Sunbury American and Shamokin journal. [volume] (Sunbury, Northumberland Co., Pa.) 1840-1848, 1848-01-08

COnstitutIon o. the Uhlteo STATES pr0viueqs tW'
stead Of crestinE new banks. W increasing the
cspta Of old ones, our efforts should be direct
ed to secure the sSlvency Of those which al.
ready exist. and thereby render their circulation
soaod end reliable.
Impressed with the force Of these consdera.
tioDs, am convinced that tho increase Of tho (,
banking capital Of the State, would be UNIV o
and :mpofi,ic and respectfully recommend.
that before any one Of the existing banks is re.
chartered. . searching scrutiny be instituted
into 10 affsrs, itA management. its credit, and
its neans; and il il be found hat the notes have
been suffered to depreciate, that the scco'nino.
dations have been bestowed upon fsvorites. aud
large spcculstors and dealers in money, instead
ofbeing diff,'se1 among moderaie and safe Gus.
tomets that the issues have at one period en-.
couraectl sppcUlstions nv their excess, end at
another impressed honest industry. W their con-
'r.c,ion in short, that the legitimate objects
'or which the privileges were granted, have not |
been by fair. faithful and j,dicious management
accomplished, then the charter shonid he suffer
cd 20 expire by it's own Limitation. The die.
continuance Of such institutions will promote
the pnblc cood and will be hailed with appro.
bation by oil but those who hsve, tor private
gain, wfcsted them from the purpose for which
! they were established. .....s
! This policy. 80 just towards the pablo, while
4, II may. IN a moderate extent, diminish the
present amount ot banking capital, will strength.
en- pnalic confidence in the other banks, and
add TO the stability and soundness Of the curren.
cy. And rs il NAV. 1lso increase the profits oi
existing hanks, beyond a just compensation to
the shareholders fr their investments. and a.
,hisexcrss of gain is derived from the special
privileges conferred upon them by the Legsla.
turc ! recommend. that the tax imposed by the
net of the 1.t April, 1885, upon dividends tx.
I'M 4, - Mt hn nod
While tho inducemsDt to excessive banking
will he reasonably checked, nv the increase ~
this tax, the finances NJ the State may hc. to
some extent, improved, and the public welfare
rrcmnted. H".
The policy nd; ;ca'ed will lead TO the rigid
execution, nf the law prohibiting the circulation
&c foreign notes, under the denomination nf fvo
dollars. "a anon ne the balance of the relief il.
sucs is cancelled. Thi. will he positive ,d-
vance in the improvement of the currency.
which should b. than followed by a l,w pro.
hihitnc The circulation of all notes. below the
denomination NJ ten dolnrs. The channels Of
circulation will then be filled with an abun
dance of gold aud silver, The public secured
: gsins' the chances nj loss by broken hanks, and
drprrcinted curr"rcv: md the way will hc
orenrd to anch further improv. ~ the
3 real interrsis and convenience OF the people
y NAV demand.
The csuiionary ensc'ments | have sugges
ted cannot tail TO increase, rather than diminish
] the amount Of . sound crcu lstinR medium. tully
entitled 10 the public confidence. The eHec,
will be TO bring the epecie Of tho country into
J. active circulation. to furnish the people with o
: substantial currency, that cannot be impaired
L by bank failures, and 10 restrain the tendency Of
n the banks to foster sxtravagance. in time OF
: prosperity. and check toe msans Of oppression
IN time ot adverrity.
. A theory has been advocated and put into
I practice. in some Of the States. called FREE
y BANKING. II 10 based, in part, upon sprce,
;. and in part upon state stocks hypothscated with
the Government In other words banks be-
coms the creditors Of the Commonwealth, BY
'' purchasing her bonds these are deposlted with
;. the government, and the government endorses
and returns to the bankers, notes prepared fol
J. circulation, TO an equal amount can per
u ceive no grounds tor c"a6dsnce in this system
II mus, explode, in country where il 10 sdOp
j. ted to any considerable extent, whenever re
l. vuIeion occurs TO test ito stability. for 10 de
e Walton from true principles S,und and safe
banking can only oe based and conducted OF
e monCy-gold and silver. Nei'her individual,
T. or banks, can lend that which they have not
'' and it they lend credit in the shape Of bsnI
D. notes. without the means 10 redeem them il
., gold and silver, they commit fraud upon !h'
III community. as they lend end pet in circulation
:, that which is no. money, nor the representative
D. of money.
T. If this system Of converting state stock int
50 barking capital. and hypothrcsting it as a secu
C rty for the payment Of bank issues, were not
OF delusion mortgages upon real estate might b
used for the same purpose, which would afor
!. equal if not better security for the paymen
~ OF notes. and by this process the whole value
IT, the real estate Of the country might be convert
,g ed into banking capital and the people into a ma
=, =, ton of bankers This proposition shows, tina
i the whole scheme is iliusory and unsound
~ Free banking in it's legitimate sense, 10 tn
;" " right which every man enjoys. TO lend bic owl
money 10 whom he pleases II is the exchang
Nc Of money for securities, TO repay with interest
u il involves no fictitious increase Of the circuls
70 ton, but may be carried on TO an indefinite eS
~ tent, without affecting the currency. This is IN
OF free banking which has at all times supplied an
~ does now supply, the wants Of a large proportio
IL of borrowers, and eommends itself to eeners
III confidence and approval. by its simplicity and
in daPation to the circumstances Of the people.
G, We make the following synopsis of the ha
ance of the message, for this week, which vi
TO be concluded in our next:
I'd The Governor thinks the spirit of the age
opposed to the corporation of manufacturin
lie companies.
vi The increasing value Of our public works, b
says. mus, negative the idea of disposing Of the,
no to a corporation.
The Pennsylvania Rail Road is under eontrat
nd between Harrisburg and Lewistown; and mel
ny sures to avoid the inclined plane at tie Sehuy
:" kill are recommended.