The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1840-01-25
LUMBEA COUNTY, PA. SATURDAY, JANUARY rs 1s4o
Number 80.


Saving institutions and loan companies
have increased greatly in number and ima
portance i'll This commonwealth, within d
few yeats, Great complaints have been
made, especially in the city of Philadelphia
against their mode Of dUing business. 1t is
said that they, or sume of them, have taken
illegal aud usuriOus rates uf in,erest,--thas
they have dealt upprcssively, and illegally
with their debtors and cuslOners--and
that they have contributed, in some meas
ure, 10 nggravaie the evils Snd embarassA
menis produced 6y the conduct of tho
banks recommend strict inquiry into
those and other allegations against ,hrms
and If found TO be well grounded, that the
charters Of all that have thus acted be rea
pealed. 1t is not TO be tolerated, that those
creatures of Legislation, should set the laws
at defiance
! also recommend the passage Of law FOR
the more adequate prevention and punish
ment Of frauds and fraudulent breaches Of
trust by officers of banks, collectors Of pub.
lie Tolls, and all other receivers and disbur4
sers Of public moneys. Recent experience
has shown, that civil liabilities are atogeih-
er insufficient to prolec, the public from
fraud and imposition by these several class
es Of officers am not, in general in faa
vor of multiplying penal laws, but the pee
cuiar temptations afforded to these officers
10 transgtess their duty, and the hope Of
lmpuni,y, arising from the mere civil re-
sp0nsibily TO which they ate subjected,
call for the special nlerpustion Of the lie.
gislaure. Instances of delinquencies lave
occurred within short period, in which
not only has The commonwealth most probaA
bly, sustained considerable losses, but nua
merous private persons, little able to bear
the consequences, have been deeply affected,
and in some cases entirely ruined. The
perpetrators Of these deeds should be taught,
that our penitentiaries were constructed for
the reception Of inmates like themselves.
Considering the various banks III this
commonwealth, incorporated at different.
times, on different principles and of widely
different amounts Of capital, it might per4
haps seem expedient TO some, that should
recommend discriminating legislation ap4
piirHble in its penal consequences TO rome
and not to all The banks alike Il will be
seen that several of my recommendations
though expressed in general terms, will
operate on particular banks only. hayo
not been able TO perceive any good reason
for making discriminating recommends
tions. Nink on the contrary, all banks
in sound condition should stand on the
same basis. and be subject TO the same gen.
eral regulations. Such Of my recommenA
dations,as are applicable 10 particular banks,
are intended TO bring all within the operas
ton Of the same rules and resifictions.--
The laws should be made strong enough TO
control the most powerful, they will then
be sure to DC s!rGng enough TO control tho
weaker ones. The principle of banking
on large or small capital, is precisely
the same in its influence, except the differ
ence in degree, upon the human character.
The greatest gain, at the least expense, is
the ruling motive Of action in both, and
sways with tho same rover, the bank Of
one hundred thousand dollars capital in a
country village. as the one of 30 many mill
lions in a great commercial metropolis -
The whole difference consists in the inhu.
encc and power OF these respective institu.
tons. l think the recommendations have
made, If incorporated into the charters Of
the mos! powerful banks in the common
wealth, will bring them within the immeda
aIc reach Of the legislature and the law. In
thar condition, they will be humbled in their
lawless pre;en'ions, and stripped of theit
ability 10 set at nargM, as they have done,
the Will Of the people,
As wO cauaol get rid Of the banks alto.
gcilrer, without the most serious losses,
and Inconvenience of The public-the ex-
tent Of which can be but imperfccily com.
puted, when We consider that il would
most certainly reduce our circulating medi.
um very considerably, and that the inevita.
bic consequence of such reduction must be
TO depreciatO our farm lands to one half
perhaps of their present value, and all 9th
erprnperty in The same proportion; increase
in effect, our state debt in corresponding
ratio, and individual debts in like relative
degree l find in these things motives Of
no slight weight 10 my mind for urging
steadllsly upon the legislature, the adop-
iion of the suggestions and measures which
| have supposed; Or at least, if other
measures should seem to them preferable,
that they should he those of a kindred
bearing.
/ dismiss the further consideration Of our
bankino sVsten fnllv con yinced oc ita mon.