The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-11-27

Crard total Ssl u.s. % S9020l75 S2303755 no
According TO this statement the circulation Of each
bark and the amount Of specie held by each,
1t will be observed that the free banks have hand
email amount of specie, compared with the issues OF
each This small amount is more than sufficient to
meet all their wants they have a security Superior
to the precious metals and safer than specie in the pos
session Of the management Of any bank. The security
upon which the Issues Of all free ba axis Is based is
beyond tie control Of the owners Manager agents
Of these banks it is in the hands Of the Comptroller
cannot by any possibility be appro2ria ed to any
other purpose This free banking system has been in
operation about eleven years. and yet vast deal of S
prevails among the massss-amons the largest
class Of b-holders 10 relation to its security aud is
operation. The issues Of free banks at all times
worth the amount they represent. The public stocks
of the State Of New York must largely deprecate in
value before the circulation of the free banks OF this
State depreciate per cent In ether States the
greatest ignorance exists regarding the provisions of
the free banking Law OF New York. II the Legislature
CT Pennsylvania would pass law similar to that In
operation here, we should suffer more from such
svindng concerns as the Susquehannsh County Bauk,
the Lehigh County Bank, the Erie Bank, aud host
Of others that have found foothod In that State aud
robbed tie poor man of millions. As for gold and sill
yer being the basis of and security for paper
cy, it is all moenshine. We have little confidence
In the honesty and integrity Of the managers OF
banks generally that any security over which they
have absolute control 10 worthless to the bill holdse
The vaults Of bank be cleaned bet two days.
the management carry of and secrste a7propr.
ate to their use every cen; Of the assets and
the bill holder to take o. anssn II Is merely
the simple that the security for the full reaemp
ton Of the OF the free banks Of this State b be-
yond reach Of all parties concerned In those Issues
and can only be obtained By returning AMI canceing
the whole amount Of bills received In exchange, that
makes the free banking law "a now exists, the most
perfect banking eystem In the world 1t tru. that
Wien IL first went into operation, In 1888 and 80,
4 was very imperfect, and several banks formed
under II, exploded, as we had Pennsylvania and
the Losses Of bill holders at that time were
dsrate, and It was that with little pruning,
and a little modification, Il would work admirably.
Since that time, amendments and improvements
have been made and there not safe currency In
creation the issues Of the free banks of this State
There chance, under this law for sTinders and
spectators to get banks expressly for robbins the
public they cannot issue bills without their being
properly secured, and that does not their
purpose they have go into neighboring statessuch
as New jersey and Pennsy lvsniawhere they have IA
sities granted them By the legislatures to prey upon
and cheat the people Of other States BY judicious
distribution OF money among those who have voice Ia
the matter, any set Of sooupdres obtain bank
charters In either Pennsylvania or New Jersey, and
this enables them 10 palm of upon the public partcu
larry In the Western States paper currency that is
not worth n rush.