Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1837-06-21

ween New York and Michigan, have induced |
no banks of this state, as measure of sclf-pro-
lection, to avail themselves of provision of their
charters, g. 10 suspend specie payments also. You
are now called upon to sanction this procedure,
for the purpose Of preserving to our own citizens
= circulating medium during the suspension in
New Y ork aud elsewhere.
l feel gratfed in being able to assure tho pub
lie, that from an investigation of the bank CON-
recently instituted, have the utmost
confdence in the solvency Of the banks of the
state and l refer you to his report accompany
ing this communication, as warrant for this
conviction. 1t is nevertheless but just, however,
that they should be protected from an unusual
and unexpected drain upon their specie, in con-
sequence Ut the privileges which have been ex-
tended to The banks of New York.-The expedi-
ency of the measure as adopted by that state. may
perhaps we'll be questioned; and It may be doubt
cd whether the embarrassments, of the country
should not have bcsn left to seek their correction
in the natural results which always follow state
of over-tradipg work, however, has been
begun suspension of specie payments for one
year has been authorized by powerful neigh
boring state, and the question is, can Michigan,
without injustice to herself attempt to withstand
the current that is every where flowing around
her. "a
Admitting the ability of the banks to redeem
their notes in circulation, can We dispense with
circulating medium of our own, for the twelve
months to Gomez There is not at present, suffi-
ciont gold and silver to answer the purposes of
an exclusive metallic currency, and we must from
necessity depend in part upon the issues of our
own banks. If the banks of this state, are CON-
PEELED perempiorily to redeem their notes during
the general suspension in other states, they must
unavoidably call in their circulation and cease
| all accommodations to the community, as their
notes if issued would Immediately run back upon
them for redemption, in consequence of specie
bearing premium abroad. The banks then of
this statc, II required to resume specie payments
before the resumption in New York, must for
| selfpresefvation stop the entire circulation of
their notes. Or on the other hand, they may be
tempted to avail themselves of doubtful provi-
sion of their charters, and by resuming specie
payments, temporarily at the expiration of every
sixty and thirty days, flood tho country with their
paper, which from its then excess Of circulation
would still further depreciate in value. The doubt
ful power too, here exercised, would also aid in
deprcclating the circulating medium of the State,
| from the fact, that it might be considered ar
working forfeiture of their charters. The re-
sumption of specie payments then with this ex-
cess of depreciated paper in the country, would
BIO disastrous in its consequences if not imprac-
| ticable. @
As the only alternative, although deplorable
| d1u huAdiuouo ohcy WOuiu TcCOHilIcnO Tic pas
sage of law, exempting all the banks reported
as safe and solvent by the Bank Commissioner
for one year, or until the resumption of spe
Gle payment in New York and other states
from the liabilities of forfeiture of charter
| for declining to pay specie on their notes. A
law to this effect, would avoid the constitution
al question Of impairing the obligation of con-
tract, and would leave the bill holder his remedy
at law against the bank, should he choose to a
dept it.
Should you deem the passage of such an act
requisite, its provisions, however, should be rigid
ly scrutinzed and strictly guarded, so that the
public may feel perfect confidence in the ulti
mate redemption of the issues of the banks. In
the first place, 1 would suggest, that the law
should be made applicable to the safety funt
banks, and such others, as within limited peri
cd come within the provisions ofthc "act to creat
fund for the benefit of the creditors of certain
monoycd corporations, and for other purposes !;
and also that the banks be required to receive OF
dcpositc and in payment of debts due from indi
uiduats the notes OF each other. These provis
ions, if adopted, will give uniformity to the cir
culating medium, and prevent any one bank from
discrediting the bills of another. Each banl
should DO compelled also, if practicable, to rctai
its specie now on hand and to exhibit periodical
ly to the Bank Commissioner the fact that il I
still contained in the vaults, with the exception O
such sums, as they may voluntarily choose fror
time to time, to pay out in redemption of thei
notes or for other authorized purposes. The grea
object to be desired, is to prevent the bank
from selling THEFT specie at a premium, and yo
should by your act, visit upon every such inst
tuition thus disposing of its specie, the sever
est penalties, together with the forfeiture Of char
ter.
1t is highly desirable, likewise, that the bank
should be restricted in their issues to such al
amount as will answer the reasonable wants o
the public, without suffering them to expand thei
circulation to such an extent, as would retard tn
resumption Of specie payments, measure highl
demanded by the interests and character of th
country. And in order to secure a rigid enforce
ment of the provisions of this law, l would RI
commend such an amendment to your prescn
statute, as will clothe the Bank COMMISSIONS
and Chancellor with unrestricted authority {
close by injunction any institution found violatin
the rules and restrictions you may prescribe fc
them.
With such law as have suggested, it seem
to me, that we cannot fail to be insured circr
lating medium commanding the confidence of tn
public. Ifthe banks ara restrained from sellin
their specie, if they made to curtal by degree
their issues and to receive the notes of each 0tht
on deposit and in payment of debts due from ind
Uiduats, follows, that their present circulatio
will DO gradually absorbed, that the debts of tn
community illspeedily diminish, and that thecor
sequences to be apprehended from the attemI
hereafter to resume specie payments, will be i
some measure avoided. This, together with fe
tile soil, economy, and the industry of an enterpr
zng population, must unquestionably secure Il
Michigan continuation Of her present real an
unprecedented prosperity Her career may be r
tarded, but never DO arrested and if she paus,
it is but to roncw her onward march with redor
bled energy and vigor.
may here, follow citizens, suggest in conclu
ding this communication, that the great intere,
attending the approaching session of the Coz
: gress of the United States, may render it higl
ly desirable that Michigan should be represen
ed in both its branches. Your attention is Their
fore called to the propriety of ordering an ele'
ton of member to the House of Represent
tives, at an earlier day than is now provided
, law. ~
With the confident expectation, that your wi
; dom will supply the defects of any recommend
tons of my own, you have the assurance of m
, hearty cooperation m the accomplishment of an
measure calculated to protect or promote the il
; terests Of the people of Michigan.
STEVENS L. MASON.
f June 10, 1897.
Gel E B X ALTON.
The Sixty. first Anniversary of American Il
dependence will be observed at White Pigeon
manner becoming the occasion. The Comm
ZOO &c Arr,crcvnenfa announce tLo c.IIou,:u.~