The Madisonian. [volume] (Washington City [D.C.]) 1837-1845, 1841-03-13
aBhtlapeIphta Correspondence.
PHILApELpnIA. March 9. 1871

PHILADELPHIA, March 8, 1S41.
A Bank bill has been reported to our Legislature
II sanctions suspension for oo years authorizes the
Banks to issue small notes TO nearly the amount of
three millions, imposes tax of 8 per cent on Bank
dividends, and prohibits the banks fom Ioaning mo
ney to any officer clerk in their employ. The last
provision is unexceptionable. Almost all the recent
bank difficulties hero have begun with specuations
made by Presidents and Cashiers the loans obtain
ed from their institutions two years suspension
will be most injurious to credit. 1t is, to say the
least very impoc fer the Legislature to excuse the
banks from fulment Of their obligations for long
PERIOD when the course of the General Government
is yet undeveloped and before the effects of its healing
policy yet felt. This frequent and injudciousle
gsative sanction of bank suspensions for extended pc
RODS by means tends to promote prudent admin
istration of bank affairs must not be understood to
be unfavorabe to indulgence to the banks the part
OF the Legislature aEoe~iss suspension at least
must be authorized but every wewsher of the banks
could hope That little discriminating rgor
csed by Legislature, unless it wishes incte them
into specuations and mal-adminisraton by removing
every check and legal penalty.
| The State is in an unfortunate dilemma. The U
S. Bank the chief cause of the late suspension,
lasting, and that this institution will ever again obtain
general confidence may be justly doubted The State
is, in part prvy the endorsements of the bank by
the heavy bonus imposed upon it for its charter and
the numerous exactions from il in the shape of loans
1t also holds more than six millions of Pennsylvania
per cent stock upon which there is depreciation of
more than 100000 The State cannot therefore,
without manifest injustice nhct penalties upon it for
embarrassments which it has itself in part produced
The question presented to the State is how far it
be just the U s. Bank and sustain the interests
the community. Except this bank fiom the indul-
gence granted to Others and great of our diff
cutes will be removed but the State will be deprived
of institution whose liberal contributions have fire.
quently saved the honor of Pennsylvania and whose
immense capital is most sensibly felt in commercial
operations. Moreover, the Grard funds, and the
neys of several other valuable trusts placed in this
bank, which would be greatly damaged by forfeiture
of its charter The bank ELECTS sympathy also from
its prompt generosity 10 New York and Charleston af-
the destructive conhagration in those cities and
from its general lberalty to our merchants. The
question then presented to the State is shall this bank
be sustained mott To many it appears better that
the State should obgei to close its affairs but at the
same time release it from every possible obligation
as enable it to expire with the least possible injury
| to its stockholders.
The proposed amount of small notes authorized to
be issued by this bll is too large That it's but adj
ding three millions to the liabilities of the banks at
| time when they should be diminished. One million is
abundantIy sufficient for the wants of the community
The restriction of bank dividends to five per cent is
very unjust The utmost beraity is extended to the
banks but the legislature very jealous lest thel
stockholders should derive any benefit from it. To
loss of 25 per cent bank stock will then be superad
ded reduction of per cent on dividends. Tht
State imposes per cent tax on dividends and in it
necessities wanders a mendicant from bank to banl
begging assistance to enable it to pay its debts and
every possible manner seeks to make money from tn
banks vet it cannot act with common justice to tn
innocent stockholders This provision cannot pass
is to be hoped 1t is surprising that it introduced
The bill with these obnoxious exceptions strikes m
| as good one.
The Inaugural meets with universal appreciation
U. s. Bank stock holds at II and Girard at 81. Peo
ple here are very curious to know why effort is mad
to compel the return of Lewis to this country Man
of the directors of the Schuylkil bank suffer unde
prejudicial imputstions from the apathy and inder
ence manifested on their part to the apprehension
Lewis John Banks, of Reading, will be nominated a
| the Wing candidate for Governor. He is poPula
man, and will be among the few Of well educated 60
vernors that Pennsylvania has had. Gov Porter hs
no chances Of reelection.
Yours, -