True American. [volume] (New Orleans [La.]) 1835-18??, 1839-01-25
THE LAWS OF FREE BANKING.

As tie right Of issuing a standard of value, OF
coming money, of putting forth a representative
OF coin, belongs to the pe"ple. and is by them
delegated TO their representatives, lie, us see how
the throwing open of that right to every individual
in the community ought to be restricted, or whe-
Their it should be restricted a. all
few moments reflection must convince any
man, that for the purposes Of social happiness,
there can DO no act Of man unrestricted, that the
good Of ths'many absolutely requires some cen
rolling rule of action. So that the question is
narrowed down TO this point.-how can the right
of making the representative of value and Of
dealing in it be thrown open to assure to the public
the greatest good9
The New York law, 10 our mind contains the
essence of this matter with bu, few exceptions.
The simpler the restrictions The better, and we
doubt not, bat that the general law of 1888. in
TINT state will be modified, SO that every child who
can read, may understand it. The defect of that
law, TO US, appears 10 be in The regulation OF adj
hitting bonds and mortgages on real estate as cash
securities al so high rate. The apprnisement of
properly at the market value should not cover more
thnn one-thrd the amount in cash.
Suppose the legislature a. its present session,
were to adopt general Bank law, what ought to
be it's principal features! In the first place. he
right to form associations underit ought not 10 be
limited as 10 the duration Of them. Let any man
or set Of say, that he or they will continue 10
bank for ten, twenty, ono hundred or one thousand
years under this law, only make it imperative on
him or tom to state the period of termination.
= A.. n, sl,oe ,nll tuI,
a determination shall be declared to bank should
be liked at 100000, but no limit ought to be
prescribed to the upward amount, except, tina, it
chall &c named in the articles of associn,ion.-
Herein is freedom in Banking that never I'M urc
The public veal by its inherent tendency.
We now to the circulating notes Of these asso
cisons Of capitalists How ought they TO be ssueJ
Let the associations be compelled to deposit will, the
,hcSecrctary of State of Louisiana, State
or United States stocks, bonds and mortgages upon
real estate, covering third of their value, in equal
dollar for oar Of every note asked tor,
and when this is done make it the duty of one of these
ocers issue to the bank association the notes so
required, signed by him received by said property
and stock pledges. In this ~uy-we shall never be
troubled by expansions IN the currency nor shall we
be cursed With contactions Of the circulating me-
dunn The issuers Of the circulation will always be on
the gui rirc to prevent contraction. while their
own interests will compel them to draw in, when
expansion is threatened. The state ofticcv who is
bound to Issue these notes wien the law is complied
with. can WELD power in the matter. lila is the
guardian OF tho public without will or discretion Of
his owa.
The Legislature will reserve the righ, of control by
,I,, If catiO rl,o
the cunning of no cabal can neutralize. When
unnhuenced by designing individuals the majority of
the peoples representatives will 60 widely astray
from their duties. The very limiting of the circulating
medium to the deposite OF equal il not superior
value in the hands Of officer will forever prevent
a sinister influence from being brought to bear upon
the Legislature. The latter will hold the baance of
power.
The circulating medium under the general law being
secured by pledges of equal of greater value;
the rroment that the ssucr Of it fails to redeem it in
SPECIE the pledges disposed of by the officer hold
ing them and Tie bill holder fully protested. The de.
faulting is at that moment placed out of The
pale of credit defau!ting merchant is now, and is
compelled wind up its business. 1t exist Ion.
ger to trampc on the rights Of the Industrious and eat
the bread of idIeness Among these associations the
p,ncjpo Of individual credit will DO fully introduced
aud the public will be protected by the law that enables
the creditor in the ordinary way his claims
doubtful debtor.
By making property to one third Of its value and
stocks 10 their full market price, the basis of banking
the United States, should such law become general
will he enabled call an amount Of gold and silver
from all parts Of the world fully equal 10 their wunts
We should become the centre to which the precious
metals would all tend, and thus Independence Of
other nations be established basis that power
could overthrow.