The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1840-01-11

yer specializing in this country, which has
produced the bloaed and unsound state in
our credit system and many of the evils we
have experienced from that cause. He
says the system is radically wrong, and ru.
inoUs in its tendency and requires immed-
ate reform and recommends that the differ
ent states, and especially Pennsylvania,
cease to authorize the issue of any more
state stock to foreign capitalists, and truly
says that strict prudence and economy is
the only course that can exlricate us from
our endorsements.
On the subject of the banks, the govern.
or expresses the most sound and orthodox
opinions. Every democrat will find that
the principles of reform cherished by JEFF
ferson, Jackson, Van Buren, & other sages of
the republican party, are carried 10 the ut.
most verge of practical application. He
specially recommends, among other things,
that the banks be required to make an early
resumption of specie payments, that the
law against the issues and circulation OF
small notes be made more efi'ecuaI, that af-
ter certain period no bank IN Pennsylva.
MIA, be allowed TO issue notes under ten dol
lars, that three bank commissioners be ap-
pointed, with the power of joint commit
tees Of the Legislature, TO inquire into and
wind up unsound or dishonest banks,
that the power of the Legislature to repeal,
be inserted in every bank charter in the
state, that no dividends shall be made ex-
ceeding seven per cent, that the directors
of banks be made individually liable for all
the issues over three dollars for every dol
lar Of specie in their vaults, that the frauds
of bank officers be punished criminally;
that the proxy law be repealed; that the
right TO issue post notes be prohibited, as
well as the power of banks 10 deal in stocks;
that the charters of banks which have ta-
ken illegal aud usurous interest,or declared
dividends since the suspension be repealed;
that the principles of making stockholders
personally liable, is just and equitable; that
more eh'ectual provision be made TO COM
pei banks 10 furnish statements Of their con-
dilion, and recommends specially, the pas
sage Of law dissolving the partnership be-
tween the three banks and the state in
which she owns stock, because the benefits
of the connection have all been on the side
Of the individual stockholders who use the
funds of the state for their own private
speculation, and that the time for lerfeItng
the charters of banks that suspend specie
payments be reduced from three months to
thirty days.
In addition to these, there is one special
recommendation which, in our opinion, is
the most ehectual remedy TO prevent over
issues and suspensions, of any which we
have ever heard suggested. 1t is made lol
the first time we believe by Governor, Por.
ter, and is this: That all the banks o.
the commonwealth shat be compelled 10
take each others notes at par, and shall
not be permitted TO pay om any Thing a
their counters, bit specie or their oson
notes, naleSs at the option Of the person
hariag demands upon them. This mos
excellent recommendation will we are sure
meet the appreciation of every citizen o.
the commonwealth, except the banker:
themselves, who will douOtless complain
loudly against il, because it compells then
TO keep up the exchanges between all part:
Of the state at their own expense, whicl
they have hitherto compelled the communi
~ to pay. The direct effect of the pas
sage Of law such as this, would be Il
break up the trade and profit of shaving bro
kers, it would compel the banks to be Il
some extent, the endorsers for each other
it will stimulate their self-interest to keep
watch and prevent over issues by any insti
tuition, and if such should occur TO induce
the others at once to throw back on then
their own notes, expose their conduct if any
thing was wrong, and either check their op
erations or break them up before they coul(