Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1838-04-21

D,ahsss AID Joint stock eonpaniss u not usu--tt
~ saaas1, bssisvss IN the psb,ie accounts. II
& beAsshe same proportions 10 their notes 10 car.
e vsuid exceed twelve millions. We may.
1heeeDbss. take the amount q debts in EngIaed
- - shiety-Sve millions. Bot ] suppose that, OF
- seeus5iiss held by the baak Of England, ex-
choauef sotes constitute largo part: IN other
wseds, that . large part Of the hank debt - Que
By he govesnmsnt. Sns amount o. eo." :"
~ ciecvlation Is estimated to be thirty and
HaIf r,;li;oos. The whole amount o. circulation
u Essiand, metallic and Pspef Is usually saved
n rrand ~umbees, ut sixty millions; which "a .
- de pouad sterling u - 50, Is equal to two .
Assdesd aud eighty eight millions Of do!!ar..
AaIf ~ shan that Of England, but our bank
Sehs, nevsssheiess, much greater; since thirty
6ys millions sterling amount N only one hundred
and sixtv-eieht millions Of dollars; and this sum,
sos, includes the amount of excheq"er b''is,
which ths hank holds. These facts are very
naassial to any Just comparison Of the state of
~Ain9s IN tho two countries. The whole, or
neasiv The whole capital Of the bank Of Eng
lsad, IL lent TO the government, not BY means OF
sxeheaues noscs, but on permanent Ioan And
m "a the private banks and j,int-stock comPan-
les, though they have NO assigned OF aPPsoPs!a-
ted capital whatever. The bills elEcuia'e on inc
urivate crsdit Of the Individual banker, o. Of
those wl,o.composs the tint stock companies.
II tho United States, an amount Of capital sup
uosed 10 bo sufficient sustain the credit Of the
papes and secure te public against loss, - P""vi-
s)ed by law, ia the act Of incorporation" for each
hank, and IS assigned a. trust f'nd tor the pay
,nent or the liabilities Of the lAnk. And il this
capissl be fairly and enthusiastically advanced,
il y . proper security; and ia most cases. no doubt
II n suhst> u,ialiv advanced Tho directors arc
trustees Of this fan and shoy arc liable, both CT
willy and crimnaliy, Tor mismanagcmcnt, cmbez-
ziempent, Of breach Of trust.
This amount Of capital, thus secured, Is the
bssis Of loans and discounts; aed this - tho sea-
500 Why permanent, or NJ least long loans arc not
na.sdeeed % in, appropriate 10 banking operations,
viii NJ, n they are in England. With %, u Is
evisieat that the directors are agents, holding
fund intended to be 10 med, and acting between
1cnder and borrower; and this form Of loan has
been C,und exceedingly convenient and useful in
In soa.e States, IL is greatly preferred TO mort
raves. though there arc others in which rnortga-
~ are usual. Whether exactly confosmable TO
abe srue notion Of banking, Of NOT, the truth -,
that tho object and operation Of our banks - to
luan mnoaey: and this Is mostly on personal secu-
siav. The system no doubt, is liable 10 abuse, in
nassieu1as instances. There may be directors
who will loan too freely TO themselves and thc'f
f,icnds Gross cases Of this kind have recently
bssa de'scscd and exposed. and ! hope, vii DC
suiS,blv treated; but considering the great num-
her Of banks, these instances, think, are rensar.
kahlv fev. In general, the banks have been well
conducssd and are believed 10 be solvcat and safe
We have heard much, sir, in the coussc Of this
debate. Of excess in the issue Of bank notes tot
.eirculatiou have no doubt, sir, that there wal
avery improper oxPensioo some years ago: wh:n
President Jackson, 10 1882, had ncga,ived the
hill Cor cousiuuiog the Bank 0f the United States
(which act esteem ~ he true original source u
In the disorder Of the currency vast addition
vas immediately made 70 the number Of State
h.nk.. Ia 1883, the public dePosises were actu'
nm removed from the Bank Of tho United States
~ placed in selected State banks Aud, for thG
o.epose Of showing how much better the public
vos,ld be accommodated without, than with, Z
1ank Of tho United States, these banks wero NO
ooiv encouraged, but admOnishcd, to be free AM
It.,.l n loans g. discounts, made ON tho strength
~ ehe public moneys, to merchants end other in
.S;v;duals. Tho circular letter from tho Treasur,
Dcoarsu,eut, addressed to tho now dcPoeiso banks
.nI3er date of 28th September, 1883, has this sig
siAeant clause, which could not have been m'son
dssssood. -. -,
sTbs dcposises Of public money will enable 20
n .0ord Increased facilities to commerce, and
extend vour accommodation to individuals; an
% de duties which are payable to the Covers
nene arise from the business aed enterprise o. tn
msrchaass esgaged in foreign trade, It y bas res
,eooab)e that they should be preferred in the u
dieiooal accommodation which the public dcPo.
iaes will enable yous institution to give, whene'
ee IL can 30 done without injustice To the claim
Of other classes Of the community"
Having read this letter, sir, ask leave to r
Car the Senate 10 the Goth section Of the bill no
hsfse. us. There we find that, iii any Office
charged with the safe-keePing Of the public M
new. shall loan the same, or any portion therce
Win OF without interest, such act shall be deems
an es,bezxlcmens and high misdemeanor, ~
The party convicted thereof shall b sscsenc'
"a ia,eeiso~ment." Sir, what = pretty piece
constituency - here. In 1893 the depositories
ths public money wcre not even left to their on
desire fos gain, OF their wishes to accommoda
oshsss, - Being sufficient incentives to lend it gu
they were admonished and directed to afford
creased facilities to commerce, and to extend the
secommodasion TO individuals, since the publ
upooeys in sheir vaults would enable them to 81
s~ch sdditioaal accommodation! Now, sif, und
sh;s b;ll, any officer who shalt do any one Of q
sans ,hings, Instead Of being praised, - 70
punished: no is to DO adjudgcd guilty Of emb<
slsussns and of high misdemeanos, and is to
coa6aed, fos aughS know, in cells as dark .
dismal - The vaults aud safes, which gro 70 &C
tain COR metallic currency. But although this
cir. that The acts 81 Government created this