The Bedford gazette. [volume] (Bedford, Pa.) 1805-current, 1855-01-19

ding balance of relief notes can be Withdrawn
from circulation and destroyed during the cur
rent year Il is true that these issues have not
come into the Treasury as rapidly as the funds
Tor their cancellation have accumulated, and
that, consequently, portion Of the receipts
have not heen invested bat this difficulty will
bR obviated in June next, when the law will
60 into operation which forbds the banks and
receiving officers of the commonwealth 10 pay
ont these issues. and requires them to be presen-
ted al the: treasury for cancellation. We shall,
therefore, soon see the last of currency which
has poDted the channels Of circulation for
thirteen years past: and ] trnst that the lesson
thus taught has been quite sufficient TO warn us
against similar errors for all time TO come.
My opinions on all questions that concern the
currency, have seen SO often expressed, that
they must be we'll known to the Legislature,
aud need not be- given, al length, in this COM
munication. Without. at any time, assuming
it would be wise for this State, regardless of the
policy of other Commonweahs, 10 dispense
suddenly and entirely with banks OF issue, it
has been uniformly held that the amount ofban-
king capital basis for paper circulation,
should be closely limited TO the urgent wants of
commerce and trade. IF the experience Of the
country is worth any thing at all, il has demon
strated the correctness of this policy: and that
the use of small Bank notes should be dsconra-
gpd and forbidden. In accordance with this
view Of the subject, l have, on past occasions,
refused 10 sanction any extensive increase of
; banking capital.
Every commercial country is liable TO alter
nate seasons of excitement and depression; 10
periods of pxtravagant over-trading, followed
by ruinous revuIsionS. The reaction now felt
Iii. l. III.
Of an undue expansion of credit, in the form of
bank paper, railroad, State and corporation
bonds and individual obligations. In those
States where the free, or stock-banking system
had stimulated the expansion, the workings of
the reaction have been disastrous. In our own
beloved Commonwealth the shock mas been sem
sibIv felt, though far less severe than in other
parts of the country Her partial escape, il is
believed, is mainly owing to her prudent and
restrictive policy in the use OF bank credit. 1t
is, at least, very clear, that had the free or
stock-hanking plan, at one time so zealously ad-
vocated, been adopted in this State, or had our
present system been>g greatly expanded, the posi-
I ton of affairs in our commercial metropolis
! womld not have been So.fsserable as at present.
Had the natural tendency to speculation recei-
we'd this artificial stmulant-the limits of safe
ty, like the lessons Of experience, would have
been passed unheeded; as it is, some good men
in the pursuit of useful enterprises, have been
proStrated. II is most unfortunate, that under
this influence, all must suffer alike. Those who
profit least by the expansion, are often effected
most bv the contraction. This is especially the
case with labor, which is uniformly the last to
be elevated in times of prosperity, and the first
TO 90 down in those of depression. The Banks,
as general rule, make the most out of these
convuSions. 1t is often their error TO fiatter
the merchant and trader when the tide of pros
peritv runs high, and TO iorSake him ON the first
appearance Of its ebbing. Even sound banks,
and OF good repute, it IS said. are seeking TO
make money out of the present crisis, by shar-
ing their capital and its benefits with brokers
and iobbers instead of aiding the business com
munity al legitimate rates. How far these al
legations are warranted, it is difficult TO decide:
but it is to BE- hoped that few, If any of our
banks are Justly liable TO this charge, for such
practice would be highly improper and well
calculated to excite discomfort. Such depar-
ture from legitimate business would demand a
prompt remedy at your hands. 1t may be diff
tcult to con6ne these institutions to their pro-
per business, with the prospect of better profits
in other quarters: but they should be made TO
feel that thev have been created for a higher
purpose than merely to enrich the stockhold-
erS. ~
The crisis is trying one; but there is still rea-
son to hope that the credit and trade Of the
country will never suffer as much as il has
done on similar occasions, in times past. There
is now no National Bank TO misead The rr1ercan
tile class, and to embarraSs the commerce which
it profeSsei 10 aid. Still! the shock will be great
enough 10 lead the public mind TO enquire after
remedy for these periodical convulsonS. And,
surely, we NAV be permitted to hope, that the
good sense ofthe people will never again be i'm
posed upon by those Crude experiments which
have, on some former occasions, so fparfully ag-
gravated the evils they ware intended TO remedy
| respectfully advise the General Assembly
against all such dangerous experiments. The
remedy, 10 be permanent, must be natural one;
artificial means may add TO present derange-
mrnts but cannot correct them. A extensive
increase of banking capital and other expedienis
will, doubtless. be pressed upon your attention;
but 1t is hoped that no such fallacy may find ia
vor. Nor is there any sufficient reason for the
alarm and spnsitiveness manifested in certain
quarters the real wealth of the country still
exists, and the natural elements of prosperity
are no less than heretofore. It is the shadow,
not the substance that is passing away. The
business community should look the danger
bravely in the face, and by their energy, homes
II and enterprise, overcome it. Mutual conf
dence and forbearance should be cherished by
all. as a means of accomplishing this desirable
end
Tn accordance with The provisions ofa law
passed in April last, vote OF the people was
taken, at the October election, on the policy of
prohibiting the manufacture and sale of intoxi-