Cheraw gazette. [volume] (Cheraw, S.C.) 1835-1838, 1837-09-13


currencv, and, bv so doing, take from the uo
vernment the ability which individuals nave OF
accommodating their transactions to- such
catastrophe.
A system which can, in time OF profound
:. peace, when there is large revenue laid oy'
thus suddenly prevent the application ana 1he
use of the money ofthe people, IN the manner
and for the objects they have directed caiAio1
be wise but who can think, without paiE'ui
reflection, that, under it, the same unforeseen
events might have befallen US In the mdst Oh
a war, aud taken from u.s. at the momont when
most wanted, the use Of those very means
which.were treasured up to promote the nd.
tional welfare and guard our national rlghts
To 'embarrasSments and to such dangers
will this Government be always exposed,
wb)stit takes the moneys raised for, and ne.
cessary to, the public service; out otthe hands
of its own officers, and converts them INTO
mere right of action against corporations en-
trus, ed with the possession OF them: NOT
can such results be effectually guarded against
il such system, without investing the Exec
.utiye with control over the banks themselves,
whether State, or National, that might with
reason be objected to- Ours is, probably, the
only Government in the world that is liable, IN
the management of its fiscal concerns, to oc-
currences like these But This imminent risk
is not the only danger attendant on the sur
render of the public money to the custody
and control of local corporations. Though the
object is aid to the Treasury,its effect may he
TO introduce into the operations OF the GeV;
ernment influences the most subtle, 1oanded
on interests the most selfish.
= The use by the banks, for their own oenent'
d. of the money deposited with them, has recev-
ed the sanction of the Government from the
commencement of. this come ectlon. The mo-
new received from the people. instead of beng
kept tillit is needed for their use, is in conse-
auence of this authority, fund, on which dis
counts are made for the protit.ot those who
happen to be owners OF stock IN the banks Sc
lected as repositories. The supposed and of
ten exageerated.ad Of such boom
will always cause it to be sought TOR with
avidity. / will not. step to CONSIDER on whom
the patronage incident to it is to be conferred;
whether the selection and control be trusted
tn Congress- or to the Executive, either will
be subjected to appeals made in every form
which the sagacity ofnterest can suggest
The banks, under such system. are stimu-
lated to make the most of their fortunate
ACQUISITION; the deposites are-reated as an IN
csease ef capital :. loans and circulation are
rashly augmented and when the public exl-
: gencies require return, it Is attended with
embarrassments not provided for, nor fore
sc N. Thus banks-that thought themselves
most fortupate. when the public funds were
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 :. 1t stimulates
a general ras.iness of enterprise, and aggra.
yates the fluctuations of commerce and the
currericy. This result was s.riklngly eXhibl-
ted during the operations OF the late
deposite system, and tspecialyln.the pqrcha
ses of public lands. The order which ultl-
matelv directed The payment ofgold and silver
in such purchases greatly checked, but could
not altogether prevent, the evil. Specie was
indeed more difficult to be procured than the
notes which the banks could themselves ere
ate at pleasure y but still, being obtained from
them as loan, and returned as deposlte,
which they were again at lIberty;to Use, ii
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, to be regularly dis
bursed, and not intobanks, loaned out for their
own profit, while they were perml.;edt 70 sub.
stitute for it credit IN account.
In expressing these sentiments. desire not
to undervalue the benefits of sautary credit
TO any branch of enterprise. The credit bes-.
towed on probity and industry is the just re.
ward of merit, and an honorable incentive to
further acquisition. None oppose it who love
their country apd understand IT'S welfare
But when it is unduly encouraged-when 1t
is made to infame the public mind with the
temptations of sudden and unSubstanilsl
wealth-when it turns industry into paths that
lead sooner or later to disappointment and
distress-it becomes liable to censsre, and
needs correction. Far from helping problty
and industry, the ruin to'which it leads falls
most severely on the great laborlng classes,
who are thrown suddenly out of employment,
and, by the failure Of magnificent schemes
never intended to enrich them, are deprived
in moment Of their only resource. Abuses
of credit and excesses IN speculation will hap
pen in despite of the most .sa!utary laws no
Government perhaps can altogether preyent
them; but surely every Government can re-
frain from contributing the stimulus that calls
them into life.
Since, therefore, experience has: shown, that
to lend the public money to the local banks is
hazardous 10 the operations of the Govern
ment, at least ofdoubtful benefit to the insti-
tutions themselves. and productive Of disas-
.rrous deraqgenisQt in 'ne Business and curren-
cy OF the country, IS it the part OF wisdom
again to renew the connection! :. :
1t is true that such agency is in many res.
poets eonyenent'to the Treasury, sut it is not
indispensable. A limitation of the expenses
of the Government 10 is actual wants, and of
i, the revenae 10 those expenses, with conpen-
lent means fof ITS psoDpt. application }o, the
purposes far which It vas raised, are the OBJ
iects which We should seek to aocou,plsh.-
The collection, afe,heeping,. transfer. and dis.
.bursemens of the public money car. it is be-