The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1840-01-18


fidenhy trust, that nothing will be lost by
the delay.
One of the great evils of suspension Of
specie payments BY the banks, is the vast
amount of small notes issued without au-
thority of law, by individuals and corpora.
tlons, that is Immediately forced into crcu-
lation, to supply the place of the specie. FOR
purposes of small change. This debase-
ment Of TIE currency aggravated the con-
sequences of the suspension in 1897. 1t
ended in great losses to the public, and in
multiplied frauds. Satisfied that the same
evils would again be experienced, imme-
diately caused the attorney general to adopt
proper measures to bring 10 justice all often
ders against the law prohibiting the issue
and circulation of notes below the denomi-
nation of five dollars and am happy 10
state TO you that this measure was entirely
adequate TO the suppression of the issue of
any notes of chat description in the com
monwealth. Ample arrangements had been
made, as | I'm informed, TO throw into cir
culation large amount of this injurious
currency, but they were instantly arrested
by the prompt and energetic action of the
attorney general and public opinion, with
an uneXampled unanimity, sanctioned the
measure, and crowned it with success. 1t
is true, in the counties ofthe commonwealth
bordering on states that allow the issue of
small notes, if it has been impracticable to
restrain altogether their circulation, still ve-
ry few ofthem have found their way into
the central part of the state. | shall call
your attention te this subject again in anoih-
er part of this message.
The active currency of Pennsylvania, and
Of the whole Union is composed mainly
of bank notes. These notes are made pay
able on demand in specie and while they
continue to be so paid no great danger Of
loss to the community canarise. The
history of all bank operations shows, that
while their notes are redeemable, and ac-
tually paid in specie when presented at tie
counter, an over-issue 10 any considerable
extent, cannot easily'take plaae. Ii is only
when notes are issued TO such an amount,
or when other obligations are incurred by
the banks so great as TO prevent them from
meeting these demands with specie, that
they may be considered in an unsound state
and the public in danger of suffering loss
from the circulation of their notes. 1t is
manifest, therefore, that the suspension Of
specie payments by the banks, is the pre-
else act above all others, that renders Them
unsafe and dangerous TO the publc--and
the other which in future. ought TO be most
strictly guarded against by law. 1t is true
it does not always follow that banks are
,,,.o,-nI ,,,l ,,n.i,ia 10 oil AapNonIe
gainst them, because they do not pay spe-
Gle for their notes; yet unless explained to
have been caused by some other means
than the unsoundness Of the institutions, it
must operate much TO the prejudice OF their
credit and standing.
In Pennsylvania there are ffty-two
banks, with an aggregate capital with some
thing more than sixty millions of dollars;
but such has been the disregard of law by
some OF them, that they have not made
any return, and the returns made by several
Of them ale so very imperfect, that it is I'M
possible to arrive at any thing like accuracy
as TO the amount of their circulation, specie
or debts due to them. But from the best
date within my reach, the amount of their
notes in circulation may be computed at
not less than thirty-three millions of dollars
and the amount due and owing 10 them,
principally by corporations and citizens Of
this commonwealth, is perhaps about seven.
ty millions of dollars. This amount is due
to these banks from individuals residing il
all sections of the state, and engaged in al
kinds of business. Stocks in our railroads
canals, turnpikes, &C., are held by some
Of these banks, and in the shape of sub
scriptioss, bonuses, or dividends, they con
tribute largely to the general fund in tn,
state treasury, and to the support of tn
common school system. Their charters
expire at various periods between the pre-
sent time and 1870, aud the stock in then
is owned by great number Of persons o
all ages, classes, conditions, and pecuniar,
means. The capitalists of the country a
well as those of moderate means, widows
orphans, and guardians, all own stock i
our several banking Institutions. Fror
this cursory glance at the subject, it is evi
dent that the business, interests, and bank
ing institutions of the country are intimatel
connected together. and mutually exert
powerful influence on each other.
more general and comprehensive vieN
of this subject will show, that the bankin