Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1831-09-15

raj that they should pursue that course. Shou .s
such an emergency arise as menaced the ovs.
throw Of the Government, the interest tbersl.
excited might e paramount. and force the RAM:
under the diiec ion of the Stockholders IN nr;,
in common effort to save the country. RI, ~
great object is to prevent such c,isi. bv "a"
mand Of funds, which would enable the Cover
ment to arrestit Ia every o,her objce, the Si,,,
Banks would fail. There baiug 10 standard :.
which all must adhere. 30 connection betuss.
those Of the different States, ard many of tb.n
with limited funds. and in embarrassed cirrnm
stances, they woud neither regulate the ysIps n
coin. of exchange, nor facilitate remittances
4 National Bank occupies different ground
Connected with the Government by its char,
aud IFS capital. which consists Of stock, in wbirS
the Government participates in certain degree
there is no instance III which, on principle. be,s
eau be difference of interest between them, and
many powerful considerations by which the !,
terest Of the Bank must stimulate it. to surn,,
the credit of Inc Government in any situation i
which il may be placed II the credit Of the s,e,
should sIak tie capital of the Bank would dec.,.
in, equa! degree: the effect Of which would 5eE,
in ali its operations. Its paper would depreci,r,
and cheek be given 10 lis circulation. If notY
entire suspension. Standing at ths head of d.
monicd operations of the Government it is il.
intermediate agcn. IN making rcmitances "a
banks and indn ldual. throughout tie Union. s,d
likewise between individuals, from which mue
credit and influence ave gained, !! not profit, /
has the means. and may be considered as Il.
most powerful agent ia raising and sustaining n.
circulating medium on par with specie ,hrOGch
out the Union. and Of eievatia. lie State Bank
to that standard, by subiecting them to the n,
cessity of reaching and adherins 10 il, 10 sk
tain their credit. and even their existence L..
the credit Of the Government sink, and all these
advantages are lost. The Bank therefore, ror
a regard to interest, is bound to sustain it, II,
Directors, except the few appointed by tie CIV.
rnment, are elected by the Stockholders, ana -.
amenabie TO them.
II gives ITS support. therefore, 70 Tie G0yerana,
on principles Of ational policy. IN 'hc .uHHtd
which It is Interested, and wouid dislaiu tecOM
Ing an instrument for any other purpose.
The view above presented is supported By e.
perience, and particularly by the eycG', u To
late war. When the war commenced, tie GS,
eminent had not the funds which were nece,ay
to support it, and was in consequence forced 10
resort TO loans, which were with difficulty obtalt
ed from any quarter, even in limited degree
and on untayOrable terms. have not the Ohcl
documents before me, and cannot state the sour
ces from which any loans were obtained, nor h.
conditions, with the decline Of the public credit
AS the war advanced. well remember. hOwe
err. that when was called b. the President to
the Department of War, on the Slst OF Angus
1914. the certificates Of the Treasury were sell
ing at $50 IN the 100, by which 20 we're lost Il
was evidest that If a reliance was placed on Tie |
sale of certificates ONLY. that still further decline
would ehsue, aud that the worst consequences |
might be apprehended. The country wa, nu- |
ded through the whole inland and marane iron |
tiers, and powerful squadrons were at The mou'
of every bay and river leading to our principal
cities. which were threatened with attack andD'
in. The metropolis Of our Union had been ''rf
ed, and its public buildings destroyed Such Vi;
the state of the country, and The funds "@
entered the Department Of War. Undd n:'
circumstances, an appeal was made to the Faar
tsm and interest of the cities. and banks W.
them, By the Department of War. with TIC AN
ton of the President. for loans OF money he'7
sary for their own defence, tor that Of tiie %A'
time frontier, and the Union. For the 'I''t'%'
that was obtained, one million OF dollars from :"
city of New York. which took place lt" Oi.
after entered the Department, no pflce vs.
fixed. As the Treasury Notes we're seI'n!
$50 in the 100. that was claimed, bat hO'
ceeded to. 1t was left for subsequent ad lu''anS.
to be settled on fair principles. scy'ra! mum 9C,
Of dollars were obtained from The District " y
lumbia and principal cities Throughout ''c '. III,
and according to my recoileciIon' a' P'; hr
proves that until the Union !, threatened '",'.
in. no loans can be obtained III 'me's'".
without National Bank, otherwise t 49,.
great sacrifice. These considerations i" ~ ~
change in my opinion. and induced NE 10 t~"
with the President in the propr'e'y OF Nl'n'
such Bank after the conclusion OF '''s "" 81
1915. As to the cOns,itullonal oGJecuo.'
ed nc serious obstacle. In voting asa'n :r,
the first instance, | was governed e'se"'-'' IN
policy. The construction gave 10 "e S c,n
lion considered strict one:-ln Inc ''a
stance. 1t was more liberal, bat ace'fai"s
judgment, justified by its powers AZ
The above sketch contains my ssan''" IA
the subject Of your several in'erroga'o''s' Srt
| communicate to you not for pubic view, ~,d
a spirit of confidence. Since my rPI"'~
have sought to avoid all political c""'I1 ~. NJ
Having CONQUERED with the PreSIde"' I" y" ',az
priety Of insttuIing the latter baDA' u. W.
was not withheld, and is. presume An "s.,,a
Al {.