Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1848-04-05
For the Portage Sentinel.
Free Trade Banking.

Free Trade Banking.
On the subject Of Free Trade in Bank.
ing, 10 which alluded in my. article in
the Sentinel few weeks since, find in
the democratic Free Press Published al
the new seat of government of the State OF
Michigan, some remarks quite appropriate
and to my purpose, in Speech Of Senator
Griswold, member of the committee on
banks and interpretations, Of the Senate, of
Michigan, against s'the bill 10 amend and
consolidate the act to.incospo he Stock.
holders of the Michigan Insurance. com-
pany Of Detroit and several acts amenda
tory thereto" 1t was proposed TO incor-
porte lot OF banks, based on State Stocks,
the charter to run 20 years, snd to issue
notes to double the amount Of the Capital
Stock. Senator Griswold opposes corpo.
rate banking, but proposes free banking as
q substitute. 1t is thus that bankers can
be made liable for their issues, and the
State does not recognize their ioper as
money. 1t is only notes for money. |
have marked some portions Of the Speech
and would like TO see the extracts copied
in the Sentinel.
After some preliminary remarks in
which he refers to the State Stock system
and its results in New York Banking he
proceeds to say
Once er ect 4 Gordon Of these institution
in our fair state, and we at once may rs
as we'll prepare to go through similar Or
deals in currency and banking, rs we have
done during the last ten yesrs--we may
again expect 10 sec our state feeble sup
plant at the feet of these institutions.
! = II *
Among other arguments advanced by
my colleague was one that they give an in
creased capital, and would facilitate the
purchase OF produce. Now, for one,
cannot conceive, how an increase Of these
instituiitutions will increase the capital,
of the state, will admit they will aid in
the purchase Of produce-and how will
they aid1 not by ditfusing its means for the
true interest Of the buyer and seller, but
by placing immense sums in the hands o
I favorites 10 control the market and make
monopoly Of wha, should be left open te
to free competition. Ny colleague nlss
says That we need moro banks to fur
nish circulation to drive out the deprecia
ted paper in our state. Now, i am ont
of those who believe the people can man:
age their own afi:tirs, without our interior
ence Ii a person chooses to take dePre
ciated paper when he can get money, is
that any reason why the Legislature should
rstep in and interdict him. am not ye1
prepared to subscribe to such a principle r
! Now, we have tried two systems ofbank.
/ ing in our state; both the result Of striving
10 legislate men into good conduct. We
tried the special charter and individual liza
bilty system, which exploded, scat.
tering it's ruinous fragments in every direc'
ton. We next adopted the real estate ba.
sis for banking, but this, like the former,
proved the futiity OF legislative banking
and left the relics Of its worthlessness scat.
tered throughout our state. e 5A.
But this system was not treated with the
usual dispensation of legislative lavors, for
the unheard OF principle was carried out oi
permitting institutions under this system
to go into operation under general law oI
suspension Of specie payments. Now we
are called upon to embark. the credit anc
reputation of our State, in q new system
which promises to result no better than the
unfortunate ones which have existed here.
tofore You cannot succeed under this
system without in tho end dragging our
fair State into disgraceful and humilia:
4 ing position and in the end compromi sing
her honor and credit, by embarking In q
wild scheme Of banking AS, for me /
will never 60 for it for believe | sloule
be doing gross injustice 10 those | repre-
sent and certainly would not be lul
filling the dictates of my own cons cience.
The monied institutions of our State have
heretofore proved fnithless-they had the
power then-the people have it now, and
] | for one 60 for still retaining that power
where it legitimately belongs. Now it
maybe asked, and from the position in
which at present stand, would seem TO
Justify that should state briefly auhat sys'
tenn would go for. There is one. princi-
pie have ever advocated since my first
entrance into political lie and which at all
pubic aSSemOlageS l nave ever satteilaeu
and spoke on the. subject, was by me frank
ly expressed. 1t was that banking like
every other branch Of trade should be free
from legislative interference, and left to
the people. That would go for the prin=
ciple Ola total separation of the two dis
tinct functions Of creating and lending the
currency or for the removal Of all restric.
tions whether upon individual or voluntary
associations-but 1 should prefer the latter
with the qualified restriction corresponding
to the regulations of q private copartnership
and tn at the death of stockholder should
not work dissolution of the association.-
If there be an evil under this system by
giving it full scope it will spend and cure
itself, it will be guarded by the vigilence
of the people, animated by the inpelling
motive of self interest, and it will place
the whole systenlree from legislative tam
pering, and meddling subject to the vigilant
guardianship Of the public, and regulated
by the Two wholesome principles of free
associations and free composition How
! ever strong the prejudices against the po-
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