The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-01-27
COMMUNICATIONS.
FOR THE MADIsoNIAN,

NO. XXI.
am animated by as ardent and deep desires TO
demonstrate the necessity and to simplify the pro-
prety of reducing the number Of the state banks
existing, as can be the Christian TO send forth the
Gospel of the Grace Of God, in the richness and
fitness of its blessings to the benghted nations of
the earth am as little swayed BY personal inter
est. The public good is my simple impulse and
guide. should rejoice to ADLER pens and minds:
none freer from improper motives can be enlisted in
urging on the good work to It's contamination.
All men Of ordinary intelligence know, from past
events that the multitude Of State banks now exist
| ing is inadequate alike to the furnishing Of uni
| form national currency, and a successful conduct
| ing of the fiscal affairs Of the Government None
can deny it without being liable TO the reor in the
fullest import of its anmadvcrsion that none
are so blind as they who will not see"
II being undeniable that the State bank system
comprising multitude of banks in each State, is
fated to frequent and ruinous lapses, the obvious
remedy to be advocated and adopted by those who
desire to retain the system to render il less liable
to temporary failures, and to make il more perfect,
harmonious, and efficient, iSto alter its organization
by reducing the number of them.
have somewhere expressed the opinion that the
proposed altered organization of the system may be
cious state ofthngs quite as imperceptibly as bone
fcially. 1t is true this cannobe done without CIV
ing cause Of complaint TO the stockholders and 9TH
ers interested (he officers, for instance) in the
listing banks This small, but influential portion of
The community, however, would not have lasting
cause of just complaint Let us take the State of
Virginia and her existing banks for the purpose Of
exemplifying Let the Legislature of this State, Va.
now in session, ordain by appropriate enactments,
that the corporate existence of the banks shall not
be extended beyond the period prescribed by their
charters That in the mean time the transactions
of each bank shall be gradually and steadily reduc-
ed under pain of suitable penalties. That new
bank, named " The State Bank of Virginia" be
forthwith chartered with capital stock equal in
amount to the capital stock of all the existing banks
Tint the parent bank be established in the City Of
Richmond ,.ld be empowered and required 10 es-
tabsh branches Gas soon as ii can BE- put in opera
ton with suitable proportions OF The whole capital
stock and at the towns or places at which the pre-
sent banks or branches are situated. That the new
bank or branches be put in operation as soon as one
third Of the whole capital stock IS subscribed and ac-
tually paid in. That, being thus put in operation
bv means of third Of the whole capital stock paid
in. the bank and branches shall only do business
| confined to that amount, until July 1910, when
another third Of the whole capital stock may be Ia
ken and when actually paid in, the business TO be
confined TO the co-hirdS until July 1912, when the
now existing banks should bring their concerns to
close : and that then, the remaining third of the
capital stock of the new bank and branches be ta-
KEN and when actually paid in, that the business OF
| banking be conducted by them on the whole amount
of the authorized capital stock the being equal
to the amount of the capital stock of the now exist
ing banks then no longer 10 exist.
Should this be done, that portion ofthe communi-
ty interested in the existing banks would have
an equal chance TO invest capital, and 10 be employ
ed in the new bank, with the rest OF the community
and the change would be burthened with no lasting
cause of Just complaint.
To enforce the principle Of this alteration IN The
| State banking system, the General Government may
exert a happy agency-a powerful instrumentailty,
to wit By recommendation from the Congress TO
the States so TO amend the federal constitution, as
to require the States one and ALL 10 pursue course
of legislation by which, within given time, each
shall reduce the number of its banks TO oNr, with
suitable number Of branches within its own borders
and when, thereafter, an enlargement of banking
capital shall become necessary and proper, to en-
large it (alone) by augmenting the capital Of the
bank and its branches, or by establishing new
branch; and not by creating, in any case, new and
independent blnk.
Having strong faith 10 the feasibility 81 the pro-
posed plan and iu the ultimate triumph Of true over
erroneous policy, do not doubt that its principle q
care not about the details) will prevail, ifnot before