Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1860-03-29
Pennsylvania Legislatnre.

County bank bill was in the hands of the
Governor, who, we had no doubt, would
veto it. Subsequently the following mes
sage was sent in:
! To the Senate and House Of Representatives.
of the Commonwealth Of PennSytrdntd
/ GENTLEMEN A bill has been presented
1 fox nv approval. entitled An act to incorpo-
/ rate the Miffiin County Bank. +"
The bill proposes the incorporation OF q
( bank. TO be located in the borough of Lewis
I town. in the county of Miffiin, with a capital
/ of one hundred thousand dollars, with power
in the commissioners to increase it TO two hun
dred thousand dollars, and with the further
power in the President and Directors, to in
crease it to FIVE hundred thousand dollars.
The shares are each to be one thousand dol
lars and no person can subscribe for less than
fye shares The number of stockholders can
not be less than three, nor more than thir
ty, and each stoekho!der shall be director.
When one hundred shares of stock shall
have been subscribed, and ten dollars paid ON
each share to the commissioners, and mort
cages given by the stockholders On unlncum-
beTed real estate, within this commonwealth,
appraised ut sum equal to the par value OF
the stock, letters patent are to be issued by
the Governor to the corpGraturs, aud when
the mortgages provided for, shall be deposit
ed with the Auditor General, and the Cashier
shall certify under oath, that twenty-five per
centum of the capital stock subscribed has
been paid in, the Auditor General is required
to deliver to the bank, notes properly prepa-
red in blank, to the amount of the capital
stock, which notes, after being signed by the
proper officers, may be issued by the bank,
and circulated as money, according to the or
dinary course of banking.
| have, heretofore stated, among the prin
cipal objections to the existing banking sys
tenn of this Commonwealth, lst, That spe
cial act of the General Assembly was an in
dispensible prerequisite to the incorporation
and establishment of bank-thus conferring
by special legislation, upon q favored few,
powers and privileges which were denied to
others, equally responsible and deserving.
And, I'd, That no adequate and reliable secu
rity is provided for the prompt redemption,
beyond all contingencies, of the proramissory
notes which may be issued by such bank,
and circulated as money. These objections
have prompted me to make known 10 the leg
islature and the people, that could not ap-
prove of any additional special charters for
banks Of issue under the laws now in force in
this State. Nor have they, in my opinion,
been removed, or obTiated, by the bill under
consideration. 1t is q special charter, and
the security 1t proposes for the redemption of
the circulating notes of the bank proposed to
be created, am satisfied, would prove utter
ly delusiye and insufficient. Mortgages on
real estate, at It's full value, situated in any
part of the commonwealth, improved or un-
improved, to be taken at an appraisement,
would, beyond all controversy, be found n vc-
ry inadequate means Of insuring prompt pay
ment to the holders of the notes of bank
which had stopped payment at its counter.
So far as | have been able to learn, the plan
of banking on real estate security, although
often attempted, has uniformly proved an alb
soluke failure, even when confined to impro
we'd land, and it will hardly be pretended that
the system will be made better by extending
it to all manner of real estate, whether i'm
proved or otherwise, as this bill proposes. Of
late years, it has been either wholly, or in
part, abandoned. One great reason, is, its
inconvertibiity, even when appraised at its
real value. The payment of mortgages can
only be enforced, after great delay, by tedious
proceedings in our courts of justice, and, gen
orally, at ruinous sacrihce-but where o
forced sale could be made at a fair price, the
delay which must necessarily occur, would Sc
riously lessen the value of the notes. 1t is,
however, undeniably true, that, in vast ma
jority of cases, the amount raised, after pay
ment of expenses, falls greatly below the es-
tmated value Of the property; and, in the
end, the securities would thus be absorbed,
and the out standing issue, in a great meas
ure, still left unredcemed.
The twenty five per centum on the amount
of the capital stock, required to be paid by
ltn Shara abpl tnnpfhpr Wit hpi
liability, would of course, afford some addi-
tional security; but the history of the past
shows eonclusiyely, that such security is en-
! tirely worthless in the case of a broken bank.
/ On the other hand, experience has shown with
| equal clearness, that the only mode yet adopt
/ ed by which the circulation Of u bank can be
made perfectly safe at all times and under
! all circumstances, is by tho deposit of securt
! ties which can be concerted into money with
out the danger of depreciation, or the neces
! sity of delay. So far as it may depend upon
! my action, | am determined that the laws of
! the State shall not sanction the further issue
! of paper money as circulating medium, with
/ out placing its prompt redemption beyond q
peradventure. And, as the bill under cunsid
! Grafton does not, in my opinion, fulfil that re-
! auirement, i am constrained to return it with
! out the Executive sanction, to the House Of
| Representatives, where it originated, for re
consideration. WM. T. PACKER.
| In the house it was passed by two
thirds vote under the following programme
On Saturday the House took up the veto
of the Mif1in County Bank bill, and the que s
ton being on the passage Of the bill notwith
standing the veto, it was lost, one vote being
lacking,
During the process of the call of the yea.
and nays, Mr.. Sheppard said, on his name
being called, that, as his democratic friends
sat quietly in their seats, he would vote no.
Mr. Dunlap dem J came in after the vote
was announced, and made an explanation
stating that he was absent when the vote wa!
taken. He denied that his Democratic friends
had lodged the question, and asked the priv