Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-09-06

and against which no precautions can etfectualy
guard.
Unforeseen in the organization OF the government
and forced on the Treasury by early necessities we
practice of employing banks, was, IN truln from the
beginning, more measure of emergency tnan OF
| sound policy When we started into existence as
nation, in addition the burdens OF the new govern
ment assumed all the large but honorable LOAD o.
debt which was the price of our liberty; put we nesi
tafed TO weigh down the infant industry OF the coun-
try bv resornng to ad, qaae taxation for the
revenue TIE facilities Of banks, in return Tor the pr,
vileges they acquired, were promptly offered, ana
perhaps too readily received by embarrassed Irea-
| sury
| During the long continuance Of national debt,
and the intervening difficulties Of foreign was the
connection was continued from motives OF convent
ence; but these cases have long since passedaway.
We have emergencies that make banks necessary
to aid the wants Of the Treasury; have lead Of
national debt TO provide for, and we have on actual
opposite large surplus. NO pubic interest," therefore
now requires the renewal Of connection that circum-
stances have dissolved The complete organization
| of our government the abundance Of our resources
the general harmony which prevails between the diffe
rentstates, and with foreign powers, all enable us
now 10 select the system most CONSISTENT WIN the
constllutlonand most conducive to the uuohc welfare
Should we them connect the Treasury sor iourth
time with The local banks il can only be unu,@r con-
victon that past failures have arisen from sntal
not Inherent defects.
danger, difficult, if not impossible, to be avoided
the very eventb by which it has now been defeated.
sudden act of the banks ntrusted with the funds of
the people, deprves the Treasury without fault OF
gency OF the government, of the ability TO pay its
diiors N the Currency they have by law right 10 de-
mand. This circumstance no hJctuation of commerce
could have pro- uced if the public revenue had been
collected IN the legal currency and kept in that form
by the officers OF the rrcasurp. The citizen whose
money was IN bank receives 1t back, since the
pens,on, at sacrifice in irs srnount; whilst he who
| kept Il in the legal currency of the country and in
MS possession pussues without loss, the current
OF his business The government, placed in the sl,l
alton of the former is involved in embarrassments it
could not have suffered had it pursued the course of
the latter. These embarrassments are, moreover,
augmented BY those saluary and just laws which for
bid u to use deprecated cusrcucy and by so doing
take from the government thenbly which individu-
ais have Of accommodating heir transactions TO such
a catastrophe.
,, A system which can in a time of profound neace
when there is large revenue lad BY thus suddenly
prevent he application and the use of the money Of
the people, in the manner and for the objects they have
detected, cannot be WISE but who can think without
painful reflection, that, under IT. the unforeseen
events might have befacn us in the midst Of war,
and taken from US, al the moment when most want
ed, the Of those very means which were treasur
ed up to promote the rational welfare and guard our
rational rghts2 To such elnbarrassments and 10
such dangers will this Government be always expos.
ed, whilst takes the moneys raised for, and necessa
~ to, the public service of the hands Of it's own
officers and converts them into mere right Of action
against corporations entrusted wiik the possession Of
them. Nor can such results be efecrualIy guarded
against IN such system without investngth Execu-
tive with control over the banks themselves whe.
Their State or National that might with reason be OBJ
Iecied to. Ours is, probably, the only Government
in the world that is liable, in the management OF its
fiscal concerns, to occurrences like these But this
imminent risk is not only the danger attendant on the
surrender of the public money TO the custody and
control OF local corporations. Though the object is
aid TO the Treasury IT'S effect may be introduce into
the operations of tie Government influences the most
subtle, founded on interests the most selfish.
The use by the banks for their own benefit Of the
money deposited with them, has received The sane
ton OF the government from the commencement of
this connection. The money received from the pco
pie instead OF beng kept till il is needed for their use
is, in consequence Of this authority fund on which
discounts made for the profit Of those who hap
pen 10 be owners os stock in The banks selected as
repositories The supposed apd often exaggerated
advantages of such boon will always 10 be
sought for with avidity. will not stop 10 CONSIDER
whom the patronage incident 10 it IL TO be confer
ed whether the selection and control be trusted TO
Congress or the Executive either will be subjected
TO appeals made in every form which the sagac,ty of
interest can suggest. The banks, under sucn sys-
tc stimulated TO make the OF their fortunate
acquisition. The depostes are treated an increase
OF capital. Lonns and circulation are rashly aug
mented and when tho public exlgences require
turn, il is attended with cmbarrassmen,s not provided
for or foreseen Thus banks that thought themselves
mos, fortunate when the public funds received
find themselves most embarrassed when the season |
of payment suddenly arrives.
Unfortunately, too, the evils OF the system are not
limited 10 the banks Ii stimulates general rash |
of enterprise and aggravates the fluctuations Of
commerce and the currency. This result s,rk- |
ngly exhibited during the operations of the late depo
site system and especially the purchase of pub ic
lands. The order which ultimately directed the pay
meat of gold and silver in sach purchases greatly |
checked, but could not altogether prevent the evil
Specie indeed more difficult 10 be procured than
the notes which the banks could themselves create nj
pleasure but stl being obtained from them as a
loan, and returned as deposte, which they were a.
gain liberty TO use, il only passed round the circle
with diminished speed. This operation could not have
been performed had the funds Of the government gone
into the treasury, be regularly dsbursed and not
into banks To be loaned for their own profit while
they were permitted to substitute for it a credit in nc
count.
In expressing these sentiments | desire not TO |
undervalue the benefits of a salutary credit 10 any
branch Of enterprise The credit bestowed on proby /
and Industry is the just reward Of rert and an honor
able incentiv further acquisition. Noneoppose II
who love their country and understand It's welfare.
But when il is unduy eacouraged-when II is made TO /
niiame the public mind with the temptations OF sud
den and unsubsantia wralih-when il turns indus
try into paths that lead or later 10 dsappont
ment and iisiress-it becomes liable 10 censurc, and
needs correction. Far from helping probity and in
dustry the ruin 10 which IL leads falls most severely
on the great laborrg classes who thrown sudden
ly out Of employment, and by the failure of magni6-
cent schemes. never intended 10 enrch them, are de-