Speectt of Miv Bonbam* On the Senate bill re-chartering the Easton Bank—delivered in the House, of Representa- tives March 12fA and 15th, 1852. Mr. Bonham offered an ameridmehl reducing the capital stock of the bank to $200,000, and prohibiting the issue of notes by the bank of a less denomination than ten dollars. Mr. Speaker. Owing to a severe domestic be reavement 1 feel too much unnerved, sir, to enter into a discussion of the subject under considera tion by- the UouaCf and were it not that 1 am con strained by a solemn sense of responsibility as a representative of the people oh this floor, to ex press my views on the question submitted in the amendment pending, I should abstain at this time from so doing. The subject now under conside ration is the most important one that has engaged the attention of the legislature at its present ses sion, and, I may add, the most important that has engaged the attention of any legislature of the Commonwealth, since the organization of her go vernment. 1 refer to the increase of the banking capital of the state and the spread of the Ameri can system of banking among us, necessarily stf perinduced by that increase. I am well aware, sir, that the friehds of this bill look upon the amendment which I have just submitted as a hostile movement, and would con sider its adoption as equivalent to a rejection of their application. But I can say most sincerely, that in offering this amendment 1 am actuated by no feelings of hostility to this particular institu tion, for I entertain none—and I have said before what I repeat now, that I look upon the applica tion of this bank for banking privileges, as the most meritorious one that has been made to the present legislature, and that if a bank chntter is to be granted during this session it should be gran ted to the Easton Bank—for I have always look ed upon it as one of the best regulated banking institutions in the commonwealth. In submitting my- views, therefore, on this bill, I shall address my remarks not so much to the bill itself, as to the subject matter generally to which the bill and the pending amendment relate; and I have taken the occasion of the calling up of this bill to express my views on (his subject, for the reason that this bank is a well regulated in stitution and excites less opposition to its passage on that account. I have taken the occasion of the calling up of this bill to express my senti ments in relation to this subject for the additional reason, that this institution has always been under the management and control of gentlemen connec ted with the democratic party—in order to con vince our whig friends on the other side of the House, that those who entertain views simitar to my own on this subject, are not actuated by any personal or parly motives, or opposed to the charter of banking institutions, because they hap pen to bo generally under the control ofgcntlemen belonging to the whig parly, buton account of (lie inherent and radical defects of the system itself, which, howeyer it may be bound down, restrain ed and controlled by legal enactments, has shown that ilia too strong for the law,the government and the people. It may be inquired on what ground I propose (his amendment, or how it can be pertinent in re lation to the question of the increase of the bank ing capital of the slate, since this bank has alrea dy a capital of $400,000, the same amount as is contained in (his bill. It is well recollected, sir, that (ho friends of this bank made application for its re-charter at the last session of the legislature, and that they presented petitions favoring its ap plication, which are not withdrawn, but arc still on file in the archives of this House, setting forth among other things, that this bank had an abund ance of capital to supply the wants of the section of country in which it was located. The? appli cation was rejected, and another institution, (he Mechanics' bank,was chartered in its room and stead, to be located in the same place, with a capital of $300,000 and the privilege of increasing it to $400,000, the same in amount as that of the old Easton bank. Now, sir, with the question of the propriety of granting that charter we have nothing to do on the present occasion : 1 voted against it, and would have been much grat ified to have seen it defeated, as I felt more friend ly to (he old institution than the proposed new one. But the legislature saw proper in its wis dom to grant that charter, and the recharter of (his institution was afterwards defeated on the ground that by passing (he bill the banking capital of that region of the state would not only be increased, but actually doubled. The same difficulty again presents itself to the consideration of this legisla ture, except with much greater force, as wc have but the other day passed a bill chartering the Mauch Chunk bank, which will supply a region of country with bank accommodations formerly supplied by the institution now claiming its re charter. Mr. Lilly. The gentleman from Cumberland Is mistaken. The people of Carbon county have generally been accommodated by the Philadelphia banks, and those of New Jersey. Mr. Bonham. Well, it may bo so; but I thought that region Thust bo the Easton bank, judging fiom the petitions presented from the gentleman’s (Mr. Lilly's) county, in fa vor of the rechartor of llni institution. I presume thnt must have been produced by some magnetic influence, some sympathy between the people of the two counties, in these kindred applications. Butin addition, sir, there is also an application from Lehigh county fora bank to bo located at Alfpntown, in that immediate neighborhood, which bill has passed the Senate, and from present indi cations, will also pass this Houbo. No bank was in existence at Allentown when the Gaston bank presented her petitions last winter, slating that she had sufficient capita) for the wants of that region (jf country. But,'sir,l will proceed to the consideration of oar system of banking, the cu-at fungus which hangs out with unnatural distortions upon the body politic. Bad as it is, it will bo permanent ly fastened upon us, unless the public mind can bo aroused to a true sense of the danger. To effect lh‘t wo must resist Us increase. It isa sys "“'“•■“I *llh the terms of the conetwition of; Ilia United Slate,. Bv that of’eS Whv t n, C ° in ? m °y or bills of credit.: Why? Because the framers „r il.„ aonetitulWknatv the danger, incident to the el 5£ IM k f .tb h gh Pf er °ff H,ivo of sovereignty.— They hadW.lnesscJ ,!. evil in (ha f2£ of provincial Slid continental paper monoy-they therefore wsted iho nower of controlling the cur rency mute national government alone, 'J'ltey prohibited the stales from coining money end emitting bills of credit, but they also forbade their making Anything but gold and silver coin n tends* i tv the payment of debts,. _Tho elates suf fer and outhorix® other* (o do whal they ore pro hibited from dotraAhemsplvcs. But they should he held responsive, The rule of law rtn this suhieot Is* qtii/acuty aliutn t fac\t per sc.— Tint it ia evaded bysayngihal the states do not iithnrizo or permit tho nf bills of credit— J. u , „ hank noteisnota becavts^in , ‘Station of law ''■«», coin ioV oontemp i ßB ucd. ( hol '»\tnoro theory; \ deem tuo fiction, ' \ however, » funder the ■ i .“1 practiced m J,, tem of *«***? iIBUO ll ' , banka ote, P'/havc coin to redeem the wfflSL. napor as t|>v f t - n issue far ntofo yian tbalv | h« " mount of coin oh ba.ul->A to in como round w\ho coa |ui in iko f u ie ic notes is based ffiion that the '»»“°°,‘' rcß on lh e c%„f the rated whdtim end mnnd v J i|,ocnui\y \ n the regulation of the “V" y ( i, B oxiaUnSf— the oon.liludnn, th» chJiler o | V AMERICAN VOLUNTEER-EXTRA. This was thp policy of tho men who framed that instrument. They were'opposed to a paper cur rency, because they had seen its evils. They were opposed tq a sufrcpdpr of an attribute of the highest sovereignty belonging to a sovereign state, because they knew the dangerous purposes for which it would be employed. The power to regulate the currency of any country is a tremen dous power. By the expansion of the currency property may be raised in price, by its contrac tion property may be lowered in price, to suit the views of those who have .this, power in their hands. A dollar to-day may he worth as much as a dollar and a half to-morrow, and the reverse. Hence the opposition to the fathers of the country to a paper currency. -On this subject, sir, my opinions are not peculiar. Mr. Webster said in the debate in Congress in 1610, on the bill to charier the National Bank, when he was in the freshness of youth, ahd be fore he had been converted by the blandishments of the bank power, that *‘ll was a mistaken idea that we were about to reform the national curren cy. No nation had a better currency than the United States—there was no nation, which had guarded itscurrency with more care; for the fra mers of the constitution, and those who enacted the early statutes on this subject were Aarrf mon ey men. They had felt and therefore duly ap preciated life evils of a paper medium; they there fore sedulously guarded the currency of the Uni ted States from debasement. The currency of the United States was gold and stlber coin . And he might have added, sir, that the illegal cur rency, tolerated by custom, in the United Slates, is the paper medium, issued by the banking insti tutions of the country. The bank manta has been renewed again, sir, in Pennsylvania, and it will bo a matter of surprise for the people of the Commonwealth to learn the vast number pf applications which have been made to this Legislature, for banking privileges, as well os the vast amount of proponed increase of banking capital. There are bills now on die in this House and in the Senate, together with those applications which have been advertised in the newspapers, in accordance with the reouire rnenls of the constitution, which may yet be brought before the Legislature, for the charter of twenty-eight banks of issue, and one bill lor the establishment of a system of free bunking, ma king in all a proposed increase of banking capi tal of better than twentogqne millions of dollars— besides the applications for banks of deposit, with discounting privileges. The following is a Hit of the banks proposed to be chartered, which 1 have carefully collected from the dies of the two Houses, and obtained from the advertisements, together with the capital asked for each. Anthracite Bank of Tamaqua. $200,000 Richmond Bank, Philadelphia. 500,000 Farmers and Mechanics Bank, Carlisle. 100,000 Valley Bank of Monongahela. 100,000 Mauch Chunk Bank. 100,000 Spring Garden Bank. Philadelphia. 250,000 Blair County Bank, Hollidaysburg. 300,000 Farmers and Mechanics Bank, Allentown. 150,000 Bank of FayetteCounly. 100,000 Kittanning Bank, (State stock security). 200,000 Southwark Bank, for an increase of capital. 150,000 Kensington Bank, Philadelphia. 250,000 Bank of Commerce, “ 260,u00 Mechanics Bank, “ 200,000 Schuyikill Bank, “ (renewal of charter) 1,000,000 Easton Bank at Easton., " “ 40U.000 Erie City Bank. , ‘ 200,000 Warren County Bank. 100,000 Farmers and Mechanics Bank, at Phoenixville. 200.000 Bank ol Potlslown, Montgomery County 15o,0')0 Hanover Savings Institution, York County. IOo.uUO Commercial Bank of Pittsburg, 300,000 Bank of New Castle, Lawience County. 100,000 Clinton County Bank. 100,000 Meadville Bank. 100,000 Farmers and Traders Bank, Northern Liberties. 300,0C0 Farmers and Miners Bank. Allegheny County. 200,000 Bill for a system of general Banking, allowing a banking capital of 15,000,000 For Banks of Deposit, with discounting pri vileges, expanding the banking capital of other institutions there are the lollowing applications. Mechanics Savings Institution, Harrisburg. Allentown Savings Institution. Grand total, . , , Making in all the enormous amount &roven(y one millions two hundred and fifty thousand dollars, which asks to be clothed with the pecu liar privileges conferred by the modern system of banking. Wo may well slop to enquire the motive which induces so many applications for bank charters, and the great desire to invest capital in this pe culiar business. It is to bo found in the lerge profits divided from investments of thischaracti r. The dividends declared by banking institutions range far higher than can bo obtained for the em ployment of the same amount of capital in almost any other kind of business. The profits of the banking institutions of the state pre enormous.— On this subject I find the following fuels slated in the Philadelphia Ledger under dale of January 7, 1882 : “ The Bank of North America, yesterday declared a semi-annual dividend of ten per cent. This very large dividend is unfortunately timed, as it will make the appli cants for new banka more clamorous than ever. The business ol banking generally has been remarkably good for the past two or three years, and that of the Bunk of North America particularly. It has a capital of a million ol dollars, on which it does an active business of about three millions of dollars. That is to say, on one million of dollars invested by the owners of the hank, it lends three millions on bills receivable, paying H* per cent,, in terest, thus realiring annually one hundred and eighty thousand dollars, on a capital that at legal interest would yield but sixty thousand dollars. The North America is a well managed institution, sustains few losses, and we believe is worthy of the large credit that it enjoys. We only item the facts mentioned to show what the privilege of using paper money costs the public, and to prepare the Legislature with a fact to pul in the mouths of uank appli cants when urging 11 public convenience," as tbeground.of their applications." The Bank of Norlh America, which is the ©ldeal bank in the country, having boon first chartered at the session (of the legislature of 1781-2, has always been in the enjoyment of large dividends. In 1702 she declared a divi dend of fifteen per cent, in 1700 thirteen and a half per cent—-and from 1704 to 1700, inclusive, twelve per centum per annum. From 1702 to 1608 the Dank of Pennsylvania never declared less than eight per cent, and sometimes as high as ton per cent. The dividends of the old bunk of the United Stales were from seven five-eighths percent to ton per cent. Dr. Dollman writing in 1810 says, “none of the banks divide less than eight per cent, and some of them, much more." The average dividends now of the country banks are about eight ner cent, and those of. the city of Philadelphia from ten to twenty per cent. I have an indistinct recollection qf seeing that the Southwark Bank which la now applying far ft I HO,. 000 increase of capita), divided more limn twenty percent within the last twelve (donths. Mr. Madeiha (of Franklin) enquired whether such dividends were declared semi-annually, or for twelve months, as ho did not hear the gentle man from Cumberland distinctly. .. Mr. Bonham. 1 have stated that ll»oy.;\vore Tor twelve months-7-aud will slate in addition'that such dividends can never bp made in legitimate' I business, and,ought tywor to bo mode by the lend- Such a traffic will setup any com- Tne dividends of this particular,bank/ tirig for a ro-chaflcr in.this bill, have been! asnwclvq per cent fora number cf years, is buCthirty.ftvo dollars per share paid In, i slock is worth seventy dollars in the mar- thesd immonso.profUs, lA \Sie .® umß money m building bxpen- am\ in paying'tUp salaries of Hut officers, attorneys, and Aonend mvs. Uow nVoli these made and ni<» eD heavy cxpe»fle9\j no f B j r, they draw in terest upon vlieir instead paying interest. They issue their own promises (o pay, and gel in exchange the promises or obligations of responsi ble men, and got six per cent interest for the dif ference, by reason of the privileges conferred up da them by the government, of having (heir prom ises to pay considered as money. They discount paper to three times the amount of ihe capita), paid in, and draw interest on the whole. They charge interest for sixty-four days on loans for sixty-three days. That is their custom. They gef the interest in advance, which gives them the advantage of the interest on the interest. The interest at this rate amounts to six and four-tenths per cent, insiean of six per cent. Mr. Calhoun stated In a speech delivered in Congress on the 20th Feb., 1810, on the bill to charter a national Bank, when the whole subject of a paper currency was fully canvassed, “that ac cording to estimation there are in circulation wiihin th'erUnlted States two hundred millions of dollars of bunk notes, credits and bank paper in one shape or other. Supposing thirty millions of these to be in the possession of the banks themselves, there were perhaps one hundred and seventy-five millions actually in circulation, or on which ihpy draw there are not. according to estimatioiyiif the vaults of all the banks, more than fifteen millions of specie." Mr. Webster saitf in the same debate, "The banks are making extravagant profits out of the present state of things, which ought to be curtail ed. He referred, for illustration of this point, to the stale of the bank of Pennsylvania, as exhibii ited in the return to (he legislature of that slate, which with a capital slock'of $2,600,000, had done a discount business of $4,133,000, at the same time that it held $1,811,000 of (he United States stock—so that, without taking into ac count a mass of treasury notes, real estate, dec., (hat hank was receiving interest on six anda half millions—nearly three limes the amount of its capital. The bank had been pronounced by the legislature to be in a ‘flourishing condition.' It was so to the stockholders of the bank, he doubt ed not." According lo a statement made by Albert Galla tin there were in this Slate thirty-ono chartered banks in 1820, with a nominal capital of Sand 032,000. One million three hundred ten 12,- thousand dollars of this amount was invested in real estate, and four millions six hundred and twenty thousand in stocks of various descriptions, leaving the banks $0,102,000 to employ in dis counting notes. From invested in stocks and real estate, it is to be presumed they derived ns much advantage as private persons de rive from similar investments. With the remain ing $0,102,000, * (hey discounted notes to the amount of $17,626,000, and on this they drew six and four-tenths per cent. The revenue which private capitalists would derive from lending $O,- 102,000 at the legal rate of six per cent, 'would be $300,120 per aunum. The revenue which the banka derive from the management of this amount is $1,121,004. Thus they drew from (he people at that time $755,544 per annum more than would have been drawn by private persons, lending bona jxdt capilnj of the same amount as the nominal capital of the banks. From 1820*10 this period, at this rate, the people of Pennsylva nia have paid to the banks oi this over and above six per cent, on their loanable capital $17,- 37^^512— and that by virtue of their chartered 'pppfilfcges. From the great increase of the bank ing Capital of the State, the amount is no doubt greater than I have staled—it is greater in the pro portion of the increase of capital. I mention this merely as an illustration. The amounts are not material. They serve to show the principle of their operation. The number of banks in the Slate in November last, according lo their quarter ly returns, recently published by the Auditor Gen eral, is fifty-five, and the banking capital $lB,- 895,187. Every one can make his own calcula tion from this state of facts. From the returns made lolhe Auditor General, s2:,ioo,ouu there appears lo be regular discounts on this $lB,- 806,157 of banking capital, to the amount uf $35,- 706,703, besides exchange, stocks, bonds, real estate, &e„, amounting lo scueral millions mure— so that they are in fact drawing interest on ly three limes the amount of their capital, even if that be all paid in and a considerable part be not merely nominaj. Their liabilities for circulation arc $11,833,456, and for deposiissls,B7l,s4B— an immediate liability on (ho part of the banks of $27,705,004. The specie and treas ury notes, according to the same returns, amount lo only $6,085,729, which makes about four dul- 50.000 UiU.OOO $21,250,000 irs and a half of immediate liability for one dol- larof immediate cash moans lo meet it. The safe rule of hanking is considered three lo one. It will be thus seen that the banks of the stale arc “mak ing hay while the sun shines,'’ anil are adding up the greatest possible profit out of their means and the facilities afforded them by legislative enactment, even if they transcend the limits of correct bankings if such a financial anomaly bo not an absurdity. 1 have selected from the table of these returns, what will show ihe capital stork, bills discounted, circulation, spnio and treasury notes, and the amounts duo depositors, and the facts generally in this I have already referred 10. They are as follows : Capita] Slock, $16,805,187 'Bills Discounted, 85,708,703 Circulation, 11,633,450 Specie and Treasury notes, 0,686,720 Due Depositors, 16,671,548 Mr. Gallatin in his “considerations on the cur* rency and banking system,” published in 1831, gives a list of .three hundred and twenty-nine stale banks iflel)' in operation; having nominal capitals, amounting to 8108.301.808—which added to the capital of the then United States bank, made the whole nominal' capital of those institutions upwards of $143,000,000. Since lint limd the number of banks has increased, from three hundred and twenty-nine to. eight hundred and fifty-five, in the first part of the year 1851, according to one authority, and eight hundred and seventy-one, including the branch banks', tic* cording to another. The estimated number is now, 1853, nine bundled and twenty-one. The aggro* gate bank capital has increased from $143,000,* 000, in 1831, to $227,400,074, in January, 1851, or $248,603,000, at the present period. It has been truthfully remarked, that it is the province of American banking institutions “to lend credit.” I have already shown, that they lend their credit lo more than twice the amount of their nominal capital, and in this Stale have increased llioir circulation and irhinediato liabili ties to more than four limes the amount of their cash moans lo moot them. Wo may, therefore, sot down, from the number of banks in the Uni ted Slates and the amount of (heir capital, the range of discounts at between $400,000,000 and S&OO.OOO.OOO —for winch IUo people ere pwytnii six four-tenths per cent, directly, ami for which the people ire taxed in addition, in the shape of brokerage and depreciated paper an enormous amount, annually, indirectly. The extent of this system may bo judged of by the tables which I have before me. The first is a detailed statement from the Bankers Magazine, •for the month of Folmturyv'laßlinnd gives a viotf of (he banks and their at the close of the year 1000. ftTATZB. no. or BANKS. M ain w L! 39 ’ $3»&i8,000 ”• *2 , 8,a05,u0q Vermont,, 27 I n nnit non Massachusetts, . - 130 \ aaWnnn Rhode Island, fl 3 V ' m'iSMS Connecticut,'-.: , • j 2 / , \ nin!':!: nw™*,' .. /, ; >«o D««wm, /, . 6 / 10,000,000' New Jersey, • : •30 ‘.x , 3,70a,000 PeMwlvatiia, 03 . f JBQOD.7BI ' 17 -0,320,216 34 0.072,firs I Sou>h^’ •. 1‘ • District of Columbia, Mississippi, Ohio, Kentucky, Alabama, Indiana, Tennessee, Missouri, Wisconsin, lowa, Texas, Michigan, From lliis table ii appears that wo had in the Union in the year 1860 eight hundred and fifty* five banka, the aggregate capital of which was two hundred and twenty-six millions nine hun dred and two thousand two hundred and twenty two dollars. The classification of the capital is a matter for curious speculation. Massachusetts possessed nearly the one-sixth part of the whole, and yet it is notorious that applications for an in crease of the banking capital there for some years have been more numerous and more urgent than in almost any other Stale of the Union. Another curious fact is here exhibited, that although her population did not at that lime amount to one tweniielh part of that of the whole country, her banking capital was nearly one-sixth part of the whole banking capital of the Union, fourths as as 'that of the Stale of New York, and more than double that of the Slate of Penn sylvania. The next table gives a statement of the population for the year 1850, according to the Inst census, and the number and condition of the banks for the year 1851. It is also taken from the Bank ers Magazine of a recent dale. Sla'a. Pop. m 1850. No. Maine, 583.000 33 New Hampshire, 318.000 25 Vermont, 314.UU0 3J Massachusetts, 094,000 137 Rhode Island, 14 B>ooo GO Connecticut, 371.900 47 New York, 3,000,000 218 New Jersey. 400,000 25 Pennsylvania, 2,311,000 54 Delaware, Ol.ouO 9 Maryland, 583,000 2d District of Columbia, 52,000 4 Virginia, 1,421,000 39 North Carolina, 809,000 22 K outh Carolina, OGO.OOO I t Georgia, 000,000 18 Alabama, 77*2,000 2 Indiana, 989,000 14 lowa, 192,000 t Kentucky, 982,000 20 Louisiana, 500 000 5 I Michigan, 3'JS.noO 4 I Missouri, G82.i)00 0 'Ohio, ) .977/700 01 Tennessee, 1 uol.ooO 23 Texas, 187 000 1 Wisconsin, 304.000 1 Illinois, 858,000 none. Florida, 87,000 none, Arkansas, 200,000 none. Mississippi, 503.000 1 California, 200, UOO none. Total. 23,144,000 t»2l $248,803,061 S'dltt. Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jci »ev, PeimsyU ama, Dclaw .ire, Maryland. Dm of Columbia, Virginia. North Carolina, South Carolina, Georgia, Alabama, Indiana, lowa. Kentucky, Louisiana, Michigan, Missouri, Ohio, Tennessee, Texan, WiMimsin, Illinois, Florida, Arkansas. 41 SSISSlppi, Caliionna, Ctrrulnhon. s3,ai io,ooo 2,120,000 3 37 7,000 17 O()0,000 3.000 000 fM.40,000 27 200,000 3 30U.000 12 i m if),000 1 in »U .000 3 7' 10,000 ;i30,u00 l i/.nu 000 4 lit 10.000 7.3(10,000 4 ’tilO OUO 3.300.000 3.680.000 iou.ooo 7,15t).0t)0 3.300. 000 630.000 2 100 000 1 I 033.000 3.3U0.0U0 400,00 230.000 100,000 Total, S)SU,OS»,(KXJ $50,000,000 It is thus seen that three of the stales, Illinois, Florida and Arkansas, have no banks or banking capita). Illinois is a most important and flourish- : ing state, with a population of ncarlv one million. Massachusetts here again shows the largest amount of banking capital according to her population, though New York is not fur behind her. And yet these statistics prove, that our slate with its smaller banking capital hag increased within the lust ten years ul u greater rale per cent than any of the other stales. New York has increased nt the rate uf twenty-seven and a half per cent, Massachusetts ihirty-two, and Pennsylvania thir four and three-fourths per cent. Pennsylvania is as prosperous as those slates enjoying these extraordinary banking facilities. 'Bunkingcapital it will be thus seen, is no essential element of the increase and proaperiiy of a stale. Industry and enterprise, productive labor, are the sources of a state’s greatness and power—not the banking fa cilities her people may enjoy. The last table 1 have to submit on this subject is takoli from the Evening Post, and made, it is believed, by a Mr. George, a writer of some ce lebrity on, the subject of banking.";He gives a .comparative view ol the condition of (he banka in January, 1837, when their isses- were highest under the pet batik system, in January, 1643, when they were lowest, and compares both these w ; ili their condition at the time ho wrote, 1851. Jan. 1843 Juft. I bJ 7 Capital, Numocr of b’ks ami branches, $228,801,040 $230,772,001 nisouncft." Lbans&disco’u. Stacks, . 254,544,037 28,380,050 22,820,807 13,343,500 20,000,204 13,300,017 0,578,375 33,515,800 525,115,702 12,407,112 10,054,451 10,423,030 50,003,010 37,033,027 8,3(10,300 37,915,340 Real estate, Other inv'stm’ls Daebyotherbks Notesafpther" Specie funds, Specie, UADILITIE* Circulation, Deposits, 68,903,003 90,108.098 31.490.523 7,397,032 140.18f1.8g0 197.397.18 fl 09.491.118 30,000,289 Due to olherbki Other liabilities Total of curreni credits, i. e.,cir culation and de posits, 114,042,231 270,383,075 Total of Imme diate liabilities, i. B..circulation, rtuatootherbUa. Total immedi ate means, I. e„ of specie, spe cie funds, notes of other banks, fe sums dde by other bank*. Excess of Im mediate .liabili, lies above jm-v -«*odiato means. V Net cltaujntlon. ' {. isiuc(M CTS l notes of pthftK banks in hand, I 330,004,10! 130,188,754 130.470,277 74,007,002 10f1.524,010 I 63,191,003 v,, H2.fis?sfo 1^250.00)1 ■Ttvarkablo examplco of We have hero eohio paper v)\a eix’ years elapsing between ,0 I*l of Jon. of January I<s4 *' g™ BB c»to«'oilonof t| lo banto ne»*s'y '"o-thlrrta. | n tho pirtV( yca^ l- y>* lu ?* cl w Vecn l l |o January, 18iy, O TSHSSfS '‘'■mmJh W*. than iltnblcu. un ’* , wr noi/ficulallpn offtho b *‘”j Sa V' I ’ o bui Hitlo moo, ibjh'ono-ililnl f,"!' ’lirJfr 11 *' on ,h “-/* r ° r i same net. circulation of the banks was more than three times the amount it was on the Ist of January, 1843. I think there is something alar ming in the above table. The-previous bank ex pansions reached its culminating point 1830-37, and was, as every .one knows, succeeded by seven years of extreme pecuniary distress and embar rassment. Now wo have nearly one hundred banks more than wo had in 1837, with twenty five millions additional nftqet circulation, and yet with sixty-threo millions less of capital. In addition to the fluctuations of our paper currency, as exhibited byl these tables, they show also that it is now in a sidleol plethora and ready fur almost any casualty. What an enormous tax is this system upon the resources and industry of dut people. Not only the robbings and stealings of the system, but here are nine hundred and twenty-one sets of officers and the dependants, directors, slock speculators and usurers, who live by banking operations, who are all taken from iht productive pursuits of life and added to the non-producing classcs-which wo all know are numerous enough without them. They thus diminish the wealth of the nation by taking from its active productive industry. The learned professions, the Divines, Lawyers, Doc tors, and the trading classes, were drones enough S'te hive, without adding to the list nine-hun and twenty-one sets of bank officers. All .veahh of a nation consists in Ihe soil, and the productive industry of the people—and here the productive classes are to be taxed in addition to support another growing and numerous non producing class. And these are to'be supported In all the extravagance inherent to and connected with the system. There are the expenses of bank ing houses, the salaries of these officers and a thousand sources of outlay which must eventual ly be made up by the labor of the country—-by the men who till the fields, toil in shops and fac tories, work in mines, and employ their energies in many active, vigorous, and wealth producing pursuits. It is staled in the Massachusetts jour nal of 1830, that the expenses of the banks in the city of Boston alone, for salaries, rents, dec., amounted to $120,000. There were in 1832 but twenty-two banks in the city of Boston and sixty one in-other portions of the stale—so that the sl2o.ooosppnt far these purposes constituted but a small port of the cost of the system in the whole state. 1,162,300 100,000 7,427,171 10,180,000 2,000.00 U 2,082.910 8.105.197 1,208,751 225.000 200.000 300.000 1 762.000 $2215,902,223 Capital. $1,098,000 2.580.000 2.085.000 48,350,000 12,338.502 13,175,075 58,497.315 4.010.000 18,900,351 1.440.000 0 287,395 1,182,300 10.214 000 4,31)5,000 11.431,183 5,029,215 2,000.000 2,082,151 The expenses of the bank of the United Slates were $500,000. According lo Adam Smith three millions of people in the country now composing the United States, were, before the revolution, governed at an expense not exceeding $350,000 a year. The expense therefore of the whole system throughout the entire country must be a very large sum. which is thus taken from the peo ple, ip addition lo the large dividends or profits declared by these banking institutions. The system is now rapidly expanding in some of the states. Since (ho free banking law lias been In operation in the stale of New York, the banks In that stale had increased in June last to the round number of two hundred and twenty two, and they are now considerably that figure. And yet with all this army of currency makers and prosperity manufacturers, there has not been ns “hard times” for money among the people of that stale since 1837, as they have passed through but recently. 2U0.00D 10,180.000 12,207.110 702.000 1,208.751 7,800.370 8,405,197 300.000 223,000 none. none. none. 100,000 none Coin. $630,000 140.000 180.000 3.000. 330.000 800.000 7.000. 730,000 0 2(iOOUO Dm it is not the mere wear and tear of the sys tem, even if honestly tnanaged, that afflicts the people so much, as the power it gives certain men who ore enjoying this sovereignly of making money plenty or scarce, and have the disposition to exeicise that power dishonestly- Those be hind the curtain can first inflate the currency and enhance the nominal value of articles in the mark et, and when every thing is in the full tide “of successful experiment'' sell at high prices. They can then apply “the screws," make money scarce, reduce prices to their lowest ebb, and buy again at cheap rates. This is the practical routine of a paper medium. It is a most excellent system lo place the honest and unwary tn the power of the sharper and the Shylork. The bank director who votes lo turn down the paper of a needy cus tomer, can follow him to the street and loan the money of the bank to him at two per cent per month. It is a most excellent system to enable the shrewd and cunning to grow rich upon the industry of the simple and unsuspecting. The recent crisis in New York, it was boldly asserted in certain leading journals, (the New York Her ald and Hunt’s Merchant Magazine.) was brought about by design. The banks m Wall stree' con tracted their discounts, $500,000, in the three months ending on the 27th of September last. We all recollect that severe pressure in the mon ey market in our largo cities. 1 cannot express what 1 mean lo say on this branch of the subject better than by reading extracts from these two 230.000 3,0Ui',000 300,01)0 3,6'.0,000 2,0' 10.000 2 600,000 1.700.000 1.800.1 >OO 1.300 000 3o 000 3,300 0)0 4,300,000 1 30,i)i)0 1,500.000 2,800,01)0 1,W)U,000 200 000 100 000 50,000 journals. The Herald in an able article headed “The cause of the panic” says; ‘ This contraction was nol spread over the whole of that time, but was brought about suddenly—suddenly ns to produce a panic in the money innikei. equ.il m intensity, while it lasted, lo mi) thing ever expenemed The origin and design of (Ins movement can be easily traced to the directors and managers of our city institutions. They were the direct cause of the panic, and me reiponsible for (or the distress, disaster and ruin, resulting from it. The country Dt large was never in a mor- prosperous condi tion. Every important interest is in a flourishing state. The crops have been large and are now ready fur market. Our internal improvements me progessing rapidly, ami upon a proper basis. The receipts of all the companies in active operation have been Iprger this year than ever before, and their dividends must exceed those of any me v ious year. Every one lies full irtd remunerating employ ment, and there has never been iwithin the history of the country s period of greater prosperity, than during (he ptut twelve months. With' an-fbundanreof every thing comprising the general Wealth, with nil the elements of trade in successful operation, with credit, undoubted and unlimited, a sudden check was'given loThe ,wheels of commerce, and panic seizes nWisthe community at-large. A lew of the capitalists, whof happened to manage soveial of the leading* Wall street banks, met one day in the parlor of a certain bpnk not far from the Cus tom House, and determined to ppl the screws al once up on the market, end give them Several turns. No sooner determined upon than done, and the turns were so frequent and so severe, that in less than , forty eight hours tne ex "citemenl in the street was mqst intense, and the panic widespread ami of the most alarming character. Ji these individuals had a private object in view, in making (hit movement, there can be no excuse for if. and even if the , public good was aimed at, there can be no justification mr.l so sudden and savete o pressure upon iho market, it is I not lor the interest of the bark*, that easy money market should continue for a length of tune Kxparwons and contractions serve their purposes best; amiss they have the power,sudden movements producing these resu Is, j mjftt be looked for.” I read now. air, from the Magana which have named i Jun. 1831. $227,409,074 412,007,053 22,440,708 20,101,157 8,035,072 90,425,033 17,174.200 13,208,007 43,071,138 1f15.012.P1l 127,537,043 43,302.033 0,970,404 Tm Him. Powin.—“That ih< bwl' •« lof tha present prevailing panic in ihsmnnjf m ’ . r * can be no question. There have flecal flmianent fo Indicate u'eomity^* f,,r^, •.. h «. trail, with war and pestilence in " «C* through the untroubled air. Np**«•■"* ri. night mildew has visited the bon«i ,r I ces 'of (he country are greater thm •• •"/ ft# agricultural yield redundant fof'P ,e,ion ’ epreading ita wide wing* lo o rich reiu- ic works mtalucliie beyond example j in " u ' Federal credit at an enviable atntude, » lions excess of specie over ,n - 1 ‘ 1 ! ment the store. Contrast thi* picture Hlll ' wben-we, were importing our bread /tom r.> our halftlnished works consuming 262.970,330 328,033,51 131,530,037 /ri interest end decay, and no i tnMfi* to coin, when Federal and State it«Jte and private * convolved by the threat of rejiudiation ami the njspfclori clinging to our n«Tie. Then «by lhl» rt» n e4a»on so buoyant— bo 'td! of »■:'* When every wind that n * °. r f g * ls ihroujh th. »ii»jys«f«r:, I L1...', J*> , "™ "f!' l, er .hm.Ul b. v«. J,S“” \ St ie rom the, custody of corporations, Tito , far distant Vbeh’bqma qlhei generation will ♦took upon the rotrospeclVtiil : morvel,tM vre ihoti|dh«pcl tolerated for a day such a itjfljiWl : mark|^L f Wka.* 1 '• >\J p aro'rmtall iho ovil* of tho syalerm ( and lnX' •i/iuiions^%v*iji^o7tity , oeeu lost by the' peoplo of Cut com)jj through bank failures than 107,333,574 137,839.662 they paid to achieve (heir independence, atid.set by a bloody war their Connection with *Gr( Britain. From 1911 to 1630 there were accot ing to the statement of Mr. Gailatinone hundred and sixty-five broken banka.TfTo this Met bay Ibo added twenty-eight banks not mentioned, Mr. Gallatin’s (able, making bne hundred arid ninety-three in all. [ . . , ' in an address by Nicholas Biddle to the'stock holdors of the United SihleS Bjuik* in slated that of five hundred and mty-four banks m the U. Slates, one hundred and forty-foury had been openly declared bankrupt, and about ififty ' more had suspended business. There has .Deni. a sad list added to this number sined that period* strewn in wrecks down through the crisis of W* and among the number the mammothVmstitulWti with its thuty-fivo millions of capital*oVer which he so proudly presided, when ho made the staid* ’ menl to which 1 have referred, and which carried*' with it the hopes and hearts of thodsandtof wid ows and orphans, into the yawning £ulf of ’ and ruin. *. \ lam constrained to say, sir, that Mho bfostedT' system of free banking turns out (o he buttJUUo’V more safe from casualilies than the old Bystenj-t‘. I find in the Philadelphia of Dec.ZjZd, \ 1861, (he following statement of.fcfcts on tbis.l subject, which I will read to the ratise I • \ .' u Tlie friends ami advocates of the free banking lyaienit will see an admirable illustration of its workings an the Sfat4 of New the winding op, Isatweek, of tboi James and New Rochelle banks. The bonds end tnoitga-' ges held by the Superintendent of the Bank Department, as - part security for their circulating notes, wore- sold at pub* lie sale at Albany on Wednesday. The sole was wall At* tended, notwithstanding which, there wki|B ■ heavy loss, amounting to nearly fifty per cent, upon 'lht Jadnofitb* mortgagee. The failure of the securities pled£dd to ; circulation, we, however, think, bne of the leasUobjectiorit of the system, unsafe andctwfeliable as thoy t *ja jure Oti , be." ’ " *■ ' ' 1 ’ ‘ # Now, sir, we have a bill on our files io adpps this system also, and allowing an increasb of the,, banking capital of the Slate to the aftiouift of fif-* teen millions of dollars. Dm ihe e/oiem, would not stop at increasing ii to that surb.> Werti it adopted in this State, based upon our debt flffor ly millions of dollars, it would swell <hp volume of currency thirty-two millions of dollars* 4 what, it would bo increased by bankings) Ihq in debtedness of other slates and the stock* of the Federal Government. Banks of this description • would know no limits; would be yrrcpcHfiea by no bounds ; the more debts, stale and national, the . more banking capital. It would lead ' robpl . unsafe expansion of the currency. i’JThc- indebt edness of corporations, municipal i'ond Others* would soon be considered as good a basis of cir culation for paper money as Slate stocks ami mortgages on real estate. Now m ofdeV'lhal \yo may have some idea of what would be the mag nitude of sucli a credit system, I will read to the House an estimate of (hu imlebiedness of this COUti try, in various forms. It is as follows, as Calcu lated by those who have the opportunity ofvouch-- ing for its correctness: ~ ~ The 'federal indebtedness ii / . $64,000,000 Indebtedness of the Stales, -.2(1,000,000 Indebtedness of the cities, 40,000,000 Indebtedness of western counties, • 6,000,000 Douded bebts of railroads, -. 60,000,000 Total, ' . ,$870,000,000 Under tho system of free banking, thU would add at least two hundred millions of.dollar* to'lhio banking capital of the country—and this 'system is seriously urged upon the consideration of lho Legislature, and (he bill on our files came within two votes of being taken up on second reading this House, and was probably within that Aom ber of the force sufficient to bo carried through * this body. ' ' - Thomas Jefferson often raised; bis warning voice againai the American syMera of banking.— On one occasion he says: “In copying England we do noi aeera lo consider that like premises induce like consequences. The tank mania is one of ilio moat threatening of iheso. imitations. It is raising Op a monied aristocracy in our coun try which has already set the government at defi ance, and although forced to yield .a lilllo on ; lho first essay of their strength, their principles^are unyielded and unyielding. They hive Uken deep' root ID the hearts of that class from • which our legislators are drawn, ami the sop! to Cerberus, from fable has become history. .Their principles take hold of the good, their pclijof- tho bad, and thus those whom the constmitilm has guards to its portals are sophisnbat?d or Subdriidd from their duties. That paper money has sonic advantages must bo admitted ; out its abuses are. also inveterate, and that it, by breaking up the* measure ol value, makes a lottery of all private property, cannot be denied. Sliall wo able to put a constitutional veto ypon it ?** ' The language of Jefferson keite in reference lo tins system “ raising up a monied aristocracy which has already set the government at defiance” was not only historical but em nfently prophetic of what afterwards transpired under Gen. Jackson’s, administration. Had not tho-old soldier and pa triot been eminently strong In tjie affections 4 if his countrymen, the government had proved 100 weak in that memorable contest, and the money - power would have strode ovol the necks of the people. V Mr. Reiley (of Schuylfci wished ihe gentleman from C woy, to enable him to make) purpose of holding n night sea was made and lost on a call nocs. 1! Mr. Doniiau, continued, objections, air, i» the b:mkinj gives a most important part c a Slate'to irresponsible corpoi individuals who will do as d of such corporations, whul tl individuals. A celebrated roughly, but strongly said have neither bodies to be ki damned.” Such artificial being by a mere figment of ns well us heartless. They thfiir-ftttiujqtcrcgls. And j ■•hw-Ji T " stana-ri] n r „ , . U *7 • 1 oV p\lect ih# mnn/Nxi ori( . v ° ln ' ho tltali/gsbeivrttnVaanl clily, ,n\.. , y n r a y bo Ireiieil as amm comm whalovfer JiV. 0 °* which a\io\\ brio article fcf me?M. VOrl i* * n iho’narkcl, «ny l Mlir also, inffnl/ii but it has a higher Ail)' It could nol b “'.'’•'.forming a vnlir, Perrai.LTo flnnZ!” 100 money .houlj fc. , thus dtramre ih« U ~* e , a * n B j®ndard of ia\ne, np/ \ j “nil throw* 11 businn!r cl “ r d >'o“'i'ng« of «“■ 1 We would 1,01 liuT , 10 Wi " d ••ick as a ? mvo I T intlion rulMr yanl might w f ,neasll "> "Mcli ""‘eilmn and a hair ” >' nr , <l 1 “nd aorajliniM a yard inclv in an ‘ n ~ l^,er would wo parflaws-kiAiy. diuif or ialuo '°"ypi C|l “ Jorangeji of tha aw, of (ho /mo ,* * PI ®uch are the fegiumale ofcctf 'lm voluTn ' r 0", 1 ’ “ r 11,0 inking ayaum. When . lion, of p™ i ‘,| “nrrency is umreatW the infl.- ; again- wlih.il f °'T'’ nnd ' vll<!n •liecurwncy 11 . diffieol.y 1 tet ">« .rrieea f„li. fad u,.hi. ( flvnft}?dlasoMd k * C °, Ukl ”°‘ *xiendpl\'tj'ry •olvos^.io,*^.”’ 1, “• lh °y must. logo (jjrqof *Sm. inoreaaea tho dim conln,cll “ n ° r U,“ eorteny, , Irnelim, Y <li “ io “l‘los of He bahks”m ibe ct>“\. - adeem f rodu " d V .heirbbl,"*'filled io\, dm fn 1 U r own Circulnlion. 1 YVhoii therefor®* N. dm communily needs hel,. dm haul.’ "die least ' “Mo tu furnish |t. Whe/t nil. is m and SI?. I 8 T ,b ' lUirC, 1 ' 1 "‘-’/invile tir cue- Hornera In borrow, and unduly atimulate enlorpriao and trade, and force them into unnatural and dan gciou* channels. This is the constant routine of vf the system. The labouring man suffers most by it, though all suffer. The wages of llio labour er *r° lhc »ai lo rise with an inflation, and (ho m •V- •V‘-‘ I) here rose and Cumberland (o give |b motion, fur the ifion. The motion. Ijof the pyc» and pnc of the greatest f system is that it* f the sovereignty of Jlions—to bodiesof ’..-q rectors and ofifcets - jy .Would not do as English writer Harf* . that •• corporations :ked nor Holds to bo ersons are held in <1 aw, pml are soulless lave bn eye single to / t (t is to such soulless
Significant historical Pennsylvania newspapers