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

TO that medium at the will of the holder.
Care must be exercised, then, not TO lot this
paper representative become too dispropor-
toned to the metallic basis allotted 10 us by
the laws of trade !; Increased beyond this
guarded limit, il loses its general standard
of value, depreciates and bccomes WORTH
less in the hands of the people.
The syetcm Of banking, at present au-
thorized michigan, exists in the provisions
of general law, offering TO all persons the
privileges Of banking under certain guards
and restrictions. The principles under
which this law is based, are certainly cor
rect, destroying as they do, the odious lca.
lures of bank monopoly, and giving equal
rights 10 all classes Of the community. But
in the practical operations. of the system,
there is much 10 apprehend. As long as a
desire Of gain exists in the heart of man, at
tempts will be madeto avoid the acquisitions
of any general law on banking. Our sys.
tenn then should be strongly guarded, its
provisions rigidly enforced, the operations
ofthe banks vigilantly watched, or the whole
state will be irrotrievably plunged into the
vortex of over banking, with all its attend
ing pcrnicious consequences. Although,
it is but Justice TO say, that the institu-
tons under the general law, from their
returns as far as received, exhibit as sound
condition as any Of the chartered banks
! of the state, it must yet be admitted, that
they have multiplied beyond the utmost ex-
pectaiion of the public. 1t not then from
The system ITSELF if properly reformed. but
in its abuses, that we have most to fear
The dangers to be apprebended from the
abuses of the system, are over issues bank
paper, q dangerous extension of credit, fluc-
tuatons in our currency, and consequently
fluctuations in the prices of property and
the wages Of labor. 1t becomes your duty
then to guard against these evils. Your
object should not be the destruction Of the
system, but an efficient regulation of it, and
its restrictions to proper limits. With this
object would refer you to the suggestions
contained in the report of the Bank Com
missioner accompanying this communca-
ton.
may here suggest, that it is important
for the legislature to examine into the gen.
eral condition of all the banks of the state,
with view to the resumption of specie pay
ments at the earliest possible period.
From the report of the Bank Commissioner
it will be perceived, tllN the thirteen char
tered banks Of the state upon whom will de-
pend the resumption of specie payments,
had in circulation on the LIST day of Decem.
Der last, 81 ,551, 800. Their specie on hand
-. H. ,o.,o ,oor;od oroouptol M &QSn ala
16 /; their total liabilities were $3,l21,6S9
3D.; and their loans and discounts $685.
37053. 1t will be seen from this statement
when compared with the report of the Com.
missioner in June, 1897, that these banks
have, within the period from Juno TO De-
cember, increased their circulation ono
hundred and eighty-thrce thousand dollars,
curtaiied their loans and discounts about
seventy.six thousand, and lessened their
general liabilities about three hundred and
ninety thousand dollars. BY the act Of
June 22d, 1887, the banks had extended to
them the privilege of an exemption from
specie payments until the sixteenth day Of
May next. Under no circumstances should
the provisions of this act be extended be-
yond that period. 1t is demanded Of
the banks, and it is due to the character
Of the country, that specie payments should
be at once resumed. The banks have
had ample time 10 prepare for such a mea.
sure.
By reference 10 the Commissioners re-
port, it will also be seen, that some Of our
banks, although continuing TO refuse specie
on their notes when presented for payment,
have denied accepting the terms Of the sus-
pension act, and have thus set the leglsla-
ton of the state at defiance. 1t is left for
the legislature to adopt such measures in
the premises, as their wisdom may suggest.
The conduct Of these institutions has salts
fed me, however, that the act allowing the
banks thirty and sixty days for the rcdcmp-
ton of their paper, should at once be repeal
ed. 1t is by subterfuge under this act,
that the institutions referred TO, claim an
exemption from the penalties Of the exist
ing laws. have no disposition to do any
bank injustice, but | believe an inquiry by
the legislature into abuses Of the trust con-
fded TO some of them, would be productive
of public good. 1t is well enough TO test the
question whether these corporations are a.
bove the laws Of the land, and to make the
issue at once, if it must arise, whether we
are to have a government Of the banks or
of the people. If your present laws are in
sufficient to cocrce the banks into their du-
ty, let them be amended and if the pow
ers of your Chancellor be doubted, enlarge
them. t.
An exclusive metallic currency Is neither
TO be desired nor expected in this country /;
but that as large an amount of the precious
metals as practicable should be infused into
our localcrculaiing medium, is undcniabc;
and as it is the laboring classes who are most
subjected to the losses incident TO bank pa
per, we should endeavor to keep within the
state and in circulation a sufficient quanti-
~ Of gold and silver for our ordinary daily
transactions. The suppression of small
notes would operate TO bring large amount
of metals into circulation, as substitute
for the bank paper which would neccssari-
ly be Withdrawn. You must suppress small
notes, or the gold and silver brought into
the state will accumulate in the banks, or be
Withdrawn for individual purposes connect
ed with banks or banking. An inconven-
fence to the public might at first arise from
the operation ofthis law; but this inconyen-
fence would pass away, as the vacuum pro-
duced by the withdrawal of small notes is
filled by a return of specie. The measure