Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1857-01-08


king sale Of monopolising privileges TO a
few, and barriers away Tor money the true
principle which should guide in delegating
to individuals the power 10 create money,
viz: that they should be granted only sueh
advantages as are absolutely necessary TO
compensate them for the risk and trouble
Of furnishing safe currency. II makes the
right TO bank with profit The leading idea III
the system, and puts up this dangerous priv.
ilege for sale, while that right should be en-
tirely subordinate TO the right Of the masses
to Il sound currency, and be granted only so
far as il may be absolutely necessary 10 in
duce individuals 10 engage in banking.
IL is true that there may be some coun-
tries in which, from the superabundance Of
capital, the bare right TO establish bank
corporation, even under the most stringent
restrictions, would be so valuable as 10 be
saleable at premiums: but my knowledge OF
Missouri ana the state Of its money capital,
would lead me to the conclusion that no sys-
TEN of banking, offering such advantages to
capitalists as would induce them TO pay
bonus for the privilege of operating under
il, would be one in which the restrictions
would be all that are desirable for the pro-
lection Of bank creditors. With us the dan.
ger is not that we may impose too stringent
restrictions and thereby unnecessarily de-
prive our Treasury OF a profit which might
be made by selling the right 10 bank with
out them, but that we may be compelled to
omit restrictions, otherwise judicious, in or
der not TO render the whole system multi
ty by deterring capitalists from investing UNI
der it. But should, as is most probable, the
main question be, in forming banking sys-
ten for the State, what restrictions can be
introduced without rendering it SO stringent
as 10 prevent investments under it, a wide
field will be opened for legislative caution
and wisdom on the part Of the General As
sembly. Fortunately the terms of the pro-
posed amendment OF the Constitution will
relieve you from the necessity Of considering
some questions Of great perplexity in the
I banking systems Of some Of our sister States.
In Missouri every bank will have to be
based upon specie capital, and made liza
Die TO redeem its Issues in gold or silver"
This clearly means that the subscriptions TO
the capital stock of such bank must be paid
only in specie: but to the General Assembly
is left the task OF devising the means and
basis of operations of such bank, ana OF
preserving its continuous ability, as well as
enforcing its liability 10 redeem its issues In
coin.
There is, also, nothing in that proposed
amendment which will prev ent the General
Assembly from imposing on any bank such
additional liabilities and restrictions as may
be prudent. Among the restrictions which
have been carried into practice in banks, OF
. suggested by men protesting ii knowledge
Of finance, are, liability Of individual stock
holders beyond the amount Of their stock
either 10 limited extent, or Jointly anC
severally, for the issues OF the bank, in
, fixed proportion TO its capital, or TO the spe
, Gle OF hand at certain periods: preference il
payment of liabilities of the bank Of note
holders over depositors, and of both owe
, all other creditors; restriction Of the rate o.
interest on loans, and of the proportion o
capital to be employed in exchange business
prohibition of usllr Gus loans in the shape o
sales or purchasers of bills of exchange a
exorbitant discounts: restriction OF the a
4 mount Of discounts to directors: exclusion
/ of persons engaged in money lending from
the Office Of director: penalties on the pur
chase or sale, directly or indirectly, by an,
officer Of the bank, OF bonds, notes, or bill
! OF exchange: reservation Of right by tn
1 State TO name a portion of the Directors
frequent periodical publication of the stat
Of the Banks affairs; periodical examina
Y ton Of its condition by persons acting unde
5 State authority, and reservation OF RICH
in the Stale 10 alter or repeal the bank
charter.
4 will not enter into discussion of tn
merits of all these restrictions: the Genera
h.. Assembly, in lis wisdom, will select sucl
as they deem judicious, o. devise others t
q secure the great object for the people Of
e banking system, viz: sound currency.
n 1t should, also, in my opinion, be th
g fixed policy of the State, TO establish N
J. bank except on the condition that full liber
d ~ be left the General Assembly to alter o
= revoke its charter. Experience may teac
IS the necessity oil new regulations, necessar
/. for the public good, and it can be no inius
tice TO the stockholders for the State 10 re
C tain such powers because, if they are dis
= satisfied with sugn new regulations, the
y can always surrender their charter, and in
g vest their capital otherwise; nor is it to b
: expected that any General Assembly will
k use such power TO their injury.
c The amount OF capital authorized by III
If proposed amendment Of the Constitution i.
g doubtless, ample to supply the present de
n mand for banks. Should it, however, b
less than that demand, | am inclined I
!, think that it will be sound financial polio
(, to give the preference, in fixing the amour
g Of capital of the banks, to those located
our smaller towns rather than those OF ii
e commercial capital Of our State.
= Bank accommodation 10 our country mel
e chant is, in fact, accommodation to II
II wholesale dealers, from whom he makes h
81 purchases in St. LOUIS or elsewhere, as
st enables him to meet his liabilities TO then
l. 1t is, also, better to have the trade of II
Y. State conducted, as lar as possible, on fl
Is principle that the country merchant shouI
lie obtain his bank accommodations at the plac
l. OF his residence, where he is best know
= and where his property lies and make h