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nv GUIEU A THOMPSON AUGUSTA, CA. SATURDAY MttTOG, JUNE 9,183 s! VOL. XV.-NEAV SERIES. MO. ,3. _
TU E COVSTIT U TIO \ : A LIST.
OFFICE IN MACINTOSH-STREET.
Third d>or from the S. W. corner of Broad-street.
Sales of L\\t> by Administrators. Executors, or
Guardians,are required, by law, to be held on the
first Tuesday in the month, between the hours of
ten in the forenoon and three in the afternoon, at
the Court-House in which the property is situate.
Notice of these sales must be given in a public
Gazette sixty n t vs previous to the day of sale.
Sales of NEGROES must be at public auction, on
the first Tuesday of the month, between the usual
hours of sale, at the place of public sales in the
County where the letters Testamentary, or Ad
{ ministration, or Guardianship, may have been
granted, first giving sixty days notice thereof,
in one of the public Gazettes ofthis Slate, and at
the door of the Court-House where such sales
are to he held.
No lice for the sale of Personal Property must be
given in like manner, forty days previous to
day of.sale.
Notice to the Debtors and Creditors of an Estate,
must be published for forty days.
Notice that application will be made to the Court
of Ordinary forleaveto sell LAND,must he pub
lished for FOUR MONTHS.
Notice for leave to sell NEGROES, must he pub
lished four months, before any order absolute
can be given by the Court.
[From the New York Evening Post.]
CORRESPONDENCE.
New York, Ist May, 1833.
Condy Raguet, Esq.
Dear Sir: —The present condition of the com
merce, currency and commercial credit of the
country, and the derangement of the fiscal con
cerns of the Government, will, by every intelli
gent man, he admitted to he the result of our
pernicious hanking system; a system, framed by
Stale legislators, which sets at defiance those
immutable laws, to which all banks must sub
mit, whether they will or not, in spite of legis- j
lalive protection. You will see by a recent act i
of our Legislature, some indication of its con- j
viction of this truth, and of its willingness To '
allow practical men to establish an institution j
upon principles which may be made to answer j
the great end of regulating the exchanges, by j
restricting the issues of bank notes so as to keep j
the exchanges under perfect control.
This being the only salutary use of any insti
tution which can be formed under the provision
of this law; and knowing this to he a subject on
which your well disciplined mind has been long
occupied, and which yon have fully examined,
* and, in its connexion with the principles of po
litical economy, well considered, I should be
happy to receive from you an expression of your
opinion upon the probable influence of the gen
eral banking law of this Slate, a copy of which I
is enclosed, ami particularly your ideas of the j
principles on which an institution should be
formed under this law, which might be made
with unerring certainty to exert a controlling in
fluence on the exchanges, by its action on the
currency, and thus put in abeyance those seda
tive and stimulating influences which grow out
of our present banking system, That system, |
if left uncontrolled, will ever create vascillalion
and periodical convulsion in all the business con
cerns of the country, at home or abroad.
To propose a remedy for these evils, might
well employ the pen which you have wielded
wfih so much ability. My own opinion is, (hat
a banking institution must be so constituted as
to exert no other influence on the commerce and
exchanges of the country but what it exerts by
its action on the currency; and that its own pre
servation and existence must be made to depend
upon the nntcinilted exertion of that influence,
through the medium of sixty or ninety day t o'.es,
discounted no faster than they are created hy
business, and to be punctually paid at maturity,
but never renewed —returning for instant re
demption, the bank notes received in payment,
from whatever sources they issue. The specie
funds thus collected, should be deposited in the
vaults es the bank, at its principal banking
house, at which place all its notes should be
made payable on demand. This will so effectu
ally furnish tlie means of redemption, that the
whole capital may he invested in permanent se
curities. Any monied institution, organized
under the general banking law of this State, or
any other law, whether enacted by Congress or
the States, that shall aim at an object short of
controlling the exchanges of the country, in the
mode suggested, or some other mode equally effi
cient, will, in my judgment, have a direct ten- |
dcncy to aggravate rather than remove the ox
isting ends inherent in our present vicious credit
system. 1 am, dear sir, with great regard,
Your most obedient servant, . |
ISAAC BRONSON. j
Philadelphia, May 11th, 1838.
Isaac Bronson, Esq., New York. j
Dear Sir: —Your letter of Ist inst. was duly |
•received, enclosing a copy of the recently enact- j
f ed general hanking law ot New York, and con
tabling a request that I would furnish y°'i with
my opinion upon the probable influences ot the j
same, and particularly as to the principles upon
which an institution should be founded under
it, which might be made to exert a contr Bing
influence on the exchanges by its action on tne
currency.
I feel highly flattered by the unmerited com
nliments contained in your communication,
which possibly refer to the articles on the late
crisis in our money affairs written last year by
me under the signature of “An Examiner,” and
shall endeavor to comply with your request, al
though I am not aware that any opinion of mine
can benefit the cause in which you had been «o
I mg, so ably, and I may now say so successfully
engaged.
The plan of investing the whole or any
large portion of the capital ot a bank in fixed
securities, such as public slocks and mortgages,
as required by this new law, will be so novel to
most of our fellow citizens, that it is more than
probable that a long time will elapse before its
superiority over our present banking system will
be generally admitted. The common impres
sion, and it is almost universal, is, that banks
should make no loans on real estate, or for a pe
riod of years, but that all their transactions
should consist in the discounting of promissory
notes or bills of exchange, real or fictitious, at
comparatively short dates. This impression is
- most probably the result of a want ot careful
j discrimination between the operations of lend
ing capital, and of lending credit; and as a
proper understanding of the difference between
those two operations is absolutely necessary to
a correct apprehension of the true principles ot
banking. I will take the liberty of troubling you
with the process of reasoning by which I have
arrived at the opinions I entertain, and which
with great deference are submitted to your su-
I perior judgment.
All the Banks in the United States combine
1 in their operations the functions of banks ot
I depasite, banks of discount, and banks of circu
* lation. As banks of deposite they receive into
I their possession, repayable on demand, or at
[ specified periods, the money of all who choose to
■ open accounts with them. As banks of discount
tnsy lend their own capital, as well as the capi
tal of depositors, by the discounting of notes or
bills of exchange; and as banks of circulation,
they lend their credit in the form of bank notes,
or of credits transferable on their books; also
by the discounting of notes or bills of exchange.
. It is only tor this last operation that banks have
need of legislative sanction. Any individual
or number oi individuals may at any lime re
ceive on deposite the money of others, repaya
ble on oemand, or at fixed periods, as many of
our lookers have always been in the practice of
doing, and if they possess capital there is noth
ing to prevent them from lending it, as well as
the money so deposited, to whom they please, for
long or short periods, as best may suit them. It
it only when hankers propose to issue paper mo
ncy, that the authority of Jaw is required for
their issues, and that the protection of the law
is needed for the security of the public; and it
is to meet this case that the present law has
been enacted.
All the profits peculiar lobanks ofcircu’ation,
j beyond the ordinary interest of money, are dc
| rived from the loan of the credit of a bank. From
! the lending of its capital, so far from there being
I a profit, there is in reality alo<s incurred arising
from the expensive process by which it is accom
plished. Every one can see, that if a hundred
perama, each possessing ten thousand dollars,
should unite together in forming a bank for the
sole purpose of lending their joint capital of a
million of dollars, thev could not derive from its
employment as great an income as they derived
from it before, when each loaned his own money
himself, owing to the expense they would incur
in salaries to the president, cashier, and other
officers, m the rent of a banking house, in the
purchase of stationery, and in the other various
incidental charges which belong to the business
of corporate banking. It is at the same time
quite certain, that the security of loans made by
| a bank upon ordinary discounts, embracing ae-
I commodation as well as business paper, would
I not he as solid as that oft he loans which the indi
vidual stockholders themselves would have made
as private capitalists seeking the safest invest
ments, and it may therfore confidently be assum
1 ed, in accordance with the fact before onr eyes,
j that the mere purpose of lending capital, such
hanks would never be incorporated.
It may then very naturally be asked, why
do banks of circulation need capitals at all, if the
lending of capital through the - agency of multi
plicity of officers, is a losing business? The an
swer is very plain ; because without a capital
such banks could not possess credit; and as the
lending of credit is the sole source of the profit
sought for, it is for the interest of the projectors,
; in order to obtain that credit, to submit to some
loss on their capital, which may he regarded as:
a part of the price they nay for the advantages
they derive from having credit to lend. These
positions are so self-evident, that it is not seen
how they can be controverted; and it would also
seem to be self-evident, that inasmuch as the
capital of a bank is only required to furnish it
| with credit, its notes may freely circulate, it is
for the interest of the stockholders that the capi
lal should be loaned with the greatest possible
economy as to the expense of management, and
with tlie greatest possible caution as to the seen
rity of its investment, for thereby it will be best
adapted to the function it is ultimately destined
to perform, which is that of being forthcoming
to its full amount, in cases of loss by the credit
operations of the bank.
The question then presents itself, what is the
species of investment for the capital of a bank of
circulation, which combines the greatest econo,
my of management with the greatest security 7
In Great Britain the answer would no doubt be,
Government funds; and it is no doubt upon this
principle that the whole of the capital of the
Dank of England is invested in a permanent
loan to the Government, and has been soinvest
vested from the commencement of its charter.*
In the United Stales, ifthero was a public funded
debt in existence, such a ecurily would no doubt
hy most people he preferred to all others; but
in the absence of such, there is no choice but
between the ste„Ks of some of the most wealthy
Slates, citie--, or counties, and mortgages on real
estate. Tne management of investments in
either these modes, afterthey are once satisfac
torily made, is attended, as every body knows,
with very little expense, the labor consisting
merely in a semi-annual collection of interest;
and as to the relative solidify of the security,
there will naturally exist that difference of opin
ion amongst individuals which always hasexis.
ted, and which lias led some to prefer public
! stocks, and others mortgages on land.
It may perhaps here be said, that this view of
I the subject has regard solely to the interests of
| the stockholders of a bank and to those of its
I creditors, and none whatever to the convenience
i and accommodation of trade ; and that if the
1 capitals of banks were invested wholly in putdic
| securities and mortgages, the merchants would
be excluded from all participation in the benefits
proposed by their establishment. This certain
ly would be the case, except so far as merchants
I could offer the security demanded for permanent
| loans. But the merchant would not on that ac
count have any greater cause of complaint than
the owners of real estate have under the present. .
I system of hanking, which has excluded them al
most altope l.er fn m loans on mortgage, ar.d
obliged them, owing to the immense absorption
hy bank charters of private capitals which were
formerly accessible to them, to borrow money
of banks for short periods with the uncertain
prospect of renewal, for enterprises or improve
ments which required permanent loans. The
truth however is, that let this fact be as it may,
banks are nrivate speculations intended for pro.
fit, and they are not called upon by any con- !
siderations of public duty, any more than indi
viduals are, to lose the chance of a wide circula
j Don of their notes, by diminishing the quality of
the security by which their redemption is guar
; antied.
Individual capitalists may do as they please
with their property, and may, it they find it to
be to their interest, accept of personal security,
for loans of money, as they do for loans of capi
. tal in the form of merchandise sold on credit;
but. banks which undertake to issue paper money,
are not only bound, but it is their interest, to pro
; tect the public who give currency to their notes
1 j by refusing to accept of any security for loans
. i of their capital short of the most substantial that
t ! can be obtained. Nor, indeed, is it for the in
, terest of merchants that they should rely upon
, banks for loans of capital with which to com
f mence or carry on business. Those possessing
, good credit can obtain sufficient capital for all
. their prudent operations by the purchase of mer
, chandise on time, or by drawing bills of exchange
upon shipments of produce, which is the legiti
* * The Capital of the Bank of England does not
c appear in the monthly statement published in the
* newspapers, of its Assets, which comprise besides
* bullion, only the securities received in exchange
3 for the'notes or credits of the Bank. The Capital
t is field in reserve, as a guarantee for the faithful
3 discharge of its obligations held by the public in
, iase 0 f a ny loss arising from its commercial mans.
mate mode of borrowing for those who engage in
the hazards of commerce, seeing that those who
trust them are compensated for the risk they
run, in the enhanced prices of their goods, while
hanks are deprived by their charters of any com
pensation for the risk ofinsolvency. Bank loans
upon accommodation no’es, have been at all times
the cause of half the failures of our merchants,
and did a general banking law exist, which would
prevent partial assignments to secure banks for
the sake of endorsers, we should rarely see bank
dividends exceed the lawful interest of money.
In thus denying, however, the legitimacy of
loans of capital to merchants by banks of circu
lation, it is not to inferred that they are not
to participate in the benefits of banking; so far
from this being the case, I am of opinion, that,
nearly the whole of the advantages resulting
from the circulating part of the system, belong
to, and must enure to them, and this brings me
to the ques'ion,—what is the legitimate mode of
lending the credit of a bank?
Every body knows that when a bank acquires
the confidence of the community, its notes are
circulated as money, without immediately re
turning for payment, and that the wider this
confidence extends, the more extensive will be
the circulation. Banks can therefore discount !
notes or hills of exchange beyond the amount of
the capital al their disporal, to an extent pro.
portioned to their credit; and as the circulation
is greater at some times than at others, it is
manifest that no bank could he always prepared
to meet all possible demands upon it for specie,
unless the notes it discounted were at such short
dates as not to be very far off from the period of
maturity. What is the greatest length of time
that notes discounted l>v a hank of circulation
should have to run, is more a matter of practical
experience than of politic-economical adjust
ment. It is very clear that if a bank were to
discount no note haring more than thirty days
to run, it could never be in danger of embarrass
ment, seeing that in case of a run, the mere sus
nension of all such discounts would enable it in
30 days to collect an amount equal to the whole
of its liahilit ies. On the other hand, it is equally j
clear, that if a bank were to discount chiefly pa
per having six months and upward to run, it
would he in no condition to meet any extraor
dinary demand for specie, either for exportation,
or in consequence of a domestic panic, and
would in all probability stop payment from the
necessarily slow process of its collection. Asafe
medium lies beneath those two terms.
Fhe banks of France or Great Britain never
discount paper that has more than ninety or a
hundred days to run, and thirty years ago it was
not. the general practice of the hanks of Phila
delphia to discount notes that had more than
sixty days to run. Os late years the competi
tion of hanking, in connexion with the augmen
tation of bank capitals, employment for which
on short paper could not be found, has intro
duced the custom here and elsewhere of dis.
counting paper al four and six months; and it
would not be hazarding too much to say, that to
this practice may be ascribed the suddenness of
the catastrophe which overwhelmed us in May,
1837, by a general suspension of specie pay
ments, as well as the pernicious extent of credits
on merchandize sold to which op- importers and
manufacturers are reluctantly obliged to submit.
If we are to look to exnci lence as furnishing any
safe guide in the matter, it. appears to use, that
the operations es the Bank of France present a
conclusive demons’ration on the subject. That
inu. :, ntiori, during the latter months of 1830,
and 'lie early months of 1837. which embraced
r period of great commercial disaster in Great
Britain and the United Stales, the effects of
which were sensibly felt in Fi ance, experienced
no extraordinary reaction. The short periods at.
which all her loans fell due, gave her a control
over the currency which enabled her in a short
time to check the demand for specie, and ulti
mately to bring it. back again into her coffers.
In order, however, that a bank may have that
control of its issues, which is absolutely essential
to its solvency, and to the good of both creditors
and debtors, the paper discounted by it must not
only have but a short time to run, but it must be
founded upon an actual transfer of property, and
mus, be payable without renewal. There are
many persons who do not perceive any difference
between the security of an accommodation note,
and one founded upon a real transaction, and
on that account do not see why the latter should
he preferred to the former in (he operations of
hanks. They say, for instance, that an accom
modation note drawn hy Stephen Girard, and
endorsed by John Jacob Astor, would he better
security than a real note drawn by John Smith,
and endorsed by Dobbs &■ Co., given for a hun
dred hogsheads of sugar. This? no doubt might
be the case; hu f every applicant for an accom
modation at bank is rot a Stephen Girard or a
John Jacob Astor; such applican's indeed, being
very rare. It may happen that Dobbs & Co.
may want an accommodation for a similar sum,
besides the amount discounted on the sugar note,
and might offer Mr. Smith as endorser.
Now, what would be the difference between
the security of those two notes? Why precisely
this; the bark, after it has discounted the real
note, and paid Dobbs &, Co. the nett proceeds,
.knows that Dobhs &, Co. have §IO,OOO in mo
nev. less the discount, and that Smil h lias a hun
dred hogsheads of sugar worth §IO,OOO, and that
consequently there is a double security for the
payment of the note. In the case, however, of
the accommodation note, the hank only knows
of the existence of the single §IO,OOO, less the
discount, paid to Dobbs &, Co , and although it
is possible that Smith may have §IO,OOO worth
of property in some shape, not, pledged for some
other debt, yet the existence of that fact is by no
! means certain, and it is even possible that all
the property of which Smith is in possession,
mav he §IO,OOO received bv him from another
bank, upon the discount of tfn accommodation
note with Dobbs &- Co.’s endorsement. The
difference, therefore, in point of security, is pre
cisely the same as that between a bill of ex
change drawn upon a shipment of cotton to
Liverpool, and one drawn upon a credit obtained
from a London house, known hy the name of a
kite; a difference which has been too palpably
demonstrated within the past }’ear, to render any
elucidation necessary.
It is no doubt impossible for a bank at all times
to ascertain from the appearance of a note wheth
er it is real or fictitious, but if the rule of grant
ing no renewal be rigidly adhered to as an in
dispensable requisite to a sound system of bank
ing, deceptions would very soon be detected, and
it is even possible, that in times of high specu
lation, the same property may be sold over and
over again, so as to give rise to a number of notes
representing the same commodities; but any one
can perceive that these speculative notes, if of
fered for discount, are, as long as the actual hold
ers are in debt for the property, for which they
were issued, nothing but another form of accom
modation notes. This mode of raising monev is
a well known expedient, and one which banks
are bound to discountenance, if they wish to con
sult the security of their loans.
In the management of banks of circulation.
there are uve distinct interests to be consulted:
namely, I .‘lose oi the community, of the holders
ot bank notes, of the depositors, of the stockhold.
ers, and of borrowers. Banks established upon
the plan here suggested, and under the provisions
ot the New lork law, it appears to me, would
promote all interests far more certainly than
those established upon our present system.
The interests of the community would be pro
moted by a greater stability in the value of the
currency, seeing that expansions and contrac
lions would not be so liable to occur underasys
tern founded upon a capital placed for the time
being, beyond the reach of the directors, and up.
on a credit to which limits would be prescribed
by the prohibition to issue notes beyond the a
mount ot the property pledged in the hands of
the comptroller, and by the known fact on the
part of the directors, that in case of an excess of
issues, they would have nothing to rely upon to
meet the reaction, and to save the bank from the
penalty of fourteen per cent, per annum interest,
besides forfeiture of existence, but the discount
ed notes and bills.
The interest of the holders of hank notes would
be promoted by having as a guarantee for their
redemption the double security of the promisso
ry notes and lulls of exchange, in the discount
ing of which they were issued, and of an equal
amount of public stocks or mortgages pledged
for the specific object, thus placing the certainty
of ultimate, it not immediate, resumption, be
yond the contingency of commercial disasters.
t ho interest of depositors would he promoted
by having the right at all times to draw out spe
cie, or bank notes, and thereby enjoy the benefits
ot tile security afforded to note-holders; or, in
case of a suspension of payment by the bank,
they would have for their reimbursement, the
entire amount of the assets existing in the form
or discounted paper and ofspecie, and of such
portion of the invested capital as was not pledged
to the note-holder.
The aggregate amount of these assets could,
under no conceivable circumstance, if the fixed
securities were adequate to meet the notes as
they ought to be, be less than double the amount
of the deposites. unless the deposites should ex
ceed the a mount. of notes in circulation; a cir
cumstance which is not likely to happen, if we
can judge from the statements contained in the
Secretary of the Treasury’s report ofSlh Janua
ry last, by which it appears that at four periods
named, viz: January Ist of the years 1834, 1835,
1838, and 1837. the aggregate circulation of all
the banks in the United Stales uniformly exceed
ed Ihe deposites, notwithstanding the large a
mounts at some of those periods standing to the
credit of the Government.*
1 he interest of the stockholders would hepro
moted by lending ( heir capital on the safest se
curity to be obtained, and their credit with the
greatest certainty of prompt reimbursement.
And lastly, the interest of borrowers would he
promoted by lending capital to those who could
give the security required for capital, for as long
a term as would enable them to consummate
their enterm--b v lending mcdli il.n.-e
wb' 1 —mii tj offer the security required for credit,
with such certainty that the rejection of a good
business note at bO or 9Q days, could scarcely
ever take place, seeing that the average daily
income of (he bank would be equal to the aver
age daily demand for discounts, and would, no
part of it. be pledged to the renewal ofold notes.
Ami here let me remark, ny tile way. mai a hank,
however great its capital, should not overlook
smell dealers, hut should imitate the example of
the Bank of France, which. in 1836, discounted
254,635 notes, (out. of 406.187) for sums less
than two hundred dollars each, without losing
fifty dollars in the whole course of the year.—
Many small dealers give more circulation to
notes, than a few large ones.
Although the New York plan appears to me
to be thegreatest improvement in banking which
lias yet been introduced into our country, and
which wl are likely to see, so long as there ex
ists nineand twenty separate governments an.
thorized \o grant, bank charters, it possesses im
perfection, like every other that has been tried.
But the s-mi.annual statements of (he affairs of
each association required by the law to be pub
lished, tofether with the power conferred on the
chancclld- of inspecting the affairs of the insti
tution up-n the application of creditors, or share
holders iiterested to the amount, of a thousand
dollars, vill apprise the public from time to time
of their dual condition, and it is hardly possi
ble that, mder this law, which requires capital
to be paii up, and not promises to pay. there can
be any fondulent associations organized, like
many ofbose which have risen in some of nur |
States uiticr regular charters, and which have !
brought ach calamitous losses upon the holders
of their rttes and stocks.
But, Tim hound to say, that in my humble
judgment the system does not possess in itself
any ccrtsn guarantee against overissues of pa
per. Priate interest is always apt to influence
the condtt of those who have charge of monied
institutios: and notwithstanding the penalties
denounce by your law for suspending specie
paymentiit is not to he expected that, a multi
plicity ofianks, independent of each other, and
all strivif to push their credit, to tlie utmost li
mits, wilnol at. limes cause great, derangement
in the cuiency, and perhaps stop payment, bv
departinfrom the rules laid down as the only
safeguarbgainst excess. I therefore entirely
agree wit you in the position, that without the
agenev da powerful institution Jo keep the is
sues of thother hanks within prudential hounds,
the antioated benefits of the new law cannot
he fully aiized. And this brings me, to the
second br.ch of your communication, as to
“the prinples on which an institution should
be foundtunder tins law, which might he made
with unemg certainly, toexert a controlling in
fluence othe exchanges by its action on the
currency
A bankrith a capital of twenty or more mil
lions of dais, located in the city of New York,
the enmn eial centre of the Union, designing
to have t whole of it gradually invested in
fixed secities, would undoubtedly possess a
credit aduate in process of time, to give the
widest pdble circulation toils notes and bills,
at home H abroad ; that (he extent to which it
could issmotes, if conducted on the principles
above laiiown, of discounting no paper except,
that reprinting busines transactions, having
more thaiinety days to run, would be limited,
perhaps, some time to come, to a compara.
lively sui sum, I have no opportunity of
forming estimate of the probable amount of
such paperealed at New York in the course
* This pfion is proved thus : a bank with a ca
pital of 00(1.000 can only issue rotes to the
amount 0i.000,000. w hich would he done in the
discount bills. If the deposites amount to sl,-
000,000, y would he represented by specie,
unless tluvere loaned on* in the discountofother
hills. Las suppose that half of the deposites.
that is 85000, were loaned out, the result would
r.e, that vst the note holders would look to the
public stc? and mortgages for payment, the de
positors, tld have a fund to look to, of $500,000
jn
I
of a year, or the proportion of it which would be
likely to fall to the share of a new bank, and of
course am not able to judge what would be its
power over the currency. It appears to me,
however, that when the average discount line
of such a bank should reach five millions of dol
lars, it could exercise a salutarv control over the
issues of the other banks. This, I think, would
bo evident to any one who adverts to the fact '
that the reduction of bank discounts and loans |
in the city of New York, between the Ist June, i
183/, and the Istot April, 1838, to the extent 1
of nine millions of dollars, raised the value of
the currency from a depreciation of ten per cent,
nearly to par.*
I need hardly say to you, who as a practical
banker understand this subject so well, that the
refusal of a powerful bank to join in a general
race of expansion, would throw balances in its
favour through the means of deposites and col
lections, against all the banks that should be
guilty of that folly, and render them liable to a
demand tor specie, which the creditor bank, if it :
faithfully performed its duty to itself and the I
public, could not postpone for more than twenty j
four hours, thereby nipping in the bud the ear
lies! symptoms ofexcess.
The point then once attained of keeping the j
currency ot New York in a sound condition, and i
; thereby depriving the spirit of over-trading of
i i‘ s usual aliments, the next question to be ex
axamiued is, what influence would ibis exercise
I over the currencies of other cities ? In meeting
; this question one cannot be at a loss. It. is easy
to perceive that the slightest depreciation of
any neighboring currency, as for instance that
of Philadelphia, would show itself in a rise in
the prices of stocks, bills of exchange and mer
chandise over those of New York ; the conse- j
qnence of which would be, that those articles
would be sent from New York to Pniladelphia
for sale, by which means the banks of the latter
city would become indebted to those of the form
er, and a demand for payment in specie would
compel them to reduce iheir issues until the
Philadelphia currency should become as valua
ble as that of New York. It is from this mutual
action of the currencies of the different cities j
upon each other, that under a bona fide system
of specie payments, the exchanges between
them cannot long exceed the mere expense of
sending coin from one place to the other precise
ly on the same principles that the currencies of
different countries operate upon each oilier, and
as we shall see proved on the day that the banks i
of Philadelphia resume specie payments.
It is not necessary to say further on this head,
than simply that a sound and uniform condition
of the currencies of the commercial cities on the
Atlantic, exercises a control over the currencies
of all the interior cities and towns where specie
payments in reality ex ; st, owing to the constant
demand for remiilances to pay debts to the
Eastern merchants, which must be done in spe
cie, if hills cannot be had at par, or a little above
it. A bank established upon the plan here suor.
gested, if it could attain an average discount
1; np often or fifteen million of dollars, which it
might do, ny dtr-'oiinfing Boston, Philadelphia,
and Baltimore, as weu as New York paper,
would have the entire control overine crehantres
of the country, through its action on the cur
rency. and keep them so nearly at par, that the
premium or discount on hills of exchange, do
mestic or foreign, would never in ordinary
times exceed the expense of the transmission of
specie.
But in ascribing so vast a power to a bank
possessing no branches, and the notes of which
would consequently all be payable on N. York,
let it never be lost sight of, that this power be
longs solely to the elastic principle of the bank,
which can only be preserved by a strict adbe.
I rence to the rule of discounting none but busi
ness paper at short dates not renewable, and by
a rigid demand of specie from all other hanks
against which balances accrue in the course of
its daily transactions. And now we have arri
ved at the most difficult problem to be solved in
the whole range of this investigation. How can
the stockholders ensure on the part of any set
of managers, an undevialing adherence to these
cardinal rules?
Upon this subject there will of course be a
variety of opinions. Some will imagine that re
strictingthe rale of dividends of the banks to a
specified moderate rate would effect it, by taking
away all motives for expansion. Gibers may
fancy that prohibiting discounts to the managers
would be effectual, and some may suppose, that
making the managers liable in their individual
capacities for losses resulting from a departure
from their instructions, would accomplish the
object; hut who would render gratuitous servi
ces under such a responsibility? For myself, I
should prefer a plan resembling somewhat the
one recommended for the Bank of England by
Mr. S. Jones Lloyd, in his pamphletin reply to
Mr. J. Horslv Palmer. It would be that, of ha
ving two sets of managers, each elected by the
stockholders, independent of each other, one a
board of trustees to superintend the investment
of the capital, and to determine from time to
time the amount that should be loaned out to
discount, so as to avoid at the threshhold the
danger of an overissue in case a spirit of spec
illation should give rise to an undue extension
ot business, the other a board of directors to de
cide upon the choice of the paper.
This is not the place for a detailed plan for
such an institution, but it appears to me, that if
the trustees and salaried officers were prohibited
from borrowing from the institution directly or
indirectly, as the managers of the principal Sa
vings Bank in this city are. and il the salaried
officers were appointed by the trustees, and not
by the Board of Directors, and the president and I
cashier were invested with an absolute veto up- 1
on discounts made in manifest violation of the j
standing rules, a safe and prudent management I
of the institution might be calculated upon, es
pecially if these rules were made stipulations in
the articles of association, and thus not alterable
by trustees or directors.
I find, dear sir, that I have extended this let.
ter to a much greater length than I anticipated
when I beran it, but the difficulty of making
myself intelligible in fewer words, must be my
apology. If it be found to contain opinions :
which generally coincide with your own, it will
be to me a source of much gratification, believ
ing as I do, and have believed during the seven
teen years of our acquaintance, that your prac- i
tical experience as a banker, and your familiar
knowledge of the principles of finance, give ,
your judgment in such matters, claims to the
highest respect.
I am. dear sir, very respectfully, your obedient 1
servant, CONDY RAGUET.
* The discounts of the 22
city banks on Ist June,lß37,
amounted to 334,351,53 ft
And the loans to 4,082,657-33,434,193
The discounts of the 21
city hanks on Ist April,
1538, amounted to $26,620,701
And the loans to 3.107,979-29.723,680
Total redaction 89,705,513 j
INDISTINCT PRINT
LITER COMPLAINT TEX YEARS
STANDING.
MRS. H ANNAH BROWNS, wife of Jo.eph
Browne, North sixth st. near Second street
Williamsburgh, afflicted for the Inst ten years with
the Liver Complaint, completely restored to health
through the treatment of Dr. WM. EVANS.
Symptoms— Habitual constipation of the bowels,
total loss of appetite, excruciating pain of the epi
gastic region, great depression of spirits, languor
an i other symptoms of extreme debility, disturbed
fcleep, inordinate flow of the menses, pain in the
right side, could not he on her left side without an
aggravation of the pain, urine high colored, with
oUier symptoms indicating great derangeraemin the
functions of the liver.
Mrs Browne was attended bv three of the first
physicians, hut received but htile relief from their
medicine, till Mr Browne procured some of Dr.
H m Evans’ invaluable preparations, which effec
tually relieved her of the above distressing symp
toms, with others, which it is not essential to' inti
™ te - , „ JOSEPH BROWNE.
C/ity ana C.ounfy of Next) York , ss*
Joseph Browne, of Williamsburgh, Long Island,
being duly sworn, did depose and say that the facts
ns set forth in the within statement, to which he
has subscribed his name, is just and true.
JOSEPH BROWNE,
Husband of said Hannah Browne.
Sworn before me, this 4th dav of January, 1837
„ PETER PINKING', Com. of Deeds.
For sale by
„ ANTONY & HAINES, agents,
March 22 No 232 Broad street
EVANS’ PILLS.
ANNE G. KENNY, No. 115 Louis st.,
iT-O. between Stanton and Houston sis., afflicted
for ten years with the following distressing symp
toms : Acid eruscatton daily spasmodic pains in
the head, loss of appetite palpitation of the heart,
gidd ness and dimness of sight, could not lie on her
right side, disturbed rest, utter inability of engag
ing in any thing that demanded vigor or courage,
sometimes a visionary idea of an aggravation of
her disease, a whimsical aversion to particular per
sons and places, groundless apprehensions of per-,
sonal danger and poverty, an irksomeness and
weariness of Hie, discontented, disquietude on
every slight occasion, she conceived she could
neither die nor live, she wept, lamented despon
ded, and thought she led a must miserable life, ne
ver was any one so bad, with frequent mental hal
lucinaiions.
Mr. Kenny had the advice of several eminent
physicians, and had recourse to numerous medi
cines, but could not obtain even a temporary alle
viation of her distressing slate, till her husband
persuaded her to make trial of my mode of treat
ment. She is now qui e relieved, and finds herself
not only capable of attending to her domestic af
fairs, but avows that she enjoys as good health at
present as she did at any period of her existence.
J. KENNY, husband of the aforesaid Anne Ken
ny. Sworn before me, this 14th day of December,
1836. PETER PINCKNEY, Com. of Deeds,
For sale bv
ANTONY & HAINES. Agents,
April 26 117 No. 232 Broad-street.
AST 1131A TH ItEE Y E ARs ST \ NDING
1WB"R- ROBERT MONROE, Schuylkill, afflict
ifii ed with the above distressing malady. Symp
toms—Great languor, flatulency, disturbed res*
nervous headache, difficulty ut breathing, tight
ness and stricture across the breast, dizziness,ner
vous irritability and restlessness, could not lie in a
horizontal position without the sensation of im
pending suffocation, palpitation of the heart, dis
tressing cough, costiveness, pain of the stomach,
drowsiness, great debility and deficiency of the
nervous energy. Mr. R Monroe, gave up every
thought of recovery, and dire despair sat on the
countenance of every person interested in his ex
istence or happiness, till by accident he noticed in
a public paper some cures effected by Dr. WM
EVANS’ MEDICINE in his complaint, which in
duced him to purchase a package of the PILLS,
which resulted in completely removing every
symptom of his disease. lie wishes to say his mo
tive for this declaration is.that those offlicted with
the same or any symptoms similar to those from
which he is happily restored, may likewise re
ceive the same inestimable benefit. Sold by
ANTONY & HAINES,
Agents, 232 Broad-st., Augusta.
March 6 95
PARALYTT RHEUMATISM^
A PERFECT CERE effected by the treatment
of Dr. WM. EVANS. Mr. John Gibson, of
North Fourth st.. Williamsburgh, afflicted with the
above complaint for three years and nine months,
during which time he had to use crutches. His cheif
symptoms were excruciating pain in alt his joints,
but especially in the hip shoulder, knees, and an
kles, an aggravation of the pains towards night; and
for the most part all times from external heat, an ob
vious thickening of the fascia and ligaments, with
a complete lo sos muscular power. For the bene
fit of those afflicted in a similar manner, Mr Gibson
concievesit meet to say that the pains have entirely
ceased, and that hisjoints have completely recov
ed their natural tone, and he feels able to resume
his ordinary business. For sale by
ANTONY & HAINES, Agents,
No. 232 Broad street.
March 8 96
DYSPEPSIA AND HYPOCHONDRIA.
CISM.
INTERESTING CASE—Mr. William Salmon,
Green-street, above Third, Philadelphia, afflic
ted for several years with the followin ' distressing
symptoms. Sickness at the stomach, headache,
dizziness, palpitation of the heart, impaired appe
tite, sometimes acid and putrescent eructations,
coldness and weakness of the extremities, emacia
tion and general debility, disturbed rest, a sense of
pressure and weight at the stomaeh after eating,
nightmare, great men al despondency, severe
flying pains in the chest, hack and sides, costive
ness, a dislike for society, or conversation, invol
untary sighing and weeping, languor and lassitude
upon theleastexerci.se.
Mr. Salmon had applied to the most eminent
physicians, who considered it beyond the powerof
medicine to restore him to health ; however, as his
afflictions had reduced him to a very deplorable
condition and having been recommended by a
relative of his to make trial of Dr Wm Evans’
medicine, he with difficulty repaired to the office
and procured a package, to which, he says, he is
indebted for his restoration to life, health and
friends. He is now enjoying all the blessings of
perfect health. Persons desirous of further infor
mation will be satisfied in every particular of his
astonishing cure at Dr. Wm. Evans' .Medical office,
100 Chatham street, N. Y.
For sale by ANTONY & HAINES,
Agents, N 0.232 Broad Street.
April 14 U 2
CHRONIC DYSENTERY.
MORE CONCLUSIVE PROOFS of the extra
ordinary efficacy of Dr. WM. EVANS’ ce 1-
ehratedCAMOMILE and APERIENT ANTI BIL
IOUS PILLS in alleviating afflicted mankind.—
Mr Robert Cameron 101 Bowery, Disease,Chron
ic Dysentery, or Bloody Flux. Symptoms, unusu
al flatulency in the bowels, severe griping, frequent
inclination to go to stool, tenesmus. loss ofappetite,
nausea, vomiting, frequency of pulse, and a frequent
discharge of a peculiar foetid matter mixed with
blood, great debility, sense of burning heat, with an
intolerable bearing down of the parts. Mr. Came
ron is enjoying perfect health, and returned his
sincere thanks for the extraordinary benefit he had
received. Forsaleby
ANTHONY & HANES,
Sole Agents for Augusta,
JNo. 232 Broad-street.
March 13 98
HtLWER’S NEW NOVEL,
ALICE, or THE MYSTERIES—a sequel to
Ernest Jlaltravers. Just received by
Mayß RICHARDS & STOY.
CAKE MOULDS;
JUST re cei ved, an assortmentofEarthen CAKE
MOULDS, said to be superior to any thing
used, for Raking Cake. J. G. DUNLAP
Mar cl £7 I7g
•■var.
i'ifiAMl
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