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

Gle will at once be drawn from them for e.
portation to those places, where debts are
owing from the citizens of this state. Their
foreign circulation, if not made redeemable
at some Of the commercial cities in the
Eastern states will also return upon them
for redemption and a conviction that such
will be the case, will induce the bill holder
at home to convert into specie the paper
which he has, lest it should remain upon his
hands after the immediate available funds
of the banks issuing it, shall have been ex-
hausied and their paper deprecated. The
consequences will be confusion, embarrass.
ment and distress--they may be dishonest
and destructive to the currency and credit
of the state. Z.
If however credit of Sufficient extent
can be obtained in some of the Eastern ci.
ties, the consequences will be averted.-
According to the plan hereafter suggested,
such credit could be obtained without a
correspondent increase Of the circulation
and liabilities of the banks TO be benefited
| by it /; and this credit added to the specie
in the vaults Of the bank will increase and
confirm public confidence in them. The
redemption Of their bills by drafts upon the
Eastern cities will relieve the wants OF those
who are owing debts there, will prevent the
expectation of specie and by strengthening
the confidence of the community in the re-
sources of the banks will diminish, if not
entirely arrest a run upon them by our own
citizens; and thus the institution will be pre-
served from dishonor, and the people from
distress.
Your petitioners further show that such
consummaton they believe can be secur-
ed by allowing such banks under the gene.
raj banking law, as can give satisfactory
security 10 become the purchasers o. a por-
ton of the state stock. If this be done, the
payments to the state can be made here,
while the stock can be sold, and converted
into available funds at some of the com.
mercial cities in the east and the advan-
tages can be secured, which have been al.
ready specified.
This stock can be paid for without cor.
respondent increase Of the circulation and
liabilities of the banks who may purchase
it. A considerable portion Of this circua.
ton is in the possession Of the banks them.
selves one bank holding the notes Of 9TH
ers, so that by an exchange of balances
the ostensible circulation could be consid-
erably diminished, or by retaining them,
the banks could pay for the stock in the bills
of other banks already issued and in circu-
lation.
Your petitioners further show, that bills
payable in the city Of New York, are now
sold by the individual who became the pur.
chaser of half million of state stock and
as your petitioners believe, upon funds pro.
cured through the means of the state stock ;
which bills can be bought only by the
notes of the old incorporated banks. Thus
fictitious credit is given to these notes,
and a correspondent depreciation to the
notes OF other banks. Your petitioners
most certainly do not deny the right of any
citizen to demand any description OF funds
which his obligations to others, or his inte-
rests, or judgment, or caprice may lead
him to prefer. But they mention the fac,
simply TO show that the largest portions
of the banks of the country, so far from
being benefited, have been directly auc
palpaby injured through the influ ence
of that portion of the stock already referred
to.
They further shew, that they have un
doubted information, that the Cashier Of the
/, state bank of Michigan is now on his way
, to the state of New York, there to dispose
of state stock to the amount of. 81 100000
the avails of which will be placed to the ere
/, dit of the state and drafts upon this funt
f, sold by the Executive of this state for sucl
money as the State Bank of Michigan vii
receive in general deposite and place to thu
{ credit of the state. This money now i
, specie or the bills of the State Bank itsel
5 what further regulations that bank ma,
make rests with its directors. Your homo
3 rable bodies can determine what prospec
Z of relief and aid is given to the association
J, under the general banking law; existing
under system which they would not wis
to term antagonist, but which certainly
> not similar, to the principle of confnin
banking to close corporations, acting unde
i, special charters-such as the state Bank
!. and interfering with the profits and bushes
}. Of the older institutions.
/. Your petitioners humbly conceive tha
h for the above reasons they have stron
:, claim TO the assistance of the state. and Ger
g tainly there is quite as much reason for al
lowing them to become the purchasers ofth
y state stock, as to sell it to foreign specu
!. lator or corporation, or to private citize
), of this state.
!, They therefore humbly pray, that tn
banks in actual operation under the gener,
banking laws Of this state, may be Above
e to purchase the whole, or such a part {
}. the state stock, as the Legislature may deer
j, advisable to sell; that tho stock may b
o apportioned among the several counties {
G the state in which any of these banks exis
# who may elect to become the purchasers {
Y the stock, IN proportion to the population {
such county and among the banks Of eac
J. county, in proportion to the capital stoc
q of such bank actually paid in, provided sue
/. bank shall nor have been declared inso
vent by the Bank Commissioners, an
d shall be able to furnish satisfactory secl
e rity.
/. That such portion Of the purchase mi
d ney of such stock as the state may requir'
}. shall be deposited in current funds in solr
!. bank in the city of Detroit; and in additic
e to the liability of the banks taking the loa
d satisfactory security either real or persona
| - L,L shalI no ren,,ired that tho c,t,