The republic. [volume] (Washington [D.C.]) 1849-1853, 1850-07-22
Free Banking In Canada.

| tive to banks and banking Ii is said TO re-
| celve much favor, and TO be very likely to be-
come law. 1t is modelled substantially upon
the Tree banking system of the State of New
YORK, the general features of which must be
known To most Of our readers. To those who
are not familiar with its principles, the following
abstract of the leading provisions of the Ca
madam bill, which we take from the Buffalo
Commercial Adpertiser, may prove interesting.
The sums mentioned in it are to be estimated
not in sterling but Halifax currency, in which
the pound is four dollars
cit repeats all existing laws in opposition to its
provisions, except SO far as penalty under them is
concerned; prohibits all parties except the present
| chartered banks, from banking, unless in accord
ance with the provisions of this Bank notes
may be issued for any sum less than Els and over
%. 1t prohibits the circulation of foreign bank
notes for less than S.. Individuals, limited part
nershlps, or companies, may embark in banking,
provided that the capital stock of an individual
shall not be less than 10000; Of limited part
nership, fls,OOO; and of company, f25,OOO.
company is TO consist of not less than five persons
with shares at 1875 each Shareholders to be liable
only for the debts of the corporation to twice the
amount of their respective shares All parties
commencing banking cannot do until they shall
have respectively deposited in the hands of the re-
cever general, for the purposes of this act, deben
lures other securities issued by, or the payment
of the principal and interest thereof or the inter
est only, is guaranteed by, the government of this
province, under the authority of the Legislature
thereof, and bearing interest, at the rate of six
| per centum per annum.' to amounts such as we
| have already mentioned. These will be held by the
Receiver General in pledge for the due redemption
| of the bank notes, of the bank depositing. On
these securities being given, the Inspector General
will issue bank notes to the amount posted num-
bering and countersigning them himself, or a,,-
thorzing some clerk to do So long as the bank
shall pay such notes in specie demand they will
be receivable in payment of all public duties, &c.
Companies may either increase withdraw the
amount of their deposit, of course taking return
| ing notes to the amount. If any bank shall fail to
pay its notes in specie at the office of the bank,
may be protested for non payment, and on copy
of the note and protest being forwarded to the In
spector General, he will requiret to be paid with
the expenses; and if this is not done within ten
days, he will close tue bank, and proceed to "wind
| up" its affairs.
"a list of shareholders is to be hung up in con
spicuous place in every bank. Shares to be per-
sonal property. The total liabilities never to
exceed three times the amount of the capital. Any
existing banks may avail themselves of the provi-
.ions of this act but if they do not choose do so,
their charters will be respected
! The reference to this subject recalls little
bit of history which is very pertinent in refer
ence TO the pretensions of the party that calls
itself Democratic is organs are forever talk
ing about its hostility to monopolies and special
privileges. They are groaning always about
the excessive power of capital, and especially
of that capital that is represented in bank bills.
They claim credit for great anxiety to relieve
men from all the restrictions which hinder them
from devoting their industry, and the accumu-
lations of their past industry, to such employ
ments as their own notions Of private interest
may dictate. They are, moreover immensely
solicitous for the protection of the sons of toll
against the frauds of those whom they used to
be fond of styling the rag barons and the depre-
citation of the paper promises which they cir
culate as the representatives of money. We
have nothing to say now about the inconsist-
ency of these notions of protection with that re-
lance they profess upon the general ability Of
men to be their own best guardians; nor yet about
that other inconsistency which they must an
swer, who, protesting the doctrine of free-trade,
would prevent men from associatng together
| to pursue business which either of them alone
ought, according TO their theory, to be entirely
at liberty to follow in the mode he deemed most
likely TO be advantageous and successful. But
this is true, that no system has ever been de-
vsed which 50 entirely reconciles freedom of
| l. -, L.,
by government, for the rights Of bill-holders, as
that embodied in the free-banking system Of
| New York. A historian who should endeavor.
| in the absence Of authentic information in re-
spect TO the party afhniies Of Legislators, to in
fer them, from a comparison Of their acts with
the proclaimed creeds of the great parties
would unhestatingly say, this must have been
the work Of those men who were so vociferous
in their vindication of freedom against mono
| poy-this should have been a signal triumph of
the party which claims all the Democracy-the
| year 1888, when this measure was adopted by
the Legislature, must be distinguished era in
the New York calendar. If he should then
explore the Fasti Of St. Tammany. to find in
what terms the epoch was commemorated, how
would he be startled to discover that the period
was there noted as one Of special gloom--of an
eclipse almost total Of the Democratic lumina-
res in that State-that this measure signalized
the accession Of the Wings to power-was the
act of Legislature in which they had an over
whelming preponderance, and the first fruit Of
their policy. He would be apt to institute
some inquiry into the general characteristics
of parties, with view Of ascertaining whether
the word Democracy had different meaning
in the New York dictionaries from that recog-
Missed in the national vocabulary, and whether
the same violence Of contrast between act and
profession was tolerated elsewhere, among those
who reloiced in the name. He would soon
find other difficulties Of the same nature. He
would hear the same party every where AFRO
eating to itself an exclusive fondness for pro
gress. and. when he came to examine its title
to this distinction. he would remark that it
consisted mainly in principles and practices