Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1830-05-07

views show most conclusively its nexpediency and nus-
uce as regards the different sections Of the Union
would inevitably render those parts of the Union where
tc oank issues were prudent and moderate, tributary
those where the issues niudcious and excessive
,'is way, the very inequality in the currency which
the bank designed correct would be
oy e VAIN attempt to make it perform impossbilities.
ne power OF annhating space, Of Transporting money
or any other article TO the distant points, without
INC loss OF time or the application of labor, belongs to
human institution.
But the salutary agency of the Bank of the u States
IN furnishing sound and uniform currency, not con-
ned to that portion of the currency which consists of
us own DIS One OF the most important purposes which
he bank was designed TO accomplish, aud which, il is
conudenty believed no other human agency could have
erected under our federatve system of Government,
was me enforcement OF specie payments the part
numerous local banks, deriving their charters from the
several States, and whose paper irredeemabe in specie
ana iimable in its quantity, constituted the almost en-
re currency OF the country. Amidst combination of
the greatest difficulties, the bank has almost completely
succeeded in the performance of this arduous delicate
anu painful duty. With exceptions too inconsiderabe
TO merit notice, all the State banks in the Union have
resumed specie payments. Their bills in the respec-
1--WE spheres OF their circulation are of equal value with
gold and silver; WHILE for all the operations of COM
erce, beyond that sphere, the bills the checks of
the Bank of the United States are even more valuable
uah specie And even in the very few instances in
whch the paper OF State banks is deprecated, those
banks are winding up their concerns and it NAV be
saey sad that no citizen of the Union is under the ne
cessty oil taking deprecated paper, because a sound
currency cannot be obtained. North Carolina is be-
eVed 10 be the only State where paper of the local
banks Is irredeemable in specie, and consequently de-
prechted Even there the depreciation is only one or
lo per cent, aAu what is more important, the paper
OF the Bank of the United States can be obtained bv
all those who desire it, and have an equivalent to Give
for it, o.
The committee are aware that the opinion is enter
tanned by some, that the local banks would, at some
une or other either vountarily or by the coercion of
me State Legislatures have resumed specie payments
In inc very nature OF things this would seem TO be
an lmpossibility. 1t must be remembered that no
banks ever made such large dividends as were realized
by the local institutions during the suspension of spe-
Gle payments rich and abundant harvest of profit was
opened TO thcm which the resumption of specie paw
ments must inevitably blast. While permitted TO rive
their own notes bearing interest and not rcdeemabe
In specie In exchange for better bearing interest
IL Is obvious, that the paper they issued the hoh
er would be their profits. The most powerful motive
mat can operate upon moheyed corporations would have
existed, to prevent the State banks from putting an end
TO the very state of things, from which their excessive
prohs proceeded. Their very nature must have been
changed, therefore, before they could have been induc
cd 10 cooperate, voluntarily, in the restoration of the
currency 1t is quite improbable that the State o.
gisatures would have compelled the banks TO do beir
duty 1t has already been stated that the tendency of
appreciated currency to attract mportations to the
points oil greatest depreciation and Tighten the rela
1--WE burthens OF federal taxation would naturally pro-
uuce among the States rivalry in the business OF ex
ccSsVe bank issues. But there remains to be stated
cause OF more general operation, which would have
prevented the intepostion Of the State lie gisatures TO
correct those issues
The banks were, directly and Indirectly the credit
ots oil The whole community aud the resumption of
specie payments, necessarily involved general cur
talment of discounts and withdrawal of credit, which
would produce general and distressing pre- sre upon
the entire class OF debtors. These constituted the lar
gest portion oil the population of all the States where
specie paymrnt were Suspended, AMI bank issues ex
cessive Those therefore, whe controlled public opin-
Ion IN the States where the depreciation of the local
paper was greatest, interes ell in he
o, me eVll. Deep and deleterous, therefore, a. the
disease eviden y in many of the States their Leg
could not have been expected to apply
oy so painful as the compuision of specie payments
would nave been witho the all Of the Bank OF the
Uniled States And here 1t is worthy of sueciaI re-
marx, that. while that bank has compelled the local
oahk 10 resume specie payments, it has materially
.oh"ioued oy It's direct aid and liberal arrang emeDts
10 enable them TO do and that with the least possible
embarrassment to Themselves and distress the com
muni'y' Ii The Safe Legislatures had been ever so
ANXIOUS 10 compel the banks 10 specie paw.
ments, and the banks ever so willing TO make the e(-
lo, the Committee decidedly Of the opinion that
hey cJniI not have done it, unaid'd by the Bank of
Tue Ohl'eu States, without producing degree Of dis
Uess incomparaby greater than has been actually ex
peIlsnced They will conclude their remarks Oh this
branch OF the subject by the obvious reflection that
congress, az the close OF the war had left il to the
states 10 resiore the disofdersd currency this mpor
tant junction OF sovereignty would have been lett With
nose rom whom the Constitution has expressly Ken
- ana by whom itcoud not be bene6ciay or eff cual-
exerc'ed. But another idea, of cousd ,ralle plau-
slbiy, is not without its advocates 1t is said thatthis
government by making the resumption and continu-
ance oil specie payments, the cond ion upon which the
STATE Banks should receive the Government depssites
hSh nave restored the currency state of uniormi-
~ without stopping TO give their for believ-
ing, ma specie payments could have been Yeso-.
Ell IN THIS way, and that, If they could, uniform
currency OF general credit, tn oughout the Union
would not have been provided, the Committee will pro
coed TO give their rsa,ons, for thinking that such con-
nezon between the Federal Government and the State
DdnKs, would Oe exceedingly dangerous 10 the purity
OF boh While there il National Bank, bound by lie
Tn,tter 10 perform certain stipulated Duties aAd emit
tied to receive the Government depo-ites az compen-
sation, fixed by the law creating the Charter and only
10 be forfeited by the failure to pei form those duties
mere IS nothing in the co1nexon at all inconsste MT
WIN the independence OF the Bank, and the purity of
tne Government. The country has deep interest, |
tna the Bank should maintain specie payments aud the
government an additional interest, that IL should kee
TIE ub T. flinds safely, and transfer them free Of ex
pense, wherever they may be wanted. The Govern |
mfnt' therefore, has power The Bank; but the
sanitary power OF enforcinG compliance with the |
terms o. lis Charter. Every thing is fixed by the law
and nothing left TO arbitrary discretion II is true that
m" secretary oi the Treasury with tire sanction OF
Cong css, would have the power to prevent the Bank
from using lis power unusy and lively and TO
punish any attempt, on the part Of the Directors to
BRING the pccuniary influence OF the institution TO bear
upon The politics OF the country, by Withdrawing the
Jovfrnment deposites from the offending branches.-I
but 'bS power would not be lightly exercised by the
irea ury as is exercise would arily be subject
10 be reviewed by Congress. II s, In its nature ssu.
ary receive, creating undue dependence on the
part Of the Bank.
But, the state OF things woull DO widely different m
here was National Bank; and il was left TO the dis.
'reton o the Secretry Of the Treasury 10 select the
Ocal Banks in which the Government deposes shouid
be made. All The Safe Banks would in that case be
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