Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1838-01-17

A.
beg leave to call your attention to the acl
of the Legislature authorizing a loan of five
millions of dollars for purposes Of internal
improvements. BY the provisions of this
law, il is declared, "that the proceeds of all
railroads and canals constructed by the state
the interest on alloans which may be made
from the internal improvement fund, and the
dividends arising from all bank stocks own.
ed or to be owned by the state, SO far as
may be necessary, shall under the direction
of the legislature, constitute sinking fund
for the payment of the principal and inter-
est of The loan authorized" Under this
law, the faith of the state has been pledged
to guarantee certain sources Of revenue for
the redemption of our loan. A sense oil
duty, and the interests of the public require
that asystem for the investment and man.
agement OF this sinking fund, should at once
be mafured. We have held out to the world
these different sources Of revenue, as show.
ing the ability of the state to meet its en-,
gagements, and i am satisfied that it was
the intention Of the legislature TO carry GU,
in good faith their implied pledge, by state
investments in bank stock, so soon as the
loan authorized should bc'completed. That
the investment of this sinking fund in bank
stocks would be more productive and Ger.
tain than nyothcr mode, have little doubt;
and as it seems the state. is TO be a holder
of bank stock, the question will arise whe.
Their she will place her funds in private in.
stitutions, or in an institution under her own
control.
Whilst I am willing to yield TO the better
judgement Of the Legislature, can but ex.
press my decided preference for state in.
stitution. In addition to the advantageous
creation of a sinking fund, for the payment
OF our loan by the incorporation Of such a
bank, we should have an agent with abili.
ty to manage the financial operations of the
state, and calculated to aid us most essen
tially in our contemplated works of public
improvements. Again, a state bank, il
properly managed, would be an important
instrument in establishing and sustaining
our credit abroad it would have salutary
influence upon our currency, and would
from its large capital, be enabled to render
great assistance TO the commercial commu.
nifty, in the exchanges between this and 9TH
err states. The faith of the state pledged
for the redemption of its circulation, its pa.
per would command confidence in every
part of the Union.
1.-THE project of state bank should find
favor with the legislature, | would suggest
that its capital should be limited to the "a
mount ofthe loan, and that its charter con.
tinue during the period for which the loan
made. The stock should be apportioned be-
tween the state and individuals, in such a
proportion as would give the state unrestrc-
ted control of her funds, and, at the same
time, create such check by private inspec-
ton, as would prevent the abuse Of the trust
held by the public agents. The circulation
of the bank should be limiteS by its char
ter, and at no one time should exceed a
certain fixed sum. The individual stock.
holders should give the state real estate Sc
curities for the amount of their stock, as an
indemnity for guarantee which the state
should issue for the redemption of the cir.
culation of the bank.-Ths guarantee
might consist of state bonds, bearing an in
tercst Of six per cent, to be deposited in
the Office of the Bank Commissioners, and
although bearing an interest of six per cent,
no interest should be paid whilst the bonds
are in their hands. This stock should be
assignable only under the order of court,
and after such assignment the interest
should begin. The bank should be tke1epos-
itory of all the public moneys, should is.
sue no notes of less denomination than ten
dollars, and should make all the disburse.
ments and exchanges Of the stale gra.
tuiiously. For the capital stock, on the
part ofthe state, we might calculate on the
surplus revenue received from the U. S.,
the premium and exchange on the state
loan, or such part of the principal of the
loan as might not be Immediately required
for public use, the receipts from all rail.
roads and canals, or, it should be deemed
advisable, the whole school and university
fund might, at a reasonable rate ofinterest
be loaned to the internal Improvement fund.
From these sources, an ample capital might
be produced for all the purposes of the in.
stituton and as there are considerations
of grave character connected with the
proposition, would ask for it the calm
and dispassionate elaboration Of the legis.
lautre.
have repeatedly expressed my opinion
against the policy of granting acts ofincor.
poration to individuals for ordinary purpos.
es Of trade. My views on this subject re.
main Unchanged Competitio is the best
regulator fevery branch findustry. The
association of wealth for such objects as
may be pursued by individual enterprise,
subjects the great body ofthe mechanic and
| industrious classes to an unfair and inuri-
Gus competition. The general law rea.
live TO interpretations, now in existence, is
sufficient for all the purposes Of encoura-
ging manufactures and would recon-
mend that the legislature abstain hereafter
from all such special legislation, as is cal
culated to create within the heart of the
state, system of privileged monopolis,
combining to enhance the profits of stock,
and with power to depress the wages of la.
Dor and in Certain particular departments Of
| trade.
AT the last annual assemblege Of the
legislature, brought before them the inju.
rious consequences resulting from our exis.
ting usury law, and urged the necessity Of
its repeal, as based upon sound policy, and
ascalled for by the best interest ofthe state.
/ A casual observance Of events for the last
eight months, has but increased my convic.
| fion If tho nerniciouc fepdapcx, of oil .,,,l