Liberty advocate., 1839-01-24

Any ambiguity operates against the adventu- n
rers, and IN favor of the public Monopolies a
and exclusive privileges shonld be put down h
and all corporations confined to the privileges a
plainly given them by their charters-the ex- !,
crcise OF their franchises, being in derogaton .
Of individual rights, cannot be extended beyondIt
the letter and spirit of the act OF incorporation
If they are permitted to leave their legitimate c
business Of banking and enter the field of spec I
ulaton, their great capital will enable them to
drive individual com fttion from the market G
to monopollze every species of produce and \
every article Of merchandise. The existence /
of our government will be Of little value, if its
functions are transferred to the hands of privi-
legged corporatioRs, and all futuFe Legislatures
prevented from protecting the.peopIe against
the abuses Of system which is impovershing
the State--while we seduously guard the
rights Of private property, we should never
forget that the community have also rights,
and that the welfare Of US all depends on their
maintenance. The regulation Of the curren.
Icy is one of the highest attributes of sovereignty,
and can never be placed beyond legislative con-
troll, The greatest evil of the banking system
consists in the continual expansions and con-
fractions of bank issues, for theprice Of prop
erty is thus made liable to fluctuations, and eve
| ry thing rendered unstaplc. In prosperousI
times, banks are induced to expand their issues
for the purpose of making large dividends to
their tockholders-money becomes plenty, the
price of property is enhanced, speculation is
stimulated, but in the end levulsion takes
place, property declines in value bank accom-
modations can no longer be Obtained, and the
country for time suffers all the evils incident
to deranged currency. The lessons Of expe-
rence teach US to guard against he recurrence
of the evils which we have endured for the last
two years. To effect this general banking
law is indispensable, limiting by its provisions
the circulation of each bank, and the accommo
Idations of its officers and stockholders, limiting
the amount of dividends, and requiring the pub
!, icaton of monthly reports Of the situation of
each bank, verified by the oath oflhe president
or cashier, prohibiting under suitable penalties
any bank from dealing in cotton or any other
f article of produce or merchandise, or buying
!, up at discount the issues Of any other bank
(, Each bank should be required to pay out at its
, counter the notes Of that bank alone if requi,
red and ID maaIkhsh mBaaaks having accounts with each 9th
Ter.
The value of bank paper being denendani on
a ito Uvrvo tibility, uemond, into specie, the
issue of post notes should be forbidden, and not
G more than three dollars in paper issued tol
: each dollar Of specie in the vaults; and when
= that proportion is destroyed, no more issues
4 made until it is restored. 1t might be well, al
: so to make the refusal of a bank to pay any o
!, its notes or deposites on demand an absolute
q forfeiture of charter, and require immediate
S proceedings to be instituted to stop the further
/, loperations of the bank. Other provisions will
r no doubt, suggest themselves to your consdera
= ton, calculated to secure TO our constitution The
j. Invaluable advantages Of a sound and stable
Y currency, and to guarantee TO every portion
/ the State, and each individual thereof, equa
C facilities in obtaining loans and discounts
am well aware that the right of the Legs
# ature to alter, amend or repeal bank charters
o is denied by many eminent jurists. In sever
= al of the States the right is expressly reserve
t, in their acts ofincorporaton.
S The State Of Kentucky, many years ago
repealed the charters Of all her banking lnstltu
e tions. am not advised that the constitutional
r ity of the act was ever called in question, e.
e ther in the State courts or those oil the Unite
v States.
J. Should you differ with me in relation to tn
If constitutional right Of the Legislature to rePe'
70 our bank charters, another course could l
% adopted, which would answer the same pu
j. nose, and not be obnoxious to constitutional o.
ir iections. The evidence reported by the Ban
,r ICommissioner concusively proves that nearl
lie all the banks in the State have forfeited the
H. charters by misusing their privileges, and ial
to ing to comply with their express provisions
r Some of them have issued greater amount
IS circulation than they were permitted. otne
III have more property than they are authorize
in TO hold. Many Of them have transccnde
u their powers by dealing in cotton and Produc
be and exacting usurious interests ana not m m,e
to of them have been established IN fraud All
he them have suspended specie payments
in the nature of quo warran
all would bring the question orforieIture before
inliudcial tribunals Of the country, where |
n. State and the banks could produce their e'
.Idence. have fair hearing and an lmpart
Of trial Should the courts declare their charte
MS Gorfaited, the stockholders would be the on
err sufferers, for the companies could no' sue
est collect their debts. Such trials would Prouu
he great excitement, and would not be soon
or minated. As an alternative, therefore, II 81
he nroceedinp should be deemed advisable, g
us, eral banking law could be enacted, placing
aw the hanks under suitable restrictions, ana
nv, ouirinq the assent Of the stockholders oil ca
es. hank to its provisions in reasonable peru
ds and directing judicial proceedings TO be instl
ire tod AGAINST those that fail to assent to the Ia
ing Suitable provision should be MADE ior lne
la ployment Of assistant counsel 70 u! ','1 . ~,