UNIV OF CALIFORNIA 101 associations are untrammeled, as they ought to be, except by the general laws of the State. And one of the greatest benefits which the State may expect from them, arises from their liberty to deal in public stocks, which the incorporated banks have not. The Bank of Commerce has already done the State good service in this respect, and like services may be expected from the other institutions, when their arrangements for business shall have been completed. This too, will be found to be a source of great profit to the new institutions, which is entirely denied to the chartered banks; and will prove of immense advantage to the other States in the Union, as it will give them a market for their stocks. All these advantages cannot be expected from the Law, until every question respecting its validity shall have been finally settled; active opposition from opposing interests ceased; and public confi. dence shall flow in a full and warm current upon the associations. The people, however, after all, are the greatest gainers by the new system. They have a convenient and perfectly safe currency ; and also free competition among lenders-the two great ends of banking, so far as the public at large is concerned. The associations, will, moreover, be stable. They are out of the reach of the fluctuations of popular legislation. Every association is a contract between the parties, which is protected by the Constitution of the United States, which prohibits a state from passing a "law impairing the obligation of contracts." These associations, therefore, must continue for the periods fixed in their articles of association, and enjoy the powers given by the Statute. A repeal of the law will only prevent any more from being organized. Thus we have a system of banking permanently settled, and no man can count the many blessings it will be the means of conferring on this people. ERRATA. Page 24, line 6, from bottom, for incorporated read unincorporated. - 44, —— of second paragraph, the quotation ends with the word association. The word in, on the last line of page 46, and the first two lines on page 47, to be marked as quoted. |