Vandalia Whig and Illinois intelligencer. [volume] (Vandalia, Ill.) 1832-183?, 1834-04-24

IL ioheF What justifes its Continuance
IL "heh Inc hrst st that has been ast in
IL TO The crucible with The precious mate.
rs ais OF human happiness, has nearly de.
ii composed them all, aud threatens to
50 convert mem into poisons that will cor
e rode and canker the country to its verv
t neaft! u is ~ longer an experiment.
: II has been tried, exposed, and ought to
u DC rejected. 1t is no longer an expert.
: meht to try whether life can be support
ca without vital air, or the laborer and
his chlldren without daily bread.
II 1t should finally happen in the pro-
gress Of the experiment. that a ,urron
: cy Is created such as the secretary anti,
ciPales, what is that currency to be to
the country, and what is the country TO
ne by means of it? This question NAV
be answered by our own history. as #
might be answered without the aid of
history. 1t is not to be a national cur
rency, nor currency partly local, and
partly national, maintained every where
III the condition of equality, by a uni
versally pervading Influence, but it is to
be variety of local currencies, subject
to localihfuence ouly. The state banks
ana The state banks only, are to furnish
1t. They are to furnish it under the
patronage of the treasury, and with a
full knowledge of the maxims which
have been quoted by the committee,
THAT the borrower is the servant Of the
lender" and that che who controls a
bank, controls the debtors of a bank"
maxlms which will be found to lose none
OF their force when state banks shall
feel the effect of their position as bor-
rowers OF the treasury, and debtors shall
feel 1t also as borrowers of state banks
that are under the control Of the treas
Jury.
1t VIII be a currency wholly removed
from that restraint which national in
sti'utlon is alone capable of imposing in
all parts OF the union, that is to say, free
from all banking trestrain whatever;
Tor, practically, there can be no restraint
where there is no general and perva-
ding power to enforce it. In some, per.
haps in several, of the untrammelled
and independent state banks, banking
Will be conducted upon iudcious prin-
cIples so far as it regards their own CD.
CREATIONS; and their own local currency
may continue for a time locally sound,
But where shall be the controlling cause
that shall secure this result, where the
principles of banking are unsound, and
where the desire of large profits shall
tempt state banks to extend their issues
beyond that measure which experience
has asccrtained TO be the unly safe and
accurate measure? Where is to be
found the universal presence of test
that will instantly detect excess, and
lead to its detet ton? That test is to be
found in ii national paper, based upon
the precious metals, sustained by the
law of the whole land, received in pay
ment of all public dues, circulating ev-
cry where, and furnishing standard of
comparison every where. Where again
is to be found the necessity, as well as
the power, of applying the corrective?
This corrective is to found in an institu-
lion which issues that national paper,
and which, in selfdeience, and in de.
fence of the nation also, must repress
the circulation of every bank that does
not provide it with the means of dis
bursting the public treasure in all parts
IoI the United States. The paper that
is really sound, will be as good as its
own, and will be received AS such, and
may circulate as such. But ii the pa
per of any one of the state banks is
not as good AS its own, such an ins,itu-
ton cannot receive it, because II cannot
account for it every where to govern
ment, in an equal amount Of its own
paper or specie. If it cannot be re-
ceived by the national institution, it
must return to those who issue it,
and the corrective is at once appli.
ed.
The system of local banks, of which
those to be employed by the treasury
are to form a part, is, therefore, defect
i've in this, that their circulation will be
local. They will be constantly endeav-
oring, at least i'll a great many Cases, TO
send out their paper to ex, ess, and there
cannot be a regular application OF the
corrective, that will as constantly pre-
ventit. 1t may be repressed III 5, me
instances, in an irregular way, by sound
state banks; it may also be partially
r depressed by demands from other states;
bul the effort to do it regularly, viii be
without iuducemeui. and vii, uui h sus-