Ohio State journal and register (Columbus, Ohio), 1838-12-18

              OHIO STATE JOURNAL AND REGISTER. VOLUME 29. COLUMBUS, OHIO, TUESDAY, DECEMBER 18, 1838. NUMBER 16. PUBLISHED BY C. SCOTT fc J, M. GALLAGHER, At tlires Dollars a year, Invariably In advance. Twice a week during the Sestio of the, Legislature, and Weeky the remainder sf the fear, JOHN M. GALLAGHER, EDITOR. Office on State at reel, Two doora Wert of tlie Clinton Bonk. ADVERTISING. Twelve llnea or leaa, orietnacriloit 90 50 " three..." 1 00 " " each additional Insertion, 0 25 " three montln,., 3 00 all month 5 00 twelve monthi, B 00 Longer advertlaementa In the tame proportion aa the above. INAUGURAL ADDRESS OF GOVERNOR SHANNON, On taking the Oath of Office, December 13, 1838. Gentlemen of the Senate, and Howe of Representatives: In entering upon llie high nnd responsible duties of the station to which I hnve been culled hy the voice of my countrymen, 1 would do great injustico to my own feelings, wore I not to express to you. and through you, to my fellow-citizens of the Stuto. my dup senae of fratitudo for this distinguished mark of their confidence, am aware that I do not biing into the councils of the State, that ago and experience in public affairs, which belonged to my distinguished predecessors yet, trusting in that Ail-wisn Providence who presides over the destinies of the world, nnd relying on the intelligence end onliglitcncd patriotism of this body, 1 hope I will be able to discharge tho duties of the trust with which 1 havo been honored, in such a manner as will mcot the expectations of my fellow-citizens. I cannot hope to be al-wnya right ; but conscious ft a 1 am, that my greatest ambition is faithfully to serve my country, and nid with my Iiunihto efforts in promoting the interests, prosperity, iind glory of my native State, I throw myself, without fear, on the justice and forbearance of a great and generous community. But a short time since, the territory comprising our State was one immenso and unbroken forest, inhabited onlybysnvago beasts end uncivilized man; within a fowyearathc whole faceof the country has beenchanged. The forest has given way, and fallen before the axo of the hardy and industrious pioneer farms, villages, towns and cities arc to be seen in all directions our roads, canals, and public buildings bear evidence to the great and mighty change that has taken place, nnd show that the hand of industry has been al work, that the spirit of enterprise has been abroad, and (hot civilized man bears sway. We are blessed with a salubrious climate, a rich and fertile soil, a liberal portion of mineral wealth, with a geographical position which a (fords us great natural facilities to disposo of our surplus produce in all directions. We have almost a million and a half of free mm, reposing in security under the shield and protection of our republican institutions, enjoying the blessings of liberty, and generally prosperous and nappy. With these bright prospects before us, havo we not every motive which should actuate the patriot and the statesman, to devote our whole energies in the discharge of our official duties, to the future welfare, prosperity, and happiness of our country ? And, under a wise and judicious svstem of legislation, havo we not reason to anticipate for ourselves and posterity, long agea of prosperity and crowing greatness As you hove already been informed by the Annual Mcssago of my predecessor of the particular state of tho Government anu of public aHairs, 1 shall confine myself, in my uresent communication, principally to an expression of mv views on those subjects, in which the public have, and feel a genem) interest. In a Republican Government like ours, where the sovereign power is vested in the people, and where virtue, intelligence and patriotism aro indispensably ncces . sary to the maintenance and perpetuity of our free institutions, the subject of Education should be one of the first importance. No people, in an organized stato of society, enn be either free or happy without virtue and intelligence ; and, to secure both, a well digested and liberal system of educntion is indispensable The framorsofour Constitution, convened for the purpose of creating tho organic law of our State, were so deeply impressed with the primary importance of education, that tin y declared in the Constitution itself, that "religion, morality and knowledge, being essentially necessary to good Government and the happiness of mankind, schools and the means of instruction shall forever be encouraged by legislative provision." So universal and widc-snrend is tho opinion, that education is indispensable (o tho perpetuity of our institutions, and the well being and happiness of the people, that we find similar declarations in the constitutions of every Slate, perhaps, in the Union. The Kuropcan communities are also alive to tho importance of this subject t and the persons in power, yielding to tho strong current of public opinion, or actuated by an enlightened and patriotic sense of public duty, have established some of the best systems of education with which I am acquainted. I trust that we will not disappoint the just expectations of the framersof the Constitution, or fall behind the spirit of the age, by neglecting to foster and cherish abroad and liberal system of education, which will furnish the means of instruction to all the rising youth of the State. It is not by the erection of acadamies, colleges, and universities, that a people are to become educated these, it is true, are highly useful, and justly considered indispensable in every well organised svstem of education but their benefits and advantages, from necessity, must be limited to a few individuals, and those generally of the mure wealthy portion ot the people, it is only by the system of free common schools that the mrnns of education are furnished to every one that the rich and the poor are alike able to avail themselves ol tho advantages of instruction, and the whole community enlightened and improved. Our common school system, which was commenced in IM.Ti, and which, since then, has undcrgono various modifications and changes, has, no doubt, been the means of doing some good j but it is to bo rrgrottcd that our legislation on this subject haa been so uustnbln, that it has been dillicult for those whose duty it was to car ry out the law, and put the system into practical opera tion, io seep pace wiui ine community rnanging pro-visionsof the statute. This has no doubt been owing to a laudable desire, on the part of the legislature, to im prove and perfect the system, but it has prevented the people from becoming acquainted with the mode of do ing oiiRiursB unoer n, mm, in some cnars, excuca onjoc-tions which would not otherwise have existed. It is to bo hoped that the light which has recently neon shed upon this sunicet, ami our past experience, will render our legislation, in reference to common schools, less chamrealilo than heretofore, r mm the va Tions sources provided hy law, there will, hereafter, he annually applicable to the omeet ni common school ed ucation, near half s million of dollars. This fund, if ju diciously applied, will do much to promote tho cause of common school education in ourntate.and amuse among 1 tho youth of the country, that universal intelligence, so essential to the happiness of mankind, and so indispcn- some in the preservation ot our republican institutions. Under ihe present act. for the support and belter regula tion of common schools, our German population are, in some degree, excluded from its benefits. The prceent.law requires that reading, writing and arithmetic shall be taught in the English langunge ; provided, however, that nny other language may be taught in addition to the F.nlmli, ot iho discretion of the directors. Although the German may bo taught, In connection wilh (no tinglislt language, if the school directors so order, yet It is impossible, in many places, to procure a teacher capable of teaching both German and Knglish, or to procure an EiiL'lirth teacher capnblo of teaching German children. The consequence is. that in German settle ments, they ars unable to sustain any other linn tier- man schools, by which they are entirely excluded irom the benefit of the school fund. This is not j iaiice, to say the least, Tho Germans contribute their equal proportion, towards the school fund, with other citiseus, they have the same interest in it with others, and no portion of the community more cheerfully comply with ell the laws of the country than they do. They constitute a large portion nfottr population, andareincreasing annually. They are indiiairioua, frugal, intelligent, and virtuona, and devotedly atiached to our tree inaniuitons. Their ri iritis and interests should not, I bore fore, be dis regarded. Why not leave it discretionary wilh each district, whether the English or Geiman, or both, shsll be taiifflitY It is true, it may be desirable that alt our lopulniioii should ne enpahie ot understanding ine cng iah lanminfrc. but this cannot bo brought about in a day i it will require time, and mint, and no doubt will take place, gradually, hy the nccossary and continual inter court between tho uorinan and r.ngusn population But it onnnot be produced by an arbitrary act ol IrRitla- (ion ; requiring thai to be don, which ia impracticable, eitli.r on acruunt of th. fcrlinge and education of par- nl, nr th. imponlbility of procuring auitahle teach Our German population aliould b. fiirnialied with llie echool, and all other important liw. of tha Stele, printed in their own language. A large portion of them, from their avocations, and advanced age of life, are prevented from learning the English language. Thty are required to obey the law, and comply with its various provisions, and, If they fail to do so, they must abide the consequence. The means, therefore, of becoming acquainted with It, should be placed within their reach. l ne sunject oi internal improvement is one, wiucn hos occupied, for some time naBt, a very large portion of the public attention, not only in our own State, but in every State in the Union. It is gratifying to see tho cnorgy with which the severul States aro undertaking, and prosecuting to final completion, works of internal improvement, many of which wiJI not only benefit the respective Statein which they are located, but, at the same time, greatly enchnnce the value of our publie works, and add to the wealth and commercialadvantogcs of our own State. The spirit and enterprise, which prcvades ine public mind every where, on this important subject, if pronorly directed, will bind together the States of this Confederacy, by a svstem of internal communication, tuvaiiLugeuua iu uu in a puiiucni, as wen an a commercial and soct ll point of view. The local prejudices and jealousies, which exist in one section of the Union against another, win rapidly aisappoar as the means ol communication are extended, and as the inhabitants of the different sections become identified in business, and familiarized with the manners, customs, and habits of each other. When these great works of internal improve ment, wiucn we see in progress in various parts ol the country, strenching from ono geographical section to another, shall bo once completed, parties and sectional jealousies, founded on localities, will, in a groat meas ure, censo to exist j that harmony which bus generally characterized our Union will be greatly promoted i the industry and commercial enterprise of our country increased ; and the permanent and enduring foundations of prosperity secured. Ohio, considering her age and resources, has done much on the subject of internal improvement; and although she is young in years, she is, in point of public worKs, ine mini ainio in ine union. Our internal improvement nolicv. adontcd nt an earlv period, and carried on with vigor, has contributed greatly to increase tho wealth, population, commerce, manufactures, and general enterprise of tho St rue, and devclopo all her natural resources. It is true, we have more natural advantages for throwing off our surplus produce than any other Stato in the Great Valley of tho Mississippi j yet, without these artificial means of internal communication, which are furnished by roads, canals, and other improvements, much of our finest land, and a largo portion ol our mineral wealth, would be of little value, owing to tho difficulty, in some cases, and the impossibility in others, of being ablo to transport to mar kct the productions of the soil, or the wealth of tho mines. We would not have been worthy of the lot in which Providence has placed us, if we had neglected to improve, by artificial means, tho natural resources and advantages with which our State has been so highly favored.Whatever diversity of opinion might have existed, in the first place, as to the policy of entering into our internal improvement system, all now admit that it has done much for the State; and there ore but few who will not concede that, to this one cause, moro than to any other, we are indebted for the unexampled growth and prosperity of our country. Hut our system of internal improvements is not yet completed j and, although wo have accomplished much, more yet remains to be done to finish what has been undertaken, and to extend the benefits of the system into those parts of the State which have hitherto derived little or no advantages from the construe tion of any of our public works. The system, from necessity, tins, in some degree, been local and partial in its uciiumai cvury secnun oi mo oiaic couia not do accommodated at once; it requires time and a large smount of capital to complete a great system of improvements, wnicn win give to every section ol the state its equitable, proportion of the public money. When we reflect that the Legislature has incorporated something like eighty turnpike road companies, between sixty and seventy railroad companies, and authorized the survey of nearly sixty canal routes, snd that the State has actually constructed, and is now engaged in constructing, a vast line of canal, and roads of various kinds, we have no reason to complain of the want of energy and enterprise, heretofore, in the councils of the Stato on the subject of internal improvement. i o make our system ol public improvements equitable and just, and to distribute its benefits as equally as p( aible to all tho cilizena of the Stato, ouidit to be a lead ing object with the Legislature. In order In do this, tho ayitcni aliould ba extended aa far aa practicable, and aa soon aa the alato of (he public treaaury would admit, without increasing tho taxes of the people, into thoao countiea which, Irom their position, and the want of meana on tho part of Ihe State, have hitherto buen postponed, and havs not enjoyed the benefits of their just proportion ol the public revenue. Any other policy would be obviously uniust and uncalled for by tho pub lic interest, or tho necessity of the caso t for the grcol and growing resources ol the Mtotc, in tho course ot time, will fnrnish tho means; and there ia no aection of tho Stato in which its proportion of the public revenue could not bo advantageously expended, either in tho construction of canals, railroads, turnpikes, or common high-wave.The rapid and yearly increaso of the tolls on the Ohio and Miami Canals, justify the belief that they will soon ccaso to be a burden to the State, and that the revenue arising from the tolls will more than pay tho interest on the cost of construction a rrsult which must be highly grntifying to every one. those counties aitustod on the line ol Ihe public works already completed, or in pnigrcss, hnve been greatly enhanced in valtio; the benchts ihoy have received are permanent and enduring. The people, there lore, who nave tiecn thus pencilled, ought not to com f lain, if similar advsntagca should be extended to their cllow-citixens in other parts of tho Stnte, and if they, in turn, should bo called upon to contributo their proportion of tho expense required to secure like advantagcalo othcra. In the further extension of our internal improve mrnt system, regard should he had to the resources and fiscal ability of the State and the wants and necessities of the poopfo. 1 n our anxiety to extend our publie worka, we siiouiu ne cnretui not to go ncyonii our means, nor impair the credit of tho State, by incurring rcsponaibili tics which we may not be able to meet. Hut il ia be licved that tho rcaourcca of the State would admit of redurtion of the prrarnt tnxca and public burdens, and be eufticient, notwithstanding, within a rcaaonabletimo, to extend and carry out ihe bencfita of a ayatem, which was commenced in wisdom, and haa been prosecuted with success, an aa to meet the wanta and just expectations of the people in the various aectiona ol the Stale, Permit me to call your attention to the subject of tho Sandy and Ueaver Canal. Tins is deemed a work of great importance ; and I am informed ia about half com pleteil, sml haa cost tho company about thirteen hundred thousand dollare, ll traverses a rich and forlilo region of country, highly cultivated, and thickly aettlcd by an industrious, entcrpriaing, and intelligent population. 1 he progress nt tho work, tor the present, ia auapended for the want of mesne. I would respectfully suggest the propriety of the Legislature inquiring into tho situa-tion of thia improvement, and extending auch aid aa ita importance and public utility demand. The Baltimore and Ohio'ltailroad will, no doubt, be completed in few yeara. The object of tins work ia to connect tho city of Haltimoro with some point on the Ohio river, and, by that means, open a direct and rapid communication between tho State of Ohio and that city. 1 h. point ot termination la a matter in which our Mile ia directly interested. Al some future period the Stato would, in all probability, find ita intereat promoted by extending thia work through the interior, eo aa 1 0 connect with some of our public imprnvemenia. It might be terminated at point on the Ohio, from which it would be difficult, if not impossible, In extend it into tho intfiiortor it might be al a point the least advantageous to our commercial and agricultural intereata. I hecom pany, anxiously htoking to tho trade and businesa of Ohio, and lo ihe ultimate extension of tho work through Ihe State, no doubt feel desiroua lo strike the Ohio river at tha place thai will meol with our vicwa and policy. I therefore recommend tha adoption of auch measures aa will ensure the termination of thia important work al a point on the Ohio, mutually edvantagcoue to our State and to Ihe company. The agricultural and mechanical branehca of business, being the sources of all our real and aubstsnlial wealth, aro entitled to the special favor of the legists lure. The culture of silk, in various parts of ihe State, ia exciting much intereat among many of our agricultu rials and manufacturers; anil, it ia confidently believed by those whose experience and knowledge entitle their judgment to great weight, lhat our soil and climate are as well adapted lo this kink of businesa, as France nr Italv, where it haa added eo much to Ihe national wealth of llioee respective countries. From the experiments which have been made, il may be said with certsinty, that tho auccessful culture of silk in Ohio, is no longer a matter of doubt i all that ia wanting to render the business entirely successful and prosperous, is the direeiii.n of public attention to the subject and to extend to it, in its infancy, and for a limited time, some legislative aid bv allowing a bounty to tha produ, err of the raw material, A laudable anxiety has been' manifested in several of Ihe States to enrouragc thia branch of industry, by extending lo the producer a liberal bounty, for t limited lime, snd it hse had ihe tendency of directing publio attention lo tha subject, snd bringing into active operation the manufacture of this valuable article. I would recommend the adoption of similar poncy in our own estate. Many of our mechanics complain of tho direction which lias been given to tho labor of the convicts in the Penitentiary that it haa destroyed, or greatly injured their business, and thnt ihoy aro unable to enter the field of competition with the State. The labor of the convicts aliould be so directed aa to effect the least injuriously, this highly respectable and valuable portion of our fellow citizens. A great State, instead of becoming a competitor, should encourago and protect the interests of her manufacturers. There is no subject which absorbs so great a portion of puoiic consideration, at tno present time, as that ot the Currency. A combination of circumstances has contributed to render this the moat important and interesting political question, upon which you will be called upon to act. It ia a delicato question, which affects all the various interests of tho community ; and you wilt, no doubt, give to it that cool and deliberate consideration, divested of all porty feeling, which its magnitude and importance, in connection with the public intcrcsl, demand.A sound and healthy currency adapted to the wanta and interests of the people, ia an object of the first importance in every community, and more especially in one like our own, of rapid and growing prosperity. Previous to May, 18.17, most of the banks of the Union, carried away by the prevailing mania for speculation, and stimulated by a desire for gain, had extended their issues far beyond the limits of prudence, and without n just regard to their abilities to mcot their engagements. In the tide of prosperity, and whilo every thing was on the riso, the danger and threatened evils of an inflated paper medium were not readily perceived : but when the expansion had reached its maximum, and a revulsion took place in the business of the country; when the banks closed their vaults, refused to redeem their paper, and bid defiance to the laws, the public mind became justly excited on the subject, and waa led to a critical investigation of tho principles of the present banking system, with an earnest desire to find out, and as far as possible, roinedy its defects. In legislating now on this important subject, we have the aid of enlightened public opinion, which will furnish ua with on unerring guide in the discharge of our duty. Almost the entire circulating medium of the Stato ia composed of bank notes. These notes aro not money, but promises to pay money. They possess no intrinsic value, and circulate entirely, either on the real or fictitious credit of the banks that issue them. If they are not redeemed, the loss fulls on the public. The question now beforo the country is not, whether we ahull continue to have this kind of a currency, or ono composed entirely of gold and silver. We are not driven to the necessity of adopting exclusively one extreme or the other. That currency which ia best adapted to our various wants, long business habits, and all the circum- atances by wnieii wo are surrounded, is one composed partly of gold and silver, and partly of bank paper, made perfectly safe lo the public, anu convertible at all times, into gold or silver at the will of the holder. This is the kind of currency which I believe is demanded at th. present lime, by the interest and voice of the public, and to the attainment of which, as fur as practicable, we should direct our legislative action. In evory commercial and growing community, we find a credit system existing in one shape or another. In those countries whero bank paper is not used, it exists in tho shapo of bonds, bills ol exchange, promissory notes, snd mutual credit. In this country, and in England, it exists to a great extent in the shape of bank paper. Our system of credit, to which we havo long been accustomed, could not be destroyed without deranging, to a great extent, tho whole business order of the community.Our policy, therefore, should be, not to destroy or impair lhat part of our credit system which exists in tho shapo of Lank paper, but to place it upun a more solid and substantial footing. I am aware that those who advocate the policy of reforming tho present banking system, are charged with seeking its destruction, ana desiring to establish gold and silver as the only currency of the country. There ia no foundation for this charge. No one is opposed to (sound and healthy credit system; but the great question is, as to the best means of obtaining this desirable object. In order lo aettlc this question satisfactorily, we must look at the circumstsn-ces by which we are surrounded the long settled business habits of the country, and the existinir inatitutions of our own and otherSiates. However desirable il might have been, had the banking aystem nover been introduced into the United States, at least in the shape in which 11 haa existed, yei, it has become so identified with all our various interests and longsettlcd hsbita of doing business, that it cannot be diapenaed with without producing a shock, in some degree, fatal to the present welfare and prosperity of the country. All that ia demanded by the public interests and an enlightened public opinion, is a reformation of the ayatem, so aa to avoid aa far aa practicable hereafter, those o-vils and defects, which the experience of the Insttwenty-five yeara haa pointed out, aa belonging to the pres-ent system. No one more duly apprecialea tha benefits of s sound snd heslthy credit system than Ida, I am willing mallow to il many advantages, and that it haa done, and is capable of doing much good; but I cannot admit that the present irresponsible banking system hss furnished us, at all times, with either a beneficial or aafe credit system, or that il ia free from material and radical defocta. Aa moat of the bank charters of the Stale expire on the first of January, 11)43, you may be called on at ihe present aessiun, to consider of ihe policy of extending Ihe charters of the existing banks, or such aa may be deemed worthy of public confidence, and called for by Ihe publie good. I am aware that there are a great variety ofopiniona in the community, aa to the ayatem of banking most conducive to the public welfare, and best adapted to the wants and interests of the people. But, however objectionable tha present system of banking may be, ilia policy of creating a new system, or of chartering new banks, al the present time, may well be doubted. I consider the rapid increase of bonk monopolies within the loat few years, in the United Stales, aa an evil of the greatest magnitudoi incompatible with tho geniua of our free institutions, and highly prejudicial to all the great interests of tha country. We should not forget, that we may have too much bank credit, as well aa too little, and that both extremes should bo avoided. Our prcsont object should be, to reform Ihe evils, as far as we have the power, which experience has shown belong to the present system. As the subject is one of general interest, and as you may bo called to act on il, in eoms form, al the present session, I hava thought il due lo mvaell, aa well aa lo you and the public at large, that I aliould embrace the preaenl occasion to atate my views, aa lo the defecta and evils ol the present system, and Ihe principles of reform which sound policy de msnda. Banks should never be created unless for the public good. They aliould not be eatablished to enable ft fow individuals to mska money wilh more facility than other. The publie good aliould alone dictate their crea ation; and, when onca oreated, Ihey ahould ba viewed in tha light of public institutions, having publie aa well as prissta obligations lo perform; and, when they vio late their obligations, tney anouiu do nciu amcnaoio at the barof public justice. One of the most prominent objections to die present system, is, its insecurity lotha public, ss demonstrated bv the repealed suspensions Slid failures of banka with in the last twenty-rive years, snd the consequent loss of millions 10 tile people. limn uirt iiiiid we iiiitu unu three suspensions of specie paymonts,and theenliro failure of upwarda of one hundred and aixiy-livo banks in the United States. Wilh these facts before us, every one, without looking farther, must irresistibly bo led lo doubt the aafeiy of a avatem. which furnishes so much evidenco sgainst its own socurity. If we exsmine the present characters, we will at once perceive that the publie have no adequate protection from Hank failures. By the existing chsrtois, thereisvirtuslly liitle or no eccuriiy given by Ihe banks lo the public, thai Ihey will redeem their rih-ligations. It is into the capital slock psid in, is liabls inlaw for the payments of the debts of the bankai and, in pethaps two oithe chariots, ihe stockholders are made indiviually liable for the amount of atuck by thorn subscribed. Bui the capital stock, even admitting thai it is all honestly applied to the paymenta of tha debta of the bank, may be t very inadequate accurily lo the creditors. Moal of the bank charter authorize the director, m issue three times the amount of tha capital stock paid; and, therefore, Ihey may, without violation of Ihoir charters, put in circulation inro. aunars tor every one lhat is bound lor the payment of their debta. Il is obvious, therefore, lhat the publie have no adequate security against loss. No bsnk fails without being liable lo the publie lor much larger smount than Ihe Block naid. Ovor iaaue will elwaya ba found among the prominent csuaeaof bank fnilurcai th consequence is, thai iheexcess,in ihe most lavornble light in which the subject can be viewed, falls as a dead losaon the public; and What IS '.hub insi, ia irequrnuy so mucn gained ey the stockholders. I am aware that tho assets of a bank mav sometimes bo reached, and mado liable for tho pay ment of its dehisi bin the creditors msy or may not be able to reach them. This is toe precarious and uncer lain ft security to confide in, when legislating for the safety of the public. But, practically, the security which the public now have, in the case of the failure of abonk, in nine cases out of ten, is merely ideal, and exists only in contemplation of law. Ordinarily, when a bank fails it has a large amount of paper in circulation, scattered over the whole country, and generally distributed in small quanties. The expense and trouble that the note holders are eubjected to, under the existing laws, in order to reach the capital stock, prevents most of them from muking the attempt. Tho meagre and uncertain dividend which they may recover, will not compensate them for the cost and trouble of prosecuting their claims; tho consequence is, that no one attempts to recover even his just dividends from a broken bank. Each one submits to his loss as a choico of evils, and regrets, that in n country professing lo bo governed by wise and equal laws, the wealthy banker ia the only person in the community, whois exompt from tho payment of his debts. ! To remedy this defect in the banking system, I would increase the liability of tho stockholders to a sufficient amount to secure the public against all possible loss, and make each stockholder personally responsible, in his private capacity, for tho amount of his iabilitv. M'l.n extent, however, to whioh atockholders should be made individually liable, in order to secure the public, is ft matter of detail, about which there is, no doubt, a variety of opinions. I believe tho public would bo amply secured by rendering tho stockholder liablo in his indi vidual capacity, for his proportion of the debts of the bank, to be estimated according to tho amount of stock ownod by him. This, with other checks and safeguards, n.i.vi..iBiiu rvgiu wu, U1IUITU arouim H1O80 IIISIHU tions, it is believed, would bo sufficient to secure the public against all loss. I would impose no liability on the stockholders, which was not demunded for the pub lic security; but when the public grant to bankers important privileges, they have a right to expect and re quire irom tneni ample accurily against all loss. Tho sound institutions that aro disposed to act honestly, and pursue their legitimate business of banking, are as'deep-lvintcreslcd in the safety of banks aa any other portion of the publie. The people, knowing tho irresponsibility of the prcsont system, lose confidence in the banks on the first apparent occasion for alarm. Increaso tho responsibility of the stockholders, and you will infuse into the public mind a well founded confidence, which will not ho shaken by every false report which may bo put in circulation by the interested speculator. To insure public confidence, there must be something substantial on which it can rest. However worthy of confidence tho directors of a bank may be, this can only be known to few. But when the public know that, by the charters, they are made secure, and lhat it is the pecuniary interest of the directors, to act honestly and prudently in the administration of the afluirs of bank, there is a strong foundation on which public confidence can rest. The liability of the stockholders being thus increased, they would bo more cautious in selecting their board of directors, and none would bo choaen to conduct the affairs of a bank, but those whose intelligence, capacity, integrity, and moral firmness could be relied on. Experience has shown that, under tho present system, those qualities have not alwaya been regarded in the selection of directora. The argument used against increasing the liability of stockholders, is, that il would prevent capitoliata from investing their money in banks. If it would have thia tendency, it must be becauae they would consider their investment in benks aa unsafe and hazardous, and because they would bo unwilling to trust each other. If capitalists consider bonk invcstincnts unsafe, and are unwilling to Irust each other, the people should pause before thoy trust tlicin. If banks are unsafe to capitalists, they are unsafe lo the people. If bankers, who have the control and management of those institutions, are unwilling to trust them, tho peoplo, who have no direct control over them, oughl not lo trust them. Tho argument, therefore, if troo, only shows the necessity of increasing the liability of stockholders, il we wiah to accure the public. Hut I cannot think that there ia any foundation in fact for this argument. We aeecapiialistsconcentra-ting their capital, and associating themselves together daily, in all ine hazardous enterprises of privste speculation, whero their personal liability is unlimited, and their hopes of gain not so well founded as the bankers. The individual responsibility of the atockholdera. ia not a new feature in the ayalcin of banking. The Scottish banks, and the English country banks, are all established on this principlo; and, in eovoral of tho States, ino principle, unuer certain limitations ana restrictions, is recognized. Capitalists in those countries have not been deterred from vcating their capital in those inatitutiona, on account of the individual responsibility of the stockholder. Those banks have continued, for many years, firm and unshaken, retaining the entire confidence of the community in which they exist, and furnishing us, at the same lime, with evidence of the practicability of establishing banks upon this principle, and of ilicir entire safety to the public. Another prominent evil of tho present banking ayatem, is its constant and inherent tendency to alternate expansion and contraction its power of creating and putting in circulation an excess of paper money, or decreasing the quantity in circulation, at pleasure, and thereby inducing, occasionally, overtrading and consequent bankruptcy and creating a vacillating, uncertain and fictitious measure of value, injurious to all of the great intereata of tha country. Any ayatem of banking which admits of an unlimited issue of paper, without due reference to the specie baaia on which it rests, must be rndienlly defective. Goldond silver is the only basis on which banking can be either safely or prudently conducted ; and, so long as the banka are not required lo have a certain proportion of apecie, to the amount of their liabilities, so long we may expect lo witneaa a continuation of thoao expansions and contrac tiona which have disturbed the businesa order of tho community at times, ever since the creation of the present ayatem. Moat of our present bank charlera require one-half of the capital atuck to be paid in specie, and some of the recent chartcra require the whole ; but none of the banks are required to keep op a cortain amount of apecie, in proportion lo their liabilities. The consequence is, thai the banks, impelled by a desire for train, extend their issues without any regard to their abi lily to redeem their notca in apecie. Nearly all the revulsions in the trade and business of the country, wilh which we havo been affected, have been owing lo ihe alternate expansions and contractions of the banka. When the banka expand, and money ia plenty, men are inducod to extend their business and credit; but aa soon as the banka contract, their issues and money bocome scarce, property falls-credit ia shaken businesa men are unable to moat their engagements, and aro compelled to collect in their claims: the consequence is, a general preasure. The radical defect is, that there is no sufficient check on the propensity, in the banka, to extend their liabilitica. To remedy tho evil, aa far aa practicable, no bank ahould be authorized to extend ita liabilities, exclusivo of its dopnaites, beyond three times the amount of apecio in ita possession, at ihe time of auch extension. Tho effect of this provision would be, to compel the banks, when their liabilities (exclusive of depositee) exceeded tho proportion of throe dollara to one in apecie in their poaacssion, to cease increasing their liabilities. It would secure, at all limes, a more extended specio ba sis, and decrease the probabilities of bank suspensions. In England, custom among the banka, haa given lo thia provision tho fore. of law; and in Louisiana, I believe il ia incorporated into their banking ayatem. In ordor lo ensure tho observance of this provision, on Ihe part of the directors, its violation ahould bee forfeiture of charter; and the directors, assenting to such violation, be made individually liable lo the stockholders and creditors for all injury austnined. The eiiapcnsion of specie payment by the banka, must at all limca, and under the most favorable circuit!-atances, be a great evil; hut, at a time, when commerce and all tho vnrioua branehca of buainess are in high elate of prosperity, il ia ft public cslamity, which tho utmost care and prudence uf the Legislature should be exerted to prevent. When tho banka suspend specie pnyment, and refuse le comply with their contracts, tho consequonce must be, a rapid depreciation of their paper in the pockcta of the people. The varioua suspensions of the banks since I H 1 VI, and the consequent loss of millions lo tho people, hy reason of the depreciation of hank paper, admonish ua thai we cannot be loo care ful in protecting ourselves against such calamities horc-after.Bui the actual loss which th publio sustsin, In the depreciation of bank paper, is not the only evil resulting from bank suspensions. The depreciated currency that takca place, drives all ihe specie out of Ihe coun try, orlocksitup in hidden placce. The country is Hooded with amoll tickela and spurious paper circulation. The aolvent nd insolvent institutions are confounded together, and general diatrust and want of confidence pervadea the whole community. For the purpose of avoiding this evil heroaftor, the banka ahould be required to rcdoem their nolra while Ihey have the meana of doing eo; and if they refuse to do so, or if they suspend for tho want of means, beyond a limited time, in either caae, il ahould be declared t forfeiture of charter, and visited with other auilablo penalties. The bank should be prohibited for the present, from issuing or putting in circulation any notca of a leaa denomination than live dollars and ultimately, their issues ahould be restricted to note of ten dollars and up warda. Thia would furnish us with an every day cur rency, to be used in ordinary transactions, composed of goia ana silver; wnue substantial paper money would be used in the more extensive business operations of the country. It would have a aalutary check on the issues of the banks, incresse the apecie circulation,, and purify tho currency of the State.. -Each bank should be required to publish, quarterly, true statement of the condition and situation of its of. fairs, under the oath of the president and cashier ; so that the people may, at all times, be able to know the banka that are worthy of confidence, and those that are not. At present, the secrecy with which the affaire of banka are conducted, rondera it imposeible for the people to know the good from the bed ones, until it is too late to guard against loss. ine Legislature aliould retain, by express provision, the power of altering, amending,ir repealing bank charters at pleasure. This provision would compel the banks to consult the wanta and intereata of the people, which is now, in most cases, ft secondary consideration. They would feel their responsibility to, and their dependence on, the public, and seek popular favor by desorv-ing it. Experience might show that additional restrictions snd limitations should be imposed on the benks; or that that the rigor of their charters should be diminished ; or a variety of circumatsnces might occur, which would rendora bank uncalled for by the public interest, which was expedient at the lime of ita creation. In all these cases, it would be proper for the Legislature to possess the power of so acting, in reference to those in stitutions, aa the public interest might require. The re- picaciiiuuvua oi me iioupie woum never exerciBe tills right, except the public good demandod it, and then only in such a manner aa to secure the equitable rights of the stockholders. I am aware that many entertain the opinion, thnt the Legislature possess the right to repeal bank charters, without any express reservation of such right. However well-founded this opinion may be in principle, it must be recollected that there ia a strong current of judicial decisions the other way ; and lhat our courts, following the legal precedents, would not, in all probability, recognizo the right. To save all judicial controversy, therefore, prudence demands that this right snouiu ue expressly roBcrvoa in tno cnartcrs. The stockholders should bo prohibited from borrowing money out ol their own banks. This would, at least, prevent persons associating themselves together, obtaining a bank charter, and monopolizing the stock wun it view oi controlling me onnk, and tunnelling themsclvca with money, an indefinite length of time, for speculation. The directora frequently grant indulgences to this class of creditors, inconsistent with the safety of the institutions ovor which ibev uretiile. One of Ihe great objects of incorporating banks is, to concen trate ine surplus capital ol the country tor banking purposes, nnd not to enable a few individuals, who havo no surplus capital, to create money to supply their own wants. It would remove one inducement lo fraudulent bankruptcy, and insure a moro impartial administration of the affairs of the banka. By incorporating these various provisions into the bankinc svstem of the State, many of the obieetinns and evils belonging lo the present system, I believe, would be rcmovedor greatly obviated; and instead of havingslmost exclusively a vacillating, uncertain, and insecure paper medium, we would have, comparatively speaking, a firm and stable currency, composed partly of bank paper, and parity oi go hi ana silver, noone ot tne proposed amendments would, in the least, interfere with a fair, honest, and legitimate banking business; nor would they prevent bank capitalists from msking a fair and liberal pro. fit on their investments. Their operation would be felt by tho imprudent and dishonest, and not by the prudent and honeat banker. I have no doubt but that Ihe banka in our State are aa safe, and entitled to aa much confidence, as like institutions inothor States; but the sys tem itscu is ueiecuve, in auonung io the tew who may bo disposed to act fraudulently facilities for doing ao, and an entire exemption from any adequate responsibility. It is to remedy this defect in (he system that the aoove provisions are proposed. All our experience goes to prove, that we cannot be too guarded in reatrictimr. limiting, and defining the powers and liabilitica of moneyed corporation; and that, however rigid we may be in thia particular, thore will be constant tendency, on the part of those institutions, to exercise powers by implication, or otherwise, which we never intended to grant. 1 am aware that there may be some difficulty in ffivintr an immediate and practical operation to all the above reform provisions, a none of the bank chartcra expire uiuii me isi oi January, 101.1; out, ii you anouia be called on to extend any of the bank chartera, and dcom it expeuieni io ao so, i wouia respectfully recommend to your consideration the policy of incorporating ihe above provisions into the extended chartera. I would .Ian suggest the policy of passing law to suppress the circulation of all notca of a less denomination than five dollars, and prohibiting the banka from issuing post-notes, and inflicting auitable penaltica on all banka thx m.v hereafter auspond specio payment, or in any manner vio- mie ineir cnariera. I would also recommend a critical inveatigation into Ihe afluirs of the bsnks. with a view of ccnn.nin th.,. condition, and whether thoy have not been guilty of Mutiny, anu iuiiu,or ;imeui:eB, wiucn snouia De guarded against, in luture, by legislative provision. Under the existing laws, it is difficult for persons having claims on bank thai haa failed, to get any por tion ot meir aemanoa. oy legal process, without great cost, delay, and trouble; and the effects of the bank. which migiii uo aecureu lor ine Dencntot the crcditora, are frequently squandered, or placed beyond their reach- Dciore a juugmeni oi lorieuure oi cnartor can bo obtained. For the purpose of remedying these evils, and to enable the ereditora lo recover their demande without the expenae and trouble of an individual prosecution, in each caae, I would recommend the passage of a law six thoriiing the several courta of chancery in thia State, on bill filed, by any one interested, to restrain a bank thai had become insolvent, or violsted its charier, from exer cising us powers; anu io appoint a trustee or trustees to take charge of all the ciiocla of the bank, collect Ihe claima, and pay the ereditora. A law of thia kind, defining in detail the powers and dutica of court of chancery in auch cases, would secure all the effects of the bank, anu mrnisn an avauooie romeuy to tne creailora, I would also recommend the nasssire of a law nmhihi. ting, under suitable penalties, tho establishment within this State, of any branch, othce or agency, of the Hank of the United States, aa recently chartered hv th. Com. monwealth of Pennsylvania: Also, that it be made penai onence, lor any director or stockholder of any bank in thia Stato. to purchase or rccoive, either direct ly or indirectly, the notes of the bank, in which he ia interested, for less than the value for which they purport to be issued. Intimately connected, in many respects, with the sub- jeei io which t nave cniieu your attention, la tne que-lion of Ihe separation of the Federal Government, in ita fiacal operation, from all banka and banking. This question, perhaps, ia of more deep and general importance in it practical and ultimate bearinga on Ihe intereat of the people, and the character that our lovernment ahall hereafter assume, than any ono lhat haa ever agitated the American people. The unparalleled increase throughout the union, ol incorporated banka, wilhin Ihe laat twenty yeara; the manifestation of combined and concentrated action on the part of many of them, lo control tha politic of the country; and ihe bold and open claima which they hava made to the poaswMon of the public revenue, after having violated the trust reposed in them by the government, have given iuet ran, for serion. anprh-n-4n. vf die ultimata safely of our republican institutions, and led many to qurstionthe pnl-iry of giving to bsnks, any longer, the custody and safe keeping of the public money. 1 he uanka have no legal or equitable right to claim the custody of tho publie money, or that the government shall take their notes in payment of the public duea. In their acta of incorporation, which they claim to be in the nature of private comrade, there ia neither an exnrcsa or implied condition thai the government ahall cither re-ccive their notca, or deposito the public revenuo with litem. If Ihe public revenue, therefore, should be received in gold snd silver, and, when received, bo depo ailed with the responsible officers of (lie government, the bsnks will have no cause to complain that any of their rights have been disregarded or violated. Nor can the fact of the govarnmeni collecting, keeping, and disbursing its own revenue, be construed into an an of hostility towards tho banks, or a disposition to destroy them. How canon act, which deprives them of no right whatever, but leavca them in Ihe enjoyment of all their chartered Srivilegea and immunitica, under the protection of the talcs from which ihey are derived, peso oonstrucd! In what kind of currency Ihe public revenue shall be received, and where, and in what manner it ahall be kept after it ia collected, are questions of expediency which must be controlled by publie policy, and not by Ihe private interests of the hanks. The question is, what shsll he done with the publio money from the time it is received by the collecting officers, until it is wanted to be paid out to the public creditors' It is proposed by the Administration that, from Ihe lime it ia received until it ia wanted for the public use, il ahall remain in the handa ef publie officer, who ahall give bond and security for th forthcoming of the money, when legally railed for, and who shall be suhjorl to sovere penalties for usintr il : and, aim, that al tho end qf aix years, or some apecihed time, the revenue of the government shall be received in gold and silver. In op position to this, it is proposed that the government shalj receive the note, of h.k. i n. r .k. -..hi; duos, end when received, that they shall be deposited with the banks, to be bv them inin.rl ..i h.iV .,.,- mere. The special denosite svstem m.v h. ,. ;.!.,, fts out of the question. The public intereat demands that the revenue of the government, which ie paid by the people and belongs to incm, shall be kept so as to be, at all times, available, for the purposes for whirih it wns collected. If it isde. posited with the bonks, to be loaned out to their customers, and mingled in the trade and business of the country, our experience tolls ua that it ia not at all time available for ihe public use. At the time of the recent suspension of the banks, nearly the entire revenue of the government was deposited with them. With millions, nominally, in the Treasury, ihe government waa, by that act, left without a dollar to meet its engagements. nouiuiioe wise or politic to place the government again, at the will of those institutions! Should we agree, aa the sottlcd policy of the country, to place the power in the handa of a few irresponsible banka, to atop ' the.wholo machinory of our government, in peace, or in' war? The public officer who refuses, or is unable tone over the public money when demanded, is at once dis missed, covered with ell the odium and disgrace of public defaulter. The administration that would again trust him with the publio money, would be denounced as regardleeeof public duty; yet, what is the difference between an individual defaulter and a bank? What code of public morale will exempt one from censure and heap condemnation on the other) 1 he uao of banks aa publio depositories, has contributed ffreatlv to our hankincr in th Urn imiwril.. mI- ties where the revenue principally accumulatee. Over bonking in the large cities leads to similar reaulta throughout tho whole country. To thia cause mnv be attributed,' lo ft considerable degree, the fluctuations in the currency which we have so much reason to deprecate, and which we should be so anxious to guard against hereafter. Theobjcction most relied on, against the policy recommended by Ihe Administration, is, that it wouldope--rate injuriously upon the banks by depriving them of ft' specio basis to bank on. Its operation in this particular, is, no doubt, greatly exaggerated. lam free to admit, that it would have a material influence on the banks; but' I beli eve that the influence would beasslutary one It would check the over issue of th banks, and, thereby. niivu mure .looiiiiy ro ine currency ana tne business ot the country. I t would have a tendency to pul a atop to ma, nail mania, wnicn tnreatenato combine a moneyed influence in thia Union, in the shape of incorporated wealth, capable of controlling the entire business of the' country, and the destinies of thia republic. It would not destroy the banka bv doorivintr them of a sneeie ba. sis, but would restrain their abuses. The amount of ape-' cis in me u . otoics, is estimated al over eighty million, and is annually increasing. The greateat amount that the government would have in iispossession at any one time, would not exceed ten millions ileavin&r npWard of seventy millions aa basis for banking operations, and' a currency for the every day tranaacttona of life. It would also indnce the importation of apecie, by increasing a demand for it. The inconvenience of making pay ment to the government in specie would not be felt. These psyments are principally made in the large cities, wncre neany su tne revenue is collected, ana wnere specie accumulates, and can alwaya be commanded without difficulty. The objection that the public money would be unsafe in the handa of responsible officers of the government, under bonds, and subject to severe oensltie for usinc it. is entitled to but little consideration. If the objection i I : .-E - i . ... guua nguinsi oiiiccr. wno aeep ino puoiic money, ll is-also good againat officer who receive and disburse it; and show an equal necessity in each case, so far as the safety of ihe publie revenue is concerned, for the agency of banksi yet'rhe idea of dispensing with receiving end disbursing onrcers naa oeen tnougni ot oy no one, nor haa the solely of the public fund, generally, while paaf ine; through1 rtieir hands, been questioned. me oojocnerr inai n wouia increase exeeuttv ps-ronsge, is entitled to still less weight than either of the others which I have noticed. The Executive can draw no money out of the Treaaury, except in pursuance to the prescribed regulations of the departments, and by virtue of an appropriation mado by Congrese. He would hsve no power to resch il, whother deposited with officers of the Government, or with banka. It ia not by the possession.but by the use of money, thst executive patronage ie increased. It' ia, therefore, difficult to perceive how the bare custody of the publio money, by t subordinate officer,' who ie prohibited from naingit,or permuting it to oe usea, couia increase executive patronage; while we can very readily tee how the power to select bnka,and give to them the publie depositee, to be loaned out and used lor profit, would have that tendency. Instead of increaaing, I know of no measure- met couia be adopted more eltectually to diminish hi patronage. The policyof creating United Slates Bank, to eclea the fiacal agent of the Government, is more objectionable, in mv iudffment. than any other nl.n thai h K-n . proposed for keeping the public money. I view the creation ofan institution of this kind, aa fraught with the most fatal consequences to th liberties, well as th prosperity oi in. popie oi ims couniry, ana ft violation of the Constitution of the United Stales. A ft fiscal agent of the Govemmvnt, it ia liable to many, if not all the objection that have been urged againat the local banka. The danger to be apprehended from the power of such an inalitution. Is greater now. than at any form er period in our history,' on account of the great increase, in number and capital, of kindred inalitution. I nat it would nave ine power ol controlling all Ihe local banka of ihe country, numbering over eight hundred, and possessing capital and credit of fiv.Tiundred millions, is claimed by its opponeals and admitted by it friend. Every new bank lhat would beer-sled, would add lo ila power. Ita proposed cspital of fifty million wilh lha depositee of the National Treaaury, when added to the capital and credit of the local bank, would constitute moss-of power capable of controlling the entire business of ihe country, and might prove too powerful for the Government itaelf. If auch en inalitution, possessing auch powers and influence, ahould form political alliance with ft friendly Executive, end Unite th money power wilh the patronage of the Government, would we not hsve greet cause to fear that our republican inatitutions would become corrupted by the alliance, and, sooner or later, degenerate into moneyed despotism!The principle which 1 sought to be established, by the creation an United Statea Bank, isdsngorons to our free institutions, and calculated, more than any other, to distuib the harmony of ihe Union, snd infringe on Ihe rights of the Slsies. I hold that the Federal (Jovorn ment possess- no power except those which ar expressly delegated, or such aa re absolutely necessary to carry into effect some of the expressly delegated power. That when there ia doubt aa to whether power i delegated or not, the Federal Government ahould refrain from exerciaing it. It ia not claimed that the power to charter bank i oxprcesly delegated! on Ihe contrary, il waa proposed in the Convention that framed Ihe Constitution to confer Ihe power of creating corporations, but lha pronoei lion wee rejected. Il ia not ft plain and obviously implied power, aa scarcely any two can agree aa lo the clause in the Constitution from which il is da-rived. It ia not ft Dower nee.surv to e.rrv into effect any of the delegated powers, a they hsve ell been exercised without it. The creation of bank, therefore, by the Federal Government, to say Ihe leaat, is doubtful implied power, which, if permitted to be exercised in one esse, must be permitted in all other, depending on. the same principle, making the will of ihe government' virtually the only limitation to its powsr. I believe thst' the true policy is lo adhere lo strict and rigid construction of the Constitution! Ihsl Ihe Federal Government ahould exercise no doubtful power; that the reserved righla of the States ahould lis strictly regarded, and, lhat each Stale ahould be permitted to regulate ita own domestic inatitutiona according to it own view of policy.The departure from these principle in th administration of th General Government, hse led ua into all the internal difficulties which we have been eompellsd lo encounter from Ihe first organisation of the govarnmeni, up to the preaent lime. It waa deviation from these principles that led to the Alien and Sedition laws, to charter of a United Stalea Bank, to the pussg of tariff law, not for revenue but protection! and 10 ft wild and extravagant aystem of internal improvement by Ihe Federal Government. These measure, hsve bean ft fruitful source of at rife and controversy amongthe Stale, nd some of them have, on eevoral occasion', threatened Ihe dissolution of the Union. On the contrary, while the Federal Government ha confined iiself to Ihe expressly delegsted power, snd refrained from the x.r-cise of all doubtful earn, ihe whole machinery of our government ha worked well, and (very thing gone on harmoniously. Ho long aa the government ie edmini terrd on these principles, eo long will this Union Bland ft beacon light to ths friends of liberty throughout th world. But so soon aa we venture into that boundles se of implied power, th vessel of Stale will be exposed every moment to shipwreck snd destruction. Let ua learn wisdom from the experience of the past, snd pursue the euro and certain road to national anion, prosperity, and happiness. WILSON SHANNON.