Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1830-05-04
GOM@M8S ST01T AN.
BANK OF THE UNITED STATES.
MR.. .AfcDUFFIE,S REPORT.

(CoNCLUDED)
The next question proposed for consideration is the
eXpediency OF establishing incorporated bank with
view TO promote the great ends already indicated In
discussing the constutionaty of such measure some
OF the considerations which render il inPxpedent have
been slightly untolded. But these require more full
and complete Development, while others remain to be
presented.
II must be assumed as the basis of all sound reason
ing this subject, that the existence of paper cur
rcncy issued by banks deriving their charters from the
State Governments, cannot be prohibited by Congress
Indeed bank credit and bank paper extensively
terwoven with the commercial operations of society
that, even il Congress had the constitutional power il
would be utterly impossible to produce so entire chance
in the monetary system OF the country, to abolish
the agency oil banks OF discount without involving the
community in all the distressing embarrassments usual
y attendant on great political revolutions, subvert
ing the titles to private property. The sudden with
drawal OF some hundred millions of hank credit would
be equivalent, IN lis oces, TO the arbitrary and des
potc transfer of the property of portion OF the com
mum ty to another to the extent probably of half that
amount. Whatever, therefore, may be the advantages
OF purely metallic currency, and whatever the OBJ
jections to circulating medium partly composed of bank
paper, the committee consider that they precluded
by the existing state of things, from insutine com.
parson between thein with view TO any practical re-
suit
II they were not thus precluded, and it were sub.
United to them as an original question, whether the ac-
knowedged and manifold facilities of bank credit and
bank paper, not than counterbaanced nv the
distressing Yicssitdes in trade incident TO their use
are by no means prepared to say, that they would not
bersome medium.
But the question really presented for their determine
tion is not between a metallic and paper currency
but between paper currency of uniform value and
subject to the control OF the only power competent 10
It's regulation, and paper currency of varying and uc.
uating value, and subject TO no common or adequate
control whatever On this question il would seem that
there could scarcely exist difference of opinion; and
that this is substantially the question involved in
sdering the expedcncy Of national bank, will salts.
acoriy appear by comparison of the state of the chr
In flp .gof
and its condition for the last ten years.
Soon after the expiration Of the charter Of the fire
Bank OF the United States, an immense number of To-
cal banks sprung up under the pecunary exigenc;c
produced by the withdrawal Of large an amount o
bank credit, necessarily resulted from the windu,
UP OF its concerns-an amount filling very little sbor
Of fifteen millions Of dollars. These banks being en-
trey free from The saluary control which the Bank
The United states had recently exercised over the oca
institutions, commenced that system of imprudent trad
ing and excessive issues, which speedily involved M
country in all the efnbarrassments of disordored CIR
rency. The extraordinary stimulus Of heavy va
expenditure, derived principally from loans and cor
responding multiplication Of local banks chartered n,
the double in Of the States hastepcd the "a
tastrophe which must have occurred al no distant NO
fo1 without these extraordinary causes The last YEA
Of The presented The singular and melancholy snee
taclc Of a nation abouudng in resources peopio 4
bounding in self-dcvoing PATRIOTISM and Gover1mcr
reduced to the very brink Of avOwed bankruptcy soeI
for the want Of national institution which Al the cam
time that would have facilitated the Government loau
end other Treasury operations, would have furnished
circulating medium OF general credit in every parf
the Union. In this view Of the subject the co,pno,,
are fully sustained by the opinion Of Mi Dallas Inc