Daily Richmond Whig. [volume] (Richmond, Va.) 1828-1831, 1830-05-04

Our own experience has demonstrated The great !
danger of having large masses ofthe connunily M
debted to tho Government. IL was a deep convtc-
ton Oft danger that induced Congress 20. aoohsn
the system of credit sales IN the disposition OF inc
public lands Congress has been compe led TO yieio
10 the pressing opportunities OF tic purchasers Oh
these lands by granting them net only repeated IN
hugences, but by renting millions OF the debt.
What, then, would be the situation Of the govern
ment with debt of fifty millions ditiused throughout
the country, and due to it from the most active, en-
terprsng, und influential classes at the community
Nothing that has not happened can be more certain
than that every unfavorSbc vcissitudc IN trade, ev
cry period of commercial distress aud embarrassment
would rive rise 10 importunate aud ciamorous calls
FOR Indulgence, aud for an injudIcious eXicntidn OF
discounts, which no administration would have the
irnuess to resist. Every ono who has witnessed the
urgency and unauimity with which the representa-
tivcs ofthe States indebted for public lands have
pressed the claims of their citizens for indulgence ~
remission, must be satisfied, that If the citizens OF all
the Suites should become indebted much more large
~ for bank loans. the government would have scarce
~ any faculty Of resistance, when appeals for lndn
gence should como from all quarters of the Union,
sustained by the strong plea of public distress and
embarrassment.
The policy oC extending indulgence 20 the public
debtors, and OF granting liberal loans 10 the
community, would, in the natural course OF things,
become the favorite theme of those who uspired to
popular favor. Political parties would conc to be di-
vdcd upon the question ofoSservmg towards the pub
lie deb'ors strict banking policy, indispensable 20
! the maintenance of specie payments, on the ono
band liberal government policy, necessarily IN
vc!ying suspension or specie payments, on the o.
;hcr. And when II IS considered that the whole class
of debtors, always the most numerous and active
portion OF the community, would be naturally III ia
vor ofncrcosing bank issues, 0nd extending bank IN
dugencce; it scarcely be doubted that specie pay
mcnts would be suspended in the first great Pccunia
~ cxgency, growing out of eribGrrassments il our
commerce, "a deficiencies in Our revenue.
The Government, therefore, which is undcr the
most sacred Obligations 10 cutstran - the hunks 10
maintain specie payments, with view 10 The uniior-
~,1NV, 81
own example perPetuate the great national evil OF
ductuating and deprcciatiu@ circulating medium.
These evils, which woud be so highly probable 10
time Of peace, would be almost certain in the event
of The temptation to supply the Federal Trca-
sy by the easy process Of bank issues rather than
resort 10 the unpopular process OF internal taxation
would be too fascinating TO be resisted. We should
thus experience, what every nation has experienced
in like circumstances. the manifold evils of mere
paper currency, having no relation to any standard
or intrinsic value.
! In these views The committee are fully sustained
by the opinion Of Mr. Lnwndes, expressed in Gl9.-
These are his words That the destruction OF the
/ United States Dan; would be followed by the es-
Enlistment OF paper money, he firmly believed; he
might almost say, he knew. It was extremity
from wk.ch the House would recoil, If proposed
but if the resolution the tuble were passed, it
would very soon be proposed. The subject YVES
/ too largo for incidental discussion Gentlemen
thought the amount Of Government paper might be
limited, and depreciation prevented by the rate OF
/ interest which should be eEHcted. Inadequate
ry where, the security particularly Intellectual III
! tho Z. States"
! But the inevitable tendency Of Government hank
10 involve the country IN paper system, IS not, in
the opinion of the committee, the greatest objection
to 1t. The powerful, and, IN the hands OF bad id
minstratlon, the irresistible and corrupting influence
! which IL would exercise the elections of the
! Country, constitutes an AFFECTION imposing than
al others united. No ulItteE by what means an ad
rlinstratIon might get into power with such II ire
mendous engine in their hands, il would be atnos,
impossible TO displace them without some miraculous
uterpo; ition OF Providence.
Deeply impressed with the conviction that the
weak point OF n free Government is the absorbing
tendency OF Executive patronage, and sincerely be
lieging that the proposed bank would invest that
1 branch OF the Government with weight Of money
cd influence dangerous in It's claYac,er, and
more powerful in ns operation, than the entire
Of its present patronage. the committee have felt that
they were imperoualy called upon, by the highest
considerations of public duty, To express the views
they have presented, with fFarkness and freedom
demanded by the occasion. 1t is, az the same time
due 10 their owe feelings that they should state IN
equWocally their conviction, that the suggestion
o. the chief magistrate, which they have thus freely
examined, projected from motives of the Gsiu
teresed patriotism, and exclusively designed to
promote the welfare Of the country This is not the
mere formal and heafticss homage, sometimes offered
up to official station. either from courtesy or interest
but tribu te which is emiuen;y DUE and checrfuly
rendered, to the exalted character of the distinguish
ed individual on whom it is bestowed.
I:'as of letter ffon intelligent merchant Charleston
Illustrating the exchange operations Of Baok Of the T.
| States
"Ths eifri Of diminishing The difference Of exchange
hatween The various points 0i the county, evidently
duced by the bank The advantages produced by this
nn in the intercourse between the Western Atlantic
States be duly appreciated only passing
before him. the actual operations Of the system Of exchange II
has created example: Lexington in Kentucky annually
large surplus Of funds her credit Charleston
deIysa o e sae orseI hogs and other Stock driven
w. MAJ as wen as 70 oiheT southern markets by be! citizens
rhl9de!pha indebted Cbafestop Tor eEeaanae Tsue
dividends bank stock, &c and Lexington IS Indebted 10
PHILADELPHIA lor merchandise Without the Transportation of
single Of coin Lexington draws Charleston and RENTS
Tie check TO Philadelphia payment Of her debt there; winch
operation adjusts the baaucs within the three points of IN.
triangle aiost without expense trouble. Coul9 such fac-
YES he uJlHDed from any other than institution having
branches IN different parts Of the UOon acting al co partners m
one concern Local banks Whatever might be their Willing
ness could not accommodate ia tls manner and " Ike
! extent" y '''
"Ihe discOSutEe OF bills on the low terms established IA, b
branch bank at this place. u great benefit Ia ,s w
interest particularly in enhancing price Of cotton and lice
n were tne DS TO stop is operations there ~ no syin, h
a mese staples would be Depressed The private dealer, IN
se "o"i Cke TIE place Of the hank n that business
o Y""'s o "hs would be taken Of the unrtsf- of d.
F"hfs a. iis HTcants would always ,e the MIC i
frf rr'a..