The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-01-15


THE RANKING system IN PENNSYLVANIA,
\ Coy Skunk. in his late excellent message, sflsI
stating the gratifying fac, that the seni-snnaal IN
tsrest amounting 70 100000, will be paid on The
LIST Of February, and then suggesting the adoption
Of measures with the view OF sustaining the faith Of
the State, dsyotes large portion Of il to tho con
sideraiion Of the banking system Of Pennsylyanis.
We commend to the general attention the follow
ing paragraphs. The first has this general allusion
10 the subeet a.....-E ~. .. .. .e rs
"Intmaiely connected with the subject of our
finances u that OF the banking system OF the Stale.
The evils that have resulted from the manner in
which il has been administered and some Of those
more essentially connected with It's organization and
tendencies, have been felt by all. Yet il may well
be doubted whether the whole Of the misehiefs
which il has instgatsd, have been traced back TO
their fruitful and penlcous cause. Not only has II
stimulated individuals ruin, but States have been
led, by its seductive aud corruptng influences, into
course Of wild exIsvsgance, and consequent
bankruptcy. Pubic debts have been Contracted,
even the interest Of which could scarcely be met by
the most onsrous taxation; while, in other cas<s
the faith Of the government, which ought always 10
be held sacred, has been violated in time Of pro-
found peace. ra... ,I
But again, says the governor: a"
"However painful those recollection of pscunary
loss may be- there were attending circumstances Of
grayer and more momentous concern 70 the patriot
new element Of power found its way into our
elections The elective franchise was violated and
abused, the declarations Of the public viii were dis
regarded and de6ed, and the very existence Of our
free Institutions menaeed with revolution and
destruction. alluds TO the memorable crisis Of
1888, when a direct attempt Was made by tbs lead
ers OF minority 10 usurp the government, and TO
substitute their dicta,on for the voice OF the major
ity Of the people. These scenes had their origin,
beyond doubt, in a spirit Of reckless confidence in
the power and corupting influence OF money to con-
troll the State. .H- .
apart from these political considerations, the in
huence Of vi,isted paper system upon the general
and ordinary interests Of life IL banefu and perm
cious Hitherto there has virtually been nothing in
the organization Of banks TO limit the extent and de-
fine the character Of their action, but the discretion
Of the directors. A few individuals, constituting
the efficient portion Of the boards Of management,
are in fact the deposiiaries Of this discretion and
as a general rule-subject, no doubt, TO many hon
orabe excrptions--t IL exercised with primary, II
not exclusive reference to the supposed interests Of
the bank.
"Whie the business Of the country prospers, and
the spirit of specializing enterprise is stimulated by
success they extend their accommodations literally
and all the channels OF circulation with redundant
and deprayed currency. An unnatural rise Of prices
| IL the consequence. Imcorations increase in def
ance Of any discriminating tarif-extravagance in
vades all the departments Of socie'y-indehnite
credit invites TO thrftless extension Of ndebt-
edness-till, at last, the laws Of trade unchang-
| ing as those Of nature, produce reaction, and
the whole artificial machinery is crushed. The
people Of the country indebted to the ctiesj the
cities are indebted abroad, where the promises Of
the banks are not accepted as money; and the banks
are called upon to redeem their notes in coin This
| they can only do by drawing in their means, refus-
ing new accommodations and pressing their debtors
for payment. The circulation Of the country is
suddenly contracted property is sacrificed in many
instances without relieving the debtor, and his
ergies are parazed by hopeless insolvency.
"Such, within the recent memory Of all OF us,
| has been the action Of a vtated banking system,
on the faith Of the State, the stability Of her nstitu-
tons, and the free energies Of her people. IL has
taught us a greyous lesson OF suffering but il will
not have been altogether unproductivs Of good II il
| has impressed on the solemn and imperative duty
of guarding against recurrence Of similar evils.
The abuses Of the banking system are found in
many forms: but they essentially the same in
their origin and result-excessive issues Of paper,
and its consequent depreciation. To give the power
OF manufacturing money, yet effectuay TO limit its
exercise, by legislation, IL practically Impossible II
is obvious that enactment can absolutely prevent
the unlawful issue of paper bya bank, which has
the lawful right to issue any. Returns Of bank
officers, however exactly prescribed, or honestly
nade give no security for the periods that elapse
between them and inspections OF the sfairsof the
banks by commissioners, which have been resorted
to in other States are apt to induce dangerous re-
| lance on the vigilance Of such officers. .
at may be, that the principle Of individual Rabil-
y for corporate engagements, which has recently been
inserted in some Of our charters, may, where prop
erly extended and made more directly operative,
secure not only the creditors from loss but the
rency from dangerous fueigqtions. The experiment
should be fairly made in the Of srsry bank that
may ask a renewal offs charter. That It's progress
may be the better tested, respectfully recommend
that the banks be required to make monthly returns
ofther condition to tie auditor general; and that these
| be so arranged as to present a more complete and
exact view Of their transactions than is furnished
under the existing law. This will facilitate the fl-
ure inquiries Of the legislature; and the periodical
publication Of the returns will secure TO such Of the
banks, as legitimaiely administered, the reward
Of their faithfulness in the increased confidence Of
the public. need scarcely add that the claims of
the banks to general confidence should be thorough
| " investigated and fully ascertained before their
| charters are extended. ~. ,sg..H, q.
| HThese recommendations have special reference
| in applications from existing banks. In my judg-
ment the capital now invested in these institutions
is amply adequate to the business wants Of the COM
munity. The times do not indicate the present ne
cessity Of any additional stimulus to the spirit of
enterprise; and cannot allow myself to hazard, by
any oct of mine, possible renewal of the excesaes
which we have witnessed so recently" a.-..
We have marked in italics a very important and
necessary innovation upon the general system Of
banking, owrecommended for its expectancy. The
question Of the currency will soon be one of agito-
ting interest.
The governors picture Of the operation Of the
banking system is powerfully drawn well as
beautifully expressed. His representations ought,
we should think, to ring an awful warning in the
ears of the legislature, who, if we may believe the
signs Of the times to be importuned for the ex-
tension of the old charters, and for the establishment
of new institutions.
NORTH CAROLINA DEMOCRATIC con-
go YRNTloN.
The Democratic State convention assembled at