Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-09-21

considered the administration vitality wrong in its
course. To adopt the bank now would be TO give II
triumph over the government. The worst conse- |
quences would flow from such result ana he could
therefore to give this institution trial as
fiscal agent.
Abstraciy considered, he could not agree TO re-
| union of Bank and State There maay and in
superabIe objections convertible paper performing
the office of currency. Bank notes lily fitted
for such duly, on account of the great expansions
and conractlons they were liable 10. Their connec-
ton with government was the principal cause OF ex-
panslon.
Bank notes do not circulate and command full faith
on account Of the ability of the bank TO redeem
| them. They represent the credit of the government
An endorsement from this high source Is the true
cause of their credit l speak now of bank notes de-
| c!ared receivable by any government as money. 10
show that II is the government winch lends this tre-
! mendous impulse To bank notes, take this example
| A merchant of high standing and abundant means
| throws note INTO bank endorsed by two equally
responsible persons. He gets it discounted III what!
in gold or sllver2 No, in the paper OF the bank, IN
promises to pay, and he pays SIX per cent interest on
these convertible bills What is it that gives currency
| TO these notes? The stamp OF the government the
law that declares them money. Reverse the case.
The bank would then give six per cent for the mer-
chants notes. Take another instance. The United
States government finds beggar in the street. 1t
invests him with credit. He issues mill ns OF pro-
mises to pay, an! they pass every where for money
They will be superior to the notes OF the United
States Bank This is the whole secret why the union
of Bank and State is desirable. 1t is true OF the
State well as the General Governments.
The government and banks always expand tegeth-
| er. To this cause is owing the present overthrow
Go back to 1924. In that year you find the triumph
of the tariff The climax was attained in 1926 Your
duties jumped up from ~ to 81 millions OF dollars III
one year. This increase sprang from the law OF
1923. The state Of trade and manufactures had
been lifted up that the rate of exchange was turn
ed against England, and our exports OF the raw ma
teria brought back from Great Britain not her
features, but her gold and her silver Who shall say
that the government was not the prime mover l.. this
expansion
The expansion of 1884 caused by the act of
1923. The Bank Of the United States was not in
fault In self defence it was obliged to discount the
notes of merchants to keep pace with the rapid ad-
vance of trade The accession of Gen. Jackson 10
power and his veto upon the charter of the United
States Bank were other and powerful causes. About
1882 Great Britain renewed the charter OF the Bank
of England. Here another swelling tide. Her
notes were made legal tender in all debts exceptbe
tween the bank and her customers. Bank notes of
the United States Eank flooded the The spirit
of speculation was abroad. And now the tide of pros
perity has come back upon us and IN It's refluence
overwhelmed all who stood in Its way.
Gen. Jackson did not understand the cause OF the
wonderful prosperity in which he found the country
on his coming into Office His war against the bank
was wrong, was unjust The indications of overrad-
ing that and then met the eye could have been
arrested had he taken the right course Then was the
time to check the flood OF unheathful prosperty-te
uSBANK BANKS, as said IN 1884, strove TO get
the old United States Bank rechartered for IL years
that il might outhve the Bank of England, and arrest
the fatal tendency of things. My object TO let
gold and silver gradually take the place of paper, by
the aid of this very United States Bank, but was
overruled.
MIR. G.. here went into cursory history Of the war
against the u. s. Bank. The government, he said,
assisted in swelling the stream Of overtrading and
overbanklng The catastrophe has come. Ii was
delayed by the disease in the body banking, but only
TO make it more terrible. The over fiscal acton of
the government in 1924 and 1923, the movement in
the British parliament, the westward course of the
metallic medium in 1885, and the obstinate folly of
the government the great ingredients in the cup
Of disaster which we called on to drink in 1897.
Nor have we yet quaffsd Il TO the dregs.
Tie three suspensions of specie payments IN the
history Of the world occurring at very distant peri
DDS VIZ 1897 1913, and 1897 spring, all of them,
from the connection of Bank and State. Here MIR.
Calhoun showed the injustice of the Banking system
rs giving class of men an advantage over anoth-
err His opinions savored somewhat of lec0f0coism,
though they were free from the nsoencc and obsti
uacy of the modern creed. There is no man. in my
opinion, who can defend banks as purely democratic.
Butts our government pure democracy Has Mr..
Calhoun never considered this question? II he has,
he will not estimate the Banks more anti-demo-
cratic than the sub-treasuTy scheme
Mr.. Calhoun very eloquent in portraying the
pcrnleious influence that the banking system exerci
sed in different sections Of the Union. He urged that
the great Banks swallowed up all the advantages If
competition in trade to the detrmen Of perhaps the
very sections OF the country where nature intended
commerce should concentrate. / thought saw the
laudable weakness of State pride lurking under this
part Of his speech Charleston, dear Charleston, is
ever foremost in this great statesman's mind. And
yet his arguments 10 the very letter. on
will never find Mr.. Calhoun advocating cause how
ever near and dear TO him, unless he be fortified by
the power of truth.
He then showed tina. government was the sole
of value 10 bank notes. DiscoDnect the banks
from the government, said be- and the banks will be
safer. have heard, Mr. President, of various modes
to make the State Banks safe. Some would restrict
their number, others their capital, their discounts,
some again propose to diminish the size other notes
but say break up the connection and they will be
safe from all corruption, expansion, contraction and
liabilities TO Every body can testify to the scenes
of sycophancy of bribery in the State legislatures TO
obtain bank charters Break the thread that unlies
them TO the government and you place them in safe
position calculated TO benefit the merchant
| see before me a new era. But little connection
subssted between the government and the banks be-
fore 1894 Gen. Jackson by his hostility 10 the United
States Bank brought about an intimate comminglng
Of the government and banks. The United States
Bank is now dead, and the contest will, fear never
end till the government shall become bank, or the
banks the government. Separate them now. Now
Is the accepted time Separate, say or our liberties
are endangered
have many near and dear friends connected with |
banks. Their oil sspend upon them. My sympa- |
/ thes are with the banks blame them not But II
| they continue IN connection with the government |
greater troubles must be realized by the country The
question should never be dropped TIL the whole truth