True American. [volume] (New Orleans [La.]) 1835-18??, 1839-03-06

oration, as il they forty tines With ebay
If there were no other evidence Of the Bees entire
ignorance of this subject there is enough in that rarn
'faph to convince the st unreasonable uf the fact
Inc truth Is, the writer is grazing about in the dark
md mistakes the illusory fancies that cross his ina
sinaon, for the realities which he would like to find
to aid him in sustaining his untenable position. The
Bee has tried toIAy over sen, little broad for the
strength of its wings. It's buzzing and droning will
not aid it in the fight.
We would ask what gives to all corporations with
banking privileges, tie credit necessary to the general
circulation Of their tes and which individual bill
POSSESSES How do they Stafford better security to the
holders Of notes that those notes will be cashed upon
application" than may be afforded by individual
association of Individuals incorporated? The very
fact that they legazed TO bank, gives them credit
They act under charter which prescribes rule Of
conduct by which they 10 be governed. This char
ter is granted upon certain principles, md is hold,
long they carried out in good faith and up its
provisions. With this charter in hand, commissioners
appointed open books and get subscriptions of stock
sufficient to commence operations. How is this paid
in? BY installments, and the amount is frequently
raised in This way. Those who have subscribed for
stock, borrow from banks already existing sufficient
pay up their frat ins,alments. When their bank com
niences operations, the faith of their stock, they
borrow from her, enough Jay back the loan-thus in
fact commencing altogether upon fictitious capital,
which the Bee fors oo,h would Gull so god and specie
basis" But these at the time they deposited
may be par and be considered much silver for
they are convertible into the precious metals, but the
whole is fiction rs we have shown; relying altogether
upon the business they may transact-thn circulation
they may keep out and the specie they may draw in
for the accumulation Of their real ca pital.
The mere "bunkng privilege, gives them credit
because binds them to lie governed in the redemption
Of their notes, by specific rule, which it they Lrcn
they forfeit their charter and compelled to forego
the advantages which it coniers. According to the
reasoning of the Dee "lhe holder Of baak-noe looks
upon it as money! because he can get money upon an
pcann," and "a man may have property 10 the
amour, of millions and may issue promissory to
the amount of only few thousands, and yet those
notes will not pass money! and yet in the very
paragraph it says that "until Of the Legis-
lature CONVEX, houses into gold and coin lands
banking privileges granted upon the hypo,hecatn Of
houses and lands wX not IN reality, afford any bette,
security to the holders Of notes that those notes wiN 5a
VHN w HpP'tc"ht0H MdH u tAc 00hflnS 1)TtcncSes
,cerenot granted" VIVA, constitutes bunk note Il
is the representative of value, emitted by an incorpo
rated company, and is received as circulating medium
BECAUSE the faith Of its charter it is believed the
bank will redeem it presentation The same will
apply to the note of company incorporated under the
+ Free Banking SYSTEM They both incur penalties fol
a noncompliance with the acquisitions of their charters
only in the former case, the credit Of The Bank is sunk
but in the latter both credit and property each lost
In each case, all the advantages he derived from
thanking privileges" must be rlinqushrd. Although
under the Free Banking system, the companies arr
Incorporated under general, equal law, perfectly def
ns and guarded in its provisions the Bee says 18th,
securities scientifically the same" those of unin
issued upon them are just as good and we'll secured
without act Of incorporation, if they fort,
times covered with charters" This show Of reasoning
may very clear and conclusive to the editors o
the Bee but to us tapRears extremely jrune Of argu
, menr and inconsistent
Is it necessary to pursue these speculations of til.
Bee any further! The whole article upon about one
third of which, have commented is u rambling ant
discursve effort to spin out of opposition II
Bree Banking, deduced from the false premises, i'll
which the editors Of that paper started. 1t is amos
impossible to genealise the principles of opposition
which they atlemp, establish, they arc so .hroudcd
: verbiase und mysifcd, by the doublings and cross
paths by which til editors leavor 10 arrive Mt tn
point proposed. They seem to have acted upon tn
unans we'able motives Of opposition, which influence
the poeaser to the mplucable hatred he bore to D.
Fell: