Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1837-08-08


: ItabIish a permanent system of finance
: adapted to the preservation of It's credit
: alike in war as in peace. What. LET
me ask, would have been the fate of
England without the Bank of England3
Under a suspension of specie payments
by that institution for tweatv wears. the
British people fought single handed
and successfully the greater part of the
world, and maintained uninpaired
their extensive paper system by the
controlling influence of the bank, and
regulated the value Of their stocks and
exchequer bills with so much sound
ness, that after a few years of peace
the bank was enabled to resume specie
payments, and did effectually reduce
their immense paper issues to the STAN
dard of gold aud silver; this was done
also at time when the annual interest
iof the British debt amounted TO more
than the principal of our war debt.
! At an early period of the war, Mr.
Gallatin, with all the advantages Of his
experience and distinguished reputa-
4 ton as a inancier, was compelled to
'Inegotiate six per cent. loan at SO dol
lars in money for one hundred dollars
in stock, and wisely foreseeing the null
tiplied difficulties which he would have
to encounter for the want of national
bank, retired from the Treasury De.
!, apartment.
Some months since / believed it
, would be best for congress to estab.
lish bank, unconnected with the old
one; but upon more mature reflection
am convinced it would be unwise,
and indeed impracticabIe, to put such
an institution into operation as would
be suited to our wants, within any rea-
> sonable period, without increasing, in
rulnous degree, the embarrassments
which already exist in our monetary
4 concerns; nor can it be supposed that
: any new institution will enjoy. for some
! years after its establishment, the same
degree of credit at home and abroad
which is attached to the present bank.
, Congress may either grant a charter
to the present bank, or revive that of
the old bank, which does not expire
until March next. The funds of the
Z present bank, in the latter case, could
be transferred by single operation.
and the Pennsylvania charter relin-
lquished.
: The bank could commence its opera:
: under such a happy reconciliation,
: would instantly inspire general conf
denCe in its ability to ensure the resump-
ton Of specie payments at an early
; period. 1t would very soon resume
: its former career of usefulness, and
thereby produce throughout the coun-
try general revival of credit; of busi-.
: ness, and social happiness: but fun
fortunately for our country, congress
shall refuse the charter, or the Presi-
dent, by the exercise of the veto power,
shall withhold his sanction in the event
: of its passage by congress, then let us
hope that the constituted authorities of
our country will give us the next best
I substitute, which is decidedly, to make
the United States Bank Of Pennsylva-
|, MIA the fiscal agent of Government,
by placing the deposites under the con-
} troll. ofthat institution, by LdoO, to be re-
; moved only by the direction of con-
i gress, or in case of default by the bank
> to pay all demands upon it in specie af-
Il ter a certain day, or refusal to receive
! and pay the public dues at any point
e that may be designated by the Treasu-
9 ry within the United States. Under
such a regulation the bank could very
soon obtain the privilege in many Of
the States, to establish branches or a
r gencies. by which nearly all the objects
e of national bank could be accomplish
[; ed; and such will doubtless be the
d result, if congress shall refuse to char
!. ter a bank. or to make the United
J. States Bank of Pennsylvania the de-
j. pository ofthe public funds.
d The Treasury Circular, / confess,
r, created much embarrassment to the
10 banks by the withdrawal of a consider
l. able amount of specie from the sea-
L board, but its operation would not, IN
IS my opinion, have caused the suspension
ID Of specie payments, if the hasty distri-
IN button Of the surplus revenue had not
10 been brought to bear upon the banks
s. at the same PERIOD. nc measure "a
y the distribution do not mean to dis.
If cuss. or the banefll consequences OF
t such an accumulation Of government
lie funds. Il is the rapid manner IN which
Is the banks, at a moment OF general dis.
st tresssin the money market, were re-
or CURED to pay over to the States the
r. immense sum Of thirty-six millions Of
a dollars. Of which complain. It ought
u; to have beenknown to the Senate and
7e to the Secretary Of the Treasury, from
he the reports of the banks, that the pub
q lie funds had been loaned, and were
er not in their vaults in specie OF. OTHER
IS moneys; their bills. receivable and q
4 valuable funds, exhibited as important
% items in their statements, would have
C. disclosed this fact; but il a condition
We entirely unprepared. and a q peri
We Cd equally unpropitous for curtailment
m 1.-The deposite banks were obliged, m to'
e. short space of time, to require thei
IS debtors to pay them; and the othe