Edwardsville spectator. [volume] (Edwardsville, Ill.) 1819-1826, 1821-04-24
FOR THE SPECTATOR.
STATE BANKING. V.

satisfactorily, that the United States
Bank capital is based almost wholly on
the credit of the general government,
and that the debts of that government
form CT of that capital, we will now
merely glance at the organization of the
Bank of England, in Great Britain, and
from which, it is presumed the idea Of
making the funded debt part of the
capital Of the United States Bank is
drawn. The Bank of England, when
first erected, rested wholly on the foun-
dation of the public funds. The SUBJ
scribers to loan to the government Of
England, of one million two hundred
thousand pounds sterling, were incorpo-
rated as a Bank, and the debt created by
the loan and the interest upon it, were
the sole fund upon which it was esta-
blished. The subsequent augmen.ations
of its capital, amounting, with the ORR
ginal sum to between eleven and twelve
millions of pounds sterling and now
constituting its capital, have been of the
very same nature. The report of the
issues of this institution, for the last quar-.
ter of the year 1920, are stated at an
amount of nearly % millions of pounds
sterling, and we beg of the advocates OF
specie paying Banks TO recolfect, that
this institution has ceased to pay specie
tor its notes, for period Of nearly 25
years, and at time when it is believed
its trade was considerably augmented,
through the power of its fleets. which
have so frequently swept the ocean, land
whose commanders have boaste,d OF
swaying the trident of Neptune, and di-
rectins the thunders of Bellona, until
the pleasing illusion was dissolved by
the invincible arms of American seta-
men. This suspension is in the form OF
restriction, which in order to make it
more congenial to the people, is imposed
by an act of parliament, and was adopt
ed at a period, when the metallic cur
rency of the country, exceeded three
times the amount of Bank notes in cir
culation. This then demonstrates, that
there are periods in the history of ma
tons, when the suspension of payments
by Banks, where Bank notes form tho
principle part Of the currency in circu-
lation, is inevitable, and that even when
such notes do not form greater part Of
the circulation such suspension may hap
pen; and that it is consequence result
ing from their establishment, and is in
cipient in, and inseparable from, their
organization. We shall forbear to IL
lustrate position so self evident, and
merely remark that notwithstanding this
difficulty SO intimately connected with
their existence, still it is fact well un-
derstuod, that Public Banks have been
created, and fostered, by the most en-
lightened and commercial nations
They have been established in Italy, Ger
many, Holland, and France, as we'll as
England and the United States-and
most of those in Europe, are under
governmental or municipal direction.
1t ought certainly in candid estimate
of their utility, therefore, to have con-
siderable weight, that in all countries, in
which they have existed, and after an ex.
perience Of hundreds of years, they have
met the appreciation of the most enlight-
ened portion of the community in which
they have thus been established. Capt.
talists as we'll as theorists, and the COM
as we'll as the manufacturing
and agricultural parts of the commune
ty, agree i'm their beneficial Effects
Trade and industry and every species Of
enterprise advantageous to nation have
been promoted by their important aid.
Governments at all times have resorted
to them, as one of the most efficient sup
ports in peace, as we'll as in war. Tho
United States have been as much indebt-
ed to them, in difficult and disastrous
periods, as any nation on earth. It Is
true tina: evils of no small magnitude
have also been felt from their establish
ment, by the dishonest and ignorant
Of the conductors ofthep