The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1837-12-16

ing system should he efTectuallv To curb the
power to do evil, without interfering with
the capacity tn promote the common good.
To accomplish this desirable end, would
recommend the incorporation Of The follow
ing provisions, or of others calculated to
produce the same results, in all future Bank
laws, and their instant application, so far as
chartered rights AMI the faith of the State
will allow, to the Banks now in existence:
l. That the profits or dividend PAYABLE 10
the stu kholders. he forever restricted to 7
per cent. per annum on the capital actually
paid in.
9. That the notes in circulation be still
further reduced, in proportion 10 the amount
of capital stock paid in. 1t may, by the
present laws be double that amount.
8. That wherever the specie of any Bank
shall fall below a fixed proportion TO the
notes in ircuIatiuu, all increase of crcula-
tion shall he strictly prohibited and sunma-
rily punished. until the proportion required
by law shall be restored.
4. That no loan shall he made TO any bro
keI or other person engaged II dealing il
money, notes, bills, or other evidences of
debt, until persons engaged in other husi-
ness, and presenting equal security, shall
he first accommodated; nor any loan re
made on pledge Of stock, nor on any other
security, except that which is usually de-
mandcd. Aud that loans to Directors, di-
rectlv or indirectly, shall be placed under
similar restrictions with those To brokers.
That tie amount Of loans 10 any individ-
ual or firm, whether as drawer or endorscr,
or beth. shall not he permitted to exceed
certain sum fixed by law, except with the
consent of three-iOurths of the Directors.
6. That the excess of annual profit he
vond per cent shall be invested Ivy the
officers OF each bank, in such manner as
shall be approved by the State Treasurer,
until it reach certain amount to he fixed
bv law, in proportion TO the capital paid in,
as separate fund to secure the safety of
the bank, and to redeem its notes in ease
of accident. The fund 10 be under the di-
rection of the Stockholders, who shall he
permitted, after its completion, TO receive
ali the earnings of the Bank, until they
shall he reimbursed for such portions OF the
dividends between and per cent. as
were therein invested. But after they slal!
have been thus repaid, all excess of divi-
dend ovcr7 per cent. shall he periodically
paid into the State Treasury for the use of
the Commonwealth, together with the fund
itself, at the expiration ofthe charter and
dlscontinuance of the Bank.
That every Bank in the State shall be
compelled to keep its notes at par in Har-
risburg. Philadelphia and Piitsbmg, the
one the capital, and the others the great
commercial emporiums of the Common
wealth, or he summayiy liable to the hold
er for any discount incdrred.
That law be passed fixing a period,
net more distant than three, four, or five
wears from the present, for the expulsion
from circulation of all notes Of "A lower de-
nomination than ten dollars.
THAT tie President and Directors for the
year during which suspension of specie
pavmcuts slaIl occur in any Bank, shall
be Individually liable for its notes, and for
all other rl;ims againstit.
That hereafter no bonus or price shall
be paid to the State by any Bank for a char
ter or recha~ler, other than the excess over
Z per cent, Of It's annual profits as above
mpU'ioued; and that al! new stock shall he
sold hv auction, tie excess above par value
To he the property Of the State, hut 10 he
invested in the fund above described till the
expiration oflhe charter.
And finally, hat no bank he allowed to
90 into operation until one thrd OF its stock
shall have been actually paid in. ,-,a
These improvements Of the system,
have litIe doubt, would be eGrctua
limit to the private profits OF banking
has hecome manlestly necessary, to pro-
tect society against the danger and evils
springng from the desire to realize large
dividends; but it should he accomplished in
such manner as to strengt hen and not wea-
ken the banks, because the public good is
involved in their soupdness. 1t is to pro-
dlce this double result, that al profit, be-
yond reasonable sum, is recommended 10
he retained for the public use; but that, IN
stead Of being taken nj once into the public
Golfers. it should he invested, with the con-
sent of an officer elected by the Legislature,
in such manner as shall promote the best
interests Of society, by inlusing additional
soundness and health into the currency.
70 prevent misconstruclion, IL Is proper u
state that no intention is entertained Of crel-
Ting a safety flnI systsm, by which all
the banks of the State shall he involved in
| .,, Ioo,,, ka iu0ictaI OF anxy