The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1847-07-01


The proprietors of steamboats,, railroad cars,
&C., had better therefore send IN their adver-
tisements as soon.as possible.
state Debts, and State Constitutions.
The Empire State has set an example to all
theirs of the confederacy, in several of the most
important features of a government-in the con-
struction of public works, in the formation of
banking systems, and in certain restrictions i'm
posed by the constitution. While other States
have followed the State of New York in the con-
traction of debt, and in the construction of
public works, they have not all taken such good
care of their credit, or so promptly fulfilled their
engagements.
The free banking law of this State, has been
adopted by Ohio, and it is probable that Penn
sylvania, Indiana, and Illinois, will soon adopt
system similar to it. Those States having large
debts, should by all means perfect banking
system, by which their own bonds would be the
bases, the capital, and the security for all paper
issues. Their bonds would then be In de-
mand, and would gradually be absorbed by the
banks, and ultimately come into the hands
of our own capitalists The time is not
far distant when the bonds of our States will be
owned almost entirely by our own citizens, when
the interest upon payment will go into the peck
cts of our own people, instead of being RENTED
TO Europe, at the rate of five millions of dollars
per annum. Nothing would bring about such a
desirable result more speedily than the adoption
of a system of banking based upon State stocks.
The Legislature of this State came to wise
conclusion when il refused to amend the
free banking law, so as to receive the
stock of the United States, as well as that of
this State, as security for the paper issues
Up TO the LIST of June, there were deposit
ed with the comptroller of this State, New York
State stocks amounting to So S72, S45, by the free
banks, upon which circulating notes for the same
amount have been issued. We have about TWEEN
ty millions of dollars, in the bonds of this State,
yet in existence, most of which WILL before re-
demption, find it's way into the hands Of the
comptroller, as security for circulating notes.
When our whole debt is extingushed, which,
under the new constitution, must take place
within the next twenty years, it will be time
enough to amend the free banking law so as to
receive government securities.
Pennsylvania has debt OF forty millions Of
dollars, and banking capital Of about twenty
millions. If the banking system Of that State
was based upon its stock, more than one half of
its bonds would be Withdrawn from the market,
the banks, would have greater confidence in the
promises to pay of those institutions. ILL
nos, Indiana, and Michigan, have in fact, no
banking systems at all. They require banks, and
there never was better opportunity TO establish
one upon proper principles The debts of all
these States are sufficiently large, TO give them
all the banking capital they want. The conven-
ton now in session in Springfield, Illinois, en-
gagged in the modification of the constitution of
that State, have this matter under consideration;
and the Importance of the subject is so great,
that we have no doubt it wi | receive
that attention it is entitled to- There is a
party in the convention opposed to banking in
any shape, but il is too radical for this age. II
any State in the Union has no banking system of
it's own, il will be inundated with the issues of
banks in neighboring States, the security or value
of which the people know nothing about, and
continual losses will be experienced, whereas,
with a system of its own, which every
citizen will understand better than that of
foreign State, more than seven-eighths Of the
evils OF banking will be done away with.
The free banking law of New York is as near
perfection as possible to bring anything of the
kind, and we would recommend it to the Illinois
convention as model. II is the only safe sys-
tem-the only one under which all parties are