True American. [volume] (New Orleans [La.]) 1835-18??, 1839-01-30
THE TRUE AMERICAN.
EDITED BY JOvuN GIBSON.
FAITHFUL AND BOLD.
NE w OR VS.:
WEDNESDAY, JANUARY 80. 1880.

Free BANKING No. I'll il not to be wondered nj,
that the system of Free Banking has become popular
wherever it has been adopted 1t makes real estate
supply the of moneyed capital equal to its val
ue. In New York and Massachusetts and Penusylva"
MIA and and Mississippi and stale, real estate
is made instrumental in raising capital TO supply the
wants existing in the community, for which otherwise
there would BE- no remedy. Free Banking is only
still further application of this excellent provision.
which should have been incorporated in all banking -
stuons. There can be better securities than real
estate securities and uans real estate sometimes
absolutely necessary to community which could not
find relief, without resorting to them. The Baltimore
American recommends it to b. adopted in Maryland,
recognizing the correctness Of the principle The New
York Times says:
"The successful formation of banking institutions
the capitals of which invested in bonds and mort
cages, has sufficiently tested the theory advanced by
Of our leading fnancers and none can now doubt
the soundness OF the principle.
In addition TO those banks under the general act,
which have received real estate securities direct for the
original ISSUES of stock, gralifed to perceive
that the highly influential and wealthy gentlemen who
j have organized tho Bank of Commerce in n. York.
fully recognize tho principle of making loans on real
estate. Thus, whether the stock is originally issued
for bonds mortgages or whether the money received
for the stock is loaned Oh that descr ton OF security
either to the or other parties, j. mmaeriu! The
principle is recognized by capitalists AMI will here.
after rn leading feature i'll all the new banks Of this
city,
We perceive by exchange papers, that the sub
ject is which being taken up, earnestly, in almost
every direction. In quoting the following remarks from
the Natchez Free Trader, we must confess feel 9
degree Of qualification that we have contributed to the
propagation ofwha consider the correct and true
principles Of Banking, and acknowledge the coupli
ment Of neghhorup the river.
The Free Trader in copying our article says:
, g FREE BANKING-under this head we observe
) couple of articles in the New Orleans True Amer
. ican with promise If n cont mutation of the sub
iec. 1t is system that must event ually lake thu
place Of the present one, and prove valuable aux
iliary to agriculture, commerce nd trade general
by freeing enterprise and industry from the powe
/ Of monopolies and giving impetus to every encrg
, TINT could strengthen or ugg'an"'se town, state
y or a nation. Ours Is world OF changes. I'm
pircs fall, lynn sizes poss away, governments an
d svsteD,s change IN ankind progress in refinement
!. civilization and science. Banking has heen raj
y ed a sciencc-at present it is but systen'-a ba
), system th,t education and general intelligence
}, viii. surely change. Tho high duty of statesm e
= and Legislators 10, never to attempt change OF Q
"a | Their government or system, until the errors
Is an old and the advantages OF new be pointed OF
J and fully undsrs, cd. The evils Of the prespr
u system the whole world have been made tumiIiu
d with BY repeated tremendous commercial revu
20 sons, which hnve made bankrupt the HI nest, pa
s. alvsed enterprise, trodden down Industry, on FL
! rched alone the banker. The people know, the
ar have felt oil this and now they desire an ope
lis dn candid discussion of every pro jcct that may
II presented, so Tint when change he effected
;. shall be improvement and not an additional tril
r "Free Bankiug' is n term tina, may readily
p misunderstood and easily perverted. Banking is
49, natural right. By convention and Legislation IN
light in most States has been taken from the CT
zen and invested solely in unnatural persons
IDS soulless corporations, endowed with many OF i
attributes OF sovereignty. One principal object
thus vcstIng This natural right, was 10 make
TO- bank note regulation uniform in value and equiv
" lent to specie-iu other words, to secure the nc
,in holders. Our law makers have failed in atco
cir pshing this object. The advocates OF Free Ban
6 ing most warmly urge security to the note holder
the leading and only ufure or principle that
y. quires the enactment OF law When the peo
" shall have been fully secured in the redemption
,ei all issues-when law shall have been pass
m allowing erery ons to bank whD will place in
", hands OF public officer Of the peoples own cho
~ the means for the redemption u their notes. tn
,n we will have restored 10 each man oil this nntu
To- right o bank and also given security 10 The pub
ss. against issues for whch there will be no means
a. redemption.
THIS subject is certainly worthy the attention
our Legislature. Discussion do no harm n
may do much good The editor OF the II
American appears to be alive 10 the great I'M pc
IAN unce of Il reform IN our banking system, and Wi
o o' like a man who unders' ands the whole subj
" He introduces the matter 10 his readers by
lie exhibition Of the causes which brought susp
,e sion"