Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1837-09-20

paper money, and other faculties of credit
tina same spirit of speculation the sam,
partial success; and, at length, nearly the
same overwhelming catastrophe. The
most material difference between the re
suits in the two countries has only been
that with us there has also occurred an ex.
tensive arrangement in the fiscal affairs o.
the federal and state go, eminent, occasion.
ed by the suspension ofspecie payments by
the banks.
The history Of these causes and effects
in G. Britain and the U. States, is substan.
italy the history ofthe revulsion in all other
commercial countries.
The present and visible effects of these
circumstances on the operation of the gov
eminent, and on the industry of the people
point out the objects which call for your
immediate action.
They are-to regulate by law the safe
keeping. transfer and disbursement 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 ofindulgence, and the mode of set
Element to be adopted, as will in collecting
from individuals the revenue that has ac-
crued, as in Withdrawing it from former de-
positories, and to devise and adopt such
future measures, within the constitution
al competency of Congress, as will be the
best calculated to revive the enterprise and
promote the prosperity of the country.
For the deposit, transfer and fdisburse.
ment of the revenue, National and State
banks have always, with temporary and
limited exceptions, been heretofore employ
ed; but, although advocates of each sys-
tenn are to be found, it is apparent that the
events of the last few months have greatly
augmented the desire, long existing among
the people of the United States, to separate
the fiscal operations of the government from
those of individuals or corporations.
Again to create national bank, as q fs-
cal agent, would be to disregard the popu-
lar will, twice solemnly and unequivocally
expressed. On no question of domestic
policy is there stronger evidence that the
sentiments of large majority are deliber-
ate!y fixed, and ! cannot concur with those
who think they see, in recent events, q
proof that these sentiments are, or reason
that they should be changed.
Events, similar in their origin and char
acter, have heretofore frequently occurred
without producing any such change, and
the lessons of experience must be forgot.
ten, if we suppose that the present over
throw of credit would have been proven.
ted by the existance of national bank
Proneness to excessive issues has ever been
the vice of the present banking system a
vice as prominent in national as in state
Institutions. This propensity is as subser-
Went to the advancement of private inter-
ests 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 equally ready
to stimulate extravaganza of enterprise
by improvidence of credit. How striking
ly is this conclusion sustained by expert.
ence. The Bank ofthe United States, with
the vast powers conferred on it by Con.
gress, did not or could not prevent former
embarrassments nor has the still greater
strength it has been said to possess, under
its present charter, enabled it in the ex-
listing emergency, 10 check other institu-
tons, or even 10 save itself. In 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
warmest advocates Of such an institution
here, has also proved unable to prevent
an undue expansion of credit, and the evils
that flow from it. Nor can find any
tenable ground for the re.establishment
of a national bank, in the arrangement
alleged at present to exist in the domestic
exchanges of the country, or in the facili.
ties it may be capable Of affording them.-
Although advantages of this sort were
anticipated when the first Bank of the Uni
ted States was created, they were regarded
as an incidental accommodation; not one
which the Federal Government was bound
or could be called upon, to furnish. Thu
accommodation it now, indeed, after TIT
lapse of not many years, demanded from
it as among its first duties, and an omission
to aid and regulate commercial exchange
is treated as ground of loud and serious
complaint. Such results only serve t
exemplfy the constant desire, among som'
of our citizens, to enlarge the power
of the Government, and extend its con
troll to subjects with which it should nc
interfere. They can never justify tn
creation of an institution to promote sue
obiects.-On the contrary, they justly OK
cite among the community, more dill
gent enquiry into the character of thos
operations of trade, towards which it
desired to extend such peculiar favors.
The various transactions which bear tn
name af Domestic exchanges, differ essen
tally in their nature, operation and utll
ty. One class of them consists OF bill
ofcxchange, drawn for the purpose oftran'
fering actual capital from one part OF IN
country TO another, or to anticipate tn
proceeds Of property actually transmitted
Bills of this description are highly useful
the movements of trade, and well deser,
all the encouragement which can rightful
be given to them. Another class is mac
up of bills of exchange, not drawn
transfer actual capital, nor on the cred
of property transmitted, but to create fiji
titious capital, partaking at once of Il
character Of notes discounted in bank, al
, of bank notes in circulation, and swellir
!, the mass Of paper credits to vast exte
in the most Objectionable manner. The
, bills have formed, for the last few yea
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