Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-03-28

and fictitious cdpltdl, anu duulhS puI nluo
that already in existence; and with our just and
natural aversion to monopoly, it is difficult, on
nrinciples of equality and justice, to resist sucn
annlications. The admission of q new bank tends
tn diminish the profits Of the old, and between
the aversion of the old to reduce their income,
and the desire of the new to acquire profts, the
result is an enlargement of discounts, affected
by a mutual spirit of forbearance; an indlsposl-
ton on the part of each to Cypress the otnef;
and finally, the creation Of a community OF 1eel
ing to stgmatize and oppose those, wnether
banks or individuals, who demand specie III
payment of their notes. This community OF
feeling, which ultimately Identifies the whole, as
"a peculiar and distinct interest in the ommu-
nitv. increases and becomes more and more IN
tense. lust in proportion as banks multiply; as
thew become, if | may use the expression, TOO
populous, and from the pressure oil increasing
numbers, in maintaining their existence, there
results a corresponding increase OF issues, IN
proportion to their means; which explains the
present extraordinary disproportion between
specie and notes, in those States where banks
have been most multiplied; equal, in some, to
sixteen to one. There results, from this state OF
things, some political considerations which de-
mand the profound attention of all who value
the liberty and peace of the country.
While the banking system rests on a solid
foundation, there will be, on their part, but little
dependence on the Government, and but little
means by which the Government can influence
them, and as little disposition, on the part OF the
banks. to be connected with it; but in the pro-
gress ofthe system, when their number is greatly
multiplied, and their issues, in proportion to their
means, are correspondingly increased, the con-
dition of the banks becomes more and more crl-
teal. Every adverse event in the commercial
world, or political movement that disturbs the
present state of things, agitates and endangers
them. They become timid, and anxious Tor
their safety, and necessarily court those in pow.
er, in order to secure their protection. Proper
ty is, in its nature, timid, and seeks projections;
and nothing is more grateful to Government
than to become a protector. A union is the re-
suit; and when that union takes place-when
the Government, in fact, becomes the bank dl-
rection, regulating its favOrs and accommoda-
ton, the downfall of liberty is at hand. Are
there not indications that we are not tar remov-
ed from this state Of things? Do we not behold,
in those events which have so deeply agitated
us within the last few months, and which have
interrupted all the business transactions of this
community, a strong tendency to this union on
the part of one department of this Government,
and a portion ofthe banking system? Has not
this union been, in fact, IN the
largest and most commercial of the States?-
What is the safety fund system Of New York,
but a union between the banks and the State,
and a contamination, by law, 0 fthat community
of feeling in the banking system, which | have
attempted to illustrates; the object of which is to
extend their discounts; and to obtain which the
interior banks of that State have actually put
themselves under the immediate protection of
the Government? The effects have been strik-
ing. Already have they become substantially
mere paper machines; several having not more
than from one to two cents in specie to the dol
lar, when compared with their circulation; and
taking the aggregate, their average condition
will be found to be but little better. | care not
(said Mr.. c. whether the present commission
org are nariiSauS of the nraSpnt State 4dmlnIS-
tration or not; or whether the assertion Of the
Senator from New York, (Mr. WRIGHT,) that
the Government Of the State has not interfered
in the control of these institutions, be correct.
Whether it has taken place or not, interference
is inevitable. In such state + weakness, a feel
ing of dependence is unavoidable, and the con-
troll Of the Government over the action OF the
banks, whenever that control shall become ne
cessary to subserye the ambition or the avarice
of those in power, is certain.
Such is the strong tendency of our banks to
terminate their career in the paper system-in
an open suspension Of specie payment. When
ever that event occurs, the progress TO convul-
sion and revolution will be rapid. The curren-
CIV will become local, and each State will have
a powerful interest to depreciate its currency
more rapidly than its neighbor, as the means, at
the same time, of eXempting itself from the tax
es of the Government, and drawing the COM
MERGE Of the country to its ports. This was
strongly exemplitied after the suspension o spe-
Gle payment during the late war, when the de-
probation made the most rapid progress, till
checked by the establishment of the present
Bank of the United States, and when the foreign
trade ofthe country was as rapidly converging
to the point of the greatest depreciation, with a
view ofexemption from duties, by paying in the
debased currency of the place.
What then is the disease which aff1icts the sys-
tenn; what the remedy; and what the means of
applying it? These are the questions which |
shall next proceed to consider. What have al
ready stated points out the disease. 1t consists
in a great and growing disproportion between
the metallic and paper circulation of the country,
effected through the fundamentally ofthe banks,
a disproportion daily and hourly increasing an
der the impulse of most powerful causes, which
are rapidly accelerating the country to that state
of CONFUSION and revolution which | have indi-
Gated. The remedy is to arrest its future pro-
gress, and to diminish the existing disproportion
tic increase the metals and to diminish the pa
per-advancing till the currency shall be restor-
ed to a sound, safe, and settled condition. On
these two points all must be agreed. There is
no man of any party capable of rejecting and
who will take the pains to inform himself but
| por,ct q nroo thot any ,rran " Il IN n H. - oro,