National gazette. — Philadelphia [Pa.], 1793-02-16 00:00:00, page 2

ift. To encreafe the public c'cbt fcy every
artifice, fur the purpol'e of cnliliiiig
more troops, armed with money, which
is power.
2d. To discountenance enquiries intopub
iic funds, and ccconamy in their ma
nagement, as obltmiting their deligns.
3d. To itrengthen their party, by-creating
a northern and southern interest, oppo
sed to each other, between states, which
iuve, in lacl, a common interest.
■4ih. To effect a lileni, tho' fundamental
revolution, by transferring the national
influence over the legislature, to a ino
oiedintereft in the hands of a lew indi
viduals
sth. And finally, to erect a monarchy or
ariitocracy, to restrain the deceived ma
jority, fliyuid th< y ever recover their
underltandings.
With rtTpecl to \V-iat it ouglit to be :
The party ought to conlill of the moni
ed interest oniy, because their deligr.s and
ai'e clearly i.i opposition to the
landed and labouring interelts of all deno
minations. 'I hefe, in order to prefcrve
their liberties, ought,
lit. To oeconomife the public revenues.
2(1. To p. V the debt as l'alt as poliible.
3. To ui.tch over the public resources,
and apply them in the molt beneficial
mode.
This arrangement of parties is cunning
ly eluded by foltering i'eparate interells
bet / een the Hates; by persuading the la
boring dalles that the taxes favour them;
end, by a series of newspaper paragraphs
and correfpondeucies, written by fpeciila
tors, who have money and leisure for such
performances, and who had rather \inte
than work for a livelihood.
The mouied interest is a kind of flying
f.juadron,whofe object is to divide the great
m.ifs ot the people, by a geographical line,
and to cajole one divilion, that they ma;
Jive at free quarter on the labour of both.
Hence it will be well for the people to
colli ider,
ill. Whether an attempt to persuade
them, that they do not p y taxes, is not a
deluiion ? Are taxes any thing except la
bour ? If the merchant pays a tax 011 his
coat or mine, mult not labour ultimately
reimbnrfehim ? Is not this deluiion c!e
(igned to lull the agricultural and mechani
cal interest into (ecurity, and to blunt
their enquiries concerning the difpoiition
of the taxes ?
2d. Whether those who pay, or those
who receive, are molt likely to search in
to the difpoiition of public money? and
how far this principle will apply, respec
tively, to the conduct of those members of
Congress, who encourage or embarrass
such an e.iquiry ?
3d. Whether lifeil perplexities are not
calci la.-d to keep them in ignorance as to
the d.ijjolition of their money ? Whether
ignorance is not a good foil, in which to
plant despotism? And whether they have
jlad a plain and finiple statement of the
public funds, from the ertablilhment of
the government to this day ?
For my part, itfeems to me, that all the
landed and labouring classes of citizens, in
ail the dates have, one common interelt.
and that none, but wood n men, w ill
fuller themfelvcs to be played off,like pup
pets. by newspaper paragraphs, for the c
molument of fellows behind the curtain.
A FARMER.
Observations on the propriety of erecting
a new Bank, in which the state may bt
a large stockholder.
\_lnferted. by desire, from the American
Daily Advertiser of lafl Wednesday.]
'T'HE history of banking among us is of
modern date. The firlt mftitution
of that kind, viz. the bank of North Ame
rica, was introduced in troublesome times,
under the auspices of the then financier ;
it was organized upon principles different
from those in other countries, and by 110
means congenial to the government and
habits of our own country. However, at
that crilis tile public derived advantages
from it ; but the ruin which it occalioned
to numerous amiable families, was in my
opinion an evil, which did more than o
verbalance all the advantages which com
merce derived from it; indeed, while the
balance of trade was againlt us, it injured
commerce byincrealing that unfavourable
balance.
The eale with which the generous and
tinfufpetting friend can be prevailed upon
to (ign his name to a note, when he has not
the money to lend, or would not lerd it i(
lie had it, and the facility with which the
ralli and unexperienced trader can involve
both himfelf and his friends, are evils which
seem to be inseparable from banking, and
"which time and experience will never be
able wholly to prevent. Therefore, if the
queflion were on original ground, I
would heiitate about erecting a bank at
a!i.
But to return to the cafe as it stands at
present. Though the bank of North A
roerica has by the law of the state been de
prived of the claims of monopoly which
it boldly asserted, and though the durati
on thereof is limited ; yet the want of ro
tation in the directors, and several other
caufes,render itvery unfit for thejcominon
wealth to become a ftockiibUcr therein,
and we observe from the imtructions ot
the (lockholders, that they are so jar from
being clilpufid to surrender their charter
arid accept of a new one in order to ac
commodate the state, that they infill on ha
ving their charter extended years.
But to do justice to tins inftiftition, I
believe it is in good hands and for some
time past applied its operations to propel
purpol'es. Though it will not be denied
chat v ery improper and partial discount.
h u e formerly been granted, and that some
have carried on buGnrfs to a great exten
upon money detained from the bank foi
11.ore yean than the laws of the inOittui
on permitted weeks, while others have
had little mercy fliown them ; but thi
condnft 1 presume will not be'repeated.
But as the charter of the bank of Nortl
America is not fncli as to admit of the ft at:
with propriety and fafety becoming a stock
holder upon any terms which can be pro
posed nnder that charter ; neither is it
capital fuficiently large for tha commerci
al purpol'es of this city If a bank canno
discount with an equal hand on all gooc
paper, it is better to have none, fu if al
cannot be supplied, undue preferences wil
be given, and the institution will acquire
an improper influence, as it will poll'efs the
power of taking revenge, li discount
are unexpectedly flopped, orbecome irre
gular, the lairelt and inoft substantial tra
der may be ruined, becau.e the expecta
tions on which he made his arrangement;
'ire cut oft". Thus a b ink with an infuf
ficient capital, or a bank claiming a mono
poly. which may diltribnte its favours ca
pi icioufly, instead of a salutary accommo
dation to commerce, is a dangerous snare
The conduit of the bank of North Ame
rica some years ago, is a proof of the lail
obfervj ions, and I am ntifhtken if then
ire not circumstances to be found at pre
v\ hich give ample teltimfiny to thf
:ruthofthe milchiefs ariiingfrom aninfut
Scient capital.
But it will be objected that the bank oi
the United States now exiliing in this city
ins a capital fufneiently large for all tin
purposes of commerce. 11 is with reluc
tance I fay any thing about that instituti
on, but it is too w ell known that discount!
to the merchant or manufacturer have evei
been very sparingly procured at this bank,
and that very frequently they are not tc
be procured at all; that it "has hithertc
with refpe£t to all the purposes of ufeful
L.duflry proved a gilded snare-
This bank was iutiituted under the aus
pices of rlie present financier as a part oi
his fifcal system. He saw the public debi
of the .United States scattered through tht
Union, much of it in the hands of specula
tors, and unfunded ; he call it into new
and various forms, and by a variety ol
provi ions made a discrimination in its va
lue,&not only funded the interell that hac
been piid by many of the states under ar
apprehenlion that they were so far extin
guiihiug tlieir quota of the debt of the uni
on, but also placed the alTun,prion of tht
state debts to a much greater amount
than did then i ftually exist ; thus by ad
ding many millions to the aggregate deb
of the union, and throwing it into a vane
ty of forms, a vast field was opened forth<
progress of that spirit of speculation whicl
had already diverted much of the attentioi
and capital of the country from the pur
suits of a£tive and hc.nelt industry.
But the institution of the new bank gave
a much greater ftope to the operation o:
that spirit. With u hat avidity the oppor
tunity was improved is well remembered ;
for the history of (crip is too recent to be
forgotten. That the discounts of this banl
should be partially obtained for the pur
poses of Speculators was pretty natural,
and that they were so, was fufticientl)
evidenced by the bubbles of the lalt year.
That Congress fanftioneel the miniller";
plan. I admit, but that the afl'umption ci
the state debts, and incorporating of a
bank were at least doubtful upon the
ground of constitutional authority, cannot
well be denied.
Aiding the merchant who exports the
produce of the country, and the manufac
turer who improves it, is the great end oi
banking. Such iuftitiitions as neglect this,
or only make it a secondary object, ought
not to be depended on for that purpofc".
I am juftified by experience in fuppo
(ing that all the a£tual specie capital of the
Bank of the United States is little enough
for the support of the fpeculaticiisthat may
be made under the funding system, there
fore it cannot fnpply the demands of com
merce, nor will it greatly interfere with
the ufeful buiinefs of other banks ; the
bank of North America knows this by ex
perience, the dividends of that institution
have not been much, if at all, leiiened by
the operations of the new bank.
The directors of the banK of the United
States are chosen from all parts of the uni
on ; several from Boston, and some fFom
Charleston; there is but a proportion in
Philadelphia, and that proportion is elec
ted by the stockholders, the majority of
whom relide in other states, therefore a
great numberof the dire&ors arein a degree
ideal, and at any rate not so much interes
ted in the commerce or improvement oi
this (late, as to give fufficient confidence tc
the citizens.
That the merchants and manufacturers,
as well as the formers of this ft tte. ought
either to have fufficieat difcouuts on their
good paper at the bank ror tarrying on
their biiGnefs, or else th t there ftiou:d be
no banks at all, I think cannot be Hifputed.
The banking capital is always too small,
whilst obtaining a dnlount is esteemed a
favour, or the refilling thereof an injury ;
if this is true, surely the banking capital
for ufetul purposes in this city is inade
quate to the object.
The advantage to agriculture arising
from banks, is a ready supply of cash at all
times to piirchafe the produce of thecoun
try for exportation ; by this means the
merchant is enabled to pay the farmer im
mediately, to clcar his vellcl the sooner
out of the harbour ; and to command the
foreign market. When the bankfuddenly
flops difcouitting, the farmer is left in the
power of the few who happen to have mo
ney on hand. ThiJ was fiiificiently exem
plified in the fall of the price of flour ear
ly this winter, it was not the want ot fo
reign demand, but the want of money at
the banks which occasioned that lull of
tile market.
I have always had an aversion to govern
ment's engaging in any private commerci
al b'jfinefs, and forefecing that reviving
and funding the interest that the states
had discharged, and afiuming the state
debts, much of which was already extin
guished, would bring agrest and unexpec
ted amount of money back into the
hands of many of the state governments,
was onereafon of my earlyavcrfion to the
extent of thatfyftem. However, that ha
ving taken place, and Pennsylvania having
a very tonfiderablc Aim of money tor
whiih there is no immediate pu6lic use.it
is the Jury of the legislature to dispose
thereof in some such systematic manner a?
Will render it productive ; and in doing so
there are but few methods optional.
A bank and a loan-office are the only
plans fiiggefted ; andthefe plans do not
itand ill competition with eaih other; the y
perteftly coincide. I have not leifnre
here to explain, how a loan-office might
be ingrafted npon a bank. But that it
might be, there can be no doubt, and per
haps the 1110 ft advantageous plan oil which
one could poilibly be eftablifiied.
Much of our money is already deposited
in the bank, out cf which that inftittition
makes a profit, whilst the state itfelf de
rives no advantage from it, but v 's paying
intereftfor twenty thousand pounds to the
bank on the account cf the President's
house.l apprehend themcney for that house
was not a necefi'iry expenditure, and there
have been other bargains also by which
we loft as much as would have yone far
in improving the state, endowing semina
ries of learning, &c. and as long as the
public money is not put to some systematic
md productive life, the legislature will be
frequently surprised into job and bargains
until it will be all squandered away, and
then the people will be called onfordireft
taxes ; and wnat is worse, their confi
dence in a government which paid so lit
tle attention to their intercft, may be im
paired-
It is univerfdly allowed that banks are
a fourie of influence, and that their in
fluence is capable of affecting the operati
ons of government. That it has been
more than once exerted to influence elec
tions in this state is too notorious to be
denied.
The influence of banks chiefly arises
from their power of granting or withhold
ing difconnts, consequently, providing a
competent capital to afford discounts in
ill proper cases, will have a dirett ten
dency to annihilate that dangerous influ
ence. And in the present new state of
things, w lien government and
several of the state governments have in
troduced that fpeciesof governmental spe
culation which consists in banking, per
haps it may be necessary for the state of
Pennsylvania to counteract any undue in
fluence arising from their systems, by or
ganizing a state bank upon an improved
plan, v hich will be more immediately iri
terefted in theprofperity of the common
wealth.
A LAND CULTIVATOR.
For Gazette.
SENATE DOORS.
news-papers having difJofed the
-*■ resolution of the Senate, to persevere
in keeping their doors (hut, it is not impro
per to toulider how far this resolution com
ports with constitutional and democratical
principles.
It is observable that the previous propo
sition, in the nature of a preamble, (fating
principles and fa&s, as concurring to support
the conclusion, " That the doors ought to
be opened," are evaded by refortingto the
previous question ; but this evalion Concurs
with the vote given, to disclose an opinion
with regard to these propositions, in the
negative.
The tirft proposition thus negatived, is in
these words, " Resolved, that the Sinate
of the United States are individually re
fponlible for their conduct to their consti
tuents, who are intitled to such informa
tion as will eaable them to form ajuft ef
tiiruife thtreof." The v )-c of the Srrvte
discloses an opinion, that they arc oniy rc
fponfible " to God and their own confer
ences," as hath, it is (aid, been publicly
avowed.
Heme arises a political i(Tue, between
elected and electors, the decision ot*
\\ hieh will eftablilh aprecedenrcf unequal
led importance. And it may not be amis's
to hazard a tew desultory observations on
the subject, by way ot inducing abler pens
to take up its discussion.
Political writers aflbrt, «that niagifirates
are the ffrvants of the people," and the
general opinion of the people, hath flamped
the proposition, with tile verity of a politi
cal axiom. " Servant," clearly includes
:he idea of responsibility : not a shadow,
3ut a fubftancc; not in the aggregate but
ridividually. Otherwise, instead of con
forming to the conllitution of the people,
nagiftrates may conform the constitution
0 their on n tlefigns. Their power is un
iinited and uncontronled, if they are the
anly judges of its extent, and the only re
llrainers "f its excess : and when absolved
rom refponlibility, their judgment is the
Here result of their will and pleasure.
A right to change representatives and se
nators on a new election, is guaranteed to
:heele&ors by the conllitution. Is it a
right involvirg a remedy, or is it unfruit
iiil ? Had the uhole Senate been chosen*
by one body, a remedy againll oppressive
laws might have cxifted, by excluding
1 lie whole, by involving the innocent and
guilty in a common fate. Put this right
from the mode of election, can only be ex
erted over individuals, individually. Jour
nals, which may be altered, expunged and
made up, according to the will of a major
ity, will convey but little information as to
the condu6t of an individual. Journals
have neither aspect, action, or emotion.
They exclude a croud of intelligences cx
bited by real life. If a controversy ex
ists concerning an inconliderable private
right, you claim a trial on viva voce testi
mony } but when your liberties are at
stake, you are content with written certi
ficates, framed by the agjrt fling party. Of
what avail is the right of judging on every
Dleftion, v\ lien the means of judging right
ly, are', withheld ? The tree of refponfi
loility in allies branches,is thus completely
eradicated.
The right divine of kings was the doc
trine of several centuries, and we are sur
prized to find that its refutation required
the talents of a Sidney and a Locke. The
jure divino of the Senate will ere long ex
cite alimilar aftoniihment, tho' itmuftnow
be as feriouliy queftloned. Out of this di
vinity emanated the maxim, " that kings
can do no wrong;" nothing {hort of which,
is that now endeavoured to be interwoven
with our political web, " that the Senate
are not refpor.lible for any wrong they may
do." It M ould make the Senate a many
headed despot. No fi&ion oflaw is necef
laryfor its petpetnal exiltence. No death,
no minority, no lunacy, affords an interval
for checking unconstitutional designs, or
recovering violated rights. Tho'there be
a gradual rotation of men, the principles
are unchanged. A Handing army, making
an annual campaign, retains the spirit of
the corps, and continues veteran, tho' kept
up by a few occasional recruits. Neither
public influence or responsibility can pene
trate the walls of the Senate Chamber ; anrt
hence a change of men may never produce
a change of measures.
What is this but a virtual representation ?
a majority of that small body may eventu
ally be governed by personal interests, at
snmity with the public good. How is this
evil to be correcft d ? Kefpoiiiibility to the
inftruttious of condiments— to national in
fluence—to the public voice—and to pri
vate reputation, are all prostrated. The
evil.is secluded from the public eye, and no
remedy is left, but to reward or punifli the
Senate, as if it had but one neck. The
right of re-ele£tion becomes therefore a
ridiculous bauble, instead of ronftitutiug a
üblfantial check. For of what import is
information, carefully filtrated through the
journals of the Senate?
It is as unfriendly to liberty, to be re
jardiefs of the rixed and deliberate will of
the people, as it is ridiculous to be the
weathercock of every transient clamour.
Popular influence and liberty niuft be near
ly allied, if not inseparable. Is it not a
iiood definition of despotism, to fay, that
no popular influence operates upon the Go
vernment ?
The Emperor of Germany hath publish
ed an edict, prohibiting his people from
tiling an acquired talent— they are forbid
to read. Why ? Left they (hould under
fland. The Senate have prevented theuft?
even of natural organs. The people fliall
neither fee or hear- Why?
f oo much caution gives suspicion of a
treasure. What are the Senate guarding?
Is it a money thermometer, tiuftuating
with the ffate of stock ;, o,- is it the repo
sitory of public rights ? If the latter, why
are the proprietors of those rights shut out
from a knowledge of their deliberations {
ft is always good policy to yield to prin
ciple. Mystery in government is alarm
ing. Men fear what they do not fee—they
hate what they fear, and they deltroy what
they hate. Therefore when a governmen
is not founded on force, wisdom dictates 1 "
that i: ought to ate usds, Wltfe'