The Texas Republican. [volume] (Marshall, Tex.) 1849-1869, 1854-04-22

ucinK the Introduction OF Joint resolution
into The Legislature, to amend the constl
tutlon IN such manner AS to allow the ere
a'loh OF banks IN the State, to give our OBJ
Jechons more fully ON the subject. and in
Inmates that we were unable To find an,
valid objections to urge Our iriend being
wing OF the old school, we are not sur
prIsed to see him cling thus fondly to ,hi.
ldollzed relic OF the past, aud contend .or
the absolute idea that banks are necessary
TO the trade, commerce, and prosperity OF
State We did not again refer to the pro.
posed amendment of the constitution after
our first notice of it, because it became so
evident that the Legislature would reject it,
thai an Argument. against il would have
been work OF supererogation, and we had
/ no inclination to waste ammunition upon
dead game.
Now, that the pressure of other duties
incident to the session is removed, we have
no objection TO deyotng leisure hour to
F the subject,
And first, the banking system is vicious
IN ITS very organization, granting t. incor,
porated companies privileges that afe de>
MED to individuals These interpretations
are allowed to issue promises to paw. in the
shape OF bank notes, TO the amount of two
and three times the actual money they have
IN hands to redeem them These note. are
debts due by the bank to the holder. aud
yet by species Of ledgerdemain peculiar
to these institutions, instead of paving, they
receive interest or their indebtedness. ma
king their very liabilities a source OF feyen.
ne to themselves, and tax to the commu
nifty. These notes, it j. true, in times Of
plenty when confidence Is mistaken. an.
swer all the purposes OF money, and are
never returned to the bank for redemption,
IN sufficient quantity to exhaust the specie
On hand, but let trouble come. le, auy of the
thousand casualties OF trade or iluctuaGou.
OF commerce create dcmaud for specie
or Undue panic IA the money market-A
run upon the bauk and suspension At
specie payments is the necessary couse-
quence. The merchant, hy the character
OF his dealings, is the first to feel the press
sure, and in consequence may, and does to
considerable extent, break the force of
the blow, by converting his paper into
specie before these suspensions take place.
but upon the farmer, mechanic, and other
portions of the community not liable to
sudden demands for money, the crash
comes without a single warning or portent
OF danger
The idea that banks increase the circus
lsung money of country is delusion
aud snare No country ever circulates
or retains in circulation more money than is
required for the carrying on its trade and
commerce. The substitution OF bank paper
for gold and silver IL the utmost they can
accomplish. The annual produce and
labor of the land require but so much
money to effect their transfer from The pro.
ducer to the consumer the goods to be
bought and sold require but given amount
to buy and sell them. aud it more than Is
required for these purposes, IS thrown into
circulation, it, channels will overflow, as 1t
cannot be employed at home. Ii will there
fore he sent to seek that profitable employ
men, abroad which L, denied it at home
l'nt bank paper cannot be sent abroad pro-
htablv because at u distance from the
banks which issue it. It will not be received
IA common payments At par. Gold and sil
yer, therefore. to the amour, ol ths sur
plus will be exported for this purpose and
the channels OF circulation will be filled
with paper Instead of those metals which
would I'LL them but Tor these institution.
II such result is desirable, bank are ben
efical, but when II is remembered that mo.
ney is really AS plenty Wltnont ~ with
them, and OF kind, too. TINT Is not liable
to those fluctuations and periodical convul
sions which continually oyerwhelm and
PROSTATE the business of those communi-
ties, whose circulating medium is supplied
by banks, we think State tree from them
"a ours is. should regard them as an evil to
be avoided, rather than blessing to be
sough, for
There are class Of bank men who adj
nit the yicousnvss OF the old system, but
sul vainly imagine that the acknowledged
evils OF that systcm are remedied by amod
srn improvement upon 1t known AS Free
Banking" It strikes us that these free
banks are equally II not more dangerous
than the old ones Besides driving the
gold aud silver OF the country abroad to
seek an Investment. and replacing it with
promises to pay, AS do the Others. the, offer
little, il any, better security for the pay
ment of their notes The basis OF their
issue ia Federal and State stocks, them.
selves liable 10 iiuc'uaion aud depreciation.
In times OF trouble, when help IS needed,
.,d ,nnpay-noi uxppr must be had hnys