Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1837-09-11

| unuUc expansion OF credit, ond the evils that
flow from it. Nor can / find any tcnabIe
gfound iortho ro-estabshmont Of national
bank in the dorangemcnt alleged at present to
exist in the domestic changes OF the country,
or in the facilities it may be capable of afford.
ing them. Although advantages of this sort
were anticipated when the inst Bank Of the u
States was created, they were regarded as an
incidental accommodation not one which the
Federal Government was bound, or could be
called upon, TO furnish. This accommodation
IS now, indeed, after the lapse Of not many
years, demanded from it as among IFS first du-
lies; and an omission TO aid and regulate COM
mcrclal exchanges, is treated as a ground of
loud and serious complaint Such results on
ly serve TO excmplify the constant desire, a
mong some Of our citizens, 10 enlarge the pow
ers OF the Government, and extend lis control
to subjects with which it should not interfere
They can never justify the creation Of an in
stituion to promote such objects. On the con-
trary, they excite among the community more
diliSent inquiry into the character Of those OPP
| erations OF trade, towards which il is desired
to extend such peculiar lavors
The various transactions which bear the name
of domestic exchanges, differ essentially in
their nature, operation, and utility. One class
OF them consists Of bills Of exchange, drawn
| Tor the purpose Of transferring actual capital
from one part OF the country to another, or TO
| anticipate the proceeds of property actually
transmitted. Bills Of this description are hioh-
y useful in the movements Of trade, and well
deserve all the encouragement which can right
fully be gwen TO them. Another class is made
up of bills OF exchange, not drawn to transfer
actual capital, nor on the credit OF property
transmitted, but TO create fictitious capital, par
taking at once Of the character Of notes dis
counted in bank, and Of bank notes in circua-
ton, and swelling the mass Of paper credits to
a vast extent in the most Objectionable uan-
ner. These bills have formed, for the last few
years, large proportion of what we termed
the domestic exchanges Of the country, serving
as the means oil usurious profit, and constitu-
ting the most unsafe and prccarious paper in
circulation. This species of traffic, instead Of
being upheld, ought 10 be discounlenanced by
the Government and the people.
In transferring its funds from place 10 place,
the Government is on the same footing with
the private citizen, and may resort 10 the same
legal means. II may do SO through the medi.
um of bills drawn by itself, or purchased from
Others and in these operations il may, in
manner undoubtedly constitutional and cgti-
mate, facilitate and assist exchanges of indi-
vduals founded on real transactions of trade.
The extent 10 which this may be done, and the
best means of elfectng it, are entitled 10 the
by the Secretary Of the Treasury, and his
views will be submitted TO you in his report
But ii was not designed by the Constitution
that the Government should assume the man
agement OF foreign or domestic exchange. 1t
is indeed authorized TO regulate by law the
commerce between the states, and 10 provide
general standard of value or medium Of ex-
change, in gold and silver but it is not its
province 10 aid individuals in the transfer Of
their funds, otherwise than through the iaci-
Ties afforded by the Post Office Department.
AS justly might it be called on FOR the trOnspor.
taton OF their merchandise. These are the
operations OF trade. They ought 10 be con.
Quoted by those who are interc sted in theni,:in
the same manner that the incidental difficulties
OF other pursuits encountered By other clas-
ses of cI0zans. Such aid has not been deem
ed necessary in other countries. Throughout
Europe, the domestic well as the foreign ex-
changes arc carried on by private houses, Of,
ten, if not generally, without the assistance Of
/, banks. Yet they extend through distinct SOW
ereignties, and far exceed in amount the real
xchanges of the United States. There is no
reason why our own may not he conducted in
the same manner, with equal cheapness and
t safety. Certainly this might be accomplished,
If 1t were favored by those most deeply inter
ested, and few can doubt that their own inter-
est, as well as the general welfare of the coun-
try, would be promoted by leaving such sub.
ject in the hands of those 10 whom it properly
belongs. A system founded on private interest
enterprise, and competition, without the aid OF
!, legislative grants or regulations by law, would
rapidly prosper; it would be free from the in.
fuence OF political agitation, and extend the
same exeu. ption TO trade itself and it ould
, put an end TO those complaints Of neglect, par
f TALLY, injustice, and oppression, VIII ch are the
unavoidable results Of interference by the Gov
eminent, in the proper concerns oil ndividu-
ais. All former attempts on the part Of the
Government 10 carry its legislation in this re-
spect, further than was designed by the Con-
stitution, have in the end proved injurious and
have served only to convince the great body OF
/ the people, more and more, Of the certain dan
gers OF blending private interests with the op-
erations of public business and there is no
reason to suppose that repetition Of them now
would be more successful.
1t cannot be concealed that there exists, in
our community, opinions and feelings on this
; subject, in direct opposition 10 each other. A
) large portion of them, combining great intelli-
, gence, activity and influence, are no doubt sim
cere in their belief that the operations Of trade
ought to be assisted by snch connection =
r they regard national bank as necessary for
this purpose, and they are dsinclined TO every
D measure that does not tend, sooner or later, 10
the establishment OF such an institution. On
the other hand, majority of the people are
/ believed 10 be irrecoIcilably opposed TO that
C measure they consider such concentration
. of power dangerous TO their liberties, and ma
: ny OF them regard it as violation OF the con.
i slitution. This colsio2of opinion has, doubt
Y less, caused mlSlt>cfThe embarrassment &c
J, which the COMMERCIAL transactions of the coun-
o try have lately been exposed. Banking has be-
b come political topic of the hghes, interest
and trade has suffered in the conflict OF parties
| A speedy termination of this state Ct things
however desirable, ID scarcely to he expected
|. We have seen for nearly half century, tha
q those who advocate n national hnnk by what