Wisconsin tribune. (Mineral Point, Wis.) 1847-1854, 1850-01-18
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unless otherwise agreed Gpons and chGTgedloT IN
I'll ordered out
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tifcates cf deposites now in circulation, is
said TO large; and the only safeguard which
.tae community aaye. that these paper issues
will be ultimately redeemed, IS the honesty
and integrity OF those coEtraliHg the business
affairs. j'he influence alreaav V exerted by those
operating under the alleged corporate franchl-
ses, aud as private BANKERS, upon the business
and social relations of lde Stale, where these
paper issues circulate, Is very materially telt-
aud If permitted to continue ia the exercise Of
these, al least doubtful, and IN my opinion,
Illegal privileges. past experience mnst teach
every one, that this liberation may be fraught
with the greatest danger to t5e interests and
prosperity ef the country. Banks OF issue. as
heretofore conducted, have brought diScredit
upon the State. and iRdicted upon the people
serious aBd heavy losses. The necessity and
economy Of establishing OF permitting banks
of issue TO furnish = circulating medium TO
supply the place Of the precious metals, is
highly questionable 10 say the least. and IN
my opinion should be studIousy eschewed for
all time TO come, The necessity of establish
ing banking institutions, is frequently urged
upon the ground that foreign bank paper viii
be used as a circulating medium, IN violation
Of the prohibitions Of law, and the most strin-
gent; and that the profits resulting from this
our citizens. Although the circulation Of for
e'gn bank paper may not be efcctually pre-
yeIted. il Is not a well founded reason to eS-
iablleh this system and flood the country with
bank paper, or 10 prevent such a result IN vlo-
atioa Of law, either by individuals, or by pre-
tended corporations exercising corporate bank
ing powers not intended 10 be granted by the
Legislature. The argument that our people
should enjoy the benefits Of banking business,
has but little force. The great body of the
people are producers; their prosperity con-
sists in honest industry, and they look to a
difereutso source than banks, for theirreal wealth.
The profits Of the banking system are monop-
oliZed by few, who have no interest in COM
mon with the productive industry Of the coun-
try. and are not unfrequently Withdrawn to en-
rich the Golfers OF foreign capitalists.
IF bank paper is to constitute portion of
our currency, limited quantity of foreign pa
per Is less objectionable, than unlimited is
sue IN our own State. that Would drive the
precious metals from circulation. In the e.
vent of a currency revulsion, nauch less injury
would be inflicted upon the people, and the
general business Of the State, from the use Of
foreign than domestic paper.
Without going into discus ssion Of the fnsr-
its or dement's Of the system cf banking, let it
suffice for TIE purposes Of this communication
TO remark generally, that any effort to estab-
lish, by legal enactment, banks TO supply the
circulating medium or any want Of If, would
be uuwIse. impolitic and unnecessary : and
would be faught, If carried into effect, with
the greatest danger to the permanent prosper
ity OF the ate. The system cannot be sus-
tanned upon principles ofsound political econ
omy. The influence Of the banking system
in practical operation, has been tested in this
State to be Of the most deleterious character
upon the business relations Of the community.
Banking laws, whether Of a general nature or
creating special corporate bodies, cannot like
ordinary acts Of legislation, be repealed az
pleasure, without great inconvenience; and
the institutions organized under them, ramify
every portion Of the body polite with their in
hueace, and soon obtain a controlling power
over almost every Interest," and when this evil
and dangerous power = felt, Il requires no or
binary effort and resolution TO annul their cor
po7ate franchises, or cuTtai the exercise Of
their powers. The strength Of this influence
Is being verified M this State. by the exercises
of such powers under doubtful corporate grants
by these claiming 10 be corporators, and by
individuals, IN The face oflegal restrietions.-
BY reason OF Constitution provisions. no law
creating banking powers, can become effect
i've, without the sanction of the people. with
wuOm II can be safely eouided. Entertain-
ing opinions adverse II the whole system Of
banking rs means Of furnishing a eircula--
ting medium, no legislation IS recommended
on the subject, and / trust the matter will re-
main undIsturbed, where the Constitution has
placed it.
The important relation which the Wfscon-
sin Marine and Fire Insurance Company bears
to the business affairs Of a large portion Of the
community. IN furnishing to a great extent, its
circulation, increases the pIoY riety Of It's re-
ceivIng some attention at the hands Of the leg
islajure.
The act creating this corporation has been
laE -srr+ +f,o 8
TO the extent used, Is Of doubtful authoritv e.
ven II the corporation has a legal existence.-
In view OF the magnitude Of the interest affec=
ted II Is due to the State, and also to the cor-
porators claiming its franchises, that it should
be JGdlctaiiy ascertaIned, and the fact defin-
Tely settled, whether the corporation has any
legal existence; and if so. the extent Of its
franchises snd powers. If it has no legal ex-
islence, or has no righ: 70 exercise the powers
OF bank, such steps should be taken as will
ehectually prevent its eviGeEces of debt from
being thrown into circulation. ! would there-
fore recommend that a law be passed direct-
ing proceedings 70 be instituted, to iudicially
determine whether the company has a valid
corporate eXistance: and if SO, thatits powers
. be defined, and if not, that its further opera=
tious be oppressed.
This rec0mTaenda. ION is not made with The
view OF calling In question the snlvenrv of the
institution or the integrity Of those CONDUCTING
its affairs. Il % believed that the individuals
controlling II IN this State, possess, in a high
degree the confidence Of the community, both
as 10 integrity aad financial capacity BOT these
are no excuse for violation Of law, and if this
corporation has legal existance, and the pow
ers exercised are granted by lis charter, it is
then the duty Of the legislature to make such
legislative provision within It's power. as will
tend to protect the people FROM any loss that
may hereafter arise from its paper issue.
| also recommend that direction be given
BY law, for the institution Of proper proceed
Ings against those persons violating the laws
against unauthorized banking
A our attention IS directed 10 section y Of
article 4 Of the Constitution ,.-bich L..