The Union and eastern journal. [volume] (Biddeford [Me.]) 1854-1858, 1858-01-15


raft1 % r lrgfl's ..- rrL ~ % p
% l..'E. .Hl igs ! I. -----lL - y
. specie currency, d most likely 70 bc uni
form. A the circulation Of The Bank
throuehous tts country y now small. and
tho Influx Of spssis large, the present. may
BE- regarded asa favorable opportunity fos
some prospptivn asaro designed 70 retain
specie in nopl Insral circulation. Tbis
object might b obtained. and the eireular
ton Of the precious msta,s among tho pso-
pie in ordinary busines provided for. By
prohibiting the circulation Of small bills-
whsshsr this method 10 not practicable. e.
! ecmlly in concert With other States In N v
England, submit 70 your careful consider.
ations. .5 .alsrr .t g' rr1..h .i ,--u
The belief b general that the banking sys-
tenn in this country i not % perfect az Il
ought to bs, and - the interests VI the peo-
pie require. The generally conceded facs
that these in~sisnsions, by thsir alternate
expansions and contnesIons, have contribute
Cd to the present financial dsisngemsnt, to-
se.her with their inability to meet their own
promises to pay, when the crisis came on.
is conclusive evidence both Of radical de-
feet in tho system, and of ih injurious char
acter. Bank notes arc nero contrivance
to effect some Of the purposes Of money {;
their value consists in their promises 70 pay
q certain amount Of money, and that the
persons among whom they circulate. believe
these promises will be kept. The character
of the bank, like that Of the merchant. will
depend upon its positive ability to perform
its promises Ii does not necessarily follow
that no issue ought to bc made beyond the
reserve ofspecie retained in hand. The very
purpose OF the bank is to mako other de
scriptions Of property servo, to Q certain ex.
tent, the purpose Of specie. But what
should be demanded Of the banks, and they
should be put upon such footing as to 70
quire 1t. Is, that while the banker may be
permitted ~ to manage as to have the least
practicable circulation, he should be held,
upon his peril, to keep within his capacity
Of turning his effects into specie 90 rapidly
as to meet any possible demands from the
bills. Any system which does not abso-
lutely require this much, and any practice
of the banks which puts 1t beyond their
power to perform this much, Is deemed to
be wholly wrong and unsafe. There should
be no contingency where this rule should be
relaxed. As much is implied in the duties
of the hank to the public, and as much Ia
demanded by the safety Of the public; o
suspension ofspccie payments by the banks,
Is either violent implication upon the sys-
tenn, or upon its management.
The multi plicity Of banks in the State is
an evil, and spirit ofrivalry among banks
Is promotive Of evil. The legitimate pur.
poss OF banking Is TO facilitate the business
Of the community. Banks should be locat-
ed with strict reference to actual business
wants. Where such wantsare fdily met by
one bank, another should not be created
Experience has shown that competition be.
tween small banks leads TO the encourage
ment Of class Of paper not contemplated
by the laws.
I, is not understood that the temporary
inability Of our banks to mako specie pay
ments results from any want Of ultimate
ability to discharge all their liabilities. Nor
is there just apprehension Of their soundnes'
and tile security Of the public Us connected
with them. On the contnry. they have
maintained their credit with commendsbl.
promptituds during tho prevalence Of severes'
revulsion.
Your judgement is invited to the consid
eration Of the question whether any measure'
are necessary to prevent a recurrence of bank
suspensions, and to provide against the
effects upon the country consequent there
on.
Whatever checks or restrains you may
think proper to throw around the system u
protect the community against injuriou
influences, from that quarter, for the future
If it DO true that, to great extent. th'
present PROSTATE condition Of the busines
of the country and the apparent scarcity o
money 10 attI ibutable to sxtrsvagance Of in
vestment and individual extravagance-in
vestment which has made no adequate 70
turn, and extavagance beyond the income
then 1t is obvious that the remedy the cas
admits Of and requires, for permanent relief
is retrenchment and economy Of investment
and economy Of expenditure, in all depart
mcnts, public and private, individual ant
persoual-an economy which shall criticisc
tho fitness Of the smallest item Of outlay,
and force within the narrowest limits both
public and private disburment,. Embarnss
ment has not como because tho sources o.
wealth are not abundant, both In the boun
ties Of nature and tho creative art Of oul
people, but SIMPLY becsuse We have not &C
esmsiated BY frsgaiity.
II is not too much to add, that the econ
omy Of living, q real virtue, is too little un
dentood and praaticed BY al classes smonl
US; and that We arc not, in our habits aud
tastes, sufficiently American, but In thes'
defer TO foreign customs and unwissly ant
uupasriOticslly prefer the imported fabri'
and production 10 those Of American skill
and labor.
The public laws having undergone . thor
ough consolidation under tho observation o
the last legislature, and thereby supercedin,
any supposed necessity for general legislation
"a II Al Ii