The daily crescent. [volume] ([New Orleans, La.]) 1848-1851, 1851-10-31

city Il New Orleans that vulsas shonld elect
only shoss who ars known 70 10 plsdssd in favor
Of Fiss Baking, ws think il essential 10 an IN
tsligent selection that they should understand
clearly what il proposed by Free Banking. The
matter has been studiously involved in mist Of
words, careful avoidance Of the display of
practical effects. The matter is not to be won.
dered at, when the press, with one exception,
have vaguely noticed Free Banking as q /" fore.
gone conclusion of our Legislation; and the
only exception, the only member Of the New Or.
leans press which has treated it as matter of
discussion. has given two rather remarkable but
not very favorable usi rations Of its capacity and
intelligence in the premises. 1t proposed, first, to
the great delight Of landholders, who wished ano-
Their land fever,'' and to the certain creation Of
an immense and unhealthy speculation in lands,
that Banking system, based upon the vast COM
plicaton Of morgaged real estate, should be estab
lished in other words, that land, necessary for
the homes Of rich and poor, should be made the
exclusive basis of currency, and thereby forced
into 40 unnatural and enormous value, which
would have absorbed surplus capital, embarrassed
commerce, removing from the mechanic and
laborer all immediate prospect of owning rea,
estate in cities, and leaving to them bnly chance
of renting at vastly increased rates.
In the lsecond place, it now proposes what it
calls Joint Stock Associauons-queer anomalies
which would not be known around the cor
ner of the street on which they located, whose
issues would not be current even as far
as the prospects from their roof.tops, and which
would be SO multiplied in number. would be so
various in issue, that no man could reckon their
number detect the counterfeiting of their issues.
The thing proposed by this press land we are
happy to know that few sympathize with, and
fewer understand it, supposes nothing less than
what is demagoguically called Free Trade in
Banking that is, that all Camp street, or all Mag
azine street, all Poydras street, every one in the
city, shall ISSUE if they please, their own spe
cal currency; that is that there shall be indis
criminate issue Of shinplasters that u.s. that there
shall be no Free Banking at ALL This is the plain
conclusion of this queerly ignorant or grossly de-
ceptive argument; and even to reach this conclu-
sion, the Constitution is, we hold, to be violated
Its plain intent is to prohibit all banking, Of any
character; it does prohibit it, far to inter-
dict any special recognition statutory prop, and
.unhesitatingly predi ct that, under the present
constitution, no law in reference to banking can
be formed which will not finally be pronounced
unconstitutional Under our present constitution
no Free Banking system can be established which
| will command public confidence and the contribu.
ton Of capital. Joint stock associations command
confidence, credit, capital, and be constitutional
They must have common title, presidents, direct.
ors, a common seal, chartered or legal existence
and what will these make different from an incor
porated bank? Who, of all the English or Amer
lean capitalists would send one dollar for stock il
| the joint stock association Of Brown, Smith
Jones? Yet the object Of Free Banking is to in
vite money into the State for investment in sys
tenn of Free Banking.
But why examine such vagares, uninielligibl.
to the people and originating with press which
with such inimitable comic gravity. has informed
the public that NewYork, the great monetar,
West and South, might collapse without ou
having the least cause for alarm!
So much for the humbug of Free Trade il
Banking. What is Free Bankng9 We Should
briefly sketch the system as follows, as we sup
pose it to be proposed for Louisiana.
A number Of persons having created stool
shares, each share calling for the full sum O
fifty dollars, and no more, to the amount of no
less than 100000, purchase the full amount o
100000 in Louisiana or United States bonds
deposit the said bonds with State officer, wh'
shall issue to them, then, 100000 in notes fo
circulation, and break the plate to prevent fuI
Their issue. They, then, put into their banking
house not less than one-third of their capits
stock in gold or silver, not less than whic
amount they shall be bound to keep on hant
and proceed to prosecute a banking bushes
issuing their notes countersigned by the Stat
Auditor discounting bills, and buying and sellin
exchange.
The general advantages of the system al
these The holders Of stock would have f
$IOO, 600 of bonds purchased 100000 of not
employed in discounting bills and buying an
selling exchange, and, moreover, they won
steadily draw 5, 6, or per cent. upon ths
bonds deposited with the State Auditor.
r The State would have the advantage of no,
credit, as the system of Free Banking in Il
State would readily absorb her bonds, give h
the means of aiding works of great public ii
, portance, and leave her no foreign interest
pay. Under such system the longer her bon
had to run the more would they apprecia
And passingly we may suggest, to every man
common sense, that Free Banking is not prac
cable unless the principle Of State aid to Intern
improvements be recognized. If the State ISIS
her bonds, she must get paid for them even al
more natter of security; if she be paid for the
is the money to be idle, and yet pay S, or 6,
7 per cent. per annum, and finally the face
the bonds
The note-holders are amply secured. They a
4 the most special, because the almost invounta
r creditors Of Bank No Free Bank can get ba
the State bonds deposited, until it present its +
amount of circulated notes--which can new
. exceed the sum total of the bonds--for cancel
;. ton. The bonds are held to redeem the note
,, and human ingenuity cannot devise more SO
1 H.