Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1850-04-04
Banking i'm Pennsylvania.


general banking law has been introduced into the
senate Of Pennsylvania. trequires the deposi;e with
the auditor general of Pennsylvania stocks four-fibs
of said stock bear interest cf least five per cent
per unnum, and not to be taken ebove lis par value
One-quarter per semi-annualy these stocks is
retained by the Stale for the exlingushnent of the
public debt. The amount Of circulating notes not to
exceed four-hfths of the amuunt Of securities Cap
ita not 10 be less than $4,000. No personal liab-
ity is involved
The Pa Ledger comments upon the proposed law
follows. Some Of its suggestions may be useful to
people. for whether retain our present system
not, doubt notifications will be attempted
If any changes be made they should be of the right
kind, and not the wrong.
"a general banking law is now before the Legis-
Iature Of Pennsylvania, which, if material amend
ments destructive of conservative provisions should
be introduced, cannot fail to operate benefciclly
the trade, currency and credit of the State. Among
Its provisions are severa for which the Ledger has
always strenuously coniended as necessary precau-
iions agains: public fraud individual plunder, and
successful swndling. First, it makes the stockhold-
individually liable for all the debts of the concern
pro rata second, i. nerdicts any bank from paying
out any but its own bills those equal to specie
third 1t interdcis the issue Of any bill under $40
fourth, il prohibits the circulation of all foreign bills
under SO, after the 18th August, 1850. These are
sound and useful provifons. Why one oiher of its
useful provisions rejected, at a loss TO
imagine. especially il beautifully conceived
in the spirit Of honor and justice, assip sare with
increduliiy one hnf Of the community, while il ex-
torted from the other half unqualified appreciation ut
what appeared to be the revvng virtue Of past ages.
This clause provided that person should act di-
rector, president, cashier officer of any bank in
this Commonwealth who had ever taken the benefit of
| any bankrupt insolvent law. who at the time
was indebted to any person whatever. Surprise and
appreciation, however, were both soon husbed by an
announcement from Harrisburg, that taking the
yeas and nays this clause Of the bill, il was re-
jected by large maturity. One of the newspapers
in king lis comments on this fact, caps its wings
with the eeS,ncy of over-ed rooster loud
Chapman did for the success of his party, and
oices that this prescription OF the unfortunate has
been defeated God forbid that any government,
should persecuie the unfortunate but should like
10 know what chance there is of any unfortunate man
ever attaining to the Directoishp, Presdentshp OF
Clerkship of Bank To be unfortunate In the gen.
era uf the term is to be poor But the rejected
clause Of the bill does exclude poor persons, but
specifies distinctly persons who have availed them.
selves of laws cancel the obligation Of contracts
as f;,rbidcn by all constitutions Nor does il
| follow that such persons poor. On the contrary
thnse who pay debts become impoverished, while
those who cancel them by laws. from the very nature
of the operation, can neither be called poor
fortunate. Inability to pay debt is vastly different
from its reputation, and from the reading Of the pro-
vso Of exclusion. it s very apparent that the Legis
laure only wanted to exclude repudators from having
the management of moneyed corporations, on whose
good faith and sound and just management the wages
Of labor the savings If industry and the prosperity
of trade fundamentally rest. The proviso itself
therefore. pre-eminenty honorable to the justic,
of Pennsylvania Legislature, and its rejection I
commensurate insult to the honesty Of the age and the
al. l.. a. l..
and simple. to defy sophisry to confound its whole
some ethics. Are thuse fit persons TO contract debts
witl' the public And this is the sole business o
banks, who have never paid their own individual OBJ
legations Will il increase the usefulness of banks
have repudiators in their mana cement The Legisla
damage the public good by deviaiing from n higl
sandar I'd of morals, in paper money makers, adhe
ring TO the principle of good faith and sound ethics
established by the Constitution and the Bible"