POLiHTIGAXm
Fn.ra tlio llarriiburg Itcjioitcr.
BANKS.
lere were but four Banks in Pennsyl
i, prior lo the 1811. Tlieit capitals
in, amounted to 0,050,000. lhey
i all ltcated in the city of Philadelphia,
two of lliein had eight blanches m the
nor of the State.
gainst the repealed vetoes ot tnc great
iiaii Governor, Simun Snyder, one of
iternest republicans atuUoundcstpolili
jcoiiDinists of the day," the Mammoth
k bill of 1814, was passeu, ami a nosi
japer insiiiuuons sprung up m uun-icm
uersof the commonwealth. Tliey com-limn-
onerations. durhifr the first
pension of specie payments and were
iitled almost exclusively upon paper.und
hunt any advance by tliuir stockholders
cither gold or silver.
a theso Uanks were not called on to re
in their promises to pay, in the legal cur-
ity ol mo country ineir nominal ma-
juts ol the promissory iiuiea wu unm ur
t.r PUKinmcrs. were merely an exchange
'B,hp for naner. or credit for credit
ill tins essential difference ftowever that
i . :.l .... ..
difcounteu paper paiu .m
.suiitin-' nearly to seven per cent, per an
,,, whilst the Hank notes bore no inter
. -i wrfH not in reality payable at all.
i7tQ thus, tltat speculators by a si.upte
tof the Legislature making them " a priv-
i nniMr" a corporation " ivmy-
of issuing notes for which were without
....... i.t ifiu ut'imnpil bv nub-
' - . . ! . I :.. ...... I, ..Mirr. I.ir tills
ii tohdence, ooiameu, m m...b- -nniinental
money, the paper of individuals
-whose iudustrynd property wen, p edg
d for its ultimate payment ait gold and sil-
When, thcrelore, tnese paper niamu-
ii i ... . uw.itir ihr ivlV-
ious were car.cu on iu .-- - is
ncnt of specie for their notes many o
i. i...... lnnna of their own paper had
ILIll .IIV3W . - II I
leen made to persons ciiu.i.r '.. .
i. .i.u.pIvm. failed entirely wlnist tne
.a-..!i.r mistained themselves by collect
ing the very means to pay their engagements
I ... iii.ten imtfiiiim a niiuiii .
commodaied wit.i irredeemable p per.
The older inslitutions of the Slate, ow
inir .- so. lo an exiiavjant jaauc ui
. ... . . I...... .f no tlll
were in a similar condition, as their actual
circulation had been extended far beyond its
lfM.imale limits. It was clear that the in
...1.1.. ...., in iim nnlu Ipcnl standard
eviuuiiu iiitiiii iw .ii . r ..
i com, must produce infinite distress, auu we
loafer our readers 10 Hie report in iur. jw
gllCi", uii sit. 'tult.Iuntiary..l820 for a faith'
till picture of the ruin brought upon an un
'Olundtnz and patnotie community, y :
system of paper Dunks, papet credits, and
naner issues
Of the forty-one Banks authorized by the
.act of lbll, ilnrtv-niue received charters
of these thirty-seven went into operation
and in 182 1 twenty-two only of the whole
number remained as specie paying Banks
whose charters wero renewed by the Legis
lature nf that, or of the preceding year.
One of theiwenty-two the Bank of the
Northern Liberties had by the frauds of
some of its confidential officers, been strip
ped of neaily nil its capital, and the remain
ing twenty- one were arranged into three
classes, acot ding to their respective circum
stances and credits. The charters of the
first class extended nine years, of the sec
ond eleven years, and of the third, thirteen
years, from the first Monday of May, 1821
the lives of ihe longest livers just touch
ing the boundaries of the second suspension
of J 837.
The banking capital of the
slate, in the year 1821, there
fore, consisted of the four old
banks, amounting to $0,350,000
And of the 22 new banks, a
mount to 5,500,038
Making a nominal total of SI 1,910,038
It was notorious, however, that ihe set en
b?nks included in the fust class were nearly
insolvent, and thai some in tho second ami
third Hastes were no; in a flourishing con
dition, and the ACTUAL banking capital
of Vial day, may therefore, taking all things
into ronsiJeraiinn. be safely set down at
not more than S3,5Q0;000.
'J he legislature of 1824, with a deliberate
intention to prevent all futuie suspensions
of the banks, incorporated a variety of ox,
celUnt prec isions into ho extending acts,
but they wero not prepared for a systematic
violation ol the law, by the Hanks, inuir oi-
fiecrs, and the executive ami judicial depart
incuts of the government, and they did not
therefore provide the necessary sanctions
for the breaches of a statute of paramount
importance to the people of the common
wealth.
Tliey prohibited albdividends, discounts
and fresh issues ol notes miring a sus pen
cien ol s.iecifr payments, but they forgot to
punmh tne president, directors, cashiers
an I uliiicrs who authorised them, with
imprisonment and hard labor within the
ivjIN ill a nenitentiarv. and to make it an
impe "-InlilB offence in a Coveruni to sane
tuiii these crinieigaiiiBt the people by pri
v,.;;!.fts or publm proclamations. They
TirowdeJ fir the taking of testimony before
u hi-' .re nrtjnnrriiorv to the lorfeiliiro ol
i'ii..r;cr ff a non sobimc paviuir bank, bill
tVsv forg-Jt id t the ermine might bo lined
tviiKjiforiv ceri-h .ues, and thu al.surd quib
ijes or jiuL rout .hyj.dity ta'n adaflt
geously used lo defeat tlio most salutary
provisions of he law.
Under the provisions therefore of the
nets of 1814 and 1824, these institutions
thus founded upon paper, and whose capital
has been actually supplied, not by their
stockholder, but by the community, havo
gradually by tho workings of a false and anti-republican
system, after paying large sal
aries to their presidents, cashiers, clerks,
counsel and borers at llarrisburg very
heavy expenses for their otdiuary and ex
traordinaiy management enormous divi
dends and the usual losses of business not
only made whole their capital, but in many
instances have increased it, without any
calls for additional instalments upon those
interested in their stock.
Wo observed in May last, that the bank
which was lowest in the first class, after
passing through the suspension of 1837,
declared a dividend of livo per cent, and
an extra dividend of twenty per cent; ma
king twenty-five per cent, which it divided
amopgst its stockholders, and yet this bank
was insolvent in 1824 lefused to pay
specio in 1837 and 1838 refused agatu on
the 9lh of October, 1839, and durinc the
next month declared and paid a large divi-
ilend in direct defiance of the law, and of
the known opinion of the execution.
There must be something radically wrong
in such a system which allows tlio holders
of corporate privileges; a species of scrip
nobilitv. lo make their capital, dividends,
nmfiis and cxnenscs. out of those whose
nnlv acquaintance with banks is created by
thpir Imldinrr their promises to pay, in lieu
of the only constitutional currcucy.goiu ami
silver coin. New ch'irtcrs for new banks
- o a r - . .
were afterwards granted at different inter
vals, upon dillerent grounds, some perhaps
founded in reason, but for tho most part
only cloaking some selfish design of extor
ting a portion of their hard earnings from
the industrious poor.
From 1824 lo 1835 inclusive, the bank
ing capital paid in, increased to $18,901,
803 01, being a nominal increase in not
quite twelve years of $7, 051, 825, 01.
We have called it a nominal increase,
because from tho uniform practice in taking
bank stock, it is perfectly clear, that a largo
part of it was originally fictitious, being
simply an exchange of stoek or scrip, for
the stock notes of the nominal r-tockholdcrs.
This is well explained in t'io excuse made
by the Cashier of a hank in Philadelphia to
the Auditor General in 1830, for so large
an amount appearing in tho accounts of his
bank to be loaned upon stock. "I would
briefly state." said he "that by an act ol
the Legislature ol the 20ih May last, we
were authorized to increase our capital
SlOck. A LAROB PORTION' of tlllS IICW Slock
was taken by our present stockholders,
they paying at lhe limo of subscribing, a
part in "money and giving a note for the bal
ance secured by a pledge of the stock to be
renewed every sixty days upon tlio pay
ment of live do'lars on each share. A very
large part of the above amount, (805,000,
00) has grown out ot tnu arrangement.
This bauK, on tlio 4tn mivemuer, ibju,
returned its capital paid in 399,750, 00.
When bv its own shewing it appeared that
only 331,083, 34 dollars, were actually
paid by its stockholders. Here was a gross
violation ot law which should nave uccit
ounisheil with great severity, as its obvious
objects' were first to impose upon the com
munity a fictitious tor a real capital auu
second to allow iis Bloekholderfl who had
not the means lo pay for tlio slock, lo pay
only six pur cent, to tho bank whiUt they
dreu' at the rale ot ton per cent, from
the public, beides paying all expenses and
After therefore making the necessary re
ductions for similar subscriptions of capital
for their own stock purchased in by these
institutions bad debts and other contin
gencies the actual banking capital of Penn
sylvania.
In lie. mbcr, 1835, cannot bo rated at
morc than
&lu,UUU,UUU UU
On the 31 November, 1835, tho actual cir
culation of the banks
was . $10,853,024 02
Of which, taking the report
ot the state treasurer of tho
12th of Januaiy, 1835,
as a guide, were in live
dollar notes, $2,011,525 00
Leaving $3,330,099 02
As the bank nolo circulation of the state in
notes of ten dollars and upwards.
In February, 1830, the bank note circu
lation increased lo $11,057,982 42, and in
May, 1830, w'lhout a dollar increase of
capital paid in and only an additon of
$108,140 50 in specie it increased to the
enormous amount of $14,491,792 81, being
nearly dollar lor dollar of real capital, and
being an increase in six months of a clear
paper issue of three millions six hundred
and thirty eight thousand, seven hundred
and sixty-eight dollars and nineteen cents
which increase itself was $041,790 28,
more than tho whole specie on hand al that
or any preceding period.
These data afford clear and decisive proof
thai the system was rapidly approaching its
fall.
In Mav. 137. tho rtominal banking cap
tal paid in, -independent of tho United
States Bank, had increased to $24,059,310
34, and the circulation to $14,850,213 UO
buinT $1,083,189 34 more than it was in
November, 1835, only eighteen mouths be
fore.
From thin nominal amount oi banking
aspi'al we mtiit deduct
I. The capital of the Lumber
mans Bank, $200,000
II. And of the Schuylkill
Bank, say, 1,000,000
8 1,200,000
All which is utterly sunk nnd lost, and
then, by putsuing the same course of re
duction, that we havo already applied to
1824 and 1835, the real banking capital
vill be lound in May, 1837, not to have ex
ceeded $18,000,000, and notwithstanding
some nominal additions is certainly, not
really greater at the present time.
It is unquestionably true, that if an ac
tual banking capital of eighteen millions
were employed within the limits of our own
stale, and for our own state, and for our own
people, in legitimate banking, it would be
more than sutlic cut to supply all the ne
cessities of business in our highest stale of
propcrity and activity.
These banks thus created out of the in
dustry and labor of the mass, for the bene
fit or the lew, have under the direction ami
guidance of a foreign institution illegally
planted in our soil, inflicted upon us two
suspensions, legions of shinplasters a de
preciated currency irredeemable postnoies
a foreign bank debt and the consequent
exportation of our coin to pay it have
changed the ordinary relations of debtor
and creditors unsettled public and private
faith and by violating the law have sub
stiluted their own will for the stern dictates
of morality and honesty. A longer conim
uancc in this course must tear up the whole
system by the roots or alter the whole
faco of society, and it becomes the tuny oi
every true lover of his county, lo prevent,
if possible, sach a disastious consequence
CORRESPONDENCE OF THE NEW YORK NEW
ERA
Washington, Dec. 3st 1839,
On the opening of ihe "House" to-day,
the Speaker announced his appointment of
the various committees, which, in the ag
gregate, I think, are far from favorable lo
the Democratic party, though in the most
imnnrtant sense, the administration and
Calhoun members hold the majority. Mr,
Jones, of Viminia, our late nominee for
Speaker, was placed as chairman, on that
most important oi an committees mcuum'
mitlce of "Ways and Means1" Mr, Pick'
ens was appointed chairman of the commit
ten on "Foreiirn Relations," and Mr. Cam
bell, (both Independent Treasury men) on
"Elections." Vanderpoel and lthett are
nlaced on the commuted of "Ways and
r - . .... . , .. . - .
Means," It will be percciveu, mat on uiree
of the most important committees, one au
rrunislrfitinn n ml two Calhoun men have
Imnii selected as chairmen ; and on the mi
nor committees, the opposition have- had
their full speed. Thus tlio speaker has
In inirr.itialn himself with all parlies, and
has in my mind, most clearly and decisive
Iv defined his position. It is his wish am
amjiilion to he considered both by the
"TIouu" and country, a no-party man
sha.!klnd bv no nartv restiaius, anil in the
pursuance of his oflic'al duties, rccognizin
no mirlu dictation. If lie has any leaning
it is on'lhe side of the opposition his voles
mi tlm adoption of the rules of the former
House, nnd on the election of a Clork, lo
gcther wilh the opinion on the validity of
the claims of the members from New Jer
sey holding the certificates of the governor
fnllv carry ine out in thi3 asscitiun. J he
niMiiion that I nave on the election of Mr
Hunter lo the chair of speaker, will ill the
main hold good.
The busines which was transacted by
the House in the succeeding part of the
day, was not of a very interesting char
acter.
Madam Rumor, (who is not on all oc
casions to be depended upon in the good
city of Washington,) says that Ex-Gowrn-
or iVarcy is to till the vacancy occasioned
by the resignation ot Judge Urundy in the
Cabinet. I do'ibt the truth of this renort
for mnnv reasons, not amoiiL' the leaf, of
which is that we have many who aro older
in tho field, and whoso claims, to say the
east aro more pressing we shall, how
ever, have an early opportunity of hearing
officially.
Washington Dec. 31s 1839.
I havo given below a fair and impartial
account of the political complexion of the
different committees which were appointed
on Wednesday by the now bpeaker.
Tho "Committee on Elections" is com
posed ofstate' rights chairman, four friends
of the Administration, anil four opposition
men: the Chairman, and, I think, Mr.
Fisher, whom I number among the Admin
istration men, voted against the rejection of
the New Jersey Federal members. Tho
Committee of "Ways and Means" is made
of an Administration Chairman twostrtcs'
rights men, including Cooper, of Oeorgia,
who is generally opposed 10 tho party in
nowcr. tin eo friends of tho Administration,
and three oppononts. The Committee on
"Foreign Affairs" numbers n 6tatcs' rights
Chairman, four friontls of the Administra
tion, and four opposition men. The Judi
ciary Committee is composed of an opposi
tion Chairman, three friends of the Admin
istration, four opposition men, and ono
Georgia slates' lights Sub-Treasury man.
The other committees, which aro of minor
importance, are made up mostly of opposi
tion mombers.
The Chairman of the Committee on
"Commctce" is opponent of the Adminis
Iration do on "Public Lands" do on
"claims," do on tho "District of Coluru-
bis," do on "Territories," iloon ftevnlu.'
tlottary Pensions," do on ''invalid Pen
siona,'' do on "Bonds and Canals,1' do on
"Public buildings," do on 'Unfinished bu
siness, uo on "iUanuiacturcs, no on
"Agriculture," do oi "Indian affairs," do
on "Mileage, uo on tixpenunurcs oiaiu
Department," do ditto "Treasuiy," do dito
"War," do ditto "Navy," do dilto "Post
office." do ditto "Public Buildings," and
do "Public Expenditures," In 21 out of
33 committees, the opposition have their
own Chairman, and they have a majority
in 10 of the Committees. o much lor the
Ucmocrjcy of Speaker Hunter.
1 ho Independent I rcasurv bill must o-
riginate with the Committee of "Ways and
Means," winch the reader will remember
is composed of six members favourable lo
tho measure, and three opposed to it. The
Committee on Elections, from which
must emanate ihe report on the New Jer
sey question, is composed ot Calhoun
Chairman, lour mends ol the Administra
tion, and four opponents. I think that we
may look for a favourable report. On the
smaller committees tho opposition will have
pretty much their own way.
Some diversity ol opinion appears to ex
ist relative of the election of a printer. 1
think that a doubt still hangs over (he suc
cess of Blair and ltives. By consent of
the House, the Clerks has temporarily di
vided tho printing between Ihe proprietors
of the Democratic llcvicw, and Messrs.
Blair and ltives. This ariangemcnt cannot
however, be of long duration.
i . 1 1.
Fom tlio Washington Metropolitan.
PRESIDENT'S LEVEE.
Tho first day of the year was a very cold
one, but barring this extremely pleasant.
Sleighing, which is somewhat a rare thing
in this city' was very good, and tho belles
and the beaux appeared to enjoy it. At the
hour of 12, the avonucs leading to the Pres
ident's mansion were thronged by the fash
ionable and gay, as well as the more ster
ling part of the creation; liioso who, like
uood Democrats go on fool. The Foreign
Ministers and their attaches wailed on the
President in their court dresses, as well as
the Secretaries and the sturdy yeomanry of
the countiy in the plain homespun. The
President was in good health and spirits,
and received his company in his iiBiial po
lite and urbane manner. The fair ladies
honored him with their presence, and their
sweet smiles and pretty blight eyes, added
cheerfulness to a scene which otherwise
would have lost half its charms The Ma
rine Band performed in the outer hall some
beaulilul music, and every thing went off
well.
Hews by the Emails.
The Ilar-erhill (Mass )Banner says
Two colored lemales belonging to Am'over,
perished in the storm of Sunday night, lasi
week. The manner in which their dcaths
look place is somewhat singular. The
facts as we have them from a fiiend aro as
follows: They lived in a little house to
gether. Tho younger became partially de
ranged, and on Satuiday night having de
posited some provision in each ol two pil
low cases, led the oilier who was blind and
decrepid away lo some bye-place, where
bhe probably died from cold. Shu return
ed and was at meeting part of the day, but
could give no account of tho place, whither
the other poor creature had been led, ami
the only reason assigned for lliii strange
proceeding was the fear of harm. She
stayed with one of the .neighbors part of
Sunday nighl, when she stole away uud was
not mining until morning, when she was
found de?;l
The Newspaper Credit System coased
in Mississippi on the 1st ol the present
month, by agreement among all the prin
ters of that slate, subscribers must now pay
in advance. This is a capital measure, and
will eventually be adopted throughout the
country.
Gen. Gaines has had tho freedom of the
city of Nashville, Tonu., voted to him by
its municipal authorities, on his becoming a
resident of that city.
The following aucedote, illustrative of
tho extent lo which ihe picarooning system
was carried on at tho Schuylkill Bank, is
from the U. S. Gazelle.
"Among other instances of direct fraud
connected with the laic Schuylkill Bank,
one was mentioned yestcsday remarkable
for iis magnitude. A gentleman belonging
to the interior of the state had placed in the
Bank, on special deposite, S75.000, of
which ho a short time since received 325
000, and after tho recent explosion, he call
ed to cnquiie about tho balance, and learned
with astonishment, that no iniuuto of any
such sum had been made on the bonks of
the Bank, nor was there in the Bank, any
thing by which its directors, from first to
last, could know of its reception."
A stone wall lies been built around an
Asylum for the benefit of tho poor, in Prov
idonce, 11. I., which is 0105 feet in circuit,
or more than a mite, 3 feet thick at the bot
tom, and 8 feel high, on a foundation of
small stones, sunk two feet below the earth's
surface. It was built in compliance with
tho will of Col. E. K. Dexter, as a comli
lion of a largo property left to the town to
found the asylum, and if such wall should
not be completed in 20 years from 1821,
tho proprrty vraa to rersrt to his heirs at
law.
We hlay montion (says filckftell's TJe
porter,) for the Information tof bur friends
at a distance, that the banks of Philadelphia
are about to resume. No time however,
as yet, has been agreed upon. They, of
course, discount very liulc, and yet money
cannot bo said to be in a very tjreat de
mand. A joint resolution lias been introduced
into and passed by the Lower House oi
the Tennessco Legislature, to compel
the banks lo resume specio payments forth'
with.
The mormons, having been driven front
Missouri, have settled in Illinois on a tract
of land which they have purchased at the
head of the Dcs Moinc rapids of the Mis
sissippi. They have laid out a town which
is called Nauvoo. A deputation of tinea'
persons of their fraternity has been des
patched to Washington to petition Con
gress for relief on account of losses cxpari
enccd by the Missouri troubles. Persecu
tion in their case has had its usual effect in
strengthening those who arc its victims.
The mormon sect has increased largely?
uud it is a. iid (hat many families of respect
obility and influenco in lac adjoining coun
ties have united themselves with this new
denomination.
A female is now living in Rnxbury,
Mass., at the age of 70, who has spent tho
whole of her life there, and never had tho
curiosity to visit Boston or to approach it
nearer than the view which is afforded at
the top of Parker's Hill, near the foot of
which, in the house of the late Gen. Will
iam Heath and his decendant), sho had re
sided as a domestic since the age of seven.
A horned frog is stated to have been
brought from Fort Towson, by Lieut. Wil
loll Martin, of the Sfd infantry, as a present
from an officer stationed there, to Col. Hook
of Washington. The body resembles that of
a irog, and is about lite same size, but tho
skin is like that of the lizard scaly and
has a tail half as long as the budy, tapering
to a point.
In New Orleans, it is the custom to farm
out the markets annually. Tho beef mar
ket of that city has been rented for the pres
year for $51,000, being $3100 more than
last year, and the vegetable market for tho
samo period for $30,000, being an advanc
of $2700.
Twelve hundred passengers arrived at
Texas in three days, with the intention of
settling permanently in that country. It is
estimated that thirty thousand emigrants
have arrived at Galveston alone, during tho
past season.
Among tho Chartist prisoners recently
arrested in Wales, was an Ameiican, who
is said to be a qaack doctor, called Israel,
and who was thought to be deeply concern
ed in the treasonable plot to overturn the ea
tanlished institutions of the country. Ha
is nincty-tfiicirlVears old, and ic a remarka
ble shrewd' maii,l
Tho baiiHrof Wisconsin is " done." On
the 2d inst., the Sheriff of Green Bay took
the keys and sent the cashier, clerks and
all, about their business. Cause, The in
ability or unwillingness to cash $300 of
their issues.
Ten thousand hogs were for sale in Co
luuibus county, Indiana, on the 11th inst.
1000 only had been sold, and they at $2 50
to $3 tNo bundled, nctt. No advance ex
pected on these prices.
Tlio condition of society in Portugal,
particularly in the large city Lisbon, must
be dreadful indeed. From au official re
turn published in the Diaiio, it appears that
during the months of April, May and June,
of 1839, 2778 crimes were known to havo
been committed in Lisbon, of which 333
wero assassinations. During the three fol
lowing months, thete were 170 assassina
tions. A bill (o provide against tho suspension
by Ihe Banks of South Carolina, is heforo
the Legislature of that Stale. It provides
for the payment of seven per cent., inter
est by tho suspended bank, on the whole a
mountof notes in circulalionuontlily state
ments of its condition, and a forfeiture of
charter for refusing compliance with tho
provisions of the bill.
ftn MllJIWJMiUllLllMIMimJWiTWI
LIST OF LETTERS
Remaining in the Post Office at Bloomsburg
at the end of the quarter ending ou th
31stday of December, 183U.
Allen John,
McArtncy Daniel,
Maus Samuel G.
Merrill Uenjimin,
Nungesser Jacob,
Palmer Daniel,
Palmer Margaret,
I'incr Isaac,
Hcedy Simon,
Shipman Jacob,
Slater William,
Snow Willard,
Smith Horace,
Sticker Michel,
Snyder Daniel,
Thornton Phebe,
Thornton Savins,
"Williams David,
Worner Jacob,
Wartcri Aaron,
Weir Thomas,
Witdower Susannah 3,
Willits Martha,
Wells Sedgwick,
Winner John,
Wright William,
ltlockslcilgc John
lliJJcnliantcr John,
Ucvro Uciij.imin,
CormlUon Inane,
Caviling Andrew
(Jomnan Moacs,
Cornelifion Mnry E.
Colo Ulislm,
Clynicr Benjamin II
Donti June,
Fry John,
Ihrtmuii George,
HinJliock Henry,
Motet Adam C.
llartman Joseph,
Krcag Augustus,
hrootz John,
Kahler (Jharlcs Uic,
Keller Mary,
Kuhn Isnac Capt.
Krceler dasper,
Leight Mr.
Leiby Jacob,
Moyrr rjuteann,
McClure Joseph,
VV crtlo (Jhri.
II. KUPI3BT, P. M.
Jan. 1, 1840.
'Photo inquiring for any of the above lit
ters will pleasa say it is adrertif ed,