New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1847-02-13
safety Fund Banking.

When in 1897 upon the heel Of the general CO..
lspse Of the currency devices Of their opponents
tho Wings swept our State as by tornado eiect-
ing One Hundred being all except twenty eight
Of the Members OF Assembly. we heard no cues
non from any quarter as 10 the imminent necessity
a reconstruction 0! our Banking System On pm
cpss radically different from those Of Mr. Van b.
rea's Safety Fund, which had so pslpably and no
triously proved itself ss vicious and delusive as
men of intelligence and sound views, whether in
Politics or Finance, had steadily regarded H. Ac-
cordially the Wing Assembly. enbodying such
me1 20 LrIHIn BRADIsH. WILLIS HALL, ID. D.
BaarARD, d. B. OoDrs, JoHs N. HoLLEY, ;. b.
RucoLIs, g. w. PArTHR.os, WIN. DUR, &c. earn
ssty devoted IL. attention 10 the framing Of new
3 .rkins System which should thoroughly eschew
the vices Of Monopoly. Insecurity, and Political
favori,ism so VIGOROUSLY inherent in the Ven Blu
rsn scheme The resul, Of their deliberations was
the passage Of the GENERAL BASKfsG Law. We
watched the inception and maturing Of that law
With no ordinary solicitude, for we deemed Il &
measure Of vital importance and benehcsnce. We
regarded IL with pride as among the most subssn'
nal fruite Of Wing asoendency, calculated 70 re-
hevo Banking from oorrupting and dangerous sub
serfency 70 Politics 10 replace Monopoly By Free.
ION, and b substitute for svasue loose, delnsve
show Of security the vertable substance thereof
substance not left ia the pockets Of the Bankers,
whether under the fsithess guardianship Of the ~
ins phantom known as Personal Liability or 9th
srwise, but actually deposited in the vaults OF the
State, under the care and at the disposal OF is
highest Financial officer We cannot doubt that
she passage Of that act was hailed with hearty
satisfaction by nine tenths Of oar People who had
any opinio on or inteisen ground for one on the sub
loot and by still larger proportion OF the Wings
The nine years which have since passed have
been calculated 10 deepen our original proposes
slous in favor Of tbs Free Banking System cs.
pecislly az compared with the Safety Fund, into
invessrate convictions The Safety Fund has fall
on victim TO its own radical vices entailing heavy
Losses on note holders and the public. II is wa
tsr.iosged. stranded. bankrupt affair inter having
vrenchsd many hundreds Of thousands from the
pockets Of solvent and honest Bankers to pay the
liabilities OF the reckless insolvent and rascaliy
On the other hand. the Free Banking System,
though encumbered at its outset by fearful reva-
sicn in the prices Of Real Estate aud most unlock
ed for and sunnins blow in the great depreciation oil
man, state Stocks the result Of their virtual repu
diston has Tor wears been steadily gsningin solid
ty and public confidence. IT, through the pressure
al some unforeseen and stupendous calamity the
Free Banks were ali 10 stop payment tomorrow
we do not believe the loss 10 their bill holders would
exceed ten per cent on the face Of their notes re
spcctively.
That certain class of Bankers, actual aud pros
Al. - Itcb has hitherto
saed hundreds OF thousands OF notes which other
and soonder Bankers have been compelled by the
Safety Fund to pay the innocent holders to lose,
--should prefer Safety Fund to Public Security
Bsnking and Personal Liability 10 depositing State
Stocks with the Comptroller, we can very well I'M
derstand, but that Legislators. and especially
Wing Legislators, should evince readiness to &C
commodatc them, IL not easily or so creditaby
explained. And, whatever the pressure oil infio
spce or solicitation brought TO bear on the Leg
islsturs. we cannot believe that any such Bank
bill as Mr. Hadley has just reported VIII pass
tho present Assembly. At all events, We shall
not hesitate to speak plainly against any pos
sisle relaxation Of the principles OF the eener'
Al banking Law. That law oontempiates not
two ootemporary systems OF Banking but one
evstem; one substantial and not two or three
wiil'o wisp shows of security, consisting OF paid
up Capital, which may be all distracted next
day; Personal Liability, which may be that OF ten
Jacob Astors or twenty Jacob Bankers, and Is a
reat deal more likely lin the case OF ssuspending
Bank TO be the latter than the former and Safe
~ Fund which is morally certain ~ dsarm public
vigilance In kessons of prosperity and prove the
abest OF broken reeds In the hour OF sdversi
ty and serious trial. All who choose 10 Bank I'M
der the General Law. aud In conformity with its
pxovisions. are most welcome 10 do 50; and Il the
smcap, Of legally acceptable Securities shall ever
appear 100 limited 10 allow the issue Of currency
y the extent demanded by the pablo good. we
VIII favor such change in the law as will author
no the reception Of Z Dew class or new classes OF
Securities, taking care that they be ample reha
Die and available. But whenever Wing Legs
lafase shall vote 10 reestsbish the Safety Fund
system and authorize unlimited issues OF Paper
pader IL, we shall fee sadly puzzled as TO ths iden
sity Of the psrty--og rather OF such Legislator
within the party-with which we struggled through
yeays OF depression and gloom, but years also o
honesty. conviction Aad hdelisy to cardinal prnci
pies Bat ii is 40, possible that any such bill Wi
psss TIE present House.