The daily union. [volume] (Washington [D.C.]) 1845-1857, 1848-02-11
Total,

This has been large absorption of stocks supply
rency In far paper is equal to specie for cir
cuaon this operation upon the volume OF the currency has
been the if those stocks had been sold abroad for
specie and the ate poured into circulation to the extent
900 Yet the circulation acquired is but 30 per
cent of the whole circulation OF the State that is
to saw the corporated banks issue $70O0O0 against
$4,000 600 of free secured upon stocks Had there
been no incorporated banks, there would have been
qued 1927 100000 of stocks to secure tho circulation In
the gears the charters expire, while the New York
stock will be paid off, and the constitution prohibits new
creations. To this system, Neo York ciA require
$50 600 600 Of United States stocks there further
crease banks Ohio passed bank law time ago,
requiring free banks their circulation by Ohio
stock but had the folly also 10 permit State bank branches
to issue without security The circulation under this
law has reached S. of the latter and $500 900
cured Had the law compelled all to have been secured,
demand for near SIG of Ohio stocks would
resulted and this would have kept their price high
that of any State, while it woad have retained in Ohio
$500 900 annum, that exported pay the
est that stock Instead of this Ohio is about reap all
the evils of most absurd system OF wildcat banking,
whsut deriving any OF its benefits In Pennsylvania has
been attempted to pass law similar to that of New York
but the desperate specializing class that passed the
State branch law in Ohio conend for rotten and ire
sponsbe paper issues Tennessee is also discussing law
to permit Tennessee and United States stocks become
the basis of banking In other States, similar speculative
mania sprngng up, both in State, which possess stocks
oftheir own, and those ike New Jerscy) which do
According to the able report othe auditor general of Mich
igan the total debt OF that State for internal improvement
ST. 800 599 after the payments in bonds to the treasury
the purchase of the railroads making large reduction in
the outstanding bonds In many of the States rapid reduc
tons being made in the amount of outstanding stocks
while, as have remarked the disposition to make them
the basis OF paper issues is growing 1t is obvious that
when any State creates demand for its stock, ma
king the basis Of paper money by drawing that stock out
of the hands of capitalists, it leaves room for investment
of other stocksay Unod States As for instance last year
the banks of New York drew $4,000 of New York
stock from handswhich replaced it with United States
stock In 1889 900 of New York stock is be
paid off, In the continuance of this process, the question
recurs from what quarter will the fuel for this bank mania be
supplied New York must in few years. have $50 900 0O0
and all the other States least much more, and $780,
900 Of United States stocks will scarcely supply the de-
mand In this vew the debt will avert an evil as
thus in the years 1861 when the paper circulation
spread upon irresponsible basis season OF speculation
sprang up which consumed the floating capital of the
try People ceased produce and increased consump
ton This bank mania is now again growing, and win
lead disaster The government will be protected by the