Bradford reporter. [volume] (Towanda, Pa.) 1844-1884, 1855-03-31
Bank Veto Message of Governor Pollock.
EXECUTIVE CHAMBER. March %, 1855.
To The Senate and House Of RepreaentG:sues

OF Representatives. III WHICH lt originated, Dill
No 2I5, entitled An Act authorizing the in
corporation of the Bank of Pottstown," with
my objections to the same. Should the num-
Der of banks and the amount of banking capl-
tai in the State be increased and If so, to
what extent. and in what localities are queS-
tons that deserve and should receive a careful
and candid consideration. If local and per-
sonal interests are permitted to determine these
questions, the answer will be found in the un-
usual and extraordinary number of applications
for bank charters now pending before the Lc-
giSlature.
But the number of applications is no just
criterion by which to determine either the wishes
or the wants of the community III this regard.
Their number, and the pertinacity with which
they are pressed, have startled and alarmed the
public mind nor has the favorable action of
the Legislature in granting these demands serv-
ed to allay the apprehensions and fears thus
excited. The policy of the past few years may
have been too severely and unnecessarily re-
strictivc; yet this policy should be preserved,
rather than abandon the State and the interest
of her people to the destructive influences of
wild and reckless system of banks and banking.
That some increase of banking capital is neees-
sary in certain localities within this Common
wealth. will not be denied that large in
crease is not demanded, either by public senti-
ment, or the public veal, is truth equally
undeniable. In the creation of banks, a sound
and honest discrimination as to number, To-
callty and the demands of trade should be ex-
erciSed
Their number should be determined more by
the actual wants of legitimate trade, than by
the wild fancies of stock jobberS and rash specu-
lators. The sudden and unnecessary expan-
sion of the currency should be avoided ; and
whatever tends to produce such result ought
to be discountenanced, and if possible, preven-
ted. 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 actions, in relation
to banks and banking, should be regulated and
controlled by her teachings. The advantages
to be derived from an increased number of
banks are more fancied than real 1t is an er-
ror to suppose that an increase of banking capi-
tai adds to the actual capital of the State or
nation. Banking capital is but the aggrega-
ton OF individual capital, previously existing,
rendered more efficient perhaps, but not
more useful by such aggregation, and the spe-
clal privileges conferred by the act of incorpo-
ration.
Circulation is not capital, nor does it increase
or represent capital. As the representative of
credit, based upon the ability of the bank to
redeem It's promises, it becomes when properly
limited, useful auxiliary to trade and com
merce-when unlimited and excessive. it not
only ceases to be useful, but becomes danger
GUS and destructive to the financial and indus
trial interests of the people. Without an in
crease OF banks and the facilities they afford.
the commercial and industrial interests of the
country would suffer no serious reverse. In
convenience might be experienced and the
more rapid, and for that reason. the more dan
gerous progress of business arrested. But this
Is preferable to the concomtant evils of an in
Hated currency; overtradng rash speculation,
and deprecated currency, always terminating
in bankruptcy and ruin. That such would be
the result, if the numerous banks now before
the Legislature should be chartered cannot be
be seriously doubted. Personal and private in
tcrests may magnify the Importance and neces-
sity OF Incorporating these banks but no con-
slderatlon of public policy or interest could
Justify their creation. Such financial 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. manu-
featuring and industrial interests have been
largely and permanently developed and are
now in progress of more ample DEVELOPMENT
and yet during this period, the additions to our
banking capital have been almost nominal
bearing no apprcciable proportion to the i'm
mcnSc increase Of the great interests already
enumerated. These facts demonstrate and es- |
tabllsh the truth that, although banking facl
ties may and do aid the business of a country. |
their increase is not indispensably necessary to |
its progress and rapid development
But greater facilities might secure greater
results and, therefore, it is freely admitted |
that, although such facilities are not absolute |
ly necessary. yet they are important, and as |
aids to legitimate business, under proper lim- !
tations and restrictions, should be afforded
Moderate and reasonable increase of banking
capital, juiiciously distributed, might be useful
to the increased and increasing trade and COM
merce of the State but under no circumstap
ccs can an extravagant and unnecessary in |
crease be justified or defended Local and
personal considerations may secure the passage |
OF numerous acts Incorporating banks not de- |
manded by the business wants of the commu- |
nifty but such legislation cannot be sanction |
ed by public policy or sustained by public SEN
timent
The financial and commercial embarrassment
from which the country is now slowly recover
ing, requires cautious and prudent legislation
and demands that the actual and real wants of |
business should be regarded, and the true in
terestS of the people consulted. A sudden and
excessive imitation of the currency, by the
creation of numerous Danks might mitigate
and temporarily remove the evils we now suffer, |
but in the end, wonld reproduce and aggravate !
them. The remedy is more to be dreaded than |
the disease and its consequences often-tmcs
more fatal and destructive.
Bank accommodations are and evermust be- |
an insecure and unreliable basis of legitimate |