The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1837-09-15

Esehtss similar ~ tneir ongin ano cha
FseIer. have heretofore frequently occur.
red, without producing any such change;
and The lessons Of experience must be for.
golsen. if We suppose that the present
overthrow OF credit would have been pre-
vented by The existence Of a national
hank. Proneness IN excessive tissues
has ever been the vice Of the banking
system; Eice as prominent in National
as 10 State institutions. This propensi-
" i n subserYlenl 20 the advancement
oi private interests in The one as in the
niher; and those who direct them both.
being principally guided b. the same
views. and influenced by The same mo-
tires. will be equally ready 10 stimulate
exirasaganee Of enterprise by improyi-
dsace OF credit How slrIkingly 10 this
conclusion sustained BY experience. The
Bank Of The United States. with the vast
powers conferred on IL by Congress, did
unt or could not prevent former and ST.
mllar endorsements; nor has the sull
| greater strength IL has been said 10 pos.
sess. under ils present charter. enabled
u. IN The existing emergency, TO check
other institutions. or even 10 save itself.
j In Great Britain, where. 10 has been seen.
the same causes have been attended Wrh
The same effects, NATIONAL bank, possess
ing powers far greater Than are asked Cor
by the wsrmesi advocates of such al to-
sliIuIion here, has also proved unable 10
/ prevent an undue expansion Ol credit. and
The evils that flow from il. Nor can |
fad any tenable ground for the re-ssis-
blismest Of nsiiousl bank. m The de-
rangemsnt alleged al prgsen, To exist in
Toe domestic exchanges 81 the country,
or in tie iscliitles II NAV b. capable Df
atfording them. Although advantages of
this sort were anticipated when The first
Bank OF the United States was cres.ed,
they we're regarded as an incidental &C.
commoiaIion; not one which the F.de-
raj Government was bound, or could he
called upon, 10 furnish. This accoBnO-
dalion is now, indeed. after the lapse Of
no, many years, demanded from il az a-
mong its first duties; and an omission 10
aid and regulate commercial exchange. 10
| trraled as ground If loud aud serInus
complaint. Such results only serve TO
exemplify the constant desire, among
some Of our citizens, to enlarge the pow.
ere of the Government and extend It's
control to subjects with which il should
not interfere. They can never justly
the creation of an institution To promote
such objects. On the contrary, they
Justly excite among the community
more dilligen, inquiry into the character
Of those operations Of trade. towards
which il is desired to extend such pecu-
liar favors.
The various transactions which bear
the name of domestic exchanges, differ
essentially in their nature, operation. and
utility. Une class of them consists Of
bills of exchange, drawn for The purpose
Of transferring actual capital from one
part OF the country to another. or to an
ticipa,e the proceeds Of property acru.
ally transmitted. Bills Of this descrip-
ton are highly useful in the move.
ments Of trade, aud well deserve all the
encouragement which can righrfully be
given To them. Another class is made
up If bills nj exchange, not drawn to
transfer actual capital, nor on the credit
0f property transmitted, but to create &c.
titious capital, partakiug at once of the
character OF notes discounted IN bank,
aud of bank notes in circulation, and
swelling the mass Of paper credits to
vast extent in the most Objectionable
manner. These bills have formed. for
the last few years, a large proportion Of
what are termed the domestic exchanges
. Of the couHtrr, serving as the means of
usurious profit, and constituting the most
unsafe and precarious paper in circula-
tinn. This species of traffic, instead Of
being upheld, ough, to be discountenanc-
ed by the Government and the people.
F g, In mastering its funds from place to
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 medium of bills drawn
by itself, or purchased from others; and
in these operations it may, in manner
undoubtedly constitutional and legitimate.
facilitate and assist exchanges Of indivi-
duals founded on real transactions of trade.
The extent to which this may be done,
and the best means Of effecling il, are en-
titled to the fullest consideration. This
has been bestowed by The Secretary Of
the Treasury, and his views will be SUBJ
mltsed 10 you in his report.
But it was no. designed by the Cons,i-
tuition that the Government should as
sumo the management of domestic or
foreign exchange. 1t is indeed author
ised to regulate by law the commerce be-
tween the States, and to provide gene.
raj standard Of value or medium OF ex,
ahr.~. - r1ll aNA ailver. has "a L. -,