Jeffersonian Republican. [volume] (Stroudsburg, Pa.) 1840-1853, 1848-01-13

preciate, that the accommodations hare been be-
slowed upon favorltes, and large spectators and
dealers III money, instead of being dffused among
moderate and safe Customers; that the issues
have at one period encouraged speculation by
their excess and at an other oppressed honest
industry by the contraction in short that the
! legitimate object for which the prviledges were
granted, have not been by fair, faithful and Judi
cious mana cement accomplished, then the char
ter should be suffered to expire by Its own liml-
tatIon. The discontinuance of such institutions
will promote the public good, and will be hlll"f
with appreciation by all but those who have, for
private gain, wrested them from the purpose Tor
which they were established
This policy, so just towards the public, while
| it may, to moderate extent, diminish the pres
ent amount of banking capital, will strengthen
public confidence III the other banks and add to
| the stability and soundness of the ccurrency.-And
as it may, also, increase the profits OF existing
banks, beyond Just compensation TO the share
holders for their investments, and as this excess
of gain is derived from the special privileges con-
ferred upon them by the Legislature, recommend.
that the tax imposed by the act of the lst Apr'i.
1885, upon dividends exceeding six per ceni. pc.
annum be increased. While the lnducement to
excessive banking will be reasonably checked,
| by the increase OF his tax, the finances Of the
State may be, to some extent, mprovedi aud the
public welfare promoted.
The policy indicated, will lead to the rigid ex-
ecutlon of the law prohibiting the circulation OF
foreign notes, under denomination of five dollars;
as soon as the balance of the relief issues is can
celled This will be positive advance in the
improvement of the currency, which should be
then followed by law prohibiting the circulation
of all notes, below the denomination of ten dol
! lars. The channels of circulation will then be
filled with an abundance of gold and silver, the
prt5!ic secured against the chances of loss by bro
ken banks and DEPRECATED currency; and the way
will be opened to such further improvements as
the real interests and convenience of the people
may demand.
The cautonary enactments have suggested.
cannot fail to increase, rather than dim Fish tie
amount Of sound circulating medium, fuils en-
titled to the public confidence. The effect will
be TO bring the specie of the Country into active
circulation, to furnish the people with substan-
tia currency that cannot be impaired by bank
failures, and to restrain the tendency Of the banks
to foster extravaganza, in time of prosperity, and
check the means Of oppression IN time OF adger-
sIty.
| A theory has been advocated and put into prac-
tce, in some of the States, called FREE BANK
/ ING 1t is based, IN part, upon specie and IN
part upon State stocks, hypothetical with the
Government In other words, banks become the
creditors of the Commonwealth by purchasing
her bonds; these are deposited with the govern
ment, and the government endorses, and returns
to the bankers, notes prepared for clrcuiatlon =
an equal amount. | can perceive no grounds for
confidence in this system. 1t must explode in
a country where it is adopted to any considerable
extent whenever a revulSon occurs to test its
stability for it is deviation from true principles.
Sound and safe banking can only be based and
conducted on money-gold and situer. Neither
individuals or banks, can lend then that which
they have not; and if they lend credit in the
, shape of bank notes, without the means TO redeem
them in gold and silver, they commit fraud up
on the community, as they lend and put IN cncu-
lation that which is not money, nor the represen-
tatlve OF money
Ifthis system Of converting Slate stocks in
to banking capital, and hypotheca.ing 1t as Sc
!, curity for the payment OF bank issues, were not
delusion, mortgages upon real estate might oe
used for the same purpose, which would afford
an equal II not a better security, for the payment
of notes. and by this process, the whole value
of the real estate of the country, might be con-
verted into banking capital, and the people in
to nation of bankers. This proposition shows
that the whole scheme is illusory and unsuund.
Free banking. in its legitimate sense, is the
right which every man enjoys, TO lend his own
money to whom he peases. 1t is the exchange
of money for securities, to repay with interest
ton, but may be carried on to an indefinite ex
tent, without affecting the currency. lhis Is
the free banking, which has at all times sup
piled, and does now aupply, The wants OF a large
proportion of borrowers, and commends itself to
general confidence and approval, by its simPh
city, and adaptation to the circumstances OF the
people.
The policy of Incorporating, mining, manuiac-
| turing, transporting and other companies, for
purposes appropriately wthln individual com
potency, has been fairly discussed; and guiled
by the unerring demonstrations, that these EN-
) terprizes are most successfully and benehcialiy
conducted, under the control of individual res
possibility, the public opinion has been express
ed in the spirit of the age IN which we live, ID
gainst the pciicy.
While all the great departments of business
in the Commonwealth are prosperously cou-
Quoted, under Tree and equal competition, there
! are vet some men, who seem to stand STILL
/ while the world is going onward around them,
: and who cherish the antlquated notion. that the
timd contracted and selfish aggregatlon OF
wealth, under the protection of corporate prIsi-
leges is preferable for the transaction OF DuSi-
ness, to the free, ardent and bounding ca,,aoiii
, ties OF individual enterprise p"wef wUlra
; since VIM. Penn arrived on these shores, III
! hoe <ba ygilrl mt.