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

NOHHtUeu JfOHe JHSE PUSC'I
dental state OF the balances shall turn
the excess suddenly back upon the banks
which have issued it, dshonor will come
and with universal alarm and bankrupt
cy. This is history OF the past, and
lesson for the future. A confederation
of the state banks, sanctioned by the
laws of the states, is scheme which
the minority do not think it necessary TO
combat, until some one shall propose it ),
and present its outlines. An attempt
to regulate the currency by the opera
tions Of state banks, through private
compacts, with each other, or with the
treasury department will probably fail,
however often repeated. as it has failed
already. A partnership of different cor
porations, for profit & loss, or for mutual
guaranty, with independent boards Of
direction, is as strange contrlvance tor
the security Of stockholders, as it is for
the control and regulation OF the cur>
rency. When the question of provi
ding a regulation for the currency shall
be deliberately considered, the minority
have no doubt that the project of en-
pIoying state banks for national purpo-
ses will be universally rejected as i'm
practicable.
The hope Of obviatng all these diff
culties by the 6nal substitution of me-
tallic currency in exclusion Of bank pa
per OF every kind, is mere deusloD.
No one who reflects upon the subject at
all, can either see how it is to be effect
ed. or what it is to do but harm, when it
shall be effected. Through what pro-
cess are the state banks to be exlinguIsh-
ed, as well as the United States bank
1t they continue, how is their paper to
besuperseded' If their paper is to re,
main, who is to exchange productive
capital for specie 10 serve as currency,
when paper which costs nothing, will
answer the same purpose? Who is to
begin the traffic? For specie, like 9th
err merchandise, is to be bought and
paid for; and it must be bought and
paid for by something besides paper.-
and when there shall be a thorough ah,
clifton of every kind Of paper from use,
how will the gold and silver be better
than the paper we have had hitherto,
st,ich gave u. all the gold and silver
we wanted, and did not compel us to
take it when we did not want il? What
will the country have gained, and par
ticularly the industrious and enterpri-
sing, who are without capital, and must
borrow it in order to use 1.-THE men
by " hom this nation has been enriched
and strengthened? What will the in
dustrlous and enterpris,ng do, after "A
scheme shall have succeeded, which, ny
destroying paper, will infaliibly destroy
bank credit, and give TO the man OF cap
itai monopoly of the trade and indus
Try Of the country? The subject, how
ever, need not be pursued.
There lisa power in the necessities
Of men. Which battle all such designs, if
they be seriously entertained; and this
the minority do not in the slightest de-
gree. apprehend. If the bank is not to
be wholly extinguished. but only dimin-
ished by the substitution Of metal for
the smaller denominations Of notes, this
indeed, is admitted TO be AN object OF
reatimportance, and mainly for the rea
son that, in Case Of an unusual call upon
banks for specie, they may be able the
more readily to repair their resources
from the channels of the country. But
ifthis design is to be carried ito effect
at all, it is demonstrate that can only be
done by "A national institution operating
with the national treasure. aud re guiated
by laws of congress, direct'd to the great
constitutional end ofequabzug and sus-
tanning the currency. State banks and
their operations are 10 be controlled, &
not the controlling power, in the execu-
ton OF such design; and, consequently
the plan of the secretary for extending
the power and circulation of the state
banks, is at the farthest possible distance
from the object OF either extinguishing
or diminishing paper currency.
The minority DO not deem it necessa-
ny to make any further remarks upon
the reasons OF the secretary for remov-
ing the depesites. in order TO prepare a
currency In state bank paper.
VII. Another reason of the secreta-
ry for removing the deposites, is der-
we'd from the supposed pressure by the
bank upon its debtors, including the
state banks, in the months of August
and September. 1888, to coerce re-
newal OF the charter.