Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1831-10-03

them without funds, and M embarrassed circum-
stances, they would Mother regulate the value of
CON- oil exchange, nor facilitate rsmittancos.
A National Bank occupies different ground
Connected with the Government by its charter
and its capital, which consists of stock in which
the Government participates in certain degree.
'here Is no instance IN which, principle, there
can bc difference OF interest between them and
many powerful considerations by which the inter
est OF tho Bank must stimulate il, To support the
credit of the Government in any situation in which
II may no placed. II the credit of the stock should
sink, the capital of the Bank would decline ia
equal degree; tho effect Of which would be felt i'm
all it's operations. Its paper would depreciate
and check be given to its circulation, if not an
entire suspension. Standing ut tho head of the
moneyed operations OF tho Goycrnment, it is its
intermediate agent in making rcmittauccs to Banks
and individuals throughout the Union, and likewise
between individuals, from which much credit and
influence gained if not profit. 1t has the means
and may be considered as the most powerful agent
, III raising and sustaining tho circulating medium
on par with specie throughout tho Union, and of
ecvatlng the State Banks to that standard by sub.
Jocting them to the necessity of reaching and ad-
herring to it, to sustain their credit and even their
| existence. Let the credit of the Government sink
and aii those advantages lost The Bank
therefore. from regard to interest is bound to
| sustain it. The Directors, except the few uppon-
ted by the Government, elected by tho Stock
| holders, and are amenabe TO them. 1t gives its
support, therefore, TO The government, principles
OF national policy, in tho support of which it is in
tercsted, and would dsdan becoming inst rune mt
Tor any other purpose.
| The Wow above presented is supported by cxperi-
cncc, and particularly by the events OF the late
war When tho war commenced, the Government
had not the funds which were necessary to support
If, and in consequence forced 10 resort to
| loans, which with difficulty obtniued from
any quarter. even in limited degree and on un-
favorable terms I have not the official documents
before me, and cannot state the sources from which
any loans were ohtnired, nor the conditions, with
a. The ru,Ii rod,
| ced. well remember, however, that when | was
called by tho President TO the Depa rtmcnt of War
on the 3lst OF August, 1911, the Certificates of the
Treasury were selling at $50 in the 800, by which
$40 were lost. IL evident that if a reliance
was placed on the sale of Certificates only, that
still further decline would cnsuo, and that the worst
Consequences might be apprehcndcd. The country
was invaded through the whole inland and mari
time frontiers, and powerful squadrons ut the
mouth at bay and river leading 10 our princi-
pal cities. which threatened with attack and
ruin. The metropolis of Union had been for
| cod and lis public buildings destroyed. Such was
tho state of the country, and the funds, when /
entered tho Department of Wa.
Under such circumstances, an appeal WAS made
10 the patriotism and interest of the cities, and
banks within them, by the Department af War
with the sanction ofthe President, for loans of
ney necessary for their defence for that of the
maritime frontier, and the Union. For Is9s first
loan tina, was obt aimed, million of dollars fro;n
the city OF New York, which took place few days
As tho Treasury Notes selling for $50 in the
SlOo, that WAS claimed, hut not ncceded to. 1t
was left for subsequent. adjustment, TO be settled
on fair principles. Several millions of dollars were
obtained from the District OF Columbia and princi-
pal cities throughout the Union, and according TO
my recollection, at par. This proves that until
the Union is threatened with ruin, no loans can
be obtained in emergencies, without National
| Bank otherwise than at great sacrifice Those
considerations led to change in my opinion and
induced me TO concur with the President in the
propriety ofinstitutIng such Bank after the con
cluSion of the 1915. AS &c Tie constitutions
al objection. II formed no serious obstacle. in yot-
ing against ii in the first instance | was governed cs
sential by policy. The construction gave TO the
| Constitution considered strict onc:-In the lat
ter instance, it more liberal, but according to
my Judgment, justified by it powers.
| The above sketch cont aims my sentiments on the
subject of your several intcrrogatorcs which com
municate to you not fer public view hut in spiri;
OF confidence. Since my retirement have sough,
to avoid all political controversies. Having concur
red with the President in the propriety of institu
ting the latter Bank, my opinion not withheld
and is, presume, known, that il remains unal
tered. Should justification of my conduct for the
change OF sentiment in the interval between the
institution of the first and second Bank become ne
ccssary or any other appeal is made to make it a
public duty 10 explain the cause of that chance
shall not withhold it, | shall be attentive TO the
course of events and not fail to perform that duty
! should either call be made on me.
| am dear sir, with great respect and sincere re.
gard, yours, JAMES MONROE
SuAs T.. Burrows, Esq.
| New York.