The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1848-01-06

The present lie most propitous period when there is
an abundance Of gold and silver In the country to make
determined effort 10 increase its circulation and
cure 10 the people the currency which the wisdom the
trainers Of the Constitution of the United States prov
ded lnstead OF creating banks, increasing the
capital OF old ones our efforts should be directed
cure the solvency Of those which already exist. and
thereby render their circulation sound and reliable
Impressed with the forcs Of these considerations /
convinced that the increase OF the banking capital
of the State would be unwse aud mpolitic and re-
specttuliy recommend that before any one Of the
listing bsnks is rechartered searching scrutiny be in
stuted into its affairs its management, It's credit and
it's means and If IL be found that the notes have been
suffered TO depreciate that the Accommodations have
been bestowed upon favori;es and large pecusors
dealers in money instead Of being diused among mod
crate and safe customers that the issue have
period encouraged specustons by their excess and at
another oppressed homer. industry by
In short that the legitimate OBJ for which the priv
egee were granted have not been by fair faithful
Judicous management accomplished, then the charter
should De suffered 70 expire by its own Limitation The
disturbance OF such institutions will promote the public
good and will be hailed with appreciation by but those
who have for private gain wrested them from the pur
pose for which they were established.
This policy so just towards the public while 1t may
20 moderate extent diminish the present amount Of
banking capital will strengthen public conf dsnce in
the other banks and add to the stability and soundne
CT the currency And as may also increase the pro-
dts OF existing banks beyond just compensation
shareholders fer their investments aud this Of
gain derived from the special privileges conferred upon
them by the legislature recommend that the ir-
posed by the OF the LIST of April 1885 upon dividends
exceeding six per cent per aonum be incr.s'ed While
the inducement excessive banking will be
checked by the increase this tax the finances Of the
State msy be- 10 some extent improved and the public
welfare promoted
The policy indicated will lead to the rigid execution
Of the Law prohibiting the circulation of foreign
under the denomination of five dollars soon Us the
balance Of the relief issues is cancelled This Will
positive advance in the improvement Of the currency
which shoud be then followed by law prohibiting the
circulation of all below the denomination ten
dolars The channels of circulation will then be Gle
with AN abundance Of gold and silver the public
against the chances OF loss broken banks depre
csted currency and the way will be opened to such
further improvements the real interests
nence OF the people may demand
The csutionary enactments have suggested, cannot
fall to increase rather than diminish cunt of
sound circulating medium, fully entitled 70 the public
confidence he effect will be bring the specie of the
country into active circulation to furnish the people
with asubssntia currency. that by
bank failures and TO restrain the tendency Of the
10 foster In time Of prosperity and
the means of oppression In time Of sdversity
theory has been advocated and put practice in
some Of the States called tree banking IL il based in
pert upon specie and In part upon state stocks
thecsted with the government In other words bank
become the creditors Of the common wealth by pur-
chasing her bonds these deposited with govern
ment and the government endorses and the
psnkers notes prepared for circulation to an equal
amount. csn perceiv. no grounds for confidence in
this systsm IL must explode In country where 1t 10