The Feliciana Democrat., 1858-03-13
Gbe fslitiana 1euotrat.
MINORITY REPORT

OF the
JOINT COMMITTEE ON BANKS AND BANKING.

~
rity of the Committee on Banks and Banking
as relates to the subject Of Free Banks.
Although the undersigned are fully con-
vinced that banks Of circulation are not in
dispensable to the prosperity, welfare, and
happiness of the State, and although we be-
lcve. that an excess of the circulating me-
dium, or currency, beyond the actual and legi-
innate demands of trade and commerce.
proves curse instead of Il blessing, yet, if, on
the contrary, as is maintained by the majority,
that banks of this character are indispenSably
necessary, that the wants and interests of the
people demand them, we maintain, upon such
a hypothesis, that the privilege of thus bank
ing should not be confined aud limited cxclu-
sively to particularly favored few, but should
be enjoyed alike by every class Of citizens, who
have the means and capital to embark in it.
We believe that the age of exclusive mono
poles, by which the privileged few grow rich,
amass princely estates at the expense and pre-
.judice of the many, has passed to that bourne
from whence we trust it may never again re-
turn, to curse, with It's pernicious and paralyz-
ing tendencies, the best interest of society !;
and that new and more enlightened era has
dawncd upon us, shedding its benignant rays
over the face of society, in which a more Just
duals as contradstnguished from The rights
OF the government, has obtained more clear
and distinct recognition.
That, as the agent Of the people, il creates
no rights or privileges, but only prcscribcs Ger
tain limitations aud restrictions upon indivi.
dual rights and actions for their mutual bcic.
tit and protection, and therefore, when the
Legislature, or law-makiug power has dis
charged this duty, when it has enacted such
laws when it has adopted such regulations as
are calculated TO restrain one individual from
injuring another or of one set Of individuals
from injuring another set of individuals. it has
fully discharged its legitimate trilst it has ex-
haustcd its legitimate powers. Beyond this
limit, to exceed this extent, is an usurpaton
Of power an invasion of individual rights ue-
yer yielded up.
Our rights Of volition, of pursuit occupa-
tion, or profession, not originating from or by
any legislative authority, can only be restrain
ed by that authority, within such limits as to
prevent injury to others.
Apply this rule, then to the subject unCSr
consideration, and see if it is not equally
strong and conclusive against the position as
sumed by the majority.
They maintain that banks are necessary i
Why? Because the public good require them
They also maintain that they should be created
only by special charters granted to certain in
dividuals. Why? Because, they argue, in
this way only can their number be limited
Now, to what does this argument tend into
what Inconsistency does il not involve its an
thors? If banks are Indispensable rs they
contend what calculation, by what mode Of
reasoning, by what standard have they fixed
and established the limits which they desire
Can they tell us what amount Of banking ca
pital is neceSsary--what amount Of this paper
circulation the wants of the State demand 2
whether certain number Of banks can, with
the means they possess, safely and prudcntIy
furnish the necessary amount Of banking fac
lties? Are the banks and their particular
friends competent to determine question in
which they have so deep an interest? Would
they not prohibit, with an iron rule, all com
petition? Did not tie Chartered Banks OPP
pose, as unnecessary and wrong, the creation
of all Free Banks, and for the very obvious
reasons, that il would create competition nI
their then limited monopoly? Can any one
member Of the Legislature determine, under
entirely dependent upon the FIJI.
ture, what amount Of banking capital, or what
number Of banks will be demanded by The
wants Of the people If one cannot do SO,
can a bare majority Of the Legislature accom-.
plsh this difficult task Who then, is to
solve this difficult problem-one upon which
the most intelligent and sagacous of this en-.
lightened age differ most widely?
What rule, then, will they adopt to over.
come this embarrassing Inconsistency of their
position? II we look at the result Of the
banking operations Of the State, we see that
they have been able to declare a clear profit
OF from II to rs per cent. dividends. Does
this show that too much capital has been en-
ployed in that business Is it not an evil
dence, on the contrary, or II most prosperous
bnslness-far the most lucrative in the State |?
What are the relative claims of those banks to
the confidence and support of the public p
Have the Chartered Banks been more prudent
in their business, more regardlul of the public
interest, or more obseryant of the laws than
the Free Banks If So the Investigation of
the Committee have not ascertaned it Each
of them have bcen at different times inpru-
dent-hayo violated the laws, and, we believe.
have rendered themselves liable to u forfeiture
of their corporate rights. And have the
Chartered Banks eynced more prudence,