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ik so BEVOTXD TO TH imOlTW m COMTITimOH AXB lAWS-TBR mrTOBIOX OP OHUll, IXTXtUOBXCX AXD THE KKWllM OP ALL POLITICAL ABCSES. BY D. P. PALMER. GOVERNOR'S MESSAGE. Concluded. A united Slated Buk, it is said. wouia derive a cred ( from ila national name and character. This may be true; but such credit is unreal, unsubstantial, no aeiusive, and 1$ calculated rather to deceive than tu benefit the public. The credit of a bank, like that of an individu al, should always rest on something ret. I and substantial; not on a mere name thai can be ot no service to the creditor or the bank, m the hour of real difficult Such fictitious credit as 'is thrown around a bank ojr its national character, may given, us paper a wider rang or circu lalioii; but this is only calculated to lead to excessive banking and over issues, witnout turn sliin' any corresponding ability in the institution to meet the de mands against it. Such was the case wiih ihe late b nk ol Hie United S.aics. The lusioiy ol Hie linn s piuve, that hi every period ul excessive banking, fioni JSlO, when it wus created, down lo ISM; when us charter expired, it was the firsi to expand, mid the first to contract us circulation, i Is a fact, proved from unquestionable data, that in every expaii 8 on that occurred during Hie whole time of its existence, it increuseJ iis ciicul i lion m a far greater ratio, than ilia in crease of the currency by the o her banks. At two different times, it was brought :o the very brink of insolvency, as aduniied by its own officers. During us existence we hud no less than lour ruinous expan sions and corresponding contractions, with all their aiteudant evils. For a ve ry considerable portion of its duration, the exchanges were iu a more deranged state thaii they are now. The pinsira tiou of business and prices, from 1816, to lStiJ, are without any parallel in the bisio'y of this couutry. Iu this S ate, the bank was so universally consideieii as the principal agent in producing this mischief, that the legislature, by an al most una n. moos vote, passed A law tax ing the branch located here, with the sole view of expelling it fiotri our bordus At this time, and upon this subject there was but one paity and but one opinion in Ohio. Every one saw and acknowledged the mischievous an I ruinous operations of lh United Slates1 Bank.' So deep and intense was this feeling among the great body ' of the people, against the bank, that all united in the propriety of the State exercising her sovereign power, in ridding the country, as far as practica ble, ot the existing evil. lis power to act as a regulator it noth ing more, us is proved by experience, than a power to induce the local banks to expand as it expands, and to compel them toconiract when it contracts. But the same experience proves that it stands full as much in need of . regulator as the local banks themselves. And why should it nott lis object i the same--to make large dividends for its stockhol ders. Jts lempalious are the same, and it is subject to the same laws of trade. It was organized on the same principles, and subject to the same impulses with iike institutions created by the Slates. It is, therefore, unreasonable to expect, that in its administration there would be more safety than in similar state institutions.; r, that it would be capable of regulating the local banks beneficially, when it has proved to be incapable of regulating it self. . The late Bank of the United States, on the expiration of its charter in 1630, re ceived a ne w one from the Slate of Penn sylvania, conferring equal,; it not greater powers and privileges, than the former. Its capital was the same; its stock holders the same, and iis management continued in the bands of the same officers. It was aid, by the President of the Bauk, when the new charter was presented t the stockholders for their, accepauce, that it was I lien in a safer, stronger, and in a wore prospeious cuudiiion than i' ever was; and that ibe connection wnicli had previously existed betweeu the Bank and khe General Governmeui wis an umiatur- j al one, beneficial . ueu her to the Bank or the Government. Too stockholders were pressed to accept of the new charier from the Station the ground tbat it was in every respecroore desirable than the old charter, granted by the General Gov eminent. Yet, noi withstanding all thus boasted advantages under Jhe new char ter, so far front us being able ro regulate the exchangee and the currency, aod to keep the other banks in proper check, it H now universally admitted to have bnau one of the leading and most active agents in producing the difficulties uuder which tw country has been laboring for the last eighteen mouths... So far from its reoula- ting the cither banks, it i was the first, si under its former charter, to . expand its circulation rn4 engage, in bsxirdous trade, and speculaltan. it was atuouir, the 4t to auspeud specie 4syroent8,attd the last to resume. We have seen it, instead of exacting us power to itstore to the . country a found, currency, using, all its rjofluencfl tprevot,tbe other, banks from r d eimng their notes in specif We see this institution now," after having been in operation between four and' five years under cs new,, and, as was claimed.! vantageotis charter, utterly prostrated in a slate of suspension, and asking aid from surrounding Institutions, in order tp ave It from bankruptcy, ' What reason nave we in believe that ihe fote or inffii ence of thie insiiiuiion would have been different if it bad received its corporate powers siid privileges from the General Oovtrnniem instead of the stale of Penn sylvaniaf As I before remarked, ihn loutceTrritn winch it derived lis chiirte could neither take from or add to he means to meet its engagements, or havi- prevented it from pursuing Dial course ot Mlicy that has involved it in its pre sent d fficullies. Whether, therefore, wa are eu'deJ by the light f experienco, h by opinions drawn from a critical mvesiigit on of the nai ura I tendencies of a United 8:ates B nk: we aie lorred to In-lieve that such an institution would but add to the de rangemeiii of the currency, mid, hy ureal' ly increasing iho paper circulation, wiih- out increasing, in a correspond n, ratio, i lie specie bass, loud to mvolve the wuole pnpr system, sooner or later, in tie common niln. It is not, therefore, by Hi creation of a United Stales Bank, or by tho inulrpl Ciiiion of paper money, l hul the evils attendant on the preseii banking system, are to lie remedied. I he danger to be apprehended f .oin such an iusiiiit'ion, in a political point of view, is not to lie ovei looked or (litre gardod. lis fiicnds claim, ' h a i it would (missi s iho jxiwer id' r' j n I . t ng fie liim nuudred mid fii'iy fniir local luniks, win their ciipiial of iliici; hundred mill hven iv-foiir millions. A!iuiiiii! ihat it would possess tins power, wnat vi old be ill poliiicul rimtoqukiices, it' ii stnuld net m Ii endly allunco with the N itional txec- uuve, nod wieid ib 9 11111117 imwei lor polincal purios. s? It is cli rued, that 1 lie pitirouaue of me Naiioiixl Exec utive is already 100 great, and il.iiigerona lo public tiheriy. II we add to the al ready ex'euiled execuiive patnmage, Hie entire money powt rof ihis coiimry, con trolled by one common In ad, it would indeed, co sliutte a mass of power, which would make the pitiiot tremble lor the fate of our free insiiiutious. It is iu vain In suppose, thai such un institution, al ter its creation h l become h ariv (lies tion, would 'Kit be political. We bill du- deive . ourselviis, when we suppose it would be otherwise. The most effectual means within the power of the general government, to pro vide against Uie abuses and evils above alluded to, ura to be found in the provis ions of the law establishing the Indepen dent 1 reasuiy. J his mensure, hy separ ating the funds of the government from the banks, and placing them in the cus tody of the ageuts of the people, who are prohibited from using them' for private purposes, or speculation, under severe penalties, not only increases the securi ty of the p'llilic funds, but withdraws that aiimului to overbanking, which they were calculated to create, while possess ed and controlled by the banks, The evil most to be feared, being excessive banking, the remedy must be something that will restrain the banks. The Inde pendent Treasury law, although it will huvi but a partial influence in restraining the buiks, and consequently will not remedy the evil of the paper system, only to a limited extent, yet, its general influ ence on the whole currency of the coun try, in the course of lime, must be bene ncial. By equir ne, at the end of four years, Uie revenues of the general ov eminent to be pud in gold and silver c.tiii, a dt nm nd. will thereby be created in this country, fir the precious metals. As that demand iiicre.ises they will flow in to sai .! it; for there is no fact belter estabiis'.ied, or the trut.lt ot which is more uu vers illy admitted than, that the precious metals will find iheir way in Jim point where they, aie in the greatest lie inand; and the reverse is cousfqurnily true, that they will leave the point where they are the least in demand. Tuin be ing the case, what is the effdct on the cur- n ucy, produced by . the liidepeudeui Treasury lawl By creating a dein ind for the precious initials, and extending the uses lo which tney are applied, they will flow ill" lh s country to supply the demand. What, is the effect produced by our paper system t D rectly the re verse. . By funiisliinsi a currency coin posed aim t entirety of paper money, based principally un credit, and Hoi on specie, the uses to which, the', piec'ious metals ve applied, aie. grca;!y dim'n sli edand coosequeutly the demand for them is diminished iu a corresponding uno . The Independent Treasury law, , there lore, has tendency to at r.ict, wii lo our p iper sys em Ins a tendency to repel ihh precious mntals. 1 ' . Tne fears that .sum pii cr'ain, that l.y requiring the. .revenues of our rieimrhl government to be paid in .co n, the pre cious . nitab would . accumulate in the GEORGETOWN, O, TUESDAY, DECEMBER 22, treasury to an injurious extent, are with out foundation. It should not be the not cy "fjbe general government to collefr more Mmey than may be wanted to de fray the expenses tif an economical a ministration. In that case the Diibl'n money would be received one day euri prid out the next. 'It would noJ snri could not accumulate to anv consi 'era r.le extent..: it will be ptidont not rHere ly io public omrers 111 the shaiieof snla ries; ( his const lutes but a snmll pirl o Mie ainoiiiii u siiursed h the rcniralcov . . :. ...:n . -. B cMiiimm.-; 11 win oe paiu out to our ses men in the navy to our soldiers in th inny to our laboiers eir.itloyed in erec' i ig fonifications, improving our haihors budding ships, and in the various olhei public works in wl ich the country mav engage. Il will be paid, oil) to our far mers for their corn, beef, p.irk and other snides necessary to supply our army and navy. 111 11119 way the jfolil and silve received and paid out by :he eovernineu will be diff.isfid through the entire com mutiny, increasing every year," until, in the course of time, ii will form n!t every day currency for the people, fi mUIi mote extended specie basis for the bank and enable the legislatures oflha Stale wnn more ease, 10 cniitino hank nnnei 10 11s legitimate 1 iiji-cts: henry bus: Hess trausac.linns. mid tl e rominert-ia and exchange oppmiiniM of the coiintrv -och important niIvsiiIh'' t our c irren ry stiould not bo disr.-a iriln J fi.r ilie ptir pose of in 'niHiemij; m K var r.n invl cupidity ot hanks, pi v tiave no riyln 10 uie vusioiiv 01 1 lie until c iiioiipv lo peculate, on mid avvf-ll their oioti's. Piiev have m more right to complain of the govern nent withdrawing US funds I10111 ihbtii, and dispensina with them ns fiscal iijicti s, ilmn they have to complain ui un- in ciiiini or farmer, who wn 1. 4s n iIm.isis. The Indeiienden l'r asu.y I w I-n. s ihcm in the full en Joyii.cnl i.f nil iheir rliis mid privib'ges under Un ir cii.ii i is. And H is hoped. nai a measure si well calculated to aid 11 restoring n soumi constmiiional cur rency, pli'ce I lie government beyond the 11 idiot trii spous lle corporal 10113, and smii e i.eimlil c mom vs fionrembi zzle ineiil by pui. lie efficeis, w II mil he (lis- uri.t d. eidier for Uie pu posi; of resior ing 1 lie local banks as fiscal agents of the governmen't, or the unconstitutional hiii) still more objectionable measure the leaiioii of a United Suites Bank. I he hanks of our own State, which constitute a part of the whole of which I have been speaking, are as unuuarded and defective, und present as many oppor tunities to commit Irauds on the public with impunity, as thoie of most other Slates in the union. If we have had less cause of complaint here than the people have had elsewhere, it is owing to the limited temptations to engage in Inzird- ous speculations and unsafe banking not to any superiority in the organic struc ture of our bunk charters. It does not unfrenuently happen, thai when a bank fails, 1 he stockholders, or those who manage its affairs, are lately the gainers. This fraud, wiih impunity, results from the principle contained in all our bank dinners, of a limited liability. The banks, generally, are authorized to issue three dollars of their own notes for every one dollar of capital paid in; and the capiial paid iu is all that is liabld for the payment of their debts. A bank that may be disposed to act fraudulently, can put out three dollaisof its own piper for every one that is liable to be applied to tho rederu; non ot 11s notes in circulation. rue junker by breaking, loses the one dojlar of stock, but gains the three thai were issued iip.m it. I Ins may not often OCCUVj hut 41 IS SillllCivill 10 KIl Vf that it baa occurred, and thai it may again lake place, to mil hot zo the Legislature iu guatd against it. Ibis limned Imli liiy ol the stockholder?, not only fiimisiies an iiporluni.y 10 commit fraud with iiupun ly, but holds out an inducement, lo en- gagu in excess. ve banking The banks are not restrained in their operations, be- aiie they know thai :f suecrt-giul, tin v are ti e gainersj il'inn ii'cefSi'ul, the greai er piriol'ilio loss imy he thrown ou 1 tie puoi.e. The induceiiienf should be the oilier way. The tctiipuitinn lu commit fraud, or 10 engage in excessive hanking, siiouid be taken Irom ihem. This can only be (hme by iiicioas ng the personal responsibility ot the stockholders, mid placing tiie banker on the same fooling, as lo ih) liab Itty lor ihe p.yinenl of In,. deb:, With the larmer, meichaiit, 111 11 e CiClilirr, or other ci' I- 11. Is there, nm reason w y the m- com n 1 n sv s'iould lie in.idn I hble for the p jio.-oi ol ihe.i debts, wh In the hanker should alone In exemp t ' If ' an ass ic.alioii s Mu d le lorui' d for the purpose of erecl'iig am ui l.ic,iiiroig ts alii Hiun'-m, utid if er having exhausted all their tneansbecouie involv ed "iii ifi'b. , each infinber is liable lor tin whu'e of the debts of the association, al tiiuu'gii i;-i' y m'V have 'lost their jo;n properly hy some great m'sfor'iitio wn ci. no prudence could have guarded against. If a similar association obtain a charier, nd embark Iheir capital in the business f banking and fail, fraudulently or o'h- rwise, tney are personally exempt from I .e - , ... I.... ... k. ....I i t i. i p-j'"0"' ""V 01 ineiroeois. All van w anciiBins uie siock paid and be assets of the bank, and in nine cases out or ten the creditors can neither find fact admitted by Ml. If wheal will com Jiock. or other assets. Is there anv res- mind two dollars a himhel vUn it,. son for this distinction' Is there anv Hej!j5e in jit The business of nrniufac I llilfirr la mm Ut ........ 1.1. ....I ..! .1 . "kihiuic niin iikciui, mill .inieh sMiiiila.l i.. lu:.i...:. . . . . , rK:ainiio ui" ui;iiimi, ( oid much tnoro so.) cs 1I1M of bankiiiL'- Why exempt I he one from personal ia- btliiy and not the oiheit It is said tbat if bankers were made personally respon- Jble for their debts, as other citiz ins, lion u..t.ll I... . T. i. u mil iiivesi ineir luonev hi bank stock. Why would they not? Is hero any thing more hazardous in bank- tug Uian in mercliaiid.z ng.inaiiiifiicluriiia. i r oilier oidinarv niirsiiitM nf l.fuf . . . ui niis iiring ma i-ase, capuai is more cornrniiuiiy. wiietlier tins extraord ni secure wheu invested in legitimate bank- iy power has been exercised for tbe good ing than in almost any other business, and of tho public, or otherwise, cannot fail 's equally, ir not more productive. If nose who own the bunks, and have the control and management of them, are unwilling to trust each other, and are i .-wiih 01 losing ineir capital, it Would neem lo be unreasonable that they should isk i lie public, to take their notes an. imibi iiiriii. , m y bk me puoiic io iii - cur all ihe rifk, 01 ibe greater portion of i, while ikov receive all the profits of tin) business, ouch claims should nm he tolerated. B inkers should be placed on tho same fooling with other individu als; made responsible for their debts I ke other citizen; 11 ltd, being so respoiisibl ihey would conduct their business with more prudence and reju nniv, and con sequeirlv with more safety to the public In my last annul message I took oc casion to stale, in detail, my views ns to uie restrictions, limitations, and addition- al guards, xhich in my opinion, should b inpns id on the banks lor the pniihc se- turiiy; lo winch I would beg leave to be said, with some modification, ofthe re pfcryou. duciion of the circulation in the other ' I lu v iig ascertained the evils and imner- fi ctions of ihe present system of bank- ing, it would he your duty lo provide, as tar as practicable, suitable remedies. in doing this, it. must ever be born in iiitud, that the in erests ot the people is ihe paramount object to be secured. As Ihe subienl of a State ba k is njain agitated in ihe pub;c mind, you may he called upon lo consider of this mens- tire. I cannot think that such an insti union would be calculated to promote ibe interest of the public. It would have no advantages ovei the local bunks, unless the Slate would become a stock holder to thentnotint of the capiial stock, or a considerable portion of it. In jrder to do this, the State debt would have to bo increased lo iho amount of the slock subscribed by lite Slatn. When we shill have finished our public works, now un- der contract, tho Stale debt, on inti rest, will exceed sixteen millions. The nler- est on this, will he yearly over nine him-1 dred thousand dollars. Tlrs sum will have io ha inlserl .-iiiniiiilli . from the lolls on nor nol.Mr. wn-ks.nnd hv direct i.ix i- lion. When paid, ihe greater portion of will go direct to England, where the larger porlion of our Stale stock is held, Our Sum. will thus Im i.mr.llff Hrnined of at l.isl half a million of coin m pav the holders orour stock in England. Jhsll iaour, ami iimi iho imiiKsare enormnns Slate debt, which has been c- tbe cause of the scarcity of money, the cumulating Tor years, lias already become burdensome, and its increase should un nrri!eH. Tim Imp nf llin mrooIs ore al- renrlff oonreive. and inin;.d of bninri ii.erR.iseH alionld ba diminished. Would . i!ierer.lre.l.n niillcv lo swell ihe aie debt night or ten milieus in order' - - i v ' ' lo ongige in Iho lianking busiiossT and t 'ins increase our S'atostock in ilie b in Is ol Eii.'Ph ) stockholders, and, eoiisoq'ieni - ly, increase tne dram of spicie out of he State? S icli a pol'cy, m myjmli- uii'ii'. is deadly liosula to our true in icrerst. It is true, it m.iy ho said that liio pioiits of the bank would pay the in- risi i n the money borrowed. Tins would depend on the sk.lland prudence with which Ilie institution would be man aged and whether ihe times were propi tious, or otherwise, fur bulking. It is not probable that a Stale institution would be us profii.ihle as like ins IiiiiionsWiied and con rolJeil by private individuals. A S ale bank.xiii which the St ite w mi l own but a n niiuial .uno nit of siock. would he bin l-ndiiig ilie iiiioie of the Stale to Jv.i credit tllie ll ites of Iml vidu iN. which is ail iini:ihtamiil . ami do'u-iv cred ', only calculated to deceivj and in'slHail tli ptililic. In these times of high exciicinelit, such an institution would he drawn into the party conflicts of ihe day. Whatever political influence it might wield would not be favorable to public liberty "or Ilia rights of the mi iiy. The influence of in-iney, when bro'i tu bear, either directly or indi.ecilv, in i political contest, .is always a corrupt nfluence unJ fatal to democratic insti'u iions., , -. , - The causes which have produced the extraordinary scarcity of mosey for the 1840. 1. si fit ieu imuitlis, and the coiiseqiKn' iow prico of produce and labor, are wor- tny of your invest isntion. Thai ti. ,;.. I .. " . : - c1'" it r . .. . . r 101 produce, lulior slid everr rfwnni , i or property is maierisily tlt-cie.d by the amount of the circulation milium rency is ten millious.it will command i,t - one dollar when the currency is reduced I ... Ml n i hi ure minions, i naaiowtr or creatine I . . . , .. . h uiiiiirv, or inai wnicu is called money, (oayik notes) has been legislatively lodged 01 the banking corporarions of the stated VVe have conferred on these institutions one of the delicate aitributesof sovereign power, that of furnishing, a currency or . I ... j . m t .... .. ' i niniiuara li value i.ir inn hn . the power ofssying whether the currency shall be great or small; the power of fix- ins, at their arbitrary will, the nrirn nf i o aHu uniji:rijr mine I lo enl st your attentive consirienilnn w ien investigating the subject of bank ing and the currency. Within l lie last two years (here lias been a great and extraoidmary curtailment of ihe banks throughout the un'on. This I In a been forced upon them, to a great 1 ou'ii', Dj ineir previous enormous, im prudent and ruinous expansion. "It i die return of ihe tuner flood to thn imm tains irom wtucri it had issued" Al. hongli each Stale, in Us political exis tence, is sovereign and independent, yet 01 a commercial point ot view, the Slates a;n all one, and operated on alike by the same general, cause. The cansequance is, ma i me reduction or ihe circulation by ihe luniks, for instance, in the Slate o'l New York, where rt great portion of our produce is shipped for market, has as sen- sible an inlltienc on iho price ofottr wheat n.l other staple productions, ns n similar reduction l.y our banks. And so it may Slates In New York the banks reduced their I circulation iu one year, ending the first of I January, 1840, near nine millions; and in the same lime Ihey reduced their dis counts between fifteen and sixteen mil lions. Alike teduction took place to :l Baier or less extent, in all the other oiea, thus diminishing, suddenly, the circulating medium of the country loan extent unpre.cenied. In our own State a like reduction has he en going on. On the Will of April. ihe circulation f.f j the banks of this State was $5,157,373. On ihe 3t)ih of September list it was nil I S'I,(')97,0!H. Thus showing a rcduc non ui ilie ciicnlatuig medium of this Simo of $i,lB0,775.within the sherl spare "''out seventeen m m. lis. Illtsexlra- "idmary curtailment ol the circulation of our wn, mid every oilier Suite in tho Union, together wiih the usual abundance ol bread slum lot uie last two years, will thcioiiTly itccotint lor ihe low price ol wlcai. which has bceu the cause or so much complaint. Are not Ihe causes lo which I have alluded abundantly sufficient " account for nil ibe reduction that has '" l'1,,ce ln ,lle l,ric0 rJ "ng. wnnoui secaing mr omersr Having shown lh it the scarcily of mo '3 main causa of the low price of conclusion follows, that they have been ",B p"c''i ( iu unngiug auoui a reduction Ol prices. li is said that the banks have been com- palled 10 curtail their circuhllion by rea son ot the acts il the administration of the General Government. If so, what acts can be pointed to as having placed ihem under such necessity' Nut the Independent Treasury bill, as that ac1 did not pib? into law until the fourth of July last, mid produce had fallen to i s lowest point, and the principal curtail ment of the banks had taken place pre vious to that lime. What other act will he pointed tof Surely no other of this administration. It cannot he seriously claimed ill it ihe acts of the late admin istration the veto of the Unit'.d Stales Bank, the removal of the deposilcs, and the specie c rcular have suddenly, in 133-10, many years after they occurred, bsgiiii to act on the banks and their in leresi m s to compel then to curtail their circulation. Tney had .no such ef fect or influfuce at the lime they look idace. Tne banks, long after these acts of the l ite adintutstratioii, continued io ncreasu in number, and extend their cir dilation, until.'iri 1833, when the tide of paper money became so great that II be gan id roll back uppn them. Tile charge that those who have been intrusted wiih ih administration of the (ieneral Government, have made war on die banks, and thai therefore ihey have be. i compiled to curtail their clrcula non. is not warranted by the facts. Al most ihe fi si act thai Congress did after ilis ires ul inlm'irs'raiion came into flow er, was the repeal of the specie circular, which tbe banks complained, of a iiijuri NEW SERIES. VOL. I. NO. 21. 0, u their interest. la Mi v, 1 337, "hen iho banks closed tSeir vsalts, wile """J millions of the public money, which !Zl nMh, ,w Vh Congress, in ac .a.7,rh ,he ,!ew of,h Executive, ment, although the government was forel to issue treasury BcM , , h d ernraent making war on the banks, ortsk Zn ?J measoreauiward. ,hem, 4 lenient course was adored, w,th tbe view J of aiding them to extr,,iShenM4.Ire-ff, from difficulties into which they Ul rnme involved, by iheir mismanagement. ' There has been nothing, tberefori.. u ,1.. action of tbe late or present sdministrv tion, to justify the banks in the dinary curtailment of their circulation. The charge that the scarcily ir money, stid consequently the low price of pro duce, has been caused by the leirialu;. action of the two last session of - General Assembly, is equally unfounded. It would be a sufficient answer in ihi. charge, to refer to the diminution of tbe currency, and the fall in Ihe price of pro duce, in every other State in tbe Union. What lias caused the scarcity of tnnn and low price of oroduce in ihn Stat., .r Sw York, Pennsylvania. Kenturk I. diana. and, I might add, every other Siaie? It has been, undoubtedly, owing to a general cause, which has acted alike on all, and produced the same effects and consequences erery where. I speak io general terms. I am aware that many of the banks, actuated by motives whirk are left to conject ore, have curtailed their circulation to a much greater extent than was imposed on tbem by any actual ne-' cessity. What are the acts of which tba hint complain, and which they mav call on you to repeal? The first is tbe act to prohibit the banks from issuing, or pot ting in circulation, notes under the de nomination of five dollars. la there anv necessity for repealing Ibis lawt Has it ' come to this, that the hanks are unable ' to do business, profitably, unless they sre . permitted to issue small notes I admit "' that small notes are the most profitable ' issues a bank can make. . Br nniiln them in circulation at a distant onlni m.. ny of them are worn out or denrmnwl and never return to the baak for redemp tion. This is so much clear nn.fit in th bank, and is estimated by experienced, brokers to be worth fifteen percent. But what the bank makes in this way is so much of a dead loss to the public. On ' small note circulation of two millions, the binks would make, by the loss and de struction of their notes, fifiteen per cent,' or three hundred thousand dollars. Tht would be taken from the community wjfh,' out any consideration, and would be un just and inequitable; and when the issu tig of sm il! notes is resorted lo with the view of Obtaining this prafit, ft j a aroM fraud oa the public. The very reason therefore, that may make it desirable for the banks to exercise this power, ought to be a conclusive one for not permitting them to do so. There is no necessity for permitting the banks to put in circulation iheir small hills, and thus drive out of cir dilation every thing in the shape of coin, leaving the public nothing but a paper currency. , The second act complained of if th; mie that prohibits the establishment, with in this State, of any .branch, office, or agency of the United States Bink of Pennsylvania, or any other bank or enrpo ration, incorporated by the laws of any other State or of the United States. This act was obviously proper, and demanded by public policy. It certainly cannot be claimed, thai because the Legislature has prohitiied foreign banks from locating brandies here, such prohibition has been, injurious lo the banks of this State. So. far from this being the case, it was in tended lo protect hem from ilie injurious cometitiun of doubtful instituaioos, over which the legislature had no control, and: the people from a spurious and worthless currency. . ., The third art objected to, prohibits tbe. banks from issuing bank paper made paf- nyable at any other place than where it sued, or payable at a future day, or at any) ' other time than on demand, or which is made payable in bank notes, or any thing. - ither than goirj or suver: ana it make ' ill notes which on their face are made payable at a future day, payabki on de- iu nit! I there any thing in this act which mpo'es on tbe banks improper restrict irons r is it not ngot and proper, in or. der lo preserve sou nrj currency, to proy- i hibit the banks from flooding thecouatryv villi their post notes, payable at a dialaot' ' day, or notes payable at some obscure- ' place, or in a worthless currency f The fourth act, aud the one of which the banks have complained tbs most, is,"' generally known as the bank commission,- '.- er taw. These four acts comprise all the "'' r principal legislation of the two last ses- : 1 sious, with the view of reforming the 1 m -banks and tbe enrrency. The lut named; : act provides, among other things, for thf. r . (CMchuio on 4th ptg.y.' , tu