Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1831-03-26

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nants, debtors, bank officers and bank money, which
the Central Director retain in the State, and may en-
body and direct against in its elections and in Its
legislative and judicial proceedings 8. Ii tends to
impair the property OF the citizens, and in some in
Stances that oil the States, by destroying the State
banks in which they have invested their money g. IL
Is injurious TO the commerce Of the Staes-l speak OF
the western Staes-by substituting trade in Bills OF
Exchange Tor trade in the products OF the country
T. IL fastens vampire the bosom of the State, to
suck away its gold and silver and o.operate with
the course OF rade OF federal legislation, and Of
change, in draining the South and West Of all their
hard money. The Southern States, with their thirty
millions OF annual exports in cotton, RICE and tobacco
and the Western States, with their twelve millions OF
and five millions consumed in the South and the
Lower Mississipp-that is to say, with three ffhs
OF the marketable productions OF the Union, are
not able to- sustain thirty peciepaying banks; while
the minority Of the States North of the Potomac, with
out any of the great staples for export have above four
hundred of such banks. These States, without rice,
without cotton, without tobacco without sugar. and
with less Hour and provisions, to export saturated
with gold and silver while the Southern and Western
States, with all the real sources of wealth. in
state OF the utmost restitution. For this calamitous
reversal of the natural order of things the Bank OF the
United States stand forth pre-eminendy culpabe! and
statement in the National Intellgencer OF this morn
inga paper which would oversate fact to the pre-
judce Of the bank, cites and procaims the fact which
proves this culpability. II dwels and exults the
quantity OF gold and silver in the vaults of the United
States Bank. 1t declares that Institution to be {"
6tTthen'r with gold end silver, and well may it be
70 overburhened, since il has lifted the load entirely
from the South and West IL calls the metals drug
in the hands of the bank that is to say, article for
which no purchaser can be found. Let this lug,
like the treasures OF the dethroned Dey OF Agers be
released from the dominion of its keepers let part go
back to the South and West and the bank will longer
complain Of repletion, they of depletion.
8. Exemption Of the stockholders from individual liza
by on the failure of the bank.-This privilege dero
gates from the common law, is contrary to the princ
pie OF partnerships, and injurious to the rights OF the
community is peculiar privilege, granted by law
to these corporators, and exemptng them from liability
except in their corporate capacity, and TO the amount
OF the assets of the corporation. Unhappily these
sets are never dsseS, that to say enough, when
cason comes for recurring TO them. When bank falls
its assets always less than debts; that respon
sibity fails the instant that liability Let
say that the Bank of the United States is too great
TO fail One greater than and its prototype has fail
ed, and that in day, and for twenty years at
time: the Bank OF England failed in 1897 and the Bank
of the United States was the point of failing in 1919
The same cause, namely, stockobbing and overradng;
carried both TO the brink OF destruction; the same
means saved both, namely, the name, the credit and
the helping hand of the governments which protected
them Yes, the Bank of the United States may fail;
and its stockholders live in spendor the prncely
estates acquired with its notes, while the industrious
classes, who hold these notes. will be unable receive
shilling for them. This is unjust. 1t is vice in
the chatter. The true principle in banking requires
each stakeholder to be liable to the amount of his
shares; and subjects him TO the summary action OF
every holder the failure OF the Institutions ill he has
paiu up tne amount OF his subscription This Is the
true principle 1t has prevailed in Scotland for the last
century, and no such thing a broken bank has been
known there in all that time.
8. To have the United States for a par,nsr.-Sir,
mere ~ one consequence, one result, of all partner
saips between gIvernment and individuals, wh.ch
should OF itself, and in mercantile point OF view
condema this association on the part of the Federal
Governmsnt. L, s the prine lie which puts the strong
partner forward 20 bear the burhen whenever the
concern is in danger. the weaker members stick to
the strong partner at the approach OF tie storm; and
If \
already staked, leaves him alternative He becomes
the atlas oil the firm, and bears all upon his
shoulders This IL the principle: what is the facR
Why, that the United States has already been com.
PEELED to sustain the Federal Bank; to prop il with her
revenues and its credit in the trials aud crisis of its
early administration pass other instances OF the
damage suffered by the United States on account OF
this partnership-the immense standing deposi,es for
which we receive no compensation; the loan Of FIVE
millions OF our own money, for which we have paid a
Dillllon and half 10 interest," the FIVE per cent stock
note, on which We have paid partners $4725 900
in intere' the loss OF ten millions the three per
cent stock and the ridiculous catastrophe Of the mise
rabl- bonus, which has been paid TO with fraction
OF our own money: l pass all this, and come to
this point oil direct less, as partner in the dividends
upon the stock itself Upon this naked point Of profit
aad o's to be decided by ruls 10 arhm .ir, have
the United States, as every body knows, was subscribe
ed, not paid Ii was a stock note deposited for seven
millions Of dollars bearing interest of FIVE per cent
The inducsment 10 this subscription was the seduc-
note the United States would clear four five per
cent, in getting dividend Of eight ten. This
the inducements; for the reslz iton of this fine
ption. Let see il. Here il IL: official
turn from the Register of the Treasury of Interest paid
and OF dividends received. The account stands thus:
Interest paid by the United s ates, 81 725 900
Dividends received by the Unit.d S.ates, 1923 426
Loss to the Uoited States, 1854
D.advan,a geous this partnership must be to The u
nited States In monied point of view, there is far
rt MD xgbi IN
IL is the political aspect e,uIting from the union be
tween the Bank and the government. This union has
been tried in EDgand and has been found there to be
just as disastrousa conjunction the union OF church
and state. Ii Is the ccDuBctisn OF the LENDER and
the BORROWER; and holy writ hrs told us which OF
these categoriss will be of the other But sup
pose they agree to drop rivalry, and unite their
sources. Supp they combine, and make push for
political pOwef how great 10 the miSchiel which they
may not accomplish But on this head, wish to use
the language OF Of the brightest patriots OF Great
Britain, one who has shown himself 10 these moderR
days to be the worthy successor Of those old iron
bar0ns who patriotism comm snded the uDpurcha'ea
Bile eulogium Of the elder PITr. l speak Of r Will
LIAM PULTENY, and his spsech agsinst the Bank OF
+ gland, 10 1897
THE sPEEcH-ExTRAcT.
"l have said enough to shew, that government has
been rendered dependent on the Bank and more par
hcuarly SO, in the time OF tOGT and II oueh The Bank
has not yet fallen into the hands Of ambitious men, yet
II IL evident that il might, IN such hands, assume
p0tcer sufficient control and 0toe only the
ministers, but king, lords, and commons. ..... Al
the Bank has thus become dangerous to government,
II might, the other hand by uniting VA an Gmbi
fous minister, become tbs means OF establishing a
eufc 10 invOlve ia in