Eastern times. [volume] (Bath, Me.) 1846-1857, 1853-02-03
New Banks.

The large number of applications for new
bank charters and increase Of banking capital
in this State, suggests the inquiry whether
there is a demand, 10 meet the wants Of busi-
ness community, for such an increased number
of banks and amount Of banking capital. Bush
ness Of all kinds, has undoubtedly taken start
within six months past. The unlimited busl-
ness resources of Maine, yet to be developed,
may already demand increased banking facili-
hes; but is il possible that the incorporation OF
twenty or thirty new banks with an addition OF
over two millions of paper currency is demand
ed! Il may be, bnt to our mind the fat clvl-
dends Of our bank corporations, opportunities
for evasion of law, and the present high value
of bank shares, may have more to do with 1t
than the healthy demands Of the business COM
munity.
In Massachusetts, petitions are also pouring
into the Legislature for more banking capital.
The Boston Post gives some facts in relation to
banking in Massachusetts that may be worthy
Of the attention of our Legislators. The CAPT
tai of the banks in that State is $43,27O, 500
The law requires that one-half of the capital
stock of bank shall be paid in gold and silver
and shall be in its vaults. The commissioners
are to see that such money was paid in, and
that it is intended that il shall remain in the
vaults. If one-half of the capital stock of the
banks of Massachusetts we're in specie, there
would be $2l ,635, $50. But there was return
ed on the I'd day Of September, 1852, only
SO, 1868, 792 SO, about one-seventh part of what
the law requires.
We have not the data at hand to show how
the banks in this State stand in this respect
but we presume to say the least, they have not
greater proportion Of specie than the banks in
Massachusetts. Specie is understood in Maine
to be rather movable article about the time
the bank commissioners are about.
The Post, from which the extract below is
copied, very properly and forcibly opposes the
contemplated initiation of paper currency in that
State, as tending to bring about repetition Of
the mercantile embarrassment and individual
Iull Wlltl6SS6u III lou. Anu IL 10 du lHlpOI-
tant question whether the Legislatures of both
states, by conserving TO the increase of banking
capital called for, simultaneously, but none the
less suspiciously, are moi preparing the way
for another disastrous reyulsion.
II is with snch history back of US, and with
the &c, tdinty Of future of financial embarass-
ment before US, that petitions are pouring in
for more banking capital-that there is such a
demand for greater power Of expansion. The
legislatures are now asked to WEAKEN THE
BANKS by dividing among an additional num-
Der, this paltry amount of three millions there is
on hand TO redeem, we undertake to say, a circu-
Ldtion the ertent Of ,Uhich the returns giUe no
definite idea Of. 1t would seem as though, in
times Of prosperity, all experience of adversely
went for nothing. The bank commissioners,
long ago, stated, as to the wanton " VIOLATIONS
and ATTEMPTED EvAsIoNs Of these conditions
as to paying in capital, that to them might .'BE
TRACED MORE OR LESS REMOTELY MOST OF THE
BANK FAILURES THAT HAVE OCCURRED IN THIS
COMMONWEALTH. And to this hour-save
in the security principle copied into the gener-
al banking law, from the long tried experience
of other sales.--future is no provision of law
worth straw TO secure this vital point