The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-16

turn upon the Banks that put it in circulation.
This, in conjunction with other causes, forced
great many of the banks in the u. States,
that had extended their issues beyond rea-
sonable limit, TO refuse the payment Of their
debts in gold or silver. The banks in this
State had not, however, put into circulation
an amount Of notes beyond that authorized by
their charters, and sanctioned by the closest
regard to their own safety and the public Sc
curity Yet, when general suspension has
taken place among the banks, il became man
ifest that gold and silver would command a
considerable premium, and that the banks OF
this State would not be able to keep any OF
their notes in circulation, if they alone paid
specie, when all the other banks in the Union
refused to do it. Under these circumstances
they adopted the same policy, that the others
had found necessary to their interest or safety
TO adopt, urging as their justification, a duty
which they felt under to their own State, the
source from whence they derived their char
tered privileges, TO preserve the means of fur
nishing it with circulating medium sufficient
to answer, as far as practicable, the demands
of industry and the wants of internal trade I;
as il was evident that unless this policy was
adopted by them, their gold and silver would
all have been Withdrawn, and their paper re-
turned upon them, leaving the community des-
titute Of a circulating medium of any descrip-
ton. Since that period, they have, as far as
the necessities Of the public would bear it,
curtailed their issues and acted more with a
view to inspire confidence and place them
selves in condition to resume specie pay
ments at any moment, than with the selfish de-
sign Of making profit and adding to the emo
luments Of these institutions.
By the provisions of the charters Of the
Bank of Kentucky and of the Northern Bank
of Kentucky, failure or refusal to make pay
ment of their notes in specie, or any other yio-
lation Of their charters, is cause OF forfeiture !;
but the forfeiture has to be enforced by legis-
lative action in directing the Attorney Gene
raj to institute proceeding for that purpose.
The Louisville Bank OF Kentucky, forfeits
her charter by the law under which she exists,
by similar refusal, and it is made the duty
of the Attorney for the Commonwealth or
Attorney General, to proceed against her and
procure judgment Of forfeiture, without any
further Legislative direction on the subject.
As all these banks have violated their charters
aud thereby incurred the penalty of forfeiture,
the question is presented and has to be decid-
ed by you, whether, they shall be deprived Of
their chartered privileges, and be compelled
to wind up their business I! or whether, the
exercise Of their privileges shall still be al
lowed them-and if so, to what guards and
restrictions they ought, in justice to the COM
munity, TO be subjected!
There are some views connected with this
subject, that forcibly present themselves at the
first glance, and claim our serious considera-
ton. On what are we to rely for circulate
ing medium, if these banks arc not permitted
to continue in operation Shall we look to
the General Government for National Bank,
or shall we return to an unmixed metallic
currency! These are questions of weighty
import, and ought to be deliberately and dis
passionately considered TO enforce for
fixture of the charters of our banks would,
undoubtedly, add greatly TO the present en-
barrassment of the country. The debt due
them would have to be collected rapidly,
thereby Withdrawing from circulation all their
paper, yet still leaving portion Of that debt
unpaid, without any thing to fill the vacuum
occasioned by that withdrawal. Already are
individuals to be found looking to the Govern
ment for aid and desiring the benefit of relief
laws. How much more extensive would be-
come this feeling of dependence and this de-
sire for Legislative interference, if the country
had to undergo the sudden and unavoidable
pressure and embarrassment incident to such
an operation. So far as il can be accomplish
ed, Government should prevent all occasion
for reliance upon it for relief. 1t should,
however, at the same time, be understood
distinctly, that it has no constitutional power
or right in any possible state Of things, to in
terfere between man and man, in relation to
their private contracts. 1t is not proper to re-
pair private losses, incurred in any pursuit
whatever, by enacting laws to operate in ia
vor of one, at the expense Of another class of
citizens That would be virtually to take the
property of one citizen and apply it to the use
of another. The Government ought never
to interfere with private pursuits Its real
duty is to have and enforce general system
of laws, operating equally upon all, and to
leave every citizen and every interest under
its influence and protection to secure the ad-
vantages resulting from the exercise Of econo-
my, prudence, and industry. Whenever the
conviction is fully impressed on the public
mind, that no legislation for the exclusive be-
nefit of the debtor portion Of the community,
can take place consistently with the spirit of
the constitution, or the fair demands Of an
honest policy, even in periods of the creates.
arrangement and distress, every citizen in
stead Of relying on temporizing expedients
and relief laws, will feel that his sure and
only dependence is on his ownindustrious ex-
ertions aided by prudence and persevering
economy. a.
TO force these banks out Of existence, and
to create new ones, would not, so far as | can
perceive, be productive Of any advantage.
On the contrary, the business of the country
would be still more dcranged. and the pres
sure of the people greatly augmented during
the operation Of such process. New banks,