Plymouth banner. (Plymouth, Marshall County, Ind.) 1852-1855, 1855-01-18
TIE HESS AGE.

upon the FaIl5as interesting topics now
sgitatiue ths mind Of the public.
Among he subjects for legislative con
siders,ion Is tha. Of Banking. In con
nectiea with he subject Of our monitory
affairs, he says:
The law upon the subject of General
Baking has failed to accomplish the
pu:poss ;or which il was enacted. II has
not fur she'd, for the use of the people
s0und REGULATING medium. The expert
ence OF the two past years fully estab
fishes he correctness of my remarks adj
dressed 20 the last General Assembly on
the subject of banking; and | may adopt.
in Is fullest meaning. the sentiment then
eS.sessei, ''that past events have clearly
shown that the restrictions provided ny
tia az are insufficient to prevent abuses
of he privileges granted,
''Irfis matter of regret that this sub
ject did not engage the attention oil the
Genera Assembly at its last session. |
again u-ge UPON your consideration. the
views expressed on this question at that
time
"The country having nvettreded, a nee
essary demand for exchange to NEE: Eas
tern liabilities was created. This state
of affsirs caused the broker 10 seek for
gold; and in pursuing this object. he
placed himselfin the position of the mer-
chant or business nan. and was fulfilling
one OF those vacations not uncommon in
such conditions OF the country. 1t was
a fortunate circumstance that the broke
cam. early. We had in less than six
months. issued more than six millions OF
currency-an amount not required for
the maintenance of healthy condition
In cur moni,ory affairs; and If the broker
hs.. DELAYED his visit for year longer, a
greatly increased amour: of paper circu-
Iation would have resulted In greatly in
creased recuniary losses TO the people.
The practical operation of the laU in
r.unu instances, has been that the indi-
yidual has not sought TO locate and com
mence the business of banking to accom-
modate the commercial community, but
TO borro,v money for himself under The
sanction of the lao. Men without cap
i.al or with barely credit sufficient to
borrow few thousand dollars in stocks.
are furnished facilities under The law. to
heroine bankers to the extent OF millions.
With the currency procured upon the
frst deposit of stocks. other securities
have been purchased, and other notes pro
cured and thus large circulation has
bern created without dollar OF actual
capital.
Directors and Bank Presidents are now
issuing this deprecated currancy over
their OWE counters without any efor.
or. it is believed. intention to redeem IT.
With this currency they purchase bulls
getting an equivalent for his products. is
paid In a circulation which he cannot
dispose Of without sacrifice nor reclaim
in his possession without danger. In,
stances are not wanting where the pro.
pri-tors OF Banks. after suffering their
institutions 20 suspend, have themselves
embarked in the business of buying up
their own paper at heavy discount. and
thus piundering the laborer of his harl
earnings"
The public, few mon tbs since. looh-
ed 10 our Banking Institutions for relief
in hours of embarrassment with conf
dsnce. received and circulated the notes
issued upon Public Stocks, believing the
Free Banking System a safe one. relying
upon legislative enactment and the Off
GERS Of State for security in their action;
but. instead of relief. instead of money.
instead of a healthy state of financial az
fairs, they now find great scarcity of
money in business channels, an unhealthy
state of the money market. and just such
Eelhf as rags always furnish to The poor
every where. A large amount Of the
State Stock money is now worth but IS
TO so cents on the dollar: What else can
be hoped for. if bank proprietors them
selves are engaged in purchasing their
own paper as stated in the Message. We
hope instances Of this kind are few in
deed.
The farmer pays we'll for his money
He sells his property cheap. Shall their
interests be protected this winter by leg
islativs enactment, amending the Free
Banking Law which is SO glaringly defec-
tive?
The executive upon this subject says
Under the 18th and 2Sth sections of
the law it was undoubtedly competent
for the Auditor to wind up any Bank not
doing business at the place where its
bills are payable. To give more efficiea-
c, 10 this provision and to make the da.
ty imperative upon that officer. I called
the attention of the Legislature to the
subject in nv last annual communication
out having failed TO procure the required
legislation. renew my recommendations
on this point.
1.-THE great error in the law. is, that the
entire responsibility of the system is
placed In the hands of q single individual,
and he an officer Of State already charged
with duties and trusts of the most i'm |
portant character. This single individ-
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