The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1849-01-07


factory proof 'hould be required Of this fact Even
,bst IL security TO the bill holder The capital paid
Ia lett in the custody of those Who pay IL They
withdrew II at pleasure II would only be necessary
for tbose Who whhsd to prsctice . fraud upon the
dDlity OF The conmup reap golden harvest
10 associate together and form bsnk ray in large
capitals appoint Of their assocates PRESIDENT and
another cssbisr to take charge Of co this de-
TO an equal amount. and then pay them out for pro
perty easily psportedtske their capital and leave
for California and In one week would be beyond the
reach Of process or the power Of coercion.
But 1t has been suPgested that each bank might be
required deposit certain CUNT say ten per cent,
In The tres. ury to constitute fund for the redemp-
ten If its bile So this deposit goes II may be
ssfe II is the primer Of the tree bank syst,m
But1 the he intended tor the redemption OF
hat bank only which makes the deposit IL Is wholly
irs6sqUste IL 10 than the banks u der the
Safety Fund systs m PAID to gene, al fund Their
one per pel anppm making In all ten per cent.
TO that dollar deposited security for the
rdtnpti'D often: iss moekery;
But it may be said that this shall constitute COM
mon furd for the redemption Of the bills OF the insol
vent banks only Then as many as are rovent, will not
want H. there will be enorgo to redeem all the bills Of
those which shal prove iDsolvent This is doubted.
This fund, instead Of being sufficient to redeem the
note OF all nsovsn banks. would probably Tor time
give just credit enough TO the audulr mt
Which would be formed to enable them TO get their
notes in circulation, and then by Withdrawing their
capital the efectually dsfrsud the community.
IT. believed to be wholly nadrquste for the object in
tended.
The ptror believes that the safest way to make
round paper currency is to have at all times smpe
cpIty Tor ts redemption In the possession Of the
State Ia order to make this security ample it should
be OF only In amount hut should be Of such
q nature that 1t may be readily converted into cash
without loss " Is not enough that the security be-
ultimately good collectabe; delay in redeemng the
circulation it to deprecate. and 10 almost az
tai 10 the poor who cannot wait "a ultimste in
solvency. He becomes at once the victim o. the bro
ker.
A bond and mortgage nay be good that is. the
whole amount secured by them may be collectable.-
But the bill holder cannot wait Tor this They must be
convertible into cs.h by sale and II for any reason
this cannot be promptly done, they not that kin0
OF security which should be required All the expert
ence Of this department show. that bonds and mort
gages not the best security for this purpose and
while better security be had it is deeply to be
grettt that they were ever received The apprehsn
zion that there may BE- defect Of title that the land
mortesged may have been appraised too high or that
be legal to suit of fore closurc
all conspire to depreciae their valae in the estima
toD Of chassra when offered for sale at auction on
the failure Of Q bank
tspitalitts cautious about pui chasing sndthe
consequence 10 that they have sometimes sold for less
than twenty per cent on the amogat secured by them
and the average amount for ~nioh all have be. sold
ior ths years caiy sixty and seventy
one bundredtbs per cent while the Average amount
Tor which the he per cent stocks of this State have
'oio 10 nine two eighty Fix hu ndrsdths per cent
OF wv - Ito for every hundred dollars of stock This
sp'~e that six per cent stock, such as is now
quired would doubtless have tod at par and the bill
holder WOULD have received dollar for dollar FOR the cir
culation.
Should the country remain at pe.cs It cannot be
doubted that the stocks OF the United states will be
safe and adequate security The Comptroller would
therefore nd that the Law be changed to
exclude Dor DIS and mortgages from all free banks
which shall real ter CONNIE nee business and to pre-
vent the taking Of any more nom those nov in ope-
rson and require that ten per cent per snnu% OF
PAGES supplied by stocks Of this State Of the
States. II this Recommendation be adopted, At the
FIX stock OF this ST ate the State
hch it presumed will be ample security for the
dsmption OF all bills In circulation
Could this s,strm of banking be generally adopted
In the several States hardly be doubted that
would prove highly beneficial. 1t would create de.
mapd ter their own State stocks The interest paid
upon them would be paid to their citizens Every
man who held bank note, secured by such sbose
tn. credit Of the State The blasting cry Of rspudis
ton would never again be beard and the plghtsd tsth
Of the State would be Bacredas national honor and
lastly 1t would give them q sound ana UNIFORM cur.
repcy
IT, then, in addition to this. Congress would autho
suen Sotss o. were secured BY stocks Of the United
treasury, this would give to sush notice universal
credit, 60 extensive with the United States and
leave nothing further to be desirsd In the shape
Of y national paper currency. This would
avoid all objections to national bark, By
oey.tins all peots..y for one 70, the purpose Of far
nent might be made amply secure The Law might
provide that All hills secured BY United States STOCK
sury Depart the notes circulated BY she bsnks
In THE State registered and IN
master or Other receiver q pubic moneys to know
that they were receivable for public dues
The stock Of the United States by which their re-
dempton secured. might be fav transferred &c
the State cer holding the seme that It could not be
sold ira nsferred by him without the o. the
Secretary Of the Treasury and In Of the failure
OF the bank TO redeem Its notes, It might be optiona
with the Of the Treasury, exchange the
notes held by the ut for an sq1al amount
the United states stosk held for their ptox OF
let 1t be sold and receive the share
dividends In this way the national government would
always be secure against loss.
But this suggestion Ia foreign from the chief object
OF this report, and IL merely thrown out to in
vite attention TO the subject But in conclusion, tbs
comptroller has NO hestation in recommendIg thai
the free bank system be modified in the psrticulart
above suggested and that be then adopted in prefer
ence to the safety fund system the banking system
OF this State.
1t csppot be supposed that banking under this sys
tenn will be as profitable 1t has been under the
safety fund ,y,t.m it 10 therefore desirable that every
facility should be given to capitalists who engage in It
That can be granted sisteDt with the security
the public end that NO unjust system
OF taxation should be adopted which dscrim ates in
ing should be taxed ike all other citizens.
Message OF the Governor OF the Etate OF
Delaware
FELLOW CITIZENS THE SENATEAN
HousE OF REPRESENTATIVES,
Our profound gratitude II due to ths Almighty Ruler
OF Iations for the condition of unprecedented pros
pefity and happiness now presented by our beloved
country His bensfcent hand has bestowed upon s
all the blessings which ntal to tho perfect
being Of . people And what should greatly elevate
our appreciation Of the Divine favor, It Is displayed
towards us in striking contrast With the cslsmities
which sfict other nations. While civil var, social
disorder. pestilencs and famine the usuHl conc
tsnts OF political revoutone however directed the
most legitimate ends, are desoiating large portion
OF Europe present the ups xap pied OF
tha anio vtuxu vfoct