The star of the north. [volume] (Bloomsburg, Pa.) 1849-1866, 1859-01-12

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rather than TO the efficiency of the laws -
Under the management of incapable or dis
honest men, experience has shown, that
there is really but little if any security to
the public in the regulations and restrictions
now 10 be found in our banking code. True
wisdom dictates reformation.
The ruinous losses which have fallen up.
on the people during the financial pressure
oil The past eighteen months, suggest the
necessity OF preventing their recurrence
Although many causes may have combined
10 produce these disasters, it is too plain 10
admit OF doubt that our banking system has
been one OF the most prominent. The val
ue of tho precious metals-ihe prices of
properiy--and the wages of labor-are al
ways affected by the abundance or scarcity
of the paper medium received as substi-
tute for gold and silver coin. The power Of
the States 10 authorize paper currency,
through the agency of banks, has been so
long exercised, and acknowledged, through.
out the Union, that it is no longer an open
question. But it must be acknowledged
that the power has been greatly abused -
The delegation of this attribute of sover-
eighty 10 number of irresponsible corpo.
rations, without proper checks 10 limit its
exercise, and without providing any securi-
ty whatever for the redemption Of the is.
sue thus authorized, has been attended with
evils of the most alarming character. These
corporations are Practically made the exclu-
slve Judges b! the amount of paper cnrren-
cy 10 be furnished 10 The people, and have
lhe exclusive power 10 contract or expand
their circulation at pleasure. Depositors
and other Ordinary creditors of banks, need
no legislation for their protection. Every
one who has direct dealings with these in
stiutions, either as depositor or otherwise,
enters into such engagements voluntarily,
for his own advantage, and may be safely
left to his own vigilance, and the ordinary
remedies of the law, for his protection
But the millions of people engaged in in
dustrious pursuits, the farner-the mechan-
ic-the merchant-anG the laboring man
are under an imperious necessity to receive
for their merchandise and their labor, the
ordinary paper currency of the county. 1t
is impossible for persons of this description
10 investigate the concerns Of every institu-
ton whose notes are in circulation. But
no investigation could save them from the
losses arising from the defaults and frauds
of bank officers and the insolvency of bank
borrowers.
The note holder of banks have peculiar
They are involuntary creditors, who are
the government. They have no direct deal
ing with the banks. They do not trust the
banks from any hope OF gain. They have
no profit in passing the notes which they
would not have had In passing gold and
silver coin. They constitute almost the en-
tire community, and the humble and ignor-
ant are always The greatest sufferers when
a bank fails TO redeem It's notes. The
whole people are therefore deeply interest
ed in the security of the circulation allowed
by law, although many of them may never
have had share of bank stock, or been
within hundred miles OF its place of busi-
ness. The Government that authorizes the
issue OF paper currency is under high
moral obligation 10 require ample and avail
able security for its redemption.
The certificates OF loan issued by the Cen
eral Government, or by this Commonwealth
al val ue 10 be fixed upon, with the power
TO require additional deposits of security,
from time TO time, as the loans depreciate
in the market, would be as safe and avaia-
BILE as any guaranty which could be provi-
ded.
A law requiring all issues of banks here.
after organized, to be secured by the pledge
of these loans, would enhance the value OF
the present loans, and thus give the holders
premium moi contemplated when they be.
came purchasers, and for which they never
gave any valuable consideration. This en-
hanced value would be derived from a priv
ilege granted by the State, and ae State
ought, therefore, to have the benefit of it.
as lar as this may be secured by legislation
The recent amendment of the Constitution
circumscribes the power of the Legislature
in creating State debts, with an exception
in favor of debts contracted ''to redeem the
present outstanding Indebtedness of the
State" A law authorizing new State loans
for the purpose of redeemng the present
over due debt, would be within the consti-
tutional exception, and would be free from
objection on constitutional grounds.
The new loans thus authorized, redeema-
Bile at the expiration of twenty years, with
the banking privilege attached to them,
would undoubtedly sell at high premium
The proceeds of their sale should be applied
TO the payment of the present State debt,
now overdue, amounting 10 more than sew.
et.'teen millions of dollars Under this sys.
ten. the State loans would no longer be he d
by foreigners, and the semi annual ship.
ments OF specie, 10 pay interest, would
therefore cease.
As the, currency would be limited to the
amount actually secured, the danger from
expansions. which have heretofore stimula-
ted the Inc autious 10 embark in ruinous
enterprises, in overtrading, and in extraya.
gance in their expenditures, would be great.
" lessened, if not entirely overcome As
tie securities would be IN the hands of a
high and responsible officer of the State,
with authority TO sell them for the purpose
OF redeeming the circulation, the power OF
the banks to arrest sp ecie payments at their
own pleasure would tie at an end. The
system proposed is as ear an approach to
a specie basis as the condition and habits
of the people are at present prepared for
The duty of securing the community from
losses continually arising from unsafe cur.
rency, cannot be longer delayed without a
manifest disregard of the public interests
The subject is therefore commended TO your
early attention.
The report of The Commissioners appoin-
ted TO contract for and superintend the erec.
lion of monument 10 the memory of citi-
zens of Pennsylvania, who were slam or
lost their lives in the late war with Mexico,
will inform the Legislature of the proceed
ings had on that subject. After receiving
proposals for the erection of the monument,
and the adoption of plan, it was determin.
ed, in view of the limited and inadequate
appropriation made for the accomplishment
of the purpose, by the last Legislature, to
postpone the commencement of the work
until further Legislation could be had. Ii is
Il, IAnn NJ th..( (f1x.. A. 4