Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1837-09-14


ly the same overwhelming catastrophe. The
most material difference between the results
IN tue two countries has only been, that with
us there has also occurred an extensive de-
rsngen,ent in the fiscal affairs of the Federal
and State governments, occasioned by the
suspensions OF specie payments by tho banks.
4 The history of these causes and Effects, IN
Great Britain and the United States, is sub.
i Istantialy the history %: the revUlson IN all
other commercial countries.
The present and visible effects Of these
circumstances on the operations of the Gov
ernneEt, aud on the industry Of the people,
point out the objects which call for your i'm
mediate attention.
\ They ure--to regulate by law the safe
keeping, transfer, aud disbursements. of the
public moneys; to designate the funds TO be
received and paid by the Government; to
enable the Treasury TO meet promptly every
demand upon it to prescribe the terms of ln-
diligence and the mode Of settlement to be
adopted as well IN collecting from individuals
the revenue that hps accrued, as in withdraw
ing 1t from former repositories, and TO devise
and adopt such further measures, within the
constitutional competency Of Congress, as
will be best calculated to revive the enter
prise and TO promote the prosperity of the
| country
\ For the deposite, ransfer and disbursement
Of the revenue, National and State Banks
have always, with temporary and limited ex-
ceptiUns, been heretofore employed; hut. Ill
though advocates Of each System are still To-
he found, it is apparent that events of the
asst few months have greatly augmented the
desire, long existing among the people Of the
! United States, to separate the fiscal opera
. titt if pf Fl. At InUI-
vduals or corporations.
Again to create National Bank ~ fiscal
agent, would be to disregard the popular will,
twice so-,nnly and unequvocally expressed.
On no question of domestic policy is there
stronger evidence that the sentiments of a
large majority arc deliberately fixed; and j
cannot concur with those who think they see
1 IN recent evcntsa proof that these sentiments
are, or II reason that they should be, changed.
Events, similar in their origin and charac
ter, have heretofore frequently occurred,with-
out producing any such change and the les
sons Ofexperience must be forgotten, IT VIC
suppose that the present overthrow of credit
would have bren prevented by The existence
Of a national bank. Proneness to excessive
issues has ever been the vice of the banking
| system; a vice as prominent in Nafiunal as
| in State institutions. This propensity Is as
subservient 10 the advancement of private in
terests in the one a. ~ the other and those
who direc, them both, beng principally gUld-
ed by the same views and Influenced by the
same motives, will be equally ready To- stimu-
late extravagance of enterprise by impr"v-
dence of credit How strkingly is this con
clusion sustained by experience. The Bank
Of the United States, with the vast powers
conferred on it by Congress. did not or could
not prevent former and similar embarrass-
ments nor has the still greater strength il is
said TO possess, under its present charter, en-
nbled il, in the existing emergency, to check
other institutions, or even TO save itself. Uni
Great Britain, where, it has been seen, the
same causes have been attended with the
same effects, national bank, possessing pow
ers far greater than are asked for by the
warinest advocates Of such a n institution here,
has also proved unable to prevent an undue
expansion of credit, and the evils that flow
/ from it.
| Nor can find my trnable ground for The
4 re- esta ablisbment ofa national bank, III the
arrangement alleged ut present to exist in
the domestic exchanges Of The county, or in
the facilities it may be capable of affording
them. Although advantages Of this sort were
anticipated when the first bank Of the United
States was created, they were regarded as All
incidental accommodation not one which the
Federal Government was bound. or could be
called upon to furnish. This accommodation
is now indeed, after the lapse of many years,
demanded from it as among its first duties
and an omission to aid and regulate CONNER
cial exchange, is treated as a ground Of loud
and serious complaint. Such results only
serve to exemphiy the constant desire, among
some of our citizens,to enlarge the powers Of
the Government, and extend its control to-
subjects with which il should not interfere
They can never Justify the creation Of nv IN
stitution to promote such objects. On the
contrary. they justly excite among the com
munity more diligent inquiry into the char
acter Of those operations Of trade, towards
which it is desired TO extend such peculiar
favors.
The various transactions which bear the
name Of domestic exchanges, differ essential
" in their nature, operation, ana utillty.-
One class Of them consists OF bills ot ex-
change, drawn for the purpose of transferring
actua! capital from one part OF the country 10
another, or 10 anticipate the proceeds of pro-
perty actsally transmitted. Bills Of this de-
scrption are highly useful in the movements
of trade, aud well deserve all the encourage
ment which can rshtfufly be given to them.
Another class is made up Of bills OF exchange,
not drawn to transfer actual capital, nor on
the credit of property transmitted, but TO Gre
ate fictitious capital, partaking at once Of the
character Of notes discounted 10 bank, and Of
bank notes in circulation, and swelling the
mass Of paper credits to a vast extent, in the
most objec,ional manner. These bills have
formed, for the last few years, large pro-
portion Of what are termed the domestic ex-
changes Of the country, serving as the means
OF usurious profit, and constituting the most