Sunbury American. [volume] (Sunbury, Pa.) 1848-1879, 1851-03-29
FREE BANKING.

ing Bill may passSboh Houses This is to be
regretted, for a more unfortunate measure
could not well befal the people of this com
monwealth Should 1t become law, seven
years will not eapse before all concerned IN
enacling it will be as much censured as were
those who, in 1914, passed the batch OF forty
two banks over the veto of Governor Snyder
whose name is at this day more revered for
his manly resistance 10 that measure than
any other act of his life. Unfortunately, the
friends of this bill seem TO think an increase
of Banks will be an increace Of money. In
1914, when gold and silver were required
as Banking Capital, this notion was soon
exploded by a majority of the Banks created
becoming bankrupt, with a majority of
the community. The experiment clearly
proved, that an increase of Banks is only an
increase of Bank notes, promises to pay, pa
per certificates, and paper securities among
individuals as well AS Banks without pro.
porionate increase of coin and capital, 10
sustain either; and it may be safely conch,.
ded, that if Banking system based upon
gold and silver cannot exist through period
of expansion and contrac,ior, neither can
system based entirely upon certificates of
indebtedness called State Stocks. There are
men in this State vet living, who well recol.
lect the ruin and distress brought upon them
and their relatives by the initiation and spec
ulation under the act Of 1914; and they NAV
be asked what greater confidence can be
placed in the contemplated Free Banking
System, than in the other? 1t is urged, that
The State, every year, is obliged TO send 10 for
eign countries large amount of mouey in
payment of interest on her Stock held there,
Suppose This 10 oe true, what great harm
does 1t do in comparison with the evil that
this law will bring upon us. Without pre-
tending 10 know how much of our forty
millions Of State debt is held abroad suppose
we say that The amount is thirty Millions
The interest, at per cent, on this is one
million and Il half of dollars. A very snug
sum truly; but as we have received those
thirty millions from abroad for our Stocks and
using it AT per cent, and making per
cent. out Of it, we have no grea, cause foi
complaint. The money is here, and our pa.
per is abroad and we cannot be called on to
redeem il before it is due. But suppose that
the Free Barking bill has passed and these
Thirty millions of Stock are wanted for Bank
Ing capital how are we to get it, urless we
send the specie for it Then we must send
thirty millions of coin abroad to set our Bank.
ing experiment in motion and as silver j.
now at pemum Of per cent, and gold i.
not acceptable abroad, the operation of ab
slracing that amount Of coin from The coun
try at once will be more sensiby felt than the
annual withdrawal Of million and half
and be rather an untoward circumstance fo
The commencement of anew system of Bank
ing, that is promised to keep the country i,
fnIl supply OF coin. But, then, what do We
get for our thirty millions of coin Do W.
get coin or lis standard in return? Do W,
get any IN NJ of a fixed value, that canno
depreciae, and that we certainly ourht tc
but the glorious promises Of the State of Penn
sylvania, at full par value, yielding but
per cert, that once bad deprecated to 3;
cents in the dollar, and few buyers at that
These stocks, of uncertain and fluctuatin,
character, now selling at SO cents per 100
are to be pulled up 10 par value, and made
the basis of Banking Capital that ought 70
the security and happiness of all, to be as i'm
1natabte as the truth itself and, upon the taill
and confidence of these, the commonwealth
otncer is to issue paper promises to the anoun
OF 80 per cent, and these paper promises ar
then to represent, not gold and silver in th
vaults of the Bank, as under the old system
bnt TO represent the promises of the common
wealth; for the thirty millions of dollars 0
ouI gold and silver have been removed from
the country TO enable us, by this new machi
merry, 10 buy paper with pretty pictures OH
that must rise and fall in value lust as Stat
Stocks do. If this view of things be correct
there is no risk in asserting, that will b
better TO keep the coin in the country among.
US, and 10 Bank upon that under wholesom
restrictions. The vsry anxious friends of III
bill frequently refer 10 The success of III
system in New York. The only and be-
answer to This, is The truth, that the syster
has never been tested. Let a crisis oecu
such as that we passed through few yea
ago, when State Stocks fell two.lhirds of the
par value, and we may then ascertain VIII,
ther when the capital of Bank has b,
come valueless, or nearly so, the notes wi
be at any better rate. If the system is s
infallble even in these prosperous time
when almost any thing may do for Eankn
capital, as some folks think, how happens
that the Atlas Bank Of New York, a Ere
Bank, is quoted in the Reporter, "Broke
and her notes are selling al 80 cents on II
dollar! Why do not the Slate Stocks pied
ed for the payment of her notes pay !her
or prevent them frem selling at so heavy
discount? 1t would be gratifying 10 Ma
this explained and until there is some be,t
assurance than the mere untried exPe, ime
GG Duy Spaonloii,,n { Il .l,.I.-