Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1858-01-15

mach at least should be con s:deret
whether there are not defects in it which
the public security demand should b.
provided for.
| One important objection TO a papel
currency, is supposed to exist in it.
liability to sudden expansions and
contractions. to the prejudice of tn.
business Of the community. and aft citing
the value of the property and production.
Of the country by affecting the measure
Of value, by the enlargement Of it to-day
and the d,minution of it to morrow
Perfect uniformity in any currency, il
una:tainable yet that which approache,
nearest . specie currency,is most likely
to be uniform. As the circulation o thu
Banks throughout the country is now
small, and the influx ofspccie large. the
present may be regarded as a favorable
opportunity for some prospective meas.
ure designed to retain specie in more
general circulation. This object nigh
be obtained, and the circulation of the
precious metals among the people in
ordinary business provided for. by pro-
hibitng the circulation of small bills
Whether this method is not practicable,
especially in concert with other States ia
New England, submit to your careful
consideration.
The beliefis general that the o,nkin,
system in this country is not as perfec,
as i. ought to be. and as tho interests
Of the people require. The generally
conceded fact that these institutions, by
their alternate expansions and contrac-
tions. have contributed to the present
financial derangement.'o together with their
inability to meet their own promises to
pay. when the crisis came on. Is conclus-
i've evidence both of radical defect in the
system, and Of its injurious character
Bank notes are nero contrivancc to
effect some of the purposes of money ;
/ their value consists in their promises to
/ pay certain amount Of money, and
that the persons among whom they cir
cuate, 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 prom
ises. 1t docs not necess sarily follow that
no issue ought to be made beyond the
reserve Of $ cc;e retained in hand. The
very purpose Of the bank is to make
ether descriptions of property serve. to
certain extent, the purpose ofspecie.
But what should be demanded OF the
banks. and they should be put upon
F., such footing as to require it IS. that
while the banke may bs permitted 50 TO
manage as to hav- the least practicable
amount of specie living idle. with largest
practicable circulation, he should be held
upon his peril, to keep within his
capacity of turning his effects into specie
so rapidly as to meet any possible de-
manls from the bills. Any system
which does not absolutely require this
much, and any practice of The blnk-
which puts it 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 reaxc.. As much in implied is the
duties of the bank to the public, and as
much is demanded by the safety Of the
public. A suspension Of specie pay
mcnts by the banks, is either violeu,
implication upon the system. or upon it.
management. \
The multiplicity of banks in the State
IS an ell, and spirit of rivalry anon ;
banks is promotve Of evil. The lesiti-
mate pur2,se of banking is to facilitate
the business of the community. Banks
should be located with strict reference -
acutal business wants. Where such
wants are fully met by one bank, another
should nos be created. Experience has
shown that competition between small
banks leads to the encouragement Of a
class Of paper not contemplated by the
Jaws.
1t is not understood that the temporary
! inability Of our banks to make specie
payments, results from any wants OF
ultimate ability to discharge all their
liabilities. Nor is there just-apprehen-
81 of their soundnd IS and the security
Of the public as connected with them
On the Contrary. they have maintained
their credit with commendable promp-
titude during the prevalence OF sevcrcst
revulsion.
Your judgment is invited to tho
consideration Of the question whether
any measures are necessary to prevent q
recurrence of bank suspensions. and to
provide against the effects upon the
country consequent thereon.
Whatever checks or restraints you
may think proper to throw around the
system to pr otect the community against
injurious influences. from that quarter
! for the uture, if it be true that,to grea'
extent. the present PROSTATE condition
of the business of the country and the
apparent SC ,rcity of money is attributable
to extravaganza Of investment. and lndl'
vidaal extravaganza investment which
has made no adequate return. and ex
travagance beyond the income-then il
is obvious that the remedy the case
admits Of and requires, for permanent
relief. is retrench nent and economy o
investment and economy of expenditure
in all departments. puolic and private
individual and psrsonal-an econom.