Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1834-02-12

from considerations connected with the political
feelings and party contests OF every gay, WIN no
guide but the individual opinion OF the ollcei
who is to perform the act; an OPINION winch. i
!" soibI. nav he no less tinctured with politi
cal motive and feeling imam tiie ooiiu"o' "''ioi
it would reprehend. G.
IF an unlimited pOwerbe conceded 10 the De-
cretary TO inf1ct penalties on the oanK loT sup
nosed potical motives in acts legai In taeih-
selves. where is the security that the Judge may
not be found acting under the same impulses
which he imputes to the party accused!
The committee entertain no doubt that the I'M
mediate cause of the existing public distress is
to be found in the removal of the pubic depo-
sites. and in the manner in which that removal
has been made; and those who justify the
removal do not so much deny this to have peen
the cause as insist that it not necessary that
anv such effect should have followed from 1t.
In other words, they argue that, notwithstand-
inc the removal, the bank still possessed the
power if it had chosen to exercise it, OF wardlng
off the blow which has fallen on the country, or
at least of mitigating its severity.
Nothing could have been nationally expected
but that the bank deprived OF the deposltes, ana
denounced by the Executive Government, would
feel itself called on to take just care of its own
interest and it's own credit OF the means
necessary to the attainment Of these ends, the
directors alone were judges, and the committee
have no evidence before them to show they nave
not exercised their judgment fairly, and with a
real solicitude to accommodate the commefcidl
community in the altered state Of things as Tar
as has been practicable, consistently with the Sc
curty of the institution, which it is equally their
duty to the public and the stockholders to main
tain They are certainly under every obllga-
ton of duty, in the present distressed state OF
the country, to do every thing for the public re-
lief which is consistent with the safety OF the
bank, and with those considerations which the
approaching expiration of its charter makes 1t
important for the directors to regard.
The removal ITSELF and the manner of effect
ing it, are causes entirely sufficient in the judg-
ment of the committee, to produce all the con-
sequences which the country has experienced,
and is experiencing and these consequences,
they think, are to be referred to these causes as
their just origin. How could any other result
have been expected? The amount of the depo
sites was nine millions of dollars. On this amount
in deposite there was sustained, no doubt, a dis
count of far greater magnitude. The withdraw
al of this sum of nine millions from the bank
necessarily compelled it to diminish its discounts
to the full extent of all that part which may be
supposed to have been sustained by it. 1t is to
be remembered too, that this was done at mo-
ment when business of every kind was pressed
with great activity, and all the means of the
country fully employed.
The withdrawing of so large an amount at
a
using it. could not but produce arrangement and
pressure, even if it had been Immediately plac-
ed in other banks, and if no unfriendly feeling,
and no want of confidence, had attended the
transaction But, it is quite obvious that the
operation to which the Secretary has resorted
has been attended with both these additional
and powerful causes Of arrangement. 1t has
created unfriendly feelings, and it has diminish
ed confidence. This change of the deposites is
made on the strength of charges against the
bank of very grave and aggravated nature,
such as, if true, would most seriously affect its
credit for solvency and stability. It's proclaim
ed to the whole world as having converted it
self into political partisan, msapplied its funds,
neglected its highest Duties and entered on ca
reer of eeCtioneering against the government
of the country.
These serious charges necessarily put the
bank on its defence, and the extraordinary spec
tacle is exhibited of a warfare by the National
Government on the National Bank, nOtWith-
standing that the Government is itself a great
proprietor in the bank, and Notwithstanding that
the notes Of the bank are the currency in which
the revenues of the country are by law receiv-
able.
The true and natural relation between the
Government and the Bank is altogether revers-
ed. Instead of enjoying the confidence of the
Government it is obliged to sustain its most Sc
rious official assaults and to maintain itself
against It's denunClatOnS. Inc banks selected
by Government as its agents are themselves
thrown perhaps unwittingly, into an attitude of
jealousy and suspicion with the Bank ofthe Uni
ted States. They become cautious and fearful,
therefore, in all proceedings; and thus those who
should cooperate to relieve the public pressure,
are considering mainly their own safety. Fear
ful Of each other, and fearful of the Government,
they see the distress continue, with no power of
beneficial interpositiOn.
1t may be asked, why are not these deposite
banks able to maintain as large circulation on
the nine millions of deposites as the Bank OF the
United States? And will they not be thus able
when the present panic shall have subsidized
The committee think both the questions easily
answered.
The Bank of the United States has a credit
more general, it may be said more universal,
than any State bank does possess. The credit
of the Bank of the United States is equally So
lid, its bills and notes received with equal conf
dence for the purpose of circulation and remit
lance, in every quarter Of the country. No pa
per circulation, so far as the committee know
which ever appeared in the world, has approach
ed nearer to the value and uniformity of spe-
Gle currency, than the notes and bills of the
IL &C. boI Tpitol Ctofa To no Stofa hoy1