The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1853-03-16

nected with the banks for the protection Of every
dollar of paper money issued. The free banking law
does not leave in the hands those who manufacture
these paper promises to pay the security for their
redemption, but it in fact considers them all Iogues,
and compels them to place property in safe place
before they call upon the community to give them
credit This is the only true system, and the advo-
Gates Of currency issued upon the New England
principle, 60 too far when they say it is better than
the issues of banks in this State or any other State,
the banks of which are organized under free
banking law. The time was when the paper mo-
ney Of New England was as good-perhaps
better-than that Of any other section of the
Union, but it is not 80 now. 1t is not 30 good it
has no real security; and in the event of serious
panic in the money market taking place, the banks
of New England, established under the old system,
would be the first to cave in. The only safe way
for the community to act is to take nothing, keep
nothing in the shape Of bank bills, but such as are
secured by deposit of public stocks 1t is easyto dis
tnguish them from the trash that is freely crculat
ed and in so doing they will drive all doubtful issues
to her parts of the country. If the people of New
England have SO much confidence in the issues Of
their banks, they should keep them at home. We
have a better currency within our own limits, and
culaton than the Eastern banks now do, or ever
did. The issues Of o bank regularly established in
Indiana or Illinois, under the free banking laws of
those States, more secure and entitled to more
confidence, than the issues of any bank in Massa-
chusetts.
The system pursued by the Suffolk Bank Of Boston
may have tendency to check any expansion beyond
that permitted by law, but it does not improve the
issues in circulation 1t has tendency to give credit
to doubtful paper, by redeemng it so long as q
certain deposit is kept in the Suffolk Bank for the
sole security of that institution That deposit is no
security to the public, but, on the contrary, calcu
lated to deceive the community, and give credit
where it is not DUE In the event of this deposit not
being continued or il at any time an increase should
be required and not be forthcoming, special edict
is issued notifying the public that the bills OF such
bank are no louger received, and the consequences
can be easily imagined. Before doing this, the SUI
folk Bank secures itself, rather it takes care to
be protected at all times and the community are
the sufferers The Suffolk Bank gives an interior
bank credit and when it pleases destroys it. These
are some of the advantages the public derive from
the Suffolk Bank system. The Metropolitan is trying
to do the same thing here. 1t is very DESTROYS Of
becoming regulator Of similar character but
fortunately the banks of this State are required to
make general deposit with the Comptroller, for the
benefit of all their bill holders. They make no dis
tincton for the security Of a certain few, Of
tain bank. This is the only system, and 1t is
gradually spreading over the whole country. We
trust the time is not far distant when every State in
the Union will have free banking law, anl that the
issues of every bank will be secured by deposit Of
sound safe public securities in the hands of the 60
vernment.
The annexed letter, from gentleman belonging to
Illinois, who is intimately acquainted with all the
railroad movements in that State, will be read with
interest by those concerned 1t gives short account
of the attempt to get up project under the name Of
the Mississippi and Atlantic Railroad Company -
TO THE EDITOR OF THE NEW YORK HERALD.
New YORK, March IL, 1853
Some of your papers of the 10th contain an article
copied from Madison Indiana paper, in reference to
what is called the Mississippi and Atlantic Railroad which
has been read by the nosans in this city with no little
surprise.
existence the territory of Illinois and citizen Of
that State esk permission through your columns
rect of the misrepresentation contained in that
tice.
In the first place there is such corporation in exs
tence and has BEEN the named created by
special charter 1t has long been scheme Of capitalists
interested in the railroad connections terminating at
Terre Haute to continue their line to nostown oppo
st. Louis frequent Applications nave been made to
the Legislature Of illinois for charter for such connec
ton and for three thereof the Senator repre-
sen'ing the district which embraces the western ter
minus of such contem road advocated the grant.
ing Of such charter but the Legislature steadily by
increasing maorites refused the legsl tion desired and
evinced settled resolution not to charter such road
State policy very well understood and sustained in
State has been adopted which renders the prospects
of special charter for such road hopeless for the
present.
The new constitution of Illinois required general rail
road to be passed At the speca session Of 40 called
for hath InOsp nd nv no
special railroad law was enacted was prepared with
the express object avowed upon the floor of the Senate
struction Of road from Terre Haute to Ilinoistown
which it supposed would materially interfere with
other cherished works in our own State.
In order the more efectualy to accomplish this egs
aye design the concluding paragraph of the 23d section
of the declared And the Legislature hereby reserves
the light TO itself indicate the ternni OF
said roads and the shall constructed or COM
menced without the express sanction of the legislature
of this State by law to be passed hereafter" To tue
then friends OF the Terre Haute road the intent
plainly manifest that they all voted against the law yet
it is composed of fortysix sections, 1t may furnish
abundant for legal criticisms, In the shape Of opin
ions the power of corporation organized under it
TO build road hundred and sixty miles long in the
probation of the law is reserved for the courts of that
State and capitalists who expect to build road
Illinois in the face OF her prohibition may find out when
too late, that the letter keth-the spirit it is which
gveth life /"
Under this general railroad law organization has
teen formed to build that road, which State has
sppi and Atlantic Railroad Company and under this
title has secured large subscription to its supposed
stock II is understood in Illinois that the stock
taken under the impression created By the opinions OF
eminent legal gentlemen of this city that there power
in the reanizaon under this general law, to build the
road which opinions we're based upon the assumption
that the entire right Of way was secured from Terre
Uaute 10 linosown. During the past winter this sup
pany ascertaning that its agents had not
the right of way the Caseyvile road any
portion OF the country for eight miles east OF St Louis
and that insur mounabe obstacles the way of
securing it. applied TO the Illinois legislature which has
lust adjourned for the passage OF law legalz * the
eanzation Of the Mississippi and Atlantic Railroad Com
Iany and empowering it TO acquire the right of way
The article you have copied declares ''that this company
made application 10 the Illinois legislature for char
ter" This cunning declaration is true 10 the letter but
mark- is not stated that they did not apply patch
up Illegal and yalueess existence. At the time this
bill introduced into the Legislature the President
in st Louis whilst the Vice President, Timothy Young
Esq, member Of Congress, and amiable and