The Bedford gazette. [volume] (Bedford, Pa.) 1805-current, 1857-12-11

late British statue on the subject includes banks
(the Bank of England excepted J and in single
season of suspension THAT OF l8I3-'l4-'I5
nlnety-two of these banks had been subjected to
commissions of bankruptcy. But this remedy
was not of English, but of Roman origin, as is
name would show, i''bancuS," and ''ruptus, ,"
and bankers were the original objects of the
law, as the same name also shows. "Broken
Bench" is the English of the Latin name, and
was so called because the bankers tmoney chang.
e:S that time, as now in the eaSt) had their
benches in public places, on which they sat and
did business and when any one became dplin-
quent, or criminal, be was driven away and his
bench was broken. And thus, in its origin
bankruptcy was process against banks and
bankers. and still is in Great Britain and hence
retains its original name of -Bench-the
bench so broken being the sign and warning to
the public that the banker himself was nsolvent
and deprived Of his place OF doing business.
Banking in the United States is the most un-
restrained and unsafe that there is in the world
unsafe even for solid and we'll conducted banks
there being enough of the unsolid and badly
conducted to fall down of themselves every few
years, and to drag down the rest with them
The laws put few restraints or penalties upon
them and these restraints and penalties are
regularly repealed Just as often as the communi-
ty needs the benefit, of them. It is by name in
some places, and by fact 10 others, system OF
Stree banking" which the hard-money Dem
ocracy was accustomed 20 call sfrpe Swndling .
Anyhcdv becomes banker that pleaseS, and iSS-
ueS small notes and sends them offto distance
to be circulated and lost, and TO sink upon the
heads of the laboring people.T A fav orite plan
Is TO issue notes at one place payable at another
far off, out ofthe way, and difficult to be got at,
50 as to compel the holder 70 submit to a shave.
That mode doing business was invented by a
Scotchman of Aberdeen in 1906 but he was
in Great Britain, not in the United States and
the British Ministry and the British Parliament
Immediately took cognizance of the inventor
and his imitators, and placed them all in the
category of swindIers, and so put an end to
their operations. No stamp duty, no bankrupt
act, and no requisition to keep any propoTionale
amount of hard money on hand completes the
license and unbounded freedom, and the perfect
title to periodical explosions, which belong 10
American banking.
This last rpquisition, that of keeping on hand
an amount of hard money proportonate TO their
liabilities, seems to be unknown (even in name
in the United States yet that requisite is legal
and fundamental condition OF The Bank OF Eng
land and the proportion of one-thrd in gold
of the total amount Of its liabilities in circulation
and deposits is the rate enforced and below
that proportion the Bank of England does not
deem itself safe. Thus swore Mr.. Horsley
Palmer, Governor OF the Bank OF England, be-
fore Lord Althorpe's committee. in 1882 "Iht
average proportion, as already observed, Of coin
and bullion which the bank deems 1t prudent tc
keep on hand, is atthe rate Of a third Of ht
total amount of all her liabilities, including
deposits as weI as issues" And thus sworf
Mr.. George Ward Norman, director Of the
Bank "For fill state Of the circulation ana
deposits, sag tscenty-one millions Of notes ana
SIR millions of deposits, making IN the achoic
wentg-seUen millions Of liabilities, the proper
THE American lawyer seldom looks beyond the
statute OF Elizabeth, which was the hrst TO conhn'
the bankrupt process 10 merchants and traders Il
they would look a little further back-Iook into th,
reign of that Queens iather-they would find stat
sufficiently comprehensive to include others be
sides merchants and traders; and the preamble tt
which is an accurate description OF many OF thos'
who in our country, and at this day, follow the pur
snit OF issuing "currency'' for the American people
That preamble says: ''Where0S dtreyS anu s"1fIr1
yersGnS craftiIv obtained their hana great suit
Of otsr nenS goods; do s"ddeniy fee to part
nHknOn, or keep thetr houses, not Dihd"g TO Iay o
restore TO ann of tsir creditors their debS and atIfS
5ut at their 1Dils and pleas~es consume III
substance obtained 5y ceif ofOsr men for thetr orr
adorMmcRt gnd daufy Hri"g, against all reaSoi
egultv 0nd good conscience" Ammo 81, Henry Will
IA specimen of modern banking in the unItet
States in ofthe latest OF these institutions
duly chartered TO issue f'curTency''-the ''GrG"t
Bark or Voiant01cR'' Connecticut: whereof ih'
Hartford (Connecticut) Times gives this briet an
no doubt, veracous account
| "1he charter was passed, and for four or hv
| months it not heard of again. But suddenly
on or about the first of November instant, the bulls
| the Granite Bank of Voluntown appeared IN the mar
/ ket. The bank commissioners were IN this city a
the time, and though having their hands iuii OF onsI
ness in various parts of ihe State, they repaired a
! once TO Voluntown. There very rich scene was o
pened TO them They found, we understand, the fol
! lowing state of affairs.
"The managers of the bank, or about the hrs
instant, procured (i. e. borrowed for the occaslon)
! package of bills, or package OF something "hic
| they called $50 900. This was the PAID IN capita
of the bank, and upon this they commenced business
though on Saturday last they sent this same packag
| back to New York, they clalm TO procure speci
| for it.
They have issued SIT 900 in bills and had circula
ted them in various parts The country.
Give thousand dollar in bills we're taken by ma
| who was 10 circulate them in Ohio. This man lett
receipt for them, and verbally promised 10 send on
| note when he arrived in Ohio.
ssrhe assets were between three and four hundre
dollars in coin, dollar bill on Wlndham Count
| Bank, and second hand safe, not yet paid ioT
Also the receipt of the Ohio man for S3,OOo IN IN
! Granite bills"
This is a samyle of a recent chartered bank IN on
of the Oldest States. Here is another recent sampl
| from one of the youngest Territories:
.sThe Legislature of Kansas at its last winter ses
| sion lS56-'57) chartered number oil Banks 10 Is
sne currency, one of which al Lecornpton was re
oured TO have $50 900 in specie, before il could he
! gin work. In the late Convention, while pToVlhin
for a new bank of three millions the fact came ou
in debate that the Lecompton bank, without dolla
in hard money, obtained its certificate from the 'oV