Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1855-09-11
FREE BANNING VS.. CHARTERED BANKS.


In the matter Of Banking, NJ. Indeed, in relation 10
every other subject calling or Legislative action, we
hold 20 the good old Republican doctrine, that that
government is brs. which governs least" For this
reason We prefer \ S:.tcm of free and Independent
Banking To i!.u granting Vi exclusive charter; and
for this rtl nn We lrti"r. general lGw applying alike
10 all independent; Banking institutions to special
charters, in each limiting or extending IL p:-
vccs according 10 tho good viii and pleasure Of i'ic
Lr- stature. lh" imTui.ics of -lrcin Legislation, if
made system md applied to iad'rd".Hs instead of
! hod.cs corporate. would 10 at once apparent, and
wouli noi b" tolerated. 40 m eminent Judge justly
remarked, IL Course OF law lectures, having oCca-
sion 10 speak "I The uniformity OF lsw-"To make
that law for 'nr which is nu; law Cor any other mem
nrr ot society, = 10 con!c rnd;,o privileges upon me-,
nr - impose an unjrs: and unequal burden" 1t s
i;s; So with corporations And II wo should trncn to
ther rproper source the wrongs and injuries Inflicted
upon community by chartered corporations, we
| w ould find them in chicf part attributable to this
very eau.e-paral Legislation! This thin, Itself
a!iIicls the body polite Safe and Nannsl with i's
dires curses 1t occasions lobby memberships, brl-
berries. lo;rniing rickery in aliits forms, and gives
to low cunning and Disgusting cfrorcry ana i.npu-
dcncc the rewards which honesty and hsh-nned
sense of right should have secured.
On any subject, ;ici, which our Legislature may
act intclligeuty aud nc, for a-whcn it can $50
10 speak) g,ner1i:c in lis eci>lationwc shai. favor
its ukin, this course as most wise and most expcd
eut not only in the saving of time and labor in the
preparation and enactment Of laws, but Us furnishing
us with laws which shall h the result Of icI, general
Il Il
solicitation. Nay the Legislature" s"icly pursue this
course iii regard 10 Benkin! are We compelled t"
sPcfc Legislation in regard to each application for Il
charter!
Experience, our best teacher in such matters, has
answered these questions for Ten Suites of the
Union have already adopted genera! banking laws
New York, New Jersey, Vermont, Massachusetts,,
Ohio, Illinois, Tennessee, Alabama, Wisconsin, and
Louisiana. In New York, the act passed i'll 1888,
and experiment Of seventeen years has but served
10 make the New iuricrs he more attached 10 this
system OF banking. In lsi6, when tlIc Convention
met To rc.orgauzr the Constitution OF that State, the
folluwin. clause WIS Inserted The Legislature shall
have power pass any act granting special char
ters for buuking purposes; but associations may be
formed for such purposes under general laws Th'
clause was hiOptt' ny Il Npic VI 'i LII tC ' "'''
I to one in the nesalivc!-
! This, then plnccs the matter Of Jt0"61"y beyono
question |, IS poss;be 10 carry on the banking o.
the State by institutions Incorporated under genera
law.
What IRE The advantages Of free banks over char
tered hgaAs
Rad III response to the question jus; propou'drd
the following article from ThOmpsons Hmn; Note Re
porter. |; will also com;irm of the vews AREA
dy expressed:
fKiI: ANu CHART EKEI' BANNING.
We commence by defining ID" two Sys.Hi7.-Frc
Eaal.pg-Fuli pcrni-s:"n ~: any individual ~ ass"
, rn..rn 81 Bans, by c".i? .iHS with &ru'ral laws
to, genera, Lass requiring ample security deposit"
with .hc STAT. nthnrIlr- for all issucs 81 currency
Eugr.y.: and priaiing only "m order rnn the Stn
officer circulating notes received through ih" Sti!i
authorities. secured, registered, anf c"u"crsiGncd
u.rn,nl reports -? condition.: specie payments, o
iiru;datun bv the State officer
! Caor'.rd Br5.'rg.--Spccial privileges granted e
rcrtaiu u,.iviGuIls with power To make currenc,
without security, and in mnny "f the States wthou
limit and generally speaking, the Stockholders an'
Officers Of these close C"rpcrntlpns nre exempt on
uny liability Oh their corporate Indebtedness.
} Tn. practical woriiin. o: the twu systems il illu,
,ro,cd iv recent failures, ;ts follows: