Alabama state intelligencer., 1831-10-08

| exchange, and of rendering service, by facilitating remlttances, would be abortive. The third alterna I tive which has been suggested, a reliance on thu State Banks, would be equally unproductive Th' Government would require no aid except ill time 0 war; when immense sums would be necessary, whcl could be procured only by loans, and when applica ton should be made to them, there is good cause tc apprehend that each would undeavor to obtain tho best terms it could There is no particular bond be | tween them and the National Government, and, i'm peed by their interests and that of the stockholders it is natural that they should pursue that course- | Should such emergency arise as menaced the overthrow of the Government, the interests thereby excited might be paramount, and force the Banks under the direction of the stockholders to unite in common effort to save the country. But the grea object is to prevent such crisis by command o funds, which would enable the Government to arrest 1t. In every other object the State Banks would fail | There being no standard to which all must adhere no connection between those of the different States and many of them with limited funds and in embar rassed circumstances, they would neither regulate the value of coin, of exchange, nor facilitate re- mttances.
 A National Bank occupies different ground Con- nected with the Government by its charter, and its capital which consists of stock, in which the Govern ment participates in certain degree there is no n- stance in which, on principle, there can be differ ence of interest between them, and many powerful considerations by which the interest of the Bank must stimulate it, to support the credit of the Govern ment in any situation in which ii my be placed. If the credit of the stock should sink he capital of the Bank would decline in equal degee the effect of which would be felt in all ifs operations. Its paper would deprecate, and check be given to its crcu- | laton, if not entire suspenslon Standing at the head ofthe monied operations of the Government, it is its intermediate agent in making remlttances to Banks and individuals throughout the Union, and likewise between individuals, from which much cre- dit and influence are gained, fnot prbht It has the means, and maybe considered as tn, most powerful agent in raising and sustaining the circulating med um on par with specie throughoutthe Union, and ofelevang the State Banks to that sandard, by sub- jectng them to the necessity of reacllng and adher ing to it, 10 sustain their credit andeven their exis- tence Let the credit of the Government sink, and all these advantages are lost The Bank, therefore, from regard to interest, is bound tosustaln it. The Directors, except the few appOintedby the Govern ment are elected by the stockholders, and are ame- nabe to them It gives its support therefore to the Government, on the principles of ndional policy, in the support of which is interested, md would dis dan becoming an instrument for aR other purpose.
 The view above presented is supported by expert ence, and principally by the eventsof the late war. When the war commenced, the Government had not the funds which were necessary tosupport It, and was in consequence forced to resortto loans, which were with difficulty obtained from any quarter even | in limited degree, and on unfaOrable terms. have not the official documents beftre me, and can not state the sources from which any loans were ob- tained nor the conditions, with the decline of the T public credit as the war advanced. l well remem Der, however, that when was called by the Pres dent to the Department of War, oi the 3lst of Au gust, 1814 the Certificates of the Treasury were selling at $S0 in the $100, by whici $2O were lost Ii was evident that if reliance was placed on the sale of Certificates only that still further decline would ensue, and that the worst consequences might be apprehended. The country was invaded through the whole inland and maritime frontiers, and power ful squadrons at the mouth of every bay and IT. leading principal cities, which were threa- tened with attack and ruin. The metropolis of our Union had been forced, and it's public buildings de- stroyed. Such the state ofthe county, and the funds, when entered the Department War. Un- der such circumstances, an appeal was made to the patriotism aud interest oihe cities, and banks within them by the Department of War, with the sanction of the President for lnans of money necessary for their own defence, for that of the maritime frontier, and the Union For the first loan that vas obtained, one million of dollars from the city d New-York, which took place few days after entered the De- partment no price was fixed. As ihe Treasury Notes were selling for $50 in the $100, that was claimed, but not acceded to. It was lett Tor subse- quent adjustment, to be settled fair principles Several millions of dollars were obtained from the District of Columbia and principal 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 These considerations led to change in my opinion, and induced me to concur with the Pre- sdent in the propriety of nstitung such Bank af' ter the conclusion the war in 1915. As to the con- stitutonal objection, it formed no serious obstace.- In voting against it in the first instance, was go verned essentially by policy. The construction gave to the Constitution considered strict oDe:- In the latter instance, it more liberal, but ac cording to my judgement justified by its powers. The above sketch contains my sentiments on the subject of your several interogatories, which com municae to you not for public view, but in spirit confidence Since my retirement have sought tC avoid all political controversies. Having concurred with the President in the proprieY of nstituting the latter Bank, my opinion was not withheld and IS, presume, known, as that it remains unaltered- Should justification of my conduct for the change of sentiment in the interval between the institution the first and second Bank become necessary, or any other appeal is made, to make it public duty to ex
 plain the cause of that change, shall not withhold it. shall be attentive to the course of events ant not fail to perform that duty should either call b' . made on me.
 am, dear sir, with great respect and sincere re if gard, yours, LAMBS MONROE. ' SLAs F. BuRRows, Esq NewYork.
 n From the Charleston Courier If Sept. a.