Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1855-03-28
IECTsaTr.F

uSAu CCuEIleS.
On Friday the subject OF the repeal of the
County Superintendent law was discussed in
the Senate, and on test vote it was found
that majority of Senators were in favor of
the feature. The vote was 10 to II.
In the House on Friday the Resolutions re-
latiye to the rights of foreigners were discus
sed all forenoon, in Committee of the whole.
The Committee rose, reported progress, and
asked leave to sit again. The following mes
sage, vetoing the Bank Of Pottstown, was re-
ceived from the Governor.
GENTLEMEN II herewith return to the House
Of REPRESENTATIVES in which it originated, bill
No. 276, entitled s'An Act authorizing the IN
corporation of the Bank of PottStown, with
my objections to the same. Should the mum
Der of banks and the amount Of banking capi-
tai in the State be increased? and If so, to
what extent, and in what localities, are ques-
tions that deserve and should receive a care
full and candid consideration. If local and
personal interests are permitted to determine
these questions, the answer viii be found IN
the unusual and extraordinary number Of APP
plicationS for bank charters now pending be
fore the Legislature.
But the number Of applications is no just
criterion by which to determine either the
wishes or the wants of the community in this
regard. Their number, and the pertinacity
with which they are pressed, have startled and
alarmed the public mind; nor has the fayora-
bic 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 severely and un-
necessarily restrictive; yet this policy should
be preserved, rather than abandon the State
and the interests OF her people, to the destruc-
tive influences of a wild and reckless system
of banks and banking. That some increase Of
banking capital is necessary in certain locali-
ties within this Commonwealth, viii not be
denied; that q large increase is not demanded.
either by public sentiment, or the public
wealth. is truth equally undeniable. In the
creation of banks, a sound and honest discrim-
ination, as to number, locality, and the de-
mands 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
speculatorS. The sudden and unnecessary e x
pansion of the currency should be avoided
and whatever tends to produce such result
ought to be dScountenanced, 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 actions,
in relation to banks and banking, should be
regulated and controlled by her teachings
The advantages TO be drived from an increas-
ed number OF banks, are more fanciCd than
real. It is an error to suppose that an increase
of banking capital adds to the actual capital Of
the State or nation. Banking capital is but
the aggregation of individual capital, previous
" existing, rendered more efficient, perhapse,
but not more useful by such aggregation, and
the special privileges conferred by the act of
incorporation.
Circulation is not capital, nor does it in
crease or represent capital. AS the represeu-
tatiye of credit, based upon the ability of the
bank to redeem IFS promises, it becomes, when
properly limited, useful auxiliary to trade
and commerCe-When unlimited and excessive,
il not only ceases to be useful, but 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 and Industrial interests
Of the country would suffer- serious reverse.
Inconvenience might be experienced, and the
N ore rapid, and for that reason, the more
dangerous progress Of business arrested. But
this is preferable to the cOncOmitant evils of
an inflated currency; overtrading, rash spec
ulation, and a 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 seriously doubted. Per
sonal and private interests may magnify the
Importance and necessity OF Incorporating
these banks, but no consideration 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
manufacturing and industrial interests have
been largely and permanently developed, and
are now in progress of more ample develop
ment; and yet during this period, the addi-
Il
nominal, bearing no appreciable proportion
to the immense increase of the great interests
already enumerated. These facts demonstrate
and establish the truth, that although banking
facilities may aud do aid the business of a
country, their increase is not Indispensable
necessary to its progress and rapid develop
ment.
But greater facilities might secure greater
results, and therefore IL is freely admitted
that although such facilities are not absolute
ly necessary, yet they are important, and as
aids to legitimate business, under proper lin
itations and restrictions should be afforded
moderate and reasonable incPesae of bank
ing capital, tjudiciously distributed might be
useful to the increased and Increasing trade
and commerce of the State; but under no cir
cumstances can an extravigant and unneces-
sary increase be justified or defended. Local
and personal considerations NAV secure the
passage of numerous acts Incorporating banks.
not demanded by the business wants of the
community, but such legislation cannot be
sanctioned by public policy or sustained by
public sentiment.
The financial and commercial embarrass-
ment from which the country is now slowly
recovering, requires cautious and prudent le-
gislation, and demands that the actual and re-
al wants of business should be regarded, and
the true interests of the people consulted. A
sudden and excessive imitation of the currency
by the creation of numerous banks, might nit
igate and temporarily remove the evils we now
suffer, but in the end, would reproduce and