The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1837-10-20

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day. has been opposed 10 such an insli-
totion. Is unconstitutional. inexpedienl.
and dangerous. They hare ever dread
ed the union Of The political and mOnied
power and the central action Of she gu-
vernmehI. 10 which il so strongly tends;
and al all times have strenuousiy resisted
their junction. Time and experience
have Confirmed the truth OF their prinei-
piles; and this above all other periods is
The one al which il would be most dan
gero1s 10 depart from them. Acting on
Them. have never given my cOunGenanee
or support 10 National Bank, but under
. eompulsion which felt to be imPeri-
Gus, and never without an open deelara-
ton Of nv opinion as unfaEOrsble 10 q
bank.
In supporting the bank Of 1916, IOpen-
iy declared that as question de- noEO, !
would be decidedly against The bank. and
wonld be the last 10 give il my support
also stated that in supporting the bank
then. yielded To the necessity Of the
case. growing out OF the then existing
and long established cOnnexiOn between
the government and the banking system.
| took the ground even at that early pc.
Rod. that so long as the cOnnexinn exist
ed; so long as The government received
and paid away bank mites. as money.
they were bound 10 regulate their value.
and had no alternative but The establish
ment Of National Bank. | found the
connexion in existence and established
before ms time. and over which | could
have no control. Iylelded TO the neces-
siIy in order 10 correct the disordered
state Of the currency, which had fallen
exclusively under the control Of the states.
l yielded to what ! could not reverse.
just as any member Of the Senate now
would. who might believe that Louisiana
was unconsli,ulionally admitted into he
Union, but who would. nevertheless. leel
compelled 10 vote 10 extend the laws 10
that state, as one Of its members, on the
ground that It's admission was an act,
whether constitutional or unconstiIulion-
al, which he could not reverse.
Ia 1884 I acted in conformity to the
same principle, in proposing the renewal
Of the bank charter for short period.
My object. as expressly svo~ed, was To
use the bank 10 break The connection be-
tween the government and the banking
system gradually, in order TO aver, the
catastrophe which has now beIalen Us,
and which | then clearly perceived. But
the cunnexion. which | believed 10 be IT.
reversible in 1919. has now been broken
by operation Of law. II is now an open
question. | feel myself free for The first
time to rhouse nv course on this impor-
lanI subject. and, in opposing bank, !
act in conformity 10 principles which |
have entertained ever since | have fully
tuvs,ugaled The subject.
But my oppositIOn 10 a reunion with
the banks is not confined to objections
| limited to national or state banks. II
goes beyond, and comprehends others Of
more general nature relating ID the cur
rency, which To me are decisive. | am
oi the Impression that the connection has
4 most pernici0us influence over bank
currency; that It tends TO disturb INST sla-
biill and unIfurmlly Of value which is
esscut,al % sound currency, and is
| among the lending causes Of that lenden-
, CIV Ia expansion and contraction. which
experience las shown is INGREDIENT to bank
notes. rs a currency. They are in my
opinion, al best. without the requisite
qualities 10 constitute currency even
when unconnecled with the government,
aud are doubly disqualified BY reason Of
that connection. which subjects them to
sudden expansions and contractions, and
exposes them to fatal calaslrophes, such
as the present.
Twill explain nv views. A bank note
circulales not merely on account of the
credit of institutions by which il is issu-
sued, but because government receives il
like gold and silver in all its dues. and
thus adds lis own credi, TO that of the
bank. 1t. in fact, virtuslly endorses on
the note Of every specie paying bank ere
ceivsble by government in IFS dues"
To understand how greatly this adds to
the circulation Of bank notes, we must re-
member that government is the great mo-
ney dealer Of the country, and the hold
er Of impense public domains. and that it
has the power Of creating a demand
against every citizen as high as il pleases,
in the shape Of tax or duty. which can
be discharged, as the law now is, only
by bank notes or gold aud silver. This,
of course, cannot bu, add greatly to the
credit Of bank notes, and contribute much
to their circulation, though il may be dbl.
ficul. 10 determine with any precision To
what extent. II certainly is very great.
For why is it that an individual of the
first credit, whose responsibility is SO in
disputable. iha, his friend Of equal credit
r II. Il