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

Idte BRUSH statue on the SuDleCt includes OankS,
the Bank of England excepted J and in a single
season of suspension THAT OF l813-14-l5)
ninety-two OF these banks had been subjected 10
commissions of bankruptcy. But this remedy
was not Of English, but of Roman origin, as its
name would show, ('bancus," and ''ruptus, y
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 (money chang
e-s of that time, as now in the eastl had their
benches in public places, on which they sat and
did business and when any one became dplin-
quent, or criminal, he 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 Broken-B Bench-the
bench so broken being the sign and warning to
the public that the banker himself was inSovent
and deprived 9t 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 unsoIid 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
regularly repealed just as often as the communi-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
''free banking" which the hard-money Dem
ocracy was accustomed 80 call ''frpe swindling" j."
Anybcdy becomes banker that pIeas-s, 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 orte plan
is to issue notes al one place payable at another
far off, out ofthe way, and difficult to be got at,
so as to compel the holder TO submit 10 a shave.
That mode of 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 swindlers, and so put an end to
their operations. No stamp duty, no bankrupt
act, and no requisition to keep any proportIonatp
amount of hard money on hand completes the
license and unboundpd freedom, and the perfect
title to periodical explosions, which belong to
American banking.
This last requistion, that of keeping on hand
an amount of hard money propOrtionate to their
liabilities, seems TO be unknown leven 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-thrrd IN gold
of the total amount of its liabilities in circulation
and deposits is the rate enforced and below
that proportion the Bank of Eng land does not
deem Itself safe. Thus sWore Mr.. HorSley
Palmer, Governor Of the Bank of England, be-
fore Lord Althorpe's committee. in 1882 "1be
average proportion, as already Observed, of coin
and bullion which the bank deems ii prudent TO
keep on hand, is at the rate Of third Of The
total amount of aH her liabilities, including
| deposits as ,ceH as issues" And thus swore
Mr.. George Ward Norman, a director of the
| Bank "For fill state of the circulation and
deposits, say ttoenty-one millions Of notes and
sir millions of deposits, making in the whoie
twenfy-Seven millions Of liabilities, the proper
/ THE American lawyer seldom looks beyond the
! statute of Elizabeth, which the first to confne
the bankrupt process to merchants and traders il
they would look little further back-look into the
reign of that Queens father-they would bnd stat
sutfic ently comprehensive 10 include Others be-
! sides merchants and traders; and the preamble to
which is an accurate description OF many of those
who country, and at this day, follow the Pur-
sut of issuing curreucy'' for the American people.
| That preamble says: ''WhcreaS 9trers amt sHniar9
persons craffiY obtqined Mety haHdS great Snb-
goods, no S"dIeN3y Hfe 70 pHttN
n1&U0ec or keep ther houses, Df"dtag to 74y or
10 ann of eir creditors hSir debts and dies
but ut their mills and o7on P'0s"res cohs"nas the
substance oJtaned By credit ofoter for their olc
| adoynntsat and dainty HrIng, against all reas"@,
egAify. 0Nh r0od conscience" Ammo 81 Henry Viii.
IA specimen of modern banking in the United
States ofthe latest OF these institutions
duly chartered TO issue 'tcurrency"-ihe ''Gra"'tt
| Bank oC Foi~nfoacH," Connecticut: whereof the
Hartford (ConnectcuD Timss gives this brief aud
| q, ~
ss1he charter was passed, and for four or hve
months it not heard of again. But suddenly
on about the first of November instant the bills o
the Granite Bank OF Voluntown appeared IN the mar
! ket The bank commissioners were IN this city al
the time, and though having their hands full OF bust
ness in various parts of the State, they repaired at
once to Yoluntown. There very rich scene was o.
| pened to them. They found we understand, the fol
! lowing state of affairs.
s.The managers OF the bank, on about the first
instant, procured ( e. borrowed for the occaslon)
| package of bills or package of something which
they called $50, 900. This was the paid IN capital
| of the bank and upon this they commenced business
though Saturday last they sent this same package
| back 10 New York, they claim, TO procure specie
| for il.
They have issued II 900 in bills and had circula
| ted them in various parts OF the country.
'sFve thousand dollars in bills we're taken by mar
who was TO circulate themin Ohio. This man left q
receipt for them and verbally promised 10 send on
note when he arrived in Ohio.
sEThe assets were between three and four hundred
dollars in coin, dollar bill on Windham County
Bank, and second hand iron safe, not yet paid Tor
Also the receipt of the Ohio man for $4,000 IN the
! Granite bills
! This is a samre of a recent chartered bank IN one
of the Oldest States. Here is another recent sample
| from of the youngest Territories:
.sThe Legislature of Kansas al its last winter ses
sion (lS5G-'5D chartered number OF Banks TO IS
sne currency, Of which al Lecompton was re-
Qured 10 have $50 900 in specie, before II could he
! gin work. In the late Convention, while providing
for a new bank of three millions, the fact came ou
in debate that the Lecompton bank, without dolla
nte the Gov