Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1838-03-07

]. Ford D,troit and st Joseph Rail Road Bank,
g. 8. q 9 .R %1i'''m0r'' Bank of Oakland.
C. C. Haskell, Gsnesee County Bank.
EXECUTIVE COMMUNICATION
The following communication was sent
to both branches of the legislature yester.
day:
To the Senate and
House Of Representatives
transmit, for the consideration ofthe le-
gislature, memorial from the convention
of the banking associations, recently held
in this city asking participation in the BEN
efts resulting from the negotiation Of the
State loan for purposes Of internal improve
ment.
The memorialsts desire to become the
purchasers of State stock, SO as to place
themselves in eastern funds, by the sale Of
this stock.
In the exercise of discretion, necessa-
rily vested in the executive by the law au.
thorising a loan of five millions of dollars
for purposes Of internal improvement,
have, as heretofore stated to the legislature,
already issued one million and half of the
State stock under this law. This amount
is considered all that can be prudenty dis.
posed of, in the actual construction Of our"
public works, during the present year and
as do not feel myself authorised to nego.
tate this loan more rapidly than may be de-
manded for the direct purposes of internal
Improvement, nor for purposes of loan or
deposite, the application Of the memorial
/ iete e raenootc,l1,, .,,h,~,t,aI % cano,d
Grafton of the legislature.
/, however, concur fully with the memo-
rialsts in the position, that the banking as.
socations they represent, are Justly entitled
10 the aid and support Of the state govern
ment, so far as it may be extended 10 them
without detriment or loss to the more gen.
eral interests Of the public and | would.
therefore, most earnestly call your attention
to some measure of relief as dictated by
sound public policy.
Whilst do not concur in the suggestion
for sale of state stock, there are other /.
sources arising from the negotiation of the
state loan, which may be used to the public
advantage, through these institutions. The
almost exclusive circulating medium of tie
state, is composed Of the issues of the as.
sociatious under the general banking law,
and whatever losses may be sustained from
Its depreciation, fall upon the bill holders,
who are the people. The question of poll.
cy as to authorlsng these issuesI of Bank
paper has passed, and the one which now
occurs is, shall the state endeavor to give
character and credit to the circulating me.
dunn thus createdl Your merchants have
been compelled to sell their goods for this
circulating medium, and unless some meas.
ures are adopted by which the holders ofthe
paper of these associations can purchase
exchange on the eastern cities, where our
debt is owed, with this fund, the business Of
the state must be completely paralysed.
} My impressions have been, and are, as
yet, that state bank, with ability to sell
: exchange on New York or other eastern
cities, might. by judcous arrangement
J with these associations for the periodical re-
dempton of their bills, be an effectual a.
gent in restoring confidence in our currcn.
cy. But in the absence of such an insti-
tuition, the patronage and resources of the
state must be directed to the support of the
associations themselves. should object to
sale Of state stock as asked by the memo.
rialists, as calculated to affect the credit of
the state, and to depreciate the value Of the
stock, by bringing it into market through
too many different channels and the mea-
sure, if adopted, would have an injurious
effect upon the future financial operations
, ofthe state. The only mode of relief. then,
; tending to meet the prayer Of the memoir.
alsts, is, for the legislature TO direct the pro-
ceeds of the state stock, at present issued,
to be extended to such associations under
! the general banking law as may be deemed
a solvent by the bank commissioners, and but
( temporarily depressed.
, II has ever been my desire, as should
f. consider it my duty, TO relieve, without par.
d tiality or favor, the banks of the state, by
: any foreign exchange which may come in.
to my hands by virtue Of the state loan.-
: But as the funds TO be received in the sale
!, of this exchange must be such, as the state
e deposite bank will credit as cash. the amount
n of exchange extended TO the other banks
J, can be, to great extent, governed by that
!, institution, whilst at the same time it is but
Q justice to say, that have ever found its Of
9 ficers ready to 60 every length with the
i state authorities in any measure of public
y benefit. 1t would, therefore, be relieving
u the deposte bank from an unpleasant EN-.
J. barrassment, if the treasurer should be au.
). thorised to receive for this exchange, when
sold, such current funds as would answer
the purposes of public disbursement; and
in addition TO this measure of relief, will
submit the propriety Of directing an add
tional but limited negotiation Of state stock
for the purpose Of increasing the amour
Of exchange, the avails Of which might be
deposited with such banks of the state a
would insure their safe keeping, by giving
other and collateral security to their gene
raj and ordinary obligations, and also foI
the payment of reasonable interest to the
state for the use of the money, and to BE-
bound to refund il as it should be gradually
called for under subsequent appropriation
for public objects.