Maumee City express. [volume] (Maumee City, Ohio) 1838-184?, 1839-12-14

CG.
out any advantage in return. IF we mus,
have paper currency, it is better to have
one of our own creation, subject to
our own control, and amenable to the peo-
pie of our own state, than one issued BY
corporations beyond our jurisdiction, and
the reach of our law. The policy, how.
ever, of dispensing with banks of circula-
tion entirely, Is advocated by but few, and
perhaps without full consideration Of the
circumstances by which we are surrounded.
The great majority of the public acknowl-
edge the utility Of banks, in the business
transactions of life, when they are estab.
lished upon proper principles, and confne
their operations to legitimate banking.
In my inaugural address, took occasion
distinctly to state my views on this subject.
| then stated as my settled opinion, "That
our system Of credit to which we have long
been accustomed, could not be destroyed
without deranging to great extent, the
business order of the community. That our
policy, therefore, should be, not to destroy,
or impair that part of our credit system,
which exists in the shape of bunk paper,
but to place it upon more solid and sub
stantlal footing. That currency which is
best adapted to our various wants, long bu-
siness habits and all the circumstances by
which we are surrounded, is one composed
party OF gold and silver, and party of bank
paper, maze saie 10 the pubic, and convert
aoie ~ al LINES ihto goa or sliVer.' ihese
were tne views which then expressed, and
SUI. entertain on TINS subject. However
o'licuit IL may ne 10 reform our banking
system, SO as TO make IT safe to the commu-
nlty, ana at the same time render the cir
euial'hs mediuh IN some degree stable and
UNIFORM DelleVe IL IS not entirely lmprac
I'caoie; Inc great object to be obtained is,
circulating medium OF uniform value, con-
Vertio,e al all Times into specie, anc made
ehtlrely safe TO the community: Cannot
this object be obtained by any system OF
banking winch can be devised! Although
l am Tree to admit 1t cannot entirely, yet |
believe we can come SO near the attainment
ofthls OBJECT, as to answer all practical pur-
poses. In order to do this, various systems
OF banking have been suggested--a state
bank with branches-a free banking law
and system of independent banks, such as
now exists, with modlflcatlons dht restric-
tlons, have all been mentioned, and the
claims OF each to superior excellence have
been pressed upon the consideration OF
the community.
A state bank, with branches, owned en-
tirey BY the state, and under the control of
the agents and representatives Of the peo-
pie, and where the whole profits on the ca
pital invested would be paid into the public
treasury for the public use, it is claimed by
its friends, would command as much public
confidence, and furnish as sound and as safe
circulating medium, as any system that
could be adopted-that it would be free
from many objections to which other sys-
tens a.e obnoxious-that it could no. be
charged with being amonopoIy, because the
stock and profits would both belong to the
people--that il would be more regular in it's
action, and adhere more closely to the legi-
innate business of banking than like institu-
tions, owned and controlled by individuals.
There are objections, however, to putting
this system into operation, which appear to
me too formidable to be overcome. The
banking capital of the state on the thirtieth
day of September last, was over ten mil
lions and a half. A state bank to supply
the place of the present banks would re-
quire an equal amount of capital, which
would have to be procured by a loan in some
shape or other. The state is now largely
in debt and engaged in public improvements
which cannot be abandoned without losing
large amount of money and labor already
expended. The completion of these works
will swell our actual debt, which we will be
compelled to pay as It falls due, to upwards
of fifteen milhons.-Would it then be wise
policy for the state to adopt system of
banking which would increase the debt of
the state, say five or ten millions! Could the
funds be obtained on loan without extend
ing our credit beyond the limits of prudeucel 2
Or could they be obtained on any terms, or
such as would Justify the state in taking
them? These are questions, in my iudg-
ment, worthy the serious consideration of
those who advocate the creation of a state
bank. 1t would be difficult to keep such an
institution entirely free from political inhu-
ences, and party CONFLICTS. Ii is greatly to
be feared that il would partake Of the po-
litcal impulses of the party in power, which
would entirely DESTROY its usefulness as a
banking institution, and bring into the poll
tical field corrupting moneyed influence
hostile to the genius of our free institutions
Tho same objections, but not to the same
extent, apply to state bank, where tne
stock is in part owned by the state, and IN
| mart nv individuals. Nh macmillan adVQD-