Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1860-07-26

trlgue, ana every species OF VllIalny, sucf
as few have conceived possible, which viii
end in the election of Benedit Arno7a
to the Presidents chair Men, Patriots
all who love your country, pause and re-
feet before it is too late
Extract from Letter to the Editor
Il have read with considerable care and
interest your editorial structures on the Char
ter Of the Miff1in County Bank. 1t appears
to me that, if we admit the mortgages on un-
encountered real estate to be a sufficient Sc
curity, then there can be no danger so far as
the circulation is concerned. That can new
er exceed the amount of the mortgages. If
mortgages are given to amount OF 500, ,OUOU,
then that amount of notes, and no more, of
the Mifiin County Bank would be in circu-
lation. To be sure they might t0Ga-not
6oyro,c-the notes of other banks-pass them,
and circulate them-if they had them on de
posite, received them in payment of debts
due the Bank, or otherwse-in the same
manner other banks do but they could new
er have more than $500, 900 in notes of the
Miffiin County Bank out in the community.
As to Withdrawing the mortgages, that can
only be done by surrendering to the Auditor
| General a corresponding amount of the notes
Of the Miffiin County Bank. Thus, if a man
| has given mortgage for $4,000, he, or his
! representative after his death, or the Bank,
must deliver up for cancellation $4,000 in
notes of Mifflin County Bank, before the lien
on the real estate pledged can be released.
| If the circulation was S2000O0 this opera
! ton would reduce the circulation to $4,000
and so on, totes quotes.
! The 18th is probably the most Objectionable
section in the bill, and made SO by the provi-
! so. 1t may be so worked as to reduce the
| proportion between specie and specie funds
to circulation of Mffiin County Bank notes
to less than | in 1, by the process of renew
! ing old paper and discounting bills of ez-
change at short dates. ! am not sufficiently
c0nyersant with Bank business to tell exact
ly how this would work Still ,here is this
in it, that under all circumstances the mort
gage security to an amount equivalent to the
notes issued to the Mifiiin County Bank
would remain unimpaired for the protection
OF the note holders and it strikes me that
the requlsitlOn Of one in specie to four in
circulation is a secure one when the other
security Is superadded, if we admit that se-
curity to be valid, substantial and adequate,
which | DO not propose to discuss, as it opens
too wide a field, and depends upon great
many contingencies and circumstances"
Although a private letter from an es-
teemed friend, we give the above extract
a place IN our paper for public information.
The security of the notes in the main we
have never doubted, though some loss
might be sustained by property falling to
bring its appraised value at a cash sale;
but our remarks last week had little refer
ence to the relation OF note holder and safe
ty. They were principally addressed to
those who it is understood have invested
their property in a business entirely new
to them, and from which they of course
expect to realize advantages or they would
hardly embark in it. For their benefit we
pointed out radical defects in the charter
which might be used for evil, and, should
the institution 60 into operation, and the
future prove our opinions to be correct,
these men will have to lay the blame on
themselves should their property be sacri-
feed for the redemption of the notes.
The mere issuing of notes is but small
part of banking. In this case, each
note will represent so much land, and the
man who pays out $50, $50, or more or
less, is handing over an acre Of farm land
or an interest in other property, subject
however to what it will sell for, just as 9TH
er property is held under mortgage. In
+ba y,oon+;n,o tbo ;net;tr4;or :, J,;I,- To
bic to be called on for specie for these is
sues and if unable to redeem them, it
must fail. Now, there is but one way to
avoid this, and that is to secure public con-
fdence from the start-that kind Of conf
dence which will induce noteholders to
feel secure under all circumstances in lay
ing aside these notes, and when specie
funds are wanting that they can be had on
demand
Without at this time entering into any
discussion as to the modus operandi by
which this bank is to be put into operation,
we will only remark that unless this is
done, considerable portion of its capital
must be continually absorbed in providing
specie to meet its liabilities, and thus in
stead of having the advantage of banking
merely on landed estate, it will have the
disadvantage of being thrown on a bona
ide cash capital, the interest of which
would absorb the profits. When it does
60 into operation, however, we shall soon
see what its management will be, and un-
til then we will withhold further remarks
on that score.