The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-09-02
EXTRACTS
From MR. Vas BuREs's Message 10 The Legisiature
Of Nep York, in 1929


From Nix. Van BuREss Message 10 The Legislature
Of NsD York, IN 1929.
The question as to the renewal of the bank charters
which about to EXPIRE will deservedy receive your
early and most deliberate attention. do not think
deceive myself IN believing that it must become the i'm
porant business of your session, upon wise and
cessfu disposition Of which, its credit with the people
and usefulness TO the state, will materially depend.
Having for many years ceased to have interest in
those institutions and declined any agency in their
management an deeply conscious Of my want Of that
sort OF information which is important in forming an
intelligent and safe opinion the subject Thus i'm
pressed should have contented with simply bringing
the subject to your notice, did not feel bound to
municate freely and unrcservedy with those with whom
1t is duty to act matter Of such vast magnitude
TO our constituents.
OF the forty banks now in operation in the state the
charters Of thirty expire within one two, three and
four years but chiefly within two and three years.
From the best information that be derived from the
returns made by the banks whose charters about to
expire, their collective capital actually paid in
to fifteen millions of dollars and the debts due to them,
TO than thirty millions. The debts due from these
institutions to the community, including their stock
holders, may be safely estimated at about the
amount
As to the propriety Of making final disposition OF
the whole subject the present session. there appears,
so far as can learn the public sentiment but OPT
mon The injurious consequences that may be Justly
mind, and to have produced general expectation that
the soctudes properly felt upon this grave matter,
will be relieved by your early decision.
Should your opinion correspond with this view Of the
matter, question will arise to the course which
ought to be pursued under existing circumstances. The
difference between that question in the present condi-
tion Of things, and what it would be if you called
upon for the first time to lay the foundation Of banking
system for the state, will readily occur to you, What
might in that be expedlent, may now from the
II -
operation, and the tendency which all pecunlary
have, to conform themselves to existing regua
tons, be found very difficult ii not impracticabe.
To dispense with banks altogether is idea which
to have advocate; and to make ourselves
wholly dependent upon those established by Federal
thorlty, deserves none
Ifthcsc are corrcc, views, the only alternative would
seem be, between renewal Of the charters Of the
sound part of the existing banks to anticipate the
winding up of their by the incorporation OF
institutions.
In support of the latter course, the idea Of State
Bank with many branches public convenience would
require has been very properly thrown out for public
consideration lfby State Bank is intended instl-
tuition 10 be owned by State, and conducted 10y its
officers, il would not seem TO require much knowledge
of the subject to satisfy u.s. that the experiment would
probably fail here it has elsewhere, The reasons
for this apprehension cogent in their nature;
constant in their operation and OF such ready occurrence
to intelligent minds, that shall not dctan you by stat
ing them.
Experience has shown that banking operations, TO
be successful, and consequently beneficial to the
munity must be conducted by private men, upon their
account A State Bank, with branches established
upon the principles IN other respects, as the pre-
sent institutions, and which the state should stand
a private stakeholder only, would probably better sub
serve the interest intended TO be promoted by the
Enlistment of banks than the present system; and if
the question new, and in all respects an open
one, would doubtless have many advocates. But We
cannot close eyes the difficulties and pecuDary
embanassmcnts that must result from suddenly stopping
the operations Of many and such long established IN
situations OF the thirty millions that owing to
them the principal par, is probably due from merchants,
manufacturers and other large dealers in their vicinity
but they in turn, have their demands against persons
pursuing similar business in the country, and those
again must look TO their customers thus embracing all
classes Of society. in the liability to contribute towards
general settlement. The amount due from the banks
especially all that portion which consists in bills issued by
them, would be found scattered through the whole
muniiy.
From this superficial view Of the subject. it
must be evident to all rejecting minds that the pecu
mary commissions that must result from compulsory
close Of these extensive would be neither slight
in its degree or transient in its duration. You will,
convinced, concur. with me in the sentiment, that
responsibility Of SO serious character and fearful IN
its possible consequences, should not be incurred on
slight grounds, from motives Of expediency in the
least degree questionable OF the inducements to such
STEP it is your right and your duty TO Judge, and
sincerely hope, as firmly believe, that your constitu
cnts WILL III the end have to rejoice that trust
sacred has been reposcd in hands 50 deserving.
II you should decide in favor Of renewing the charters
Of those banks whose ovcncy and present capacity to
discharge all their duties SHALL after rigid and impair
tia scrutiny, be found free from doubt 1t will become
necessary 10 consider the condition upon which the
grants ought TO be made
The policy heretofore pursued, Of requiring the pay
ment of large bonus TO the State the performance
OF specious service the price Of bank charters,
is condemned by experience. statement Of the inu-
rous consequences that have resulted from It, cannot
be necessary The unbiased Judgment OF all observing
and thinking men, must concur IN regarding u az an
expedien from which good has resulted Its tend
has been and must always be- to weaken the secu-
rty Of the public in those institutions, for the perform
ance OF that in which the public interest mainly consists
the faithful redemption Of their paper Eager to obtain
charter and stimulated by the golden harvest IN view,
they most liberal in their promises IL these promises
are not performed the capacity Of the bank to redeem
its paper is impaired, and the consideration that such
incapacty caused by the exacon Of the government
not unfrequcn,ly leads to unreal dividends and fraudu
lent advances OF the stock the first instance and to
dsreputablc failures the end failures by which those
classes Of the community, who stand most in need oil
the protecting Of good government, arc usually
the principal sufferers.
Strongly impressed by these considerations, re-
spectfuy suggest the proprety Of making all the con-
dons you prescribe. rcr srefnsirety 10 the safety anu
stability Of the institution.
The conceded difficulty OF effcng that great object,
through the means proposed should not deter us from
the attempt IN all deliberations upon this SUBJECT
we should keep constantly in view the important con-
alteration that the sOipsney of the banks, and inc con-