Litchfield enquirer., 1837-09-14

we suppose that the present overthrow of credit would have been prevented by the ex- istence of national bank. Proneness to excessive issues has ever been the vice ofthe banking system; a vice as prominent in na- tional as well as in State institutions. This propensity is as subservient to the advance ment of private interests in the one as in the other and those who direct them both, being principally guided by the same views, and influenced by the same motives, will be equal 1 ly ready to stimulate extravagance of enter prise by improvidence of credit. How strl- kingly is this conclusion sustained by expe- rience The Bank of the United States, with the vast powers conferred on it by Congress 1 did not or could not prevent former and sim liar endorsements nor has the still great CT strength it has been said to possess, under ] its present charter, enabled it, in the existing emergency, to check other institutions, or even to save itself. In Great Britain, where, | if has been seen, the same causes have been attended with the same effects, national bank, possessing powers far greater than are asked for by the warmest advocates of sucn an institution here, has also proved unable to prevent an undue expansion of credit, ana the evils that flow from it. Nor can ind any tenable ground for the re-establlshment of a national bank, in the derangement al- legged at present to exist in the domestic exchanges of the country, or in the facilities it may be capable of atfording them. AL though advantages of this sort were antlclpa- ted when the first Bank of the United States was created, they were regarded as an incl dental accommodation not one which the Federal Government was bound, or could be called upon, to furnish This accommoda- tion is now, indeed, after the lapse ofnot ma- ny years, demanded from it as among its first duties: and an omission to aid and regulate | ~o,,r,oro;o1 ovchanua ic fraafAd a OrOund of loud and serious complaint. Such results only serve to exemplify the constant desire, among some of our citizens, to enlarge the | powers of the government, and extend its control to subjects with which it should not interfere. They can never justify the crea- ton of an institution to promote such objects. On the contrary, they justly excite among the community more diligent inquiry into the character of those operations of trade, to- | wards which it is desired to extend such pe- culiar favors.
 | The various transa ctions which bear the name of ] oUeration and utility One class of them consists of bills of exchange, drawn for the purpose ot transfer ring actual capital from part of the country to an iy transmitted Bills of this description are highly useful in the movements of trade and well deserve all
 the encouragement which can rightfuly be given to them Another class is made o bills of exchange, not drawn to transfer actual capital the credit of nronertv Transmitted but to create fictitious capital
 partakng of the character of notes discount, | ed in bank and of bank notes in circulation, and swelling the mass paper credits to vast extent Tn | the most objectionable manner. These bills have
 formed, for the last few years large proportion of what are termed the domestic exchanges ot the coun- try serving the of usurious profit, and constl- tutng the most unsafe and precarious paper m crcu- lation This species of traffic. instead o belng up hed ought to be discountenanced by the government and the people,
 In transferring it's funds from place to place, the Government is on the same footing with the private citizen, and may resort to the same ega! means. t may do so through the medium ot bills drawn Dy H. self, or purchased from others; and in these opera; tons it may, in manner undoubtedly constltu1onal and legitimate, facilitate and assist exchanges otind- viduas founded on real ransachons of trade. me extent to which this may be done, and the best means of efectng it, entitled to the fullest consdeIaton
 This has been bestowed by the Secretary of the Treas ury, and his views will be submitted to you Tn his re-
 But it was not designed by the Constitution that the 1 Government should assume the management oi do, mestic or foreign exchange. It IS indeed authorlzed to regulate by law the commerce between the States and provide general standard of value or meal- um of exchange, in gold and silver; but It IS not Its province to aid individuals in the transfer o1 tnei5 %
 funds, otherwise than through the facilities afforded by the Post Office Department. As justly mlgat De called on to provide for the transportation ot thelr merchandise. These are operations oi trade. lhey ought to be conducted by those who are interested m them, inthe manner that the incidental difncul- ties of other pursuits encountered by other classes citizens Such aid has not been deemed necessary as well the foreign exchanges are carried on 6y prl- vate houses, often, if not generally, without the as- sistance of banks Yet they extend throughout dis, tinct soveregntes and far exceed Tn amount the real exchanges of the United States. There IS no reason why our own may not be conducted nthe same man. ner, with equal cheapness and safety Certainly tns might be accomplished, if 1t were favored py those most deeply interested and few can doubt that ther own interest as well the general welfare ot the country, would be promoted by leaving such subject in the hands ot those to whom 1t properly belongs. system founded on private interest, enterprise ana regulations by law, would rapidly prosper It would be free from the influence of political agltanon, and extend the same exemption to trade itself; and It would put an end those complaints of neglect par tiaty injustice and oppression, which are the una voidable results of interference by the Government in the proper concerns of individuals All former at- tempts on the part of the oyernment to carry us ie
 by the Constitution. have m the end proved lnurious and have served only to convince the great pody
 the people, more and more, of the certain uangeIs
 lie business and there is reason to suppose that repetition of them now would be more successful.
 It cannot be concealed that there exists, in our rect opposition to each other Alarge portion of them, combining great intelligence, activity and influence, are no doubt sincere in their belief that the operations of trade ought be assisted by such connection; they regard national bank necessary tor thls pur- pose, and they disnclned to every measure that does not tend sooner later to the establishment ot such an institution On the other hand, majority ot the people are believed to be rrecOncably opposed to that measure they consider such concentration of power dangerous to their hberties and many of them regard t as violation of the Constitution This co
 lision of opinion has, doubtless caused much of the embarrassment to which the commercial transactions of the country have lately been exposed. Banking
 has become political topic of the highest interest and
 has o the
 IS scarcely to be expected. We have seen tor nearly