The New Hampshire Gazette And General Advertiser

As the establishments of Banks are the most useful institutions for the convenience of commerce that can be introduced into a government, and by which AMERICA has been relieved, when her cause was in a dependent State; it may not be amiss to give some account of those which are already formed, and of others which are forming, and to propose one or two of different natures to be set up in this State. The first Bank was erected in Jan. 1782, at Philadelphia, known by the name of the Continental Bank, originally consisting of four hundred thousand dollars, now increased to nine hundred thousand in shares of four hundred dollars each. Another Bank is formed at Philadelphia by the name of the Bank of Pennsylvania, consisting of seven hundred shares at four hundred dollars to a share. Another at New-York, consisting of seven hundred and sixty shares, at one thousand dollars a share, one third paid in cash, and two thirds in land security, put in at two thirds of its appraised value. Another is formed at Boston, which consists of three hundred thousand dollars at three hundred dollars to a share, which were subscribed for in a few days after it was opened. Another Bank is forming at Providence, and is expected to be filled before the time set for its taking place, to consist of one hundred and fifty thousand dollars at three hundred dollars a share. And the usefulness of these institutions has been found to be so great and beneficial to commerce and agriculture, that there is no doubt but many more both public and private will be further encouraged: and although the inhabitants of this State have been drained of the current cash (by British importers who seem to have engrossed our whole trade without imposts, and enjoying every privilege in common with the inhabitants of our trading towns, while we are shut out of the only profitable branch of trade which could be carried on in American vessels, from hence to the West-Indies and Britain) -- yet with all these obstructions, a small Bank of fifty thousand dollars consisting of five hundred shares, at one hundred dollars each share, may be easily carried into execution, as the smallness of the subscription may be conveniently filled up, and some subscribers may hold twenty shares or more, and executors or guardians of minors may deposit their monies in these funds, as the safest and most secure way of letting the deceased's monies. Add to this: that persons may by their wills direct their executors to buy shares in the Bank, or become subscribers therein, for the use of their children who they leave minors. The nature of Banks are not well understood by people in general, and therefore a speculation thereon will be soon inserted in your paper, for the satisfaction of your readers; it may at present suffice to inform gentlemen in the country, that they cannot put their money in a more profitable state than in a Bank, which is generally under the direction of the first characters in the state, for interest and probity, and instead of having their cash lying dead in their desks, they may make it profitable to themselves and their posterity; and what adds to the advantage is, they may have their money paid to them at an hour's notice, if they want to appropriate it to any purchase. The number of subscribers being large, will make it the more valuable and creditable, and every subscriber will from principle, support the credit of the Bank, and make its notes the sole medium of trade besides. It stops the exportation of so much money, which, of itself must be attended with great advantages to the trading part of the community. An institution was proposed in your paper some time past, which was thought not only practicable, but every way safe, and carried with it the form of a Land Bank, only not subjected to the inconvenience that have attended the overrating the value of estates, and I think was the most secure of any I ever saw proposed in any government, whereby any gentleman upon his own estate, might by the assistance of the legislature, issue his own notes to the amount of one third of its appraised value: and such appraisements to be made by the selectmen of the town to which he belongs, or where the estate is situated; and to prevent any impositions in the appraisement, it was proposed that the selectmen should make the one third of their valuation good out of their own estates, if the estates so appraised by them should not finally fetch that value, or take the estate to themselves. And such notes so secured and registered, and indorsed by the treasurer: should be received in payment of state and town taxes, and in stead of demands in payment of debts from the state to its inhabitants, and to be a tender for debts, for the term of time for which his estate is mortgaged, which will appear in the face of the notes, and it was proposed, that every issuer should write with his own hand the whole of his note, which could not be easily counterfeited, when his name alone might be, and being indorsed by the treasurer, would still be more secured. I remember that proposal struck my mind very forcibly, and I could wish to see it reprinted and examined with candor, as it seemed to be proposed with no other view than the good of the community.

AMICUS REIPUBLICAE.