Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1830-05-04

Our own experience has demonstrated the great
danger Of having large masses of the community in
dobted to the Government. 1t was deep convic-
ton Of this danger that induced Congress abolish
the system of credit sales in the disposition of the
public lands. Congress has been compelled to yield
to the pressing opportunities of the purchasers Of
these lands, by granting them not only repeated in
dulgences, but by renting some millions Of the debt
What, then, would be the situation of the govern
ment, with debt of fifty millions dfuscd throughout
the country and due to it from the most active en-
erprsing, and influential classes of the community.
Nothing that has not happened can be more certain
than that evory unfavorabe vicssitude in trade, ev
cry period OF commercial distress and eb. rrassment
would give rise to importunate and camorous calss
for indulgence, and for an injudcious extention Of
discounts, which no administration would have the
rmness to resist. Every one who has witnessed the
urgency and unanimty with which the representa-
tves OF tho 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 States should become indebted much more large
y for bank loans. the government would have
y any faculty of resistance, when appeals for indul
gence should come from all quarters of the Union,
sustained by the strong plea Of public distress und
embarrassment
The policy of extending indulgence to the public
debtors, and of granting more liberal loans to the
Community, would, in the natural course Of things,
become the favorite theme of those who aspired to
popular favor. Political parties would come to be d-
vitcd upon the question ofobservng towards the pub
lie debtors strict banking policy, Indispensable to
the maintenance Of specie payments on the one
hand or libeAl government policy, necessarily in
volvng a suspension of specie payments, the O.
Their And when II is considered that the whole class
OF debtors, always the most numerous aud active
portion of the community, would be naturally in fa
vor OF increasing bank issucs, and extending bank in
dugences it can scarcely be doubted that specie pay
ments would be suspended in the first great pecunia
ry exgency, growing out of endorsements in our
commerce, or deficiencies in revenue
The Government, therefore, which is under the
most sacred obligations TO conslrain all the banks
MAINTAIN specie payments, with view to the unifor-
NIFTY and Soundness of the currency, would by its
own example perpetuate the great national evil OF
uuctuatng and depreciating circulating medium.
These evils, which would be SO highly probable in
time OF peace, would be almost certain in the event
OF war The temptation to supply the Federal Trea-
resort to the unpopular process of internal taxation,
would be too fascinating to DO 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
OF intrinsic value.
In these views the committee are fully sustained
by the opinion of AIr Lowndes, expressed in $780,
These are his words:-''That the destruction of the
[ United S,ates] Bank would be followed by the es-
adjustment OF paper money, he firmly believed; he
might almost say, he knew. 1t was an extremity
from which the House would recoil, If proposed;
but If the resolution on the table were passed, it
would very soon be proposed. The subject wRs
too large for an Incidental discussion Gentlemen
thought the amount of Government paper might be
lihited and depreciation prevented by the rate Of
interest which should be eXacted. Inadequate eve
ry where the security was particularly Intellectual in
the q. States"
But tho inevitable tendency of Government bank
TO 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 adj
mnstraton, the irresistible and corrupting influence
Which 1t would exercise ov0r the elections of the
country, constitutes objection more imposing than
all Others united No matter by what means an ad-
ninstratlon might get into power With such a ira
mendous engine in their hands, it would be almost
impossible to displace them without some miraculous
interposition of Providence
Deeply impressed with the conviction that the
weak point of free Government is the absorbing
tendency of Executive patronage, and sincerely be-
lieving that the proposed bank would invest that
branch of the Government with wight OF money
ed influence more dangerous in its character, and
more powerful in its operation than the entire mass
OF It's present patronage. the committee have felt that
they were imperiously called upon, by the highest
considerations of public duty to express tho views
they have presented, with frankness and freedom
demanded by the occasion. 1t is at the same time
due to their feelings, that toy should state un-
equivocaily their conviction, that the suggestion
OF the chief magistrate, which they have thus freely
examined, proceeded from motives of the most disn-
teresied patriotism, and exclusively designed to
promote the welfare of the country This is not the
mere formal and heartess homage sometimes offered
up to official station. either from courtesy or interest
but tribute which is eminenly due. and cheerfully
rendered to the exalted character of the distinguish
ed individual on whom it is bestowed
Extract Ct letter from ntellgen, merchant n Charleston
s. C. to the Chairman Of the Committee of Ways and Means
illustrating the exchange operations Of the Bank of the u
States
"Tbs eet of diminishing ihe vast difference of exchange
between me various points OF the county, evidently pro-
duced by the bank The advantages produced by this nsti,
ton IN the intercourse between the Western and Atlantic
States can be duly appreciated only passing
before h the actual operations Of the system Of exchange
has created For example, Lexington Kentucky annually
accuuluates large surplus of funds in Charleston
derived from the sale of horses hogs and stock
to that well other southern markets by her citizens
Philadelphia indebted Charleston for exchange RENTED
dividends bank stock &c and Lexington is indebted 10
Phladeldha for merchandise Without the transportation of
single ofcoin Lexington draws Charleston and RENTS
the check to Philadelphia in payment of her debt there's which
operation adjusts the balance within the three points of the
triangle almost without expense trouble Could such fac
ties be obtained from any other than institution avns
branches in en, parts of the Union acting partners
one concern? Local oaoks whatever might ,he willing
ness could not accommodate in the manner and to ike
extent"
"The dscopntnso bills the low terms established by the
branch bank at this place. is great benefit the agricultural