The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1855-04-05
Bank Veto Message of Gov. Pollock.

mated, bill No. 276, entitled "An Act au'
thorizing the incorporation of the Bank Of
Poitstown," ,".wilh my objections TO The same
Should the number Of bankssnd the amount
of banking capital in The State be increased
and if SO, 10 what extent, and in what locali-
ties are questions that deservs and should
receive careful and candid consideration.
If LEGAL and personal interests are permitted
TO determine these questions, the auswe 7
will be found in The unusual and extraordi-
nary number Of applications for bank char
ters now pending before the legislature.
But ite number af applications ID no just
criterion by which TO determine either The
wishes OF The wants of the community in
this regard Their number and the perliua-
city with which they are pressed, have star
tied aud alarmed The public mind; nor has
the favorable action of the Legislature in
granting these demands served TO allay The
apprehensions and fears thus excited The
policy of the past few years may have been
TOO severaly and necessarily restrictive; yet
this policy should be preserved, rather than
abandon The Slate and the interest of her
people 10 the destructive influences of a
wild and reckless system ofbauks and bank
ing. That some increase Of banking capi
tai is necessary in certain localities within
this Common wealth, will not be denied !;
that large increase is not demanded, either
by public sentiment, or the public veal, is a
truth equally undeniable; In the creation
Of banks, sound ard 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 iobbers and
rash spectators. The sudden and unneces-
sary expansion of the currency should be
avoided; and whatever tends 10 produce
such result ought TO be discontenanced, ard
if possible, prevented. The history of bank.
ing, in our own ana other States, is full of
useful lessons on this subject. Experience
should teach US wisdom; and our present
and future actions, i'll relation 10 banks aud
banking, should be regulated and controlled
BY her teachings The advantages to be de-
nved from an increased number of banks
are more lanced than real. 1t is an error
10 suppose that an increase OF banking capi.
tai adds 10 the actual capital of the Safe or
nation. Banking capital is but the aggrega-
:ion of individual capital, previously exis-
ling, rendered moro efficient perhaps, but
not more useful by such aggregation, and
the special privileges conferred by the act
of incorporation.
Circulation is mol capital, nor does it in.
crease or represent capital. As The repre-
sentative of credit, based upon the ability of
the bank 10 redeem its promises, it becomes,
when properly limited, useful auxiliary to
trade and commerce-when unlimited and
excessive, it not only ceases 10 be useful
but became dangerous and destructive to
the financial and industrial interests OF The
people. Without an increase of banks, and
the facilities they afford, the commercial
and industrial interests Of The country would
suffer no serious reverse. Inconvenience
might be experienced, and the more rapid,
and for that reason, the more dangerous pro-
gress of business arrested. But this is pre-
| lerable TO The concomilsn, evils of an inaa
ted currency; overtradIng, rash speculation,
and deprecated currency, always tsrmina.
ting in bankruptcy and ruin. That such
would be the result, if the numerous banks
now before the Legislature should be char.
tered, cannot be seriously doubted. Person.
al and private interests may magnify The i'm
portance and necessity OF Incorporating these
banks; but no consideration of public poll
cy or interest could Justify their crealon.-
Such iuaucial 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 mors develop
ment and yet during this period, the addi-
lions to our banking capital have been al
most nominal, bearing no appreciable proper
tion 10 the immense increase of the great
interests already enumerated. These facts
demonstrate aud establish the truth tha, al.
though banking facilities may and DO aid
the business of country, their inc,ease is
not indespensably necessary 10 its progress
and rapid development.
But greater facilities might secure greater
results, and, therefore, it is freely admitted
that although such facilities are not abso
lu,ely necessary, yet they are important, ant
as aids 10 legitimate business, under prope
limitations and restrictions, should be affor
ded. A moderate aud reasonable increase
of banking capital, iudciousiy distributed
might be useful 10 tho increased and increa
sing trade and commerce OF the State I; bu
under no circumstances can an extravagan
I and unnecessary increase be justified or de-
Tended. Local and personal consideration
may secure the passage of numerous act
incorporating banks, not demanded by ths
business wants Of the community, but sucl
Legislation cannot be sanctioned by publi'
policy or sustained by public sentiment.
The financial and commercial embarrass
ment from which the country is now slowly
| recovering reuuires cautious and pruden