The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1839-11-23
From the Keystone.
BANK REFORM.

wade the community as 10 the immC diatt
causes which have led to second So ,pen
sion of specie payments by the banks, there
cannot IN our opinion exist any dffei enct
OF sentiment as to the imperative nece ssity
OF engraiting new, salutary and esst niia
reforms upon the system of banking il self
Experience and time, those unerring arbi
ers OF all human arrangements, have dcon-
clusively demonstrated its radical impsl rfec.
ton, and admonish us most loudly TO AL ,ply
such remedies as the necessity of the q ase
demands. So long as the system shall re-
main in Stotuquo, SO long as new s lie
guards are not thrown around the intere sts
and well-being of the community and so
long as additional and important reSfrN iC-
tiOns are not imposed upon banks and
bankers, the spirit of cupidity and the I" Iu-
ling passion" of speculation wiz inevitably v
lay waste our fairest prospects, and we will |
strive in vain to extricate ourselves FROM
the difficulties IN which we are founderinJ .
10 rest upon our oars now, at a crisis sucl /
as this, without effecting or attempting, 0 r
ever proposing change for the bette i,
would be to "sin against light and al =
proximate to criminal indifference. ia.
mong the reforms most loudly called fJr
by the public interests, we will specify a
few, perhaps the most important.
l. The passage Of Such laacs as a0,W
increase the liabilities of stockholders an /
e6ectualLy secure the interest of the nO&.:
h0lderS.--It would be superhuous to ad
duce reasons in support Of a reform SD
confessedly salutary and wise, so loudly
fo. h,,o NJ he
sentiment, THE SECURITY OF THE
BILL-HOLDER, we take it, should be
the leading and paramount feature in the
organization of banking institution, and,
without such assurance engrafted in em-
phatic terms upon its charter, the couimu-
nifty is right in characizing the issue of pa
per promises to pay" as a vile and in
sufferable FRAUD upon them. As the
Legislature have it in their power to remod-
el, alter and amend all bank charters within
tha limits of the state, is to be hoped, that
the,' will introduce clause engrafting this
saIGtary consumalion into each and all of
thew.
2. The restriction Of bank issues to a
specific limit mol erceeding double or ire
bic fbe amount Of capital paid in. 1t can
not be connoverted, that the great and fun
damental error in the management of our
banking institutions, is their almost unlimit-
ed over-issue, transcendng the boundaries
of care and prudence, and eflen exceeding
the amount of specie in their vaults as 6f-
teen TO one. To the wildness and excess
of all our banking institutions in this par
tlcular may be traced many, of not all, the
alarming evils that have been inflicted upon
the community. An OVer-issue of paper
money, such as we have periodically expe-
rienced, of necessity produces redundan-
cy of currency, besides begetting in the
public mind an inflated sense Of prosperity
which the sober second Moughf' invaria-
bly, dispels. The result uniformly has
been, aud always will be, a speedy fall from
their aims of visionary prosperity, into all
the coldness of sober reality. The transi-
ton invariably leaves public affairs in the
lamentable condition we now find them
The certain and unavoidable effect of these
enormous issues df bank paper is 10 Danish
all specie from circulation, and render pa
per, instead Of the precious metals, the cir
culating medium of the country. One of
the first steps of the Legislature, should
th 'refore be, the PREVENTION OF
OVER ISSUES, whereby much of the
fluctuaLion and estate Of glorious uncertain
ty'' we n1w experience will cease, and the
public be protected against the worst OF
evils, de pre- ciated aud in many Instances
wholly worthless paper currency.
3. We cordially concur in the depreca-
tions already so extensively manifested by
our contemporaries, OF the lawless course
pursued by the banks in declaring and divi-
ding dividends, during the period when
they refuse the redemption OF their paper
promises. At such juncture NO DlVl-
DENDS" should be written IN starting
capitals above the tables of the money
changers. This is doctrine so entirely
based on the immutable principles OF jus
TICE, and contrary course would be so |
opposed to every considera-
ton of right that the rigid enforcement OF
the law against all who violate its whole
some and salutary provisions cannot be too
earnestly pressed. A number Of our bank
ing institutions, acting upon these consider
stons, we have been pleased to obServe,
4 al, tfffr Ia o.