The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-01-24
New System Of Ranking.

IIh n I1ok-
The most mischievous privilege tina, can be con
oeded 10 individuals, separately or CONFORMITY, a
companies or corporations, is the permission 10 is
the paper currency of the country. II is not II
human nature not to abuse it, The power beget
lhe ambition TO do it, if it!had pre-exstenee
Our creates: anxiety is for the possession of wealth
and as this privilege offers the most fertile medium
for its requirement the facility becomes irresistible
The laws should, therefore, carefully guard agans
the exercise OF power destructive to the welfare
Of the communiry'by prohibiting its existence.
Let but body OF men cali themselves Bankers,
and thousand pounds OF real capital is more than
sufficient, to enable them to put notes into circua-
ton representing two hundred thousand pounds
The original sum may beswiihdrawn after getting
this immense fictitious amount afioa' and the par.
ties may then trade extensively without riskmg one
sixpense in the concern! If they prudently carry
on a cautious business of discountrg alone at pc
cent annual profit is insured of E0, 900 that is
f10,0U year arising from the employment of no
capita, whatever!
Is there any other occupation IN society In which
enormous a benefit is ensurable out Of nothing
But should the parties engaged in banking become
ambitious OF obtaining riches more amply and more
rapidly than through the medium ct discountng
then unbounded field Is open TO the widest and
most runous OF specuatons. The law permits un-
nnlte0 Issues. ana me only cNeck IS loss OF
fdence bet when this occurs run takes place; 10
convert disappointment ensues the bubble bursts
and thousands are thrown into state of destiuon
who never dreamed Of beng the victims of such a
calamity!
II surprises me that system fraught with such
melancholy consequences, FIRE Queny exempt
fed, should have been so long tolerated The ope-
rsuons OF banking are useful in commercial state,
At confined TO the legitimate objects OF deposit,
ceipts, and payments but The moment individuals
arepermitted unmedly to issue slips paper, lntrns
caiiy worth nothing, in exchange for real capital,
then an eagerness tor gain eDgeaders speculation
the metallic currency and every. saleable COMMODITY
fiuctuaes, to render the result Of every ner-
camille transaction doubtful, and disappointment
and destiutcn overwhelm thousands who have de-
served no such tate.
In this my first public communication, locally, on
THE important subject, shall confine myself to che
mere outline OF a piaa which | have repeatedly
urged ca the attention of the govern and legss
iature IN England, and which now have every rea-
son TO believe VIII be carried into effect al the e1p
ration Of the charter ot the Baak Of EEgland. IT
the subject be found acceptable 10 your readers,
will 60 rninuely into its ramifcdtons hereafter.
IN order then TO prevent all the evils which haze
hitherto been separabe from the present system
otbanking, and to render 1t IN futxre usefc and the
source OF prosperity. 4 propose that Nationa,
Bank be formed on account OF the whole UnloG,
with branchia each State, or tina. bank be estab
iished on each atessepsrate account.
To be administered by commissioners.
To be the only bank OF issue.
= To Do no private business tie own pirate &C.
90 unt beat to discount for all Join, stock banks in
the State in proportion TO their paid up capital
al notes being convertible on demaxd
This system wsuld produce a coSsiderable local
revenue, furnish well-seeIred ample and vnfuc-
usnag currency, Frevt mt lnR.oviden discounts. and
all mise hevous epecuations by Joint stock backing
compaRlee, which have hitherto been productive
OF 30 mpch ruin to the comM unity, Ak and reader
almost invariable the exchanges and the prices of
al valuable commodities, and others confne the
general operations 81 banking to thus propex and
legitimate objects
Al the desire Of his ExceBeacy, the American
Ambassador have lad this suggestions before the
Governor OF each State, and il II be considered as
Ineriting ateRuon, snail feel rsuch qualification
ty be'ns rendered instrnmental,o its promotion.
Tu.