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

Crusaders against the Banking System Of
the States, would be wise in providing them
selves with text books, furnished by combin-
ing the opinions of the great leaders Of the
Republican party. They will then wander
forth in their Quixotic career with better
understanding Of the position Of their enc
mics, and forewarned Of those Inns, where,
like poor Sancho, they may get tossed in a
blanket.
II they fatter themselves that the seeking
of new and untried paths, the adoption Of
| new creeds, or the entire REIMBURSEMENT of
the old ones, will be countenanced by those
to whom they would fain look for direction,
they must have singular confidence in that
jewel Of virtues, CONSISTENCY. Forour part,
we will not have the uncharitableness to be-
lieve, that these gentlemen whose opinions
we quote, and rely upon with confidence as
the true doctrine, will turn their backs upon
themselres," and repudiate the principles upon
which they have always professed to act
To remedy the abuses Of the Banking Sys-
tenn by destroying all the Banks, would be
| very much like hanging sinner for the pur-
pose of reforming him We trust the people
will be guilty of no such folly. We trust they
will be on their guard, and not permit the pre-
vailing disorders to blind their eyes to the
true policy, nor allow themselves to be led
astray by the sinister devices Of demagogues,
or the extravagancies Of fanatics.
We readily admit that our Banking System
is defective, and we shall cordially cooperate
in any proper measures for practicable and
wholesome reform But let us avoid rashness
| and violence. The endorsements Of the
country would be wofully involved and in
creased, by furnishing the State Institutions
with destruction, because, involved in the
vortex Of wide spread commercial and fnan-
cial calamity, they were forced TO suspend
specie payments. Moderation and forbear-
ance will best subserye the purposes of re-
form, and turn away the evils, with which the
community would be overwhelmed by any
other course. Let us remember the great
principles for which we have been long con-
tending. Let us remember that Congress, in
relation to the currency, has only power, by
the letter Of the Constitution, to " coin money
and regulate the value thereof, and Of foreign
coin" The question Of National Bank,
therefore, should be considered settled Let
US rely upon the already declared policy Of the
Government, for the best and safest measures
to promote the general welfare" And let
us remember, in the language Of President
Jackson, that, 9" instead OF being necessarily
made to promote the evils of an unchecked
paper system, the management Of the reUenue
can be made auxiliary to tie reform which the
Legislatures of several of the States have al
ready commenced" In this respect let us
see how far we may rely upon the declared
opinions of Republican leaders.
In his message in December, 1895, Presi-
dent Jackson says:
at has been that without the agency Of great
moneyed monopoly, the be collected and
conveniently and safely applied to all the purposes Of
the public expenditure. II also ascertaned that, in
stead Of being necessarily made 10 promote the evils Of
unchecked paper system, the management Of the
venue can be made auxiliary to the reform which the
Legislatures Of several Of the States have already
meIlced regard the suppression OF small bills and
hieh has only TO be ostered BY proper regulations
the part 81 Congress TO secure practical reura 10 the
erient required The security Of the currency, 10 the
Constitutional medium Severed from the Government
political engines and not susceptible OF dangerous
extension and combination The State Banks will not be
tempted, nor will they have the power which have
IN diver Tho fra he IL.
gitnate purposes Of the Government The collection
and CUSTODY Of the being, on the contrary,
Of credit to them will increase the security
which the States provide for faithful execution Of
their trusts by multiplying the scruntes to which their
operations aud accounts will be subjected. Thus dis
posed, well from interest the obligations Of their
charters, it be doubted that such conditions
Congress may fit to adopt respecting the deposes
in these Institutions with view to the gradual disnse
Of The small bills, viii be cheerfuly complied with and
hawc shall soon gain, IN place OF the Bank OF the w.
States, prdctcd rctOrm III the whole paper system OF
the country. IT. by this policy, ultimately wit
the suppression Of all bank bills beioe tceniy dol
s it is apparent that gold and silver viii take their
place. and become the principal circulating medium IN
the common business OF the farmers aud mechanics OF
the country. The attainment OF such result will form
in the history Of country which will be dwelt
upon with delight by every true friend Of its liberty and
independence. 1t will tighten the great tax which
paper system has long collected from the earnings Of
labor, and do more to revive and perpetuae those habits
OF economy and simplicity which congenla to
the character Of Republicans, than all the legislation
which has ye, been attempted"
Mr.. Van Buren, expressed himself thus, in
relation to this subject, in his letter to Mr..
| Williams
THE constitution gave to Congress express power
coin money and regulate the value thereof, and Of
foreign coin. and expressly prohibits the exercise of
similar power by the States. Whether