Eastern times. [volume] (Bath, Me.) 1846-1857, 1850-08-15

the nomination, by acknowledgment the
principle, doubtless, that when a man gets
started "down hill,' wonderful spirit of un-
anlmity prevails in the community to help
him along in his downward course! No small
amount of "gas and fury was discharged
against the "horrible locofocos" for deigning to
elect L. s. Senator. Some were SO exasPer-
ated at the result as to declare their firm con-
victions that their "chances' for Success had
! entirely vanished! Well, this is doubtless
true, and We are obliged to our wing friends
for the acknowledgements one thing is
certain, that their garments are clear OF SO de-
plorablc result as that of the election of a
democratic U. S. Senator. No one will accuse
solitary soul of them of being accessory to
such a result
The Free Banking system is beginning to
awaken attention in this community Hon.
f. o. J Smith, of Portland, has addressed the
Banking Committee twice. and given an cx-
plicit description of the system and of its ope-
ration, as witnessed in New York State. The
bank capital and money currency of our State,
it is generally conct ded, is inadequate to our
commercial wants, and the necessity for re-
form IN our present banking system, is also
equally apparent. The free banking system is
well calculated to obviate many of our present
difficulties, as well as to supply the defcien-
cies in our currency, above alluded to- The
principle of free banking is no longer an erper-
81 -
after fair trial, of the great state of New York.
AS a bill has been reported and ordered to be
printed, by our Legislature, which will be gen.
orally circulated. do not propose to examine
the system in detail, but simply to glance at
its general features.
The system was adopted in New York in
1888 and has withstood all of the great none
tary revulsions since that period-demonstrat
ing clearly its stability and security. 1t con-
sists simply in this-any number of individuals
may associate themselves together, and put in
State or United States Stocks to the amount of
800, OOo-(S 900 is named in tie bill re-
ported to our Legislaturc) the stocks paying
per emit, and deposit them with the Comptrol-
Ter of the State, who Issues to them The like
amount of bills of different denominations,
countersigned and endorsed by the Comptroller,
officially for the State, and these arc made cur
rent by the Legislature, and must be redeemed
in specie, on demand, like common bank bills
To make them current all over the State, each
Bank is required to have an agent in Albany
and New York cities to redeem Them. at
commission of Ii per cent-which cuts off
the brokerage business in that respect. Real
Estate is also made basis-to the amount of
two-tifths ofits value-it must be unencum-
bered however, and productive-and not over
$4,000 in amount on any one mortgagc-for it
is to be in the nature of a mortgage, drawing
per cent. interest.
Thus it will be seen that every bill, thus is
sued. is the representative of something real,
tangible-and the 5R-holder must a!scau be safe.
Now how docs it operate A capitalist in
Maine just doubles has fortune by going into
New York State-as, if he has $40, 900, he
may invest it in stock, bearing per cent
then turn it in and draw bills to that amount.
which may be used for ordinary business pur-
poses. Now, as the prodUciire industry of
community is controlled by its command of
money, any system that tends to increase the
floating currency, upon a safe basis, must prove
highly advantageous.
MIR. Smith showed up, with mastery effect,
the iniquitous and unjust operation of the Suf-
folk system. Boston controls, under this sys
tenn, the industry of Mainc-the whole currcn-
cy of the State being redeemed over four times
year in Boston-there being actually more of
our specie slowed away in the Suffolk vaults
than our Banks keep on hand themselves.
The Bill which the Committee have report
cd was prepared by MIR. Smith, and embraces
all of the amendments of the New York law
But one opinion seems to prevail, as to its
merits, and we doubt not the Bill will pass,
and the system go into speedy operation. 1t
can be carried out with slight expense to the
State and will not necessarily supercede our
present Banking system. except in its superior
operation over il.
The investigation into the charges against
the Insane Hospital is progressing slowly-sev-
eral past attendants, male and female, have
been examined-but nothing as yet, derosatory
to the officers management of the institution
has been elected. The most that has been
made 10 appear, is, that some attendants have
used undue violence, for which they have been
discharged. The institution, we doubt not,
will be triumphantly indicated
The seat of government, question has met
with its qnietus for the present session. at least
The fatal blow given to it in the Senate on
Friday, after an exciting debate.
The city has been crowded 10 OVERLOOKING
the past week, important business before the
Committees having drawn many together.
Animated discussions have ensued in each
branch, on the propriety of endowing literary
institutions with land. Many applications
have been presented the present session, and
we think more liberal legislature could hard
ly be conve ned, judging from the inclination
manifested 10 grant land and raise salaries
The Valuation Clerks are about ready to re-
port 10 the Committee; the length of the ses-
sion will depend very much upon the time oc-
cupied i'll the passage of this measure, but we
think some three weeks more will be occupied
IN clearing up the business on hand.
The kennebec Loan Bill has been discussed
several days already, and bids fair to create
some delay.
The Committees will probably report finally
in the course of week, when the two sessions
per day will rapidly dispose of the mass of bust