The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-23


National Banking. Bullet me not forget Mr. Gouges
scheme.
For the benefit Of Mr. Gouge's argument, We will
suppose the State Banks all put dowD-thelr charters
repealed snd il you please, the Fanny Wright doctrine
carried far its advocates dcsre-a grants 10
lands snnuled debts, contracts, credits and slavery
abolished marriages. and our obligations TO morally
and religion abrogsed and every thing we want 70 DO
purchased or ed BY the actual payment OF gold or
silver and in what would we be improved But with
out giving Mr. Gouge the whole beneht OF the Fanny
Wright docrnes---but only so much as TO enafe nun
to repeal the bank charters Nicholas Bddles aud all
the rest and wha. might then expect! Why, the
obligation Of contracts, morality, and religion, which
form the coherency Of communities, should be strong
enough to keep the parts together we should be Hooded
with European and Jeicish pirate bankers 10 derise
commercial medium and carry business for US These
we know present have the happy facility, upon
few thousand dollars, Of creating commercial medium
TO the amount of many millions; and with how much
facility they might do so under Mr.. Gs system,
Mr. G. himself could hardly tell may here remark,
that commercial men have ever kept IN advance OF
legislation in deysing schemes OF credit to enable them
to carry their business beyond the supply Of specie bank
money and the capacity Of the community TO consume
their commodities. This is one Of the consequences
resulting from free Government and IN TACT can only
be restrained bya despotisui, where the prince may
assign empoyments his subjects and TX the extent oil
their labors am well satisfied, that all the Banks IN
the United States have been allowed to issue too much
paper but charge upon the Banks crminaty IN sns-
pending specie payments, or OF wholly producing the
causes which led 10 It, as unjust as to charge wholly
upon General Jackson or Nichols Biddle. While
nsny persons have exhausted the phrases of nvecye
upon Banks (6ecause they are Banks) they remember
forget that private bankers brokers' and commercial
houses. doing business bankers upon commercial
medium" have in the last months, within these
United States, fals d for millions OF dollars more than
has been lost by the failures OF Incorporated Banks IN
Sec All elunda and he tied States.
them all together.) | believe since the Revolution.
These 10 be the bankers upon whom the merchants
and mechanics rely, while the officers and credit
ors Of the United States win have sufficiently sound
and convenient currency OF specie and Treasury me-
dunn, and the people the real Democracy, the farmers,
and country merchants and mechanics, will he compel
led to do with whatever the course OF traInneled
commerce will permit to circulate among them The
wonied aid, which agriculture drives from the diffusion
Of commerce and banking, will be denied. Every KIND
OF internal improvement will he arrested In Virginia,
our fund for internal improvement which owns 22,47l
shares Of hank stock, Sl247 100 will be rendered
bankrupt by the loss OF much OF It's most profitable
stock, and direct increase of taxes TO pay interest on
the debts Of the State will be necessary Our Literary
Fund, now educating twenty thousand (20,000) poor
children, the nursery Of Democracy, which 3,77S
shares of bank stock, S377, 800 Of capital IN the
Banks must be cut down one.half aud ten thousand
10000, young Democrats he left prey to ignorance,
and made the creatures OF the Aristocracy. The entire
policy oil Virginia regard TO the sales OF agricultural
productions and the purchase OF goods and mer
chandize will be changed The tobacco and grain
merchants not being able to procure bank aceommoda-
tions, must purchase credit. and pay after making
thcil sales and collections This being the case the
farmers will be compelled to make their purchases oil the
country merchants credit also, and TO relieve them
selves OF the risk OF trusting their crops TO the large city
Dealers while they remain in debt to the merchant at
home, they will sell directly to them and they to tho
city merchants. by this operation, merchant VIII be
introduced between the farmer and the large city mer-
chant to whom the farmer now sells hs crops Tor cash
This intermediate merchant being responsible to the
farmer for his crops and also the dry goods, hard
other city merchant for the goods sold TO the
farmer, having purchased and sold both ways upon
credit, must necessarily make large profits upon the
goods, and also large profits upon the crops. The run
ming accounts between farmer and mcrcfant, having
tendency increase much beyond the expectation of
the farmer he fails being debt at the end OF the
year, when the account is settled by bond, bearing IN
One or bad crops viii increase the debt
much to require deed Of trust upon the farm or
sale Of some OF the stock And the farmer never thinks
OF STIMULATING for cash than Will be sufficient to pay
taxes Let few large commercial houses fail and the
mischief is immediately visited upon the heads OF the
farmers. The intermediate merchants, always beng
largely indebted to the city merchants, and holding
large balances against the farmers, city or country
failure is but the watchw to let loose the lawyers,
sherfs clerks and cons,abies. This we know the
before the introduction Of Banks anu would ne
ccssarlly follow their abolition What is the case now
Within the last months failures have taken place
among dealers in the United States, to an amount some
where between FIFTY AND ONE HUNDRED
MILLIONS OF DOLLARS, if we may believe the
reports Of the officers themselves and the great body
Of the people Of Virginia, at least are as yet but little
injured They only feel that the swelling tide OF pros
perlty, which overwhelming the land with all that
the bountes Of nature and the activity oil art could
bestow has rolled back for time and that, if 1t he
tod by IL han nd he but
give their usual Weld it will again roll and fill the
land with a thousand, thousand BLESSINGS. Even
Democracy herself has fourished under present
system, and waxed strong in the land May she not be
gouged to death by and un,rled schemes.
But. Mr. Editor we know the banks cannot be put
down for some 30 years, without civil revolution and
it can hardly be expected that Mr. Gouge is tho man
for that. Take him.upon his PLAN and we to
have deprectatd curancy to, tie people, rather
appreciated currency jor the officers and creditors Of the
UnACd States as long as the State Banks and Mr..
Gogue's scheme work together. The appreciated cur
rency Treasury medium would he raised IN value by
the trammes thrown round the payment Of public dues,
without adding cent 10 us ,ntrHsic rdlue. The
btrary viii OF government would alone this addl-
tona and fictitious value and III tree government, it
could not be considered having abiding sanction,
farther than the interests Of the few could be made 10
predominant those OF the many. The price which
the debtors Of government would be compelled to pay
for the Treasury medium would be charged like the du-
ties or other debts. upon the People with whom the
debtors Of government deal Thus the people of the
United States, after being taxed several millions of dol
lars to build perhaps, many sub-easures We have
forts and arsenas and to officer and guard them per-
petually a, great expense would he taxed again IN the
purchase OF goods TO enable the merchants buy reas
ry medium pay duties, &c After arriving this point,
ii would hardly require the sharpness Of Gougc, the
ambition ola Bonaparte, placed in the presidential chair,
relieve the people some OF their burdens, and grant
laClllttcs before thought Of By
a simple order from the Treasury department. directing
the sub-treasurCs to receive specie depos,e, and is
sue Treasury medium should have the Treasury of
the United States converted into bank Of circulation
and whether It would require act Of Congress to
BILE the treasurer and suhcasurcrs loan money,
IL tLnh