The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1857-03-25
From The Clinton Democrat.
FREE BANKING.

The experiment Of free niggerism has been
so successful IN the northern States, iha,
speculators attach Stree" 10 almost every
swnidl,ng scheme they propose. Hence
"free" banking. But whoever imgaines that
the scheme means to allow every man 10
bank and issue notes, will find Himself hun
bugged. 1t means only 10 permit certain
persons TO bank upon the debts OF the States.
|, is refiuemen, of ingenuity 10 propose 10
make other evidences Of debt The basis Of a
large issue of promisory notes. Yet this is
the story OF so-called 'free banking" This
climax of yankee invention has been intro.
duced into our Legislature, and the bill may
pass. The old German idea that gold aud
silver is to give way to the refined yankee
idea that basis of debts is much safer aud
better!
II is said the scheme is a sale one, for the
Stale is 'sound" and cannot escape the pay.
men, of ils debts or become bankrupt, while
il contains so many sturdy people capable oil
paying taxes. They tell us that the free
banker must buy 100000 worth OF Safe
stock, and deposit it with an officer 10 be paid
by the people, as security for the ultimate re-
demp,ion of his notes. Then he is 10 bs al.
| lowed 10 issue his own notes 10 that amount
and no more-hence the safety. Well, in
addition 10 all that, he must keep on hand
| considerable amount of gold and silver, TO
redeem his notes when demand is made, aud
deposi, another considerable amount in Phil
adelphia, 10 keep them at par, or they will
not "circuIale." He must keep a banking,
house, and pay the officers oil his bank, the
engraving and printing Of his notes, &c, &c
Then, reader, how is he 10 make his money!
He has paid 500. 900 for his State stock, the
intercs, upon which is not an equivalent ior
| the investment. He issues 100000 OF his
own notes, for which he receives about seven
per cent. Out of this he must pay all his eS-
penses, and keep on hand twenty or thirty
,housa nd dollars in specie, and deposit ten
10 twenty thousand more in philade'ph'a.
ANY man mus. see that this must be losing
business. Hence there must be some
thing in this scheme which free bankers keep
from public view. II there is anything else,
then the stock can not be secnrity Tor 1t
and hence the whole scheme is swindle.
We have not examined bank note report
ers lately, but within two or three years past,
the bank commissioner of New York adver-
tised lha, he would redeem the notes OF cer-
tain New York broken free banks at from 10
to so per cent. discount, though based upon
par stock.
The city brokers, who own or control
nearly the entire amount Of our State debt,
urge this scheme because its enactment
would bring the State stock up 10 par, by
which they would profit
We trust that amidst the multilarious
schemes of rlunder with which our l.egisla-
lures infiicl the people, this one may not be
found. 1t is TOO stupendous to be endured /;
and its explosion which would soon follow,
would give rise TO more cunning frauds and
schemes of swindling than Que generation OF
peopls could crush.
But if we must have scheme OF FREQ
banking, ld il be free. Let every fellow issue
notes 10 that amount who can raise funds
enough 10 buy certificate OF Stale stock. II
there is any virtue in that sort of equivocal
freedom, e, us have it in a shape iha, al! can
reach il. Ii the denomination Of the notes 10
to be restricted, then keep US free from shin
plasters. If not, lie; your free banker manu-.
lacture them OF every possible denomiua-
ton.