The Somerset herald and farmers' and mechanics' register. [volume] (Somerset, Pa.) 183?-1852, 1846-01-20


defiance Of any discriminating isrih-eN-
travarance invades all the departments OF
societv-indefnile credit invites 20 a
thrifless extension Of Indebtedness, al.
at last. the laws Of trade. HnchangIng a.
those Of nature, produce reaction. and the
whole artificial machinery Is crushed.
The people Of the country are indebted
to the cities; the cities are indebted a
broad. where the promises Of the banks
arc not excepted as money; and the banks
arc called upon 20 redeem their notes in
coin. This they can only DO by draw
ing in their means. refusing new accomO-
daiions. and pressing their debtors for
payment. The circulation OF the eoun-
try is suddenly contracted, property -
sacrificed. IN many instances without re-
lieving the debtor; and his energies are
paralized by hopeless insolvency.
Such. within the recent memory OF all
Of Us. has been the action of a yItiated
banking system on the faith Of the Stale.
the stability Of her Institutions, and the
free energies of her people. Il has
taught us a grievous lesson of suffering;
but II VIII not have been altogether IN
productive of good. if II has impressed on
US the solemn and imperative duty Of
guarding against a recurrence Of similar
evils.
The abuses of the banking system arc
found In manv forms; but they are assem-
TALLY the same in their origin and result;
excessive issues of paper, and It's eonse-
quent depreciation. To give the power
Of manufacturing money, vet efiectuzlly
to limit It's exercise, by legislation. -
practically impossible. Ii is obvious,
that no enactment can absolutely prevent
the unlawful issue of paper BY bank,
which has the lawful right 10 issue any
Returns Of bank officers, however exact
" prescribed. or honestly made; give 10
security for the periods that elapSe be
tween them; and inspections Of the affairs
of the Banks bv commissioners. which
have been resorted to in other States, arc
apt to induce dangerous reliance on the
vigilance Of such officers.
1t may be, that the principle Of indi-
vidual liability for corporate engagements,
which has recently been inserted in some
Of our charters. may, when properly ex-
tended and made more directly operative,
secure not only the,crediior from loss, bHt
the currency from dangerous fluctuations.
The experiment should be fairly made N
the case Of every Bank that may ask
renewal Of It's charter. That It's progress
may be the better tested, | respectfully
recommend that the banks be required 10
make monthly returns of their condition,
10 the Auditor General; and that these be
so arranged, a. 10 present more COM
plete and exact view Of their transactions,
than IS furnished under the existing law,
This will facilitate the future inquiries Of
the Legislature. and the periodical pub
lication of the returns, viii secure 10 such
Of the banks, as are legiiimately admins
tered, the reward of their faifilulness, N
the increased confidence Of the public
| need scarcely add, thai the claims Of the
banks 10 general confidence should be
thoroughly investigated, and fully asceT-
tanned, before their charters are extend
ed.
These recommendations have special
reference 10 applications from existing
banks. In my judgment The capital now
invested in these Institutions IS amply ad-
equatc 10 the business wants OF the CON-
munitv. The times do not indicate the
present necessity Of any additional stimu
lus to the spirit Of enterprize, and | can
not allow myself TO hazard. by any act
of mine,a possible renewal of the exees-
ses, which we have Witnessed so rscen,-
ly.
PennsylVania combines in an eminent
degree the three great elements Of indi-
vidual and national wealth, agricultuture,
commerce, and manufactures; and the
pursuits and industry Of her people, are
proftably divided among them. Her
hills and mountains are almost every
where filled with inexhaustible supplies
of iron ore, and mineral coal; and her val
leys abound with water power for pro-
pellIng machinery, IN the midst Of tho
finest agricultural regions. She has con-
structed, al great cost. line Of improve
ments by canals and railways, connecting
the waters Of the Atlantic with those OF
the great West which not only affords
our own citizens a cheap and convenient
mode Of transporting their products To
market, but also benefits the internal trade
and commerce Of a large portion Of the
other States OF the Union.
The North and West Branch Canals.
and the Delaware Division, IN connex-
Jon with various Improvements owned by
companies, besides opening markets to
the productions Of the farmer, furnish
outlets for our coal and minerals, by
which not only our own Citizens are
supplied, but also those of the neighbor-
ing and Eastern States, TO the great adj
vantage Of both. Many parts Of the