Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1837-12-26

how can stability aud safety for the Gov
1fnmcnt, in connection with such institu
lions, y any trying emergency, be cxpec
Ited2 And look at their situation now
/ ln ewsHork The banks have six and
Ihals paper dollars out in circulation, t,
one IN spccie'in theiryaults, The bank
lot Alabama, nine to one; Boston, six L
Lone; Pennsylvania, six 10 one; Virginia
llset one; and in this situation, with pub
litc confidence shattaFed, they are yet Il
l Eo thFenghthat dificuit,process (Which II
Hand, IN 1929, prostrated hundreds o
banks, fesvsning specie payments
Many offhese hanks must break in t6escf
foFt 70 resume specie payments; and SHOULD
1 lbs paper bereceiyedin payments to the
Gesernmentor they Be used as deposito
1 rlcs Of the public funds, loss will be inevi
liable " Mediterranean.
Now, what is the constitutional princi
lPle ppon which alone the government car
connect itself with these institutions? i
Is the same upon which the United Sta e,
Bank, in 1916, was established: That they
are necessary and proper" for The colec-
ton OF the revenue and the fiscal opera
tons ofthe Government. But will il be
commended, can't be sefioisly argued, that
the State banks, in ilieiSpresent situation,
Ghrowing aside ailspast experience OF
their lncompetency.) are necessary and
proper instruments" for the collection of
the public revenue? But il is said that the
Government support the banks, even at
the hazard Of the revenue, because the
banks are the people; aad the government
in separating itself from the banks, scpa-
rates itself from the people Is this the
Gact7 Are the banks the people? They
are corporations established in the differ
ent States, composed Of certain individuals
who own the stock, andhave put out their
notes bearing no interest, for the notes of
individuals bearing interest. In this way,
the community owes a great deal to the
banks, and the banks owe a great deal to
the community; bat take the aggregate of
mutual in ebtedness, and ii constitutes,
comparatively, buta small portion Of the
whole capital ofthe country.
There is not one of the Southern States,
in which there are not ten times as much
paper in the bonds and notes of indvidu-
ais in existence, as there are bank notes.
Why should not Congress, then, under
take to Ieglslato for the support Of this
whole mass of paper, as well as that of the
banks? Why should capital, vested in.
bank stock, be fostered by congressional
legislation, and that vested in land and
slaves be unprotected! Have we SO soon
forgotten the great constitutional princi-
pies upon which VIC opposed the tariff
laws7 1t was contended that Congress
haG right, incidental to the right of lay
ing duties, TO lay them in such a manner
as to have for their primary object the en-
and support Of domestic man
lfactures. We denied the right and in
sisted that Congress, under the guise of
aying duties for revenue, had no right TO
'oster any particular class or interest at
he expense of the rest ofthe coniederacy.
And does not the same principle apply
lere? Congress has right to lay taxes
L collect the dues 10 the Government; but
t has no rightto jeopardizc the revenue,
vilich belongs to all the people Of the I'm
on, for the purpose Of supporting a pecal-
ar class or interest.
But, sir, are gentlemen sure that con
lection with the Government viii be of
nv benefit TO the banks in the effort to
esume specie payments. In many parts
f The country, ID South Carolina for ifi-
lance, if there should be any benefit, M%
you'd be exceedingly small for the. WHOLE |
mount collected from the customs IN tliatE
tate, for the last two years, does not ex-
eed four hundred and thirteen thousand
olIars a year. But where the benefitst
re expected TO be great, so must also Be |,
he hazards. When these banks resumeE
pecie payments, their paper will not be +
at par. Public con6denceB
I'LL not be won, until they have tested
ieir inability 10 sustain themselves in
his trying position. Until this IS proved
leir paper will be below par, and, II REL
eivable in payments to the Government,
ill, Of course, be eagerly sought for, to
erGorm this function. In so doubtful a
osition, what will be the duty Of public
sceiSer to whom such bank bills are paid
,r dues to the Government Assuredly. 1
cash them in specie at the counter Of
lie bank. If he did not do so, and the
ank failed whilst he retained the notes on
and. he would be responsible Now, will
aid the banks, in the effort to resume
,ecie payments, to be obliged to redeem
in specie all their notes which
ay be received by the collectors in pay
lent Of the public duess Let gentlcmenl
Ike heed that this connection Of the Gov
rnment with the banks, so eagerly sought
IT, may not be as fatal to them as the en-
race ofthe serpent to Loacoon.
But. Mr.. Chairman, there is one other
,ioction, which, if all others failed, would |
, insuperable with ms to any connecticut