The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-09-12

alleged nj present to exist in the domestic eXchais
es Of tho country, or in the inclhues II may @ -
nnbIo of affording them. Although advantages o.
his sort were anticipated when the first BANK o.
the United States was created, they were reguroeo
ms an incidental accommodation; not one Wioi ti
Federal Government was pouhu, oi oou;a W -;
upon TO furnish. This accommodation Is now ~
decd after the lapse of not many years, dehahueo
from it as among its first duties; ana an OMISSION
aid and regulate commercial exchange is treaieo aS
a ground of loud and serious coihPialn., euoi 40
suits only servo to exempliiy tho constant desire a.
mona some of our citizens TO enlarge the powers OF
the Government and extend its control 10 supJecls
with which il should not Interfere. lhey can new
er Justify the creation of institution to promote
such objects. On the contrary they justly excite
among the community more diligent inquiry ihto
the character Of those operations OF traue, oWaros
which il is desired to extend such peculiar aVors'
| The various transactions which bear the name Oh
domestic exchanges differ essentially in their ma
lurc operation and utility. One class OF Them con
siss of bills of exchange, drawn for The purpose OF
| transferring actual capital from ono part ol tne
country to another, to anticipate the pioceeus VI
property actually transmitted. Bills of this descrip-
ton are highly useful in the movements OF raoe'
and well deserve all the encouragement Which eau
rightlully be given to them. Another CLASS IS 'hauo
10 of bills of exchange, not drawn TO transfer act
al capital nor on the credit of property transmitted
but to create fictitious capital, partaklng at once OF
the character of notes discounted IN bank, ana OF
bank notes in circulation, and swelling me mass o'
paper credits to vast extent in the most obecilon-
able manner These bills have formed TOR the iast
few years. a large proportion OF what are Termed
domestic exchanges of the country, serving us the
means of usurIous profit, aud continuing the most
| unsafe and precarious paper in circulation inns
species of traffic, instead of being upheld, ought TO
be discountenanced by the Government ana the
people. A..
In transferring its funds from place to place, the
Government is on the same footing with the private
citizen and may resort in the same legal means 1t
may do through the medium of bills drawn by IT.
self or purchased of Others and in these operations
ltxy IN
legitimate, facilitate and assist exchanges of indi-
viduals founded real transactions OF trade. !he
extent to which this may be done, and tho Dest
means of efectng it, are entitled to the iuies con-
sideraon. This has been bestowed by the Secre-
tary of the Treasury, and his views will be submit
ted TO you in his report
But il was not designed by tho Constitution that
the Government should assume the management OF
domestic or foreign exchanges 1t is indeed author
lied TO regulate by law the commerce between the
States, and to provide general standard of value,
or medium Of exchange, IN gold and silver; but 1t
is not its province to aid individuals in the transfer
of their funds other>v than through the facilities
afforded by the Post Office Department As justly
might it be called on to provide for the transporta
ton of their merchandise. These are operations
of trade. They ought to be conducted by those
who are interested in them, in the same manner
that the incidental difficulties of other pursuits
encountered by other classes Of citizens Such aid
has not been deemed necessary in other countries.
Throughout Europe, the domestic as well as the
foreign exchanges carried by private houses,
often, if not generally, without the assistance Of
banks Yet they extend throughout distinct sovcr-
eighties, and far exceed in amount the real eXchan
ges of the United States, There is why
our may not be conducted in the same manner,
with equal cheapness and safety. Certainly this
might be accomplish ed if it were favored by those
most deeply interested; and few doubt that
their own interest," well the general welfare
of the country, would be promoted by leaving such
a subject in the hands of those TO whom it proper
ly belongs. system founded on private interest,
enterprise and competition, with the aid of legisa
tive grants regulations by law would rapidly
prosper; it would be free from the influence of po-
litcal agitation, and extend the exemption to
trade ITSELF and it would put end TO those COM
plants of neglect, partaiy injustice and opprcs-
sion, which are the unavoidable result of interfer-
once by the Government, in the proper concerns
of individuals. All former attempts on the part of
the Government, to carry its legislation, in this re-
spect, further than designed by the Constitu-
ton, have in the end proved injurious, and have
served only TO convince the great body of the peo-
pie, and more, of the certain dangers of blend
ing private interests with the operation of public
business and there is no reason TO suppose that a
repetition of them now would be more successful.
1t cannot be concealed that there exist, in our
opinions and feelings on this subject in
direct opposition to each other. large portion of
them, combining great Intelligence, activity and in
huence, doubt sincere in their belief that the
operations of trade ought to be assisted by such
connection; they regard national bank MS neces-
sary tor this purpose, and they dsincned to
every measure that docs not tend, sooner or later
to the establishment oil SUCH an institution On the
other hand, majority of the people believed to
be irreconcilaby opposed TO that measure; they
consider such concentration of power dangerous
to their liberties; and many OF them regard it as a
violation Of the Constitution. This collision of
opinion has, doubtless, caused much of the embar-
rassment to which the commercial transactions of
the country have lately been exposed. Banking
has become political topic of the highest interest
and trade has suffered in the conflict of parties a
speedy termination of this state of things, however
desirable, is scarcely TO be expected. We have
seen for nearly half a century, that those who add
vocate national bank, by whatever motive they
may be influenced, constitute portion of our COM
munity too numerous to allow to hope for an ear
ly abandonment OF their favorite plan. On the 9th
er hand, they must indeed form an erroneous esti
mate of the intelligence and temper of the Amer.
can people, who suppose they have continued on
slight and insufficient grounds, their persevoring
opposition to such an institution or that they can
be induced by pecuniary pressure or by any other
combination of circumstances, to surrender princ.
pies they have SO long and SO inHexibly maintained
My own views of the subject are unchanged-
They have been repeatedly and unreservediy an
nounced to my, fellow citizens; who, with full