The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1837-09-16


Treasury, and numerous and pressing applications
made for indulgence or relief As the install
ments under the dopos te law became pay able, |
their own embauassments and the necessity un-
der which they lay ofcurtaiing their discounts and
calling in their debts, increased the general dist
and contributed, with other auscs, to hasten the
revusion in which at length, they in common With
the other banks, were fatally involved
Under these circumstances, it becomes SOL
emn duty to enquire whether there not in any
connection bet cen the Government and hanks OF
isse, evils Of great magnitude inherent in its very
nature, and against which precautions can ei--
fectually guard.
Unforeseen in the organization OF the Govern
ment, and forced on the Treasury by early necessi
tics, the practice of employing banks, was, in TRUTH
from the bo ginning, more ofa measure of emergen-
cy'than of sound policy. When we started into
existence as a nation in addition to the burdens of
the Government assumed all the large but
honorable load of debt which the price of our
liberty; but we hestated to weigh down the infant
Industry of the country by resortng to adequate
taxation for the necessary The facilities
of banks in return for the privileges they acquired,
were promptly offered and perhaps too readily re-
'ceivcd, by an embarrassed Treasury. During the
long continuance of a national debt, and the in
tervening difficulties ofa foreign war, the connec-
ton was continued from motives Of convenience;
but these causes have long since passed away.
sary to aid the wants of the Treasury; have no
load of national de1t to provide for and have on
actual deposte large surplus. No public inter
est, therefore, now requires the renewal OF con-
nectoh that circumstances have dissolved. The
complete organization of our Government, the a.
bundance Of our resources, the general harmony
which prevails between the different States, and
with foreign powers, all enable now to select the
system most consistent with the constitution, and
most conducive to the public welfare Should
then, connect the Treasury for fourth time with
the local banks, it can only be under conviction
that past failures have arisen from accidental not
inherent defects.
A danger difficult if not impossible to be avoid
ed in such arrangement, is made strikingly evil
dent In the very event by which it has now been
defeated. A sudden act of the banks intrusted
with the funds of the people, deprives the Treasu-
ry, without fault agency of the Government, of
the ability pay its creditors in the currency they
have by law right to demand This circumstance
no fuctuation of commerce could have produced, if
the public revenue had been collected in the legal
currency, and kept in ti,at form by the officers Of
the Treasury. The citizen, whose money was i'll
bank receives it back, since the suspension at sa-
crice in its amount; whilst he who kept it in the
legal currency of the country, and in his own pos
session, pursues, without loss, the current OF his
business.-The Government, placed in the situa-
ton of the former, is involved in embarrassments it
could not have suffered had it pursued the course
OF the latter These embarrassments aro, more
over, augmented by those salutary and just laws
which forbdit to use deprecated currency, and,
by 80 doing, take from the Government the ability
which individuals have of accommodating their
transactions to such catastrophe.
A system which can, in time of profound
peace, when there is a large laid by, thus
suddenly prevent the application and the use OF the
money of the people, in the manner and tor the
Al. 10, ht1fx l1
think, without painful reflection, that, under it.
the same unforeseen events might have befalcn us
in the midst Of a war, and taken from US, at the
moment when most wanted, the use of those very
means which were treasured up to promote the ma
tional welfare and guard our national rights! 10
such embanassments and to such dangers will this
Government be always exposed, whilst 1t takes tho
money raised for and necessary to, the public ser
vice, out ofthe hands Of its own officers and con-
Verts them into a mere right Of ton against cor
porations entrusted with the possession of them
Nor can such results be efectually guarded against
in such system, without investing the Executive
with control over the banks themselves, whether
State National, that might with reason be Object
ed to. Ours is probably, the only government in
the world that is LIABLE in the management OF it
fiscal concerns, te occurrences like these.-But this
imminent risk is not the only danger attendant or
the surrender oftbe public money TO the custody
AID control Of local corporations. Though the OBJ
jeet is to aid the Treasury, its effect may be to in
troduce into the operations of the Government in
fuences the most subtle, founded on interests thU
most selfish
THE use Of the banks for their own benefit, o
the money deposited with them, has re eved thu
sanction Of the Government from The commence
Inent of this connection. The money received
from the people instead of being kept till It is need
ed for their use, is in consequence Of this 0uthori
ty fund, on which discounts arc made for tn,
profit Of those whohappen to be owners of stock il
the banks selected as repositories The supposet
and often exaggerated advantages Of such bool
will always cause it to he sought for with avdity
will not stop to consider on whom the patronag
in i1ent TO il Is 10 be conferred; whether the selec
tol and control be trusted TO Congress or to tn
L Iecutiye, either will be SUI cctcd TO appeals mad
In every firm which the sagacity of interest car
suggest. The ranks, Under such a system, or
stimulated TO make the most of their fortunate &C
QUESTION; the deposites are treated as an incrcas
Of capital; loans and circulation are raslhy aug
snenteI and, when the public eyigences require
return, it is attended with embanassments not pro
vded for foreseen. Thus banks that though
themselves most fortunate when the public fund
were received find themselves most embarasse
when tle season of payment suddenly arIives.
Unfortunately, too, the evils of the system ar
not limited to the banks. It stimulates a genera
e. .,,l. ~. d,,,4