Lewisburg chronicle. [volume] (Lewisburg, Pa.) 1850-1859, 1855-03-30
Message from tho Governor,
RETURNING WITH ms OBJECTIONS THE BILL To
INCORPORATES THE DAXK OF PorTsTowN.
EXECUTIVE CuAxskn, March %, 1865.

| 10 inc SeECIe ana HOese y II 'P''"
GEyrLrxrN-lherewi,h return 10 TIE House
! of REPRESENTATIVES, in which it originated, bill
| No. 276, entitled An Act authorizing the in
Corporation Of the Bank Of Poiistown, with
NV objections ID the same. Should the mum.
Der Of banks and the amount Of banking capi-
| tai in The State be increased and # so, 10
what extent, and in wha; localities are cues
iions ti.a! deserve and should receive care
full ard candid Consideration. If local and
personal interests are permitted to determine
ihcse questions, the answer will be found in
, the unusual and extraordinary number Of ap-
plica,ions for bank charters now pending be-
fore the Legislature.
| But Inc number of applications is no just
criterion Ly which TO determine either the
wishes or the wants Of the corGmun.iy IN This
regard. Their number, and the pertnacity
with which they are pressed, have startled
and alarmed the public mind ; nor has the
Favorable action of the Legislature in grant
! iag these demands, served 10 aliay The apprc-
! tensions and fears thus excited. The policy
! OF the past few years may have been too Sc
/ vere!y and unnecessarily restrictive /; yet this
/ policy should be preserved. rather than aban-
/ don the State and the interest of her peoplc,t 10
/ the destructive influences Of wild and reck-
! less system Of banks and banking. That some
increase Of Banking capital is necessary in
certain localities within this Commonwealth,
! will not be denied that a large increase is
not demanded, either BY public sentiment or
the public veal, is a truth equally undeniable.
In the creation OF banks, sound and honest
! discrimination, as to number, locality,and the
| demands of trade should be exercised.
Their number should be determined, more
by the actual wants of legitimate trade, than
by the wild fancies of stock jobbers and rash
SPECTATORS. The sudden and unnecessary
expansion Of the currency should be ayo;ied.
and whatever tends to produce such result
ought to be discountenanced, and if possible,
prevented. the history of banking, in our
own and other States, is full Of useful lessons
on this subject. Experience should teach us
wisdom /; and our present and future action,
in relation to banks and banking. should be
regulated and controlled by her teachings.
The advantages to be derived from an in
creased number of banks, are more fancied
than real. 1t is an error to suppose that an
increase Of banking capital adds to the actual
capital Of the State or nation. Banking cap
i,al is but the aggregation Of individual cap
ital, previously existing, rendered more
efficient, perhaps, but not more useful by such
aggregation and the special privileges con-
ferred by the act cf incorporation.
Circulation is not capital, nor does 1t in
crease or represent capital. As the reprcsen-
,atve of credit, based upon the ability of the
bank TO redeem IFS promises, it becoines,when
properly limited, 4 useful auxiliary 10 trade
and commerce-when unlimited and excess
ire,It not only ceases TO be Iseful,bu becomes
dangerous and destructive TO the financial and
industrial interests Of the people. Without an
increase OF banks, and the facilities they afford,
the commercial aad industrial interests Of the
country wo-ld suffer no serious reverse. In
convenience might be experienced, and the
more rapid, and tor that reason, the more
dangerous progress Of business arrested. But
this is preferable to the concomitant evils Of
an inflated currency over,radiDg, rash spec
u!ation, and a deprecated currency, always
terminating in bankruptcy and ruin. That
such would be the result, if the numerous
bank, now before the Legislature should be
chartered, can rot be seriously doubted. Per-
sonal and private interests may magnify the
importance and necessity Of Incorporating
these banks, but no considerations Of public
policy or interest could justify their creation.
Such fnancia. policy would be nothing less
than financial madness and folly.
In population, wealth, trade and commerce,
our progress during the past ten years has
been rapid and unprecedented. Our mining,
manufacturing and industrial interests have
been largely and permanently developed, and
are now in progress OF more ample develop
rent; and yet during this period, the addi-
tons 10 our banking capital have been almost
nominal, bearing no appreciab'e proportion
to the immense increase Of the great interests
already enumerated. These facts demonstrate
and establish the truth, that although banking
facilities may and do aid the business of the
country, their increase is not indispensably
necessary TO lis progress and rapid develop
mcnt.
Bat greater facilities might secure greater
results, ard therefore it is freely admitted, that
although such facilities are not absolutely nee
essarr, yc; they are important, and as aids 10
legitimate iusiness, under proper limitations
and restrictions, shonld be afforded. A mod
crate and reasonable increase Of banking
capital, iudiciously distributed, might be use
ful 10 the increased and increasing tiade and
commerce Of the State but under no circum.
stances can an eItravaSant and unnecessary
increase be justified or defended. Local aud
personal considerations may secure the pass
age of numerous acts Incorporating banks,not
demanded by the business wants Of the CON-
munily, bat such legislation can not be sanct-
ioned by public policy or sustained by public
sentiment.
The financial and commercial embarrass
mea, from which the country is now slowly
recovering, requires cautious and prudent
legislation, and demands that the actual and
real wants Of business should be regarded,
and The true interests OF the people consulted.
4 sudden and excessive imitation Of the cur
rency BY the creation of numerous banks,
might mitigate and temporarily remove the
a. 4