The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-19

IN the system Oh many hunAsp Nnethff I've
general government 10 20 be divorced from
bank agency or not In any event, each II
the States will want n sound currency. The
system Of many banks cannot supply that want
which must be supplied. Does the sensible
man persist in error perceived. OF the Firsous
man forbear a good purpose, from fear that all
others will notiollow his example Has any
enlightened people ever been known to lore
90 a reform in their civil polily. from fear that
all the other nations Of the earth viii not fol-
low in their footsteps Let some u these
States take the lead in the suggested change
in their system OF finance, and the beneficial
results will soon be so manifest ~ 10 be en-
braced by all.
4th. Ii is objected by some who think the
one bank system would work well. that :,
cannot be carried into effect, because there j.
a want Of power in the federal government 10
influence effectually the Legislation of The
States on the subject To this objection. ]
reply that no direct interference by the federal
government with State Legislation would he
countenanced, much less recommended By
any one having a proper respect Tor the re-
served rights OF the States. No legislative
or executive proceeding, passing beyond
the express grants Of constitutional power, ~
necessary to be taken by the federal iunctiona-
ries, in order to constrain well ordered sys-
TEN of State Banks The certain effect Of
abstaining from unnecessary action on the
subject Of the currency, will be the establish
ment of well ordered system of State Banks.
Let the federal government keep within It's
appointed sphere, exercising its dctegdfed
power " to coin money, regulate the value
thereof, and offoreign coin" and It's benefcent
privilege of receiving whatever representative
Of money it may by law consent, may be re-
ceved inpayment Of dues to it, and the States,
for the necessary purposes of their domestic
trade and transfer, and of inter. communica-
ton, will soon devise and establish some sys-
TEN of State Banks which will furnish me-
dunn that may be takenby the federal govern
ment in its receipts of revenue; and when thus
taken, be equivalent to specie. II is by such
negative influence that the federal government
may constrain the establishment Of an efficient
system of State Banks and at the same time,
not be chargeable with improper interference
with the legislation of the States.
In the foregoing reference to the changes
from the present management of banks, which
have been heretofore suggested, have omit
ted to mention one which would evidently
exert a very great influence in securing good
management 1t is this" Make the stock
holders other than the State, responsible, in
four-ffths of their personal and real estate, for
their proportion of the debts the bank may at
any time owe" In view of such responsible
ty, the directory of the bank would not be apt to
incur the hazards of redundant circulation,
or of excessive or insecure loans for the pur-
nr I AvI / cpfr-
eest that the State stand as private stock
holder, and be made responsible for its full
proportion of the debts the bank may at any
time owe.
In addition to the authorities heretofore
cited in favor of the one bank system, refer,
in conclusion, to an expression Of opinion in
Mr.. Van Buren's Message to the Legislature
of New York. in 1929 "a State bank with
branches established upon the same princi-
pies, in other respects, as the present institu-
tons, and in which the State should stand as
a private stakeholder only, would probably
better subserve the interest intended to be pro-
noted by the establishment Of banks, than
the present system; and il the question was
anew, and in all respects an open one, would
doubtless have many advocates" The only
comment make on Mr.. Van Buren's opin-
ion, is, that the question is by far more
"open" now, in every one Of the states, than
it was in 1929, in the state Of New York
In 1929, public confidence in the banks in all
the states, was full to OVERLOOKING Now,
confidence in them is at too low an ebb Con-
fdence is changed into bitter and undeserved
condemnation. The enthusiast after the pre-
cious metals, may heap his undistinguishing
curses on State Bank systems but the friends
of a salutary credit will discriminate and
strive at reformation. The friends Of Uni
ted States Bank, constituted essentially as
the late one was, may rail against State
Banks, however organised, as being incapable
of substitution for National Bank but let
him look about him, and he will find himself
in dead minority, in which he is likely to
remain, though he may wrap himself in sui
len inertness, to take the chances, and betray
the while a want of active patriotism. The
system of many banks III each state, it is true,
is Keeling as drunken man, TO its fall. 1t
is crumbling to considerable extent, into
eternal ashes But let whatever is good in
it be preserved, by an energetic interposition
of the republican party On its partial ruins
proper respect for the State Bank paper
credit system, guided by financial skill, and
inspired with patriotism, and tempered by
caution, may build up the one bank system,
almost imperceptibly, plainly seen but scarce
ly felt, with so little capacity for mischief,
with so large capacity for good, and so beau
tifuly consistent with the sovereignty of the
states, that the people, beholding it and re-
posing on it, evil bless the CONFUSION in
which it had its origin"
PUBLIUs.
FoR THE MADIsoNIAN.