Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1850-02-04
sound Views on Banking.

ESA y
sage of the Hon. JoHN s. BARRY, Cover
Nor Of Michigan. The views here adsanc-
ed will be readily endorsed by the Democ-
sscy Of the country.
The ingenuity Of man has never We,
heen able to devise an unobjecsionable
and Prnctica q bic system Of bank.
ing tha farnished acertain and safe cir.
eulating medium. The losses sustained by
the failureef banks immeasurably exceed
any supposed benefit that may have &c.
erled from their Institution; and yet so in.
ktsIated are many, that they seek redress,
not as would seem natural in the suppress
ION Of hunks, but in their further increase.
alt is now claimed that bank paper Sc.
cured BY the deposit Of Slate, and United
Suites stocks as collateral security for its
redemption, constitutes a currency tha, can
never become greatly deprecated, and
must 10 ell leases be ultimately redeemed:
and that banks, with this requirement, may
be established with advantage and safety.
This b The last phase Of the Subject
presented BY its advocates, and the project,
on examination, will be found as indefensi.
BILE as others that have preceded il. Its
trial will preye bur another Intellectual at
tempt % uphold and improve a system, SO
dsfectife IN lis formation and so faulty in
its constituent elements, that, by repairing
one ofsiss inpaffsc,ions. another and a
creates, is thereby discovered. -x-
Admitting greater safety in the propos-
ed circulation, and waving now conside-
ration 6f the uncertainty and fluctuations
Of pubsie stocks, Tint the fatal objection
remains that the establishment Of banks,
spon :his principle, supposes and re.
quires the perpe,nity Of the public debt,
when alf correct principles of political e
economy demand ITS redemption at the ear.
hest possible period.
s..ssShouh lhis State and other States be
dotted over with banks, and their circula.
tiontflus secured, we may we'll anticipate
crisis when their power, as ever antago.
mist to the power and interest ofthe State,
will be wielded, and, perhaps, successfully,
10 secure renewal and increase the public
stocks required for their use. Among the
means to be used, not to mention those Of
more debasing chnracter, we may suppose
that visionary and extrayagant schemes of
improvement will be encouraged, wasteful
expenditures niade,' and other irnproyident
Legislation advised; for banks, when their
ia.erests aIfdexistenee are OF stake, will
not be scrupuloussof The measures employ.
ed to promo,e the one and to secure the
other. lhEthis manner the banking system
now pf6p6sed, +may, in no small degree,
contritslta To- the increase and renewal Of
the public. debt: and this one evil, grievious
and ipt9lerable ITSELF may be made an eff.
fec,ixe agent in the perpetuation Of another
still fidfe burfhensonae and pernicious.
..shpposhtg, how ever, that all public
stocks aresredeemcd and cancelled at the
time they become. due and payable, what
then is 10 form the basis Of this new scheme
Of banking, and what then is 10 constitute
the security OF bill holdersa Bankers will
never consent TO, furnish an unproductive
specie eapilai MS security for their good
faith. Fneir financiering operations would
thus be.rendersd unpradnc;ive; and, besides,
the gsvernnent should never be made re-.
sponsli,fs for The safe keeping Of the money
Of 1idtvfduais II the VT N, IN sssselss
hypahecated with The State Treasurer,
seseii. sishts are redeen1able before the ex.
pirniion ofihe charters OF the banks from
which they are received, and above one
ha.fis either redeeniabie at The option of
the government, or within a period Of three
years, and no law exists requiring or au-
ihorizsng Other stocks or security to be
authorized. .'.s
.Olher objections exist to the scheme
II enabfes The Bunker to obtain double in
-. ~ t