The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1840-01-25

'hese MEASURES, ieel uegree oI repug- |
nance that cannot be easily overcome. The
yearly income of the people is already heav-
lily burthened with taXes-their permanent
property is in effects mortgaged with an e.
normous state debt, In this state of things
it behOves the Legislature to weigh well the
policy of adopting any measures that will
curtall the avalls OF The peoples industry,
or diminsh the resources OF the common
wealth TO meet its engagements. 1t should
not be forgotten, that, In the case OF debts
already contracted, the direct effect of re.
ducing the means of the debtor, is to in-
ere ase the iela,lve amount Of his debt
The creditor gains in proportion as the debt
ter loses, and no man can foresee the extent
OF the impending CONFUSION The COM
monwealth of Pennsylvania is in no situa-
tion TO augment her state debt, either abso-
IuteIy or relatively. Unried cxpedients
should be considered well.
l respectfully suggest the propriety of
Immediately inquring into the condition Of
the banks of this commonwealth, and of
fixing the earliest period for the resumption
OF specie payments that theit affairs aud the
public wants and expectations Justify. 1t
would, perhaps be expedient 10 graduate
his resumption, either by the denomination
OF notes or amounts TO be paid so as 10 make
one or more, payable forthwith, and the
residue at such respective periods as in the
wisdom Of the Legislature might seem to be
advisable, provided the time he not long pro-
lraCted.
] recommend the appointment of three
bank commission, 10 hold their officers re-
specilvely for one, two, and three years, so
that one shall be appointed annually, here
after, with the same powers 10 examine as
all times, into the accounts and condition OF
the banks as ale possessed by joint COM
mitiee of the legislature; and if any bank
shall violate its charter, to institute proceed
ings TO bring it to justice, without delay;
or if any bank now in existence be found
unsound, TO take the proper measurers im-
medIately TO wind up its concerns. prop
er and prudent supervision of this kindly
competent and experienced commissioners
selected for their personal weight of char
acter and knowledge of the system, would
operate as salutary restraint in the manage
ment of our banks, independent Of The
means which such a commission would al-
ford for correcting abuses
l also recommend the passage Of a law
compelling all the banks in the common
wealth 10 receive each others notes at par
so long rs the respective banks continue to
redeem their notes in specie; and ON failure
at any time of any bank so TO redeem its
notes, that the hank commissioners be re-
CURED forthwith, 10 take charge Of il and
close lis operations, and that each bank be
permitted 10 pay out at its own counter Moth
ing but lis own notes or specie, unless at
| ihe option of those who have demanded up
on It, am clearly Of the opinion that such
a law would exert a most salutary influence
on our banking system. The rate of cX-
change between the western and eastern
parts Of the state is, at times, serious bur
den on the community tho banks create
that burden--,hen, on whom could It be
placed with more Justice and propricty -
| They can make those exchan- es with much
less Inconvenience, and with much less ex-
pense, than individuals. 1t would assist TO
restore confidence, az each bank would br,
to some extent, the surety for the notes Of
the would introduce 4 wholesome system
Of checks, long wanted, by inducing each
to keep watch over the other; and in case Of
excessive issues beyond their ability 10 re-
deem. their notes would be returned upon
them, an the bank he forthwith clOssed,-
Self interest is the ruling motive with banks,
and by this law we should enlist in it the
support Of the public good. Ii is manifest
that this would be an essential improvement
of the present system, and would render
our banks, and our currency, sounder and
better than those Of any other state.
also recomend, that provisions be made
by law efectually to prevent any bank, or
banks, in this commonwealth from purcllas-
ing and holding bank stock, or any other
stock except their own, and the stock Of
this state, or of the United States; and then
only 10 such an amount as shall merely fur
nish fund for Immediate resort in case Of
a pressure, OF nnder peculiar circumstances
when loans TO commonwealth are authoriz'
ed.
The direct operations Of the existing law
has been, and must be, TO induce banks to
engage in wild speculatioNs. foreign TO their
objects aud nature, and TO divert their cap
itals from the legitimate purposes for which
they were chartered. Nothing short of the
.ana,l Of the nrasant law will arrAst this in