The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1840-01-11
POLITICAL.
From the Harrisburg Reporter.
BANKS.


PRIOR to the 1914, TheiI capitals
IN, amounted 10 6,350,OOO. They |
all located IN the cly of Philadelphia,
Two of them had eight branches III the
ior of the State.
rainst the repeated vetoes Of the great
man Governor, Simon Sny der, one OF
4 ,iernesI republicans and soundesI pollll- |
e economists OF The Gay, the Mammoth
- k bill OF 1914, was passed, and host
oaper institutions sprung up IN different
ters of the commonwealth. They com
iced their operations, during the first
,ension of specie pay yInenis-and were
E. nded almost exclusively upon paper,and
hout any advance by their stockholders
3 either gold or silvet.
As these Banks were not called on TO re-
IN their promises TO pay, IN the legal cur
81 ry of the cUunlry-lhelr nominal dis
nus of the promisSory notes and bills OF
If customers, were merely an exchange
paper for paper, or credit lor credit
IN tnis essential difference nowever--that
discounted paper paid an interest a.
III ,,u,ing nearly TO seven per cent. per an
!, whilst the Bank notes bore no inter
and were not in reality payable al all.
!. I, was thus. that spectators by shnpie
of the Legislature making them PRIV
4 f,oed order''-a corporation win the pow
of issuing notes Tor which were Without
!. ,v value, except what was stamped oy pup
= eo6dence, obtained, i'll exchange ior 'hlS
on,iuental money, the paper oi individuals
whose industry and properly were P,eog-
for its ultimate payment III gold ana Sill
o. When. therefore, these paper lnsli'u-
IONS were called on to commence Inc pay
nent of specie for their notes-many oi
+ hem whose loans of their own paper nau
,een made to persons equally irresponsible
ui,h themselves, failed enlirely-- the
remainder sustained themselves by collect
linz the very means TO pay their engagements
|from those customers whom they had ac-
commoGated with irredeemable p per.
The older institutions Of the State, ow-
ing also, to an exttavlgant issue OF paper,
were in a similar condition, as their actual
circulation had been extended far beyond lis
LEGITIMATE Limits. Ii was clear that the III
eyitablo return to the only legal standard
known 10 the constitution, gold and silver
coin. must produce infinite distress, and we
rafer our readers 10 the report OF MI ia
guei, ofrisafo -aerh- Iannary- 1920. for faith
ful picture OF the ruin brought upon an un-
offending and patriotic community, by ;
system of paper Banks, paper credits, ant
paper issues
OF the forty-one Banks authorized by The
act of 1914, thrty-nine received charters
of these thiriy-seven went into operation
and in lS24-lwenty-two only of the whole
number remained as specie paying Bank
whose charters were renewed by the Legls
lalure Of Mat, or Of the preceding year.
One of hetwenty-two-the Bank OF III
Northern Liberties had by the frauds Q
some of its confidential officers, been strip
ped of nearly all its capital, and the remain
ing twenty one were arranged into TIRE
classes, according to their respective circum
stances and credits. The charters of tn
first class extended nine years. Of The sec
ond eleven years. and of the third, thirtee
years, from the first Monday OF May, 1872
the lives of the longest livers just touch
ing the boundaries Of the second suspensio
OF 1897.
The banking capital of the
state, in lhe year 1924, there
fore. consisted of the four old
banks. amounting to s6,35O,OO
And of the % new banks, a.
mount to $500, O3
Making a nominal total of 9ll,94O,O3
Il was notorious, however, that the seve
banks included in the first class were nearl
insolveut, aud that some in the second an
third classes were no; in Aouris!ing col
dition, and the ACTUAL banking capiu
of lbat day, may therefore taking all thing
into consideration be safely set down ;
not more than aS, 100000.
The legislature Of 1924, with delibora
intention 10 prevent all future suspension
of the banks, incorporated variety OF e.
cellant provisions into the extending act
but they were not prepared for syslemat
violation Of the Lass, by the banks, their G
fcers, aud the executive and Judicial depai
menls Of the government, and they did II
therefore provide the necessary sanction
for Vie breaches Of statute of paramon
importance TO the people Of the commO
wealth.
They prohibited all>divilends, discouB