Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1837-11-16
TNENTY.FIFTM CONGRESS-.
FIRST SESSION
SPEECH OF Mn. CALHOUN.
On Ae biH imposing additional duties. as dcposi

Mr.. CALHOUN (of ). ca said that in review
ing this discussion, he had been struck with the ,ct
that the argument the opposite side had been
limited almost exclusively. to the questions ot relief
aud the currently. These are, undoubtedly, I'M
pnrtan questions, (sa,d Nh. CALHous.) and well de-
serving the deliberate consideration oi The Senate hut
there other questions involved IN THIS issue, o a
| far more elevated character and commanding
control and witch more imperoasly demand our
attention. The bank, hive ceased To be mere mo.
neyp,l inc irpo,aliot.s. They have become great
political institutions, with vast influence os'r the vel
fare OF the community ~ much so, that hiahl,
distinguished senator lMr. CLAY) has declared, ~
his place, lhn the qursti"n oi the dSunlun oi the
| Government aud IN, banks Involved IN its consequent
ccs the d,suuon oi the States tlcms Ives. It'll Tins
declaration sounding IN our cars. II - tine 10 looh
into the origin OF system which has already aeqnr-
ed such ghty influence; To inquire into the causes
which have prosuccd H. and whether they are Siill ON
the increase: in what they will terminate. II lett to
themselves and, finally whether the system is iafora-
bic 10 the pernianrncy OF our fire. institutions to
the innstr, ani business of the country; aud above
all, to the moral and intellectual development oi the
community. feed The WIS, importance and masni-
tudc Of these topics, rs well their great dcteacS
/ | shall toucl, them with extreme reluctance. aud
only bee ause believe them to belong 10 the orcas'on,
aud tina, II would be derel,eton o' pubht dn', 10
withhold aAs opinio" which have deii9flMelS ''fih-
ed on the subject under discussion.
The rise asd progress ui the banking system Is one
ot he Isl remarkable and curious phenomena 81
modern lin,r,. Its origin is modern and humble,
! aud gave m.licltiou oiihr extraordinary srouth
and influence winch it VAS destined 10 a,tain Ii
dates back to 1000, tho year tina, the Bank OF Amstcr
dam established. Other banking Institutions
prrcrdedt but they WIRE insulated, and not hume II.
+ atelv connected " h the systems Which have sinee
sprung mp, aud ~hle may be distinctly traced Ia tn
Bank al Amsterdam. That was n bank ufdrpoSfe; 4
mere store house, established under the auihory 81
that gica commercial metropolis nr the purpose ri
safe keeping the precious nirals and facilitating the
vast y stem al exchanges which then cred there.
The Whole systeu, WAS the r.Js sinple aud heauti-
lui that can he imagined. The Deposition on dcln-
ering his haon coin IN store, received credit,
estimated At The standard value the book, oi The
bank. and certificate oi dcposite for the amount
/ which vas transferable from hand 10 hand and cntl-
lied the holder withdraw the leo>iie On pas ngnl OF
a 'rlatr fee ior thr expense ajl hdzatd If safe
keeping THESE certificates became IN fact the en-
enliiina medium OF the community perlormit. rs II
were, the Fazar auti drudger,, while the precious
metals winch llicv, ia Truth, represented. .nldrr
Tor gnIier, lay quietly IN Store. without borg ex-
posed tn The aud tear or losses incidental 10 ac-
nal n4c. Il thus paper currcnc. was rtra,cd,
having all the spilty, safety, and uniformity 81 ms
ta'c, with the 'ac'lny bcl"n-ing 10 that al paper
! The whole aIr,n cement was admirable, aud worth,
OF the strong sense and downright hones'y ri III lro.
pie with hon ii originated.
DAT Of thus, which m1y be lied hr hf'l ~ oi the
syst stew thu balh n dcposite disconrt, and cir
cna,ion-a sisat aud aight change, de*ilnr 70 ci-
tee, revolution the condition o moral sol r'y. |,
IS not difficult to explain how tho one system SHOULD
originate IN the other. not" lstandhs the stnhin.
dis imIarity the features aud character between
the al, p * aud the parent \ si,i sum, not less
than three millions sterling, arcunuiird and remain
ed ilahitnails IN de osc III the Bank ot Amsterdam
tile place ct The lcnrard ,criiicnrs hing CON
stan.ly supplied by dcposors. Wtth :" vast
Siaun. irpu.itr. ii required but LATHE reelection Ia
perceive Ia sers large portion pt II might be tn
In and that snlficent anoun, would al - lett
Ia ~ 81 the returning certificates OF WHIT ""ti b.
tn np in effect. that equal anoant Of ictltions
cert &c might br issued beyond the sum actually
deposited. Enh"r process. il utter 81 b. charged o"
III posItr Withdrawn, the fictitious certificate
l>,u Il, would he near approa Ia TO ban
| ii discount. / ms once seen II required bat
ii'tc reflection 10 prrcrivr thai The same process
would be- equally applicable 10 \ capital plac-
el in bunk s;nc, and from that, llit tran>i-
ti,n was easy IL issuing bank notes, ayahle
Il -niul or bills ot exchange, proini>s"ry notes
having but short iime 10 run. These combined
con tina the ec n,cns of bank of discount, drpo-
sue, aud c;rcu1;iop.
| Modtrl Ingenuity and dishonesty wond not have
brel long IN pcrreiviu. an turning such advantages
l., accom- II but the faculty ol the PLAIN Belg
either blunt perceive. or las honesty roo STEM
to avail Ia mse;l of ,,c'n. To his honor, lhefri' rca-
son to believe, Notwithstanding the temptation, the
lrpn sizes were sacredly kept anl thatIpr every GER
tiiioatc in circulation there was corresponding a
mount in bullion com IN store. 1t was reserved
| for another people, either more ingenious or less
scrupulous, To nuke the ch,ngr.
Tur i;lnh OF England Incorporated N 1871,
ri ghy five years AFTER that o. Am,ierdim. and was
The tr,t bank OF depoSte discount and circulation.
! lis capital ,s 200, 0JH{ CONSISTING wholly Of Go
yernnrn stock. barn. interest Of eigl per cent.
prr auntIm. It's notes were received in the dues ot
the Government, aud the public rsvcnue was de-
posted IN The bauk. 1t authorized to circulate
exchrqurr bills aud make loans 10 Government.
/ Let us pause Tor moment, and contemplate tins
complex anr! potent machine under its yar.us char
acters andtunciions.
A Il ban, OF deposite il authorized to receive
drposes not simply ion safe keeping. to be return
ed when dem ndc hy the delositor, but 10 be used
aud loaned out for the benefit OF the institution,
being taken always to b. provided with the means of
returning an equal amount when dcn1nded. As a
bank OF discount aud circulation, issued III notes
on The Gath OF its capital stocn and deposites, dis
counted bills OF exchange and promissory notes
backed by responsible endors,rs, charging
tterrst something greater than authorized by
law to be- charged on loans and thus allowing ii, for
/ ihetlsr oil is credit. higher rate of compensation
than what individuals authorized to receive for
the use aud hazard of money capital loaned ont.
Il will perhaps place this point in y ciefr light If
should consider the transaction in It's true Character
not AZ loan, but exchange OF credit. In
dscoun,ing, the bank takes. in the shape of pro-
,nissory noic, the credits OF individual good
that another equally responsible. endorses his
for nothing, and gives out its credit in the form OF
bank noe. The transaction Is obviously mere
change oft Ii the drawer and cndorsers break.
the loss is the banks; but if the bank breaks.
the loss falls the copmunity and yet tins
transaction. 30 dissimIlar, is confounded with a
loan. and the banks permitted 10 charge, on mere
/ exchange of credit, which the hazard of the
t,a