF banking to the State itself; conse-
quently, in the establishment Of any
bank, whatever amount is owned or con.
trolled by individuals, is so far, by fair
construction Of the Constitution, an open
violation of that instrument; and the
people of this State have been sufficient
~ admonished against the evil effects
OF forced construction of the Censti.
tuition, by late decision OF the Su-
preme Court. By that decision the old
State bank is declared unconstitutional,
and it is almost certain that all notes and
obligations whichhave been made pay
able to the bank or discounted by it, will
be deemed illegal and void.
ONE OF THE PEopLE.
Extract Of letter from gentleman
place. '''
lshould be clad to knou hon ,