[FONT=Times New Roman][/FONT][FONT=Times New Roman]The checks[/FONT][FONT=宋体][/FONT]
[FONT=Times New Roman]The checks, which have been adopted by some - of the state legislatures, have been to restrict the amount of their loansthe amount of their debts generally, and of their notes in circulation in particular.But, in some of the states, the only restriction in their charters is, either that the amount of their loans shall [/FONT][FONT=Times New Roman]Tory Burch Flats[/FONT][FONT=Times New Roman] [/FONT][FONT=Times New Roman]not exceed three times the amount of their capital stock, or that their issues shall not exceed that proportion; but both these restrictions are merely nominal; and, so far as their charters influence their management, they, under the show of imposing a restraint on banks, leave the safety of those institutions to their own discretion. It seems not improbable, that when the first charters were granted, the legislatures, being then little familiar with the subject of banking, and understanding from English writers that the bank of England considered it a rule of safety to have in its vaults one third as much specie as it had notes in circulation, they conceived that, after having required the whole capital stock to be in specie, they were adopting the same rule as the bank of England, in limiting the amount of circulation to three times the capital stock, without adverting to the fact, that,[/FONT][FONT=Times New Roman] [/FONT][FONT=Times New Roman]Tory Burch Outlet[/FONT][FONT=Times New Roman] as the bank could not issue paper without at the same time issuing specie, they might reach the prescribed proportion of three times as much paper in circulation as specie in bank, before the former had even doubled their capital stock, or even before their loans, made partly in paper and partly in specie, had reached that amount. The provision, having once found its way into early charters, was afterwards copied in others, on the presumption that it had been tested by experience. It seems difficult to account, in any other way, for such a latitude of discretion given to institutions that were known to be objects of popular jealousy, and which the legislature evidently meant to place under salutary restraints.There is no bank in the union in which the discounts and loans are three times the amount of [/FONT][FONT=Times New Roman] [/FONT][FONT=Times New Roman]the capital; and, in , when the issues had been greater than at any former period, in only-ten of the states the discounts were more than twice the amount of the capital; and there were but nine states in which] the issues and deposits together exceeded the capital.[/FONT][FONT=Times New Roman][/FONT]
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