The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-01-06

Il
| tura operation OF the banking system,
The'large funds which the Commonwealth has
Dedicated % the Imaginable objects 81 Internal I'M
proyements invested in the stocks oil our Banks,
The noes OF these institutions have long performed
amongst Us the functions Of money and constituted
and yet c9nlule, a large portion OF our currency.
/ Until recently, with single exception INC panks
have met their engagements with puncnaliy, ana
their notes have been convertible ~ VIII INTO COIN,
For The suspension Of payments IN 1914 the except
| ga instance an excuse was admitted 10 exist IN the
| emblrrassnlens resulting from war In which our
country was engaged, whilst The valuable services
! rendered 10 the Government BY the liberal use 81
their credit coaciatcd friends. The ready sale Of
1 our produce, al prices which Temuncrale the labor
employed in their production, has been and SIN
continues TO b. effected through the agency OF DanEs
The value OF property, the wages OF industry, The
profits OF every occupation whatsoever are adjusted
under the influence OF the banking policy, and It's
Influence Is alike beneficial TO all To rcnounce
this policy and attempt TO chain currency exclu-
sivey metallic would b. attended b. consequences
extensively, fatally mischieyous. Observe its ope-
ration upon dcbors. The reduction Of the circula-
/ ting medium would OF course reduce the price Of
property the effect Of which would be relatively 10
augment the debt to be paid And thus a debtor,
whose engagements where considered light when
they were contracted, might find his whole means
had become inadequate, BIZ revolution in The eur
rency, 10 the payment OF his debs The citizen in
the case supposed might well arraign the justice OF
his Government, that, by its inconsistency, had pro-
| duced his ruin. This Is but one instance OF the
miSchefS OF the innovation. numerous Diners Will
4 occur To every considerable mind
Deeply impressed with these views, cannot bnt
regard with anxiety, any proposition proceeding
\ from an imposing quarter, calculated 10 discredit
| the Safe blnRs or TO impair their usefulness.
respectfully submit whether such may not be the
| tendency OF proposition entertained in the nation
al councils, TO refuse blnk paper, and collect the
4 whole revenue Of the Government in gold and sill
yer. Ii the General Government shall come TO that
determination before The banks shall have rcsum-
el specie payments IL must add 10 their dihcul-
ties, and delay the return 10 specie payments and II
4 in view Of that effect, the Government should for
the present forbcar, and adopt the resolution when
specie payments shah have been restored, il will be
found fear, TO bear with severity on the banks, TO
sink their credit, and to cripple them. II banks be
admitted to Be safe, important and valuable agents in
the economy of The Stale Governments, and may
not with Just regard TO the interests of their con-
siuen,s b. dispensed with, ! respectfully sahnit
whether the policy Of the Safes in this respect be
not SO far entitled 10 respect from the General Go
i vernment as that il should not, il TO BE- avoided,
pursue course calculated TO Cypress and emblrrass
/ There Is another view Of the subject which de-
4 mands the solemn consideration of the General
Assembly The State Banks have been heretofore
regarded, and as ii seems 10 me with much reason,
the only safe and practical sub aitute for great ma
tiona establishment of credit and finance under some
form or o.her. Ii these Institutions, therefore, shall
now BE- allowed to b. crushed or discredited, their
\ efficiency Impaired or the accommodation they are
capable of yeldingto both government and people
| thrown aide, the consequence will be, sooner or
later, resort 10 central monied power as the
exclusive fiscal agent of the General Government,
and The privileged dispenser of national currency,
4 untavorable as has been experience OF such an
institution, we have not yet seen it, under its most
dangerous aspect us natural relation is that Of ally
/ and instrument of the Federal Executive not its
rival and opponent Where two such formidable
engines shall work in concert as, under their natu-
raj bias and impusion they would do the result must
bet fearful enlargement Of the powers of the Fede-
4 raj Government destructive alike to the rights OF the
States and the Liberties of the people Is il not then
incumbent on the friends of our Republican system,
to uphold the institutions OF the States, III all their
competent functions; TO oppose with frmness every
project, which, in rendering the General Govern
4 ment independent of the people and The States, shall
strengthen the arm of federal power, and which, by
leading TO multiplication OF executive officers, and
hy giving TO the executive head, direct control
over the public money, shall augment the patronage,
and add to the already formidable influence OF that
branch of the Government The measures recently
proposed in the national councils, baforc alluded TO,
force these considerations the attention of every
rejecting patriot, and they will doubtless be weighed
BY the General Assembly with all the delibaraion
and solenni.y due TO the occasion.
The approaching expiration OF the charters Of the
existing banks will present an early occasion for the
revision and Improvement Of our Blinking system.
The defects, which experience may have disclosed,
WILL il is to BE- hoped Be remedied and new securi-
ties provided against the dangers and excuses TO
which il is occasionally liable; but in the present
advanced stage OF commerce and civilization, consi-
10 which the extraordinary developments Of modern
Industry and enterprise have given rise, and con-
trasting herewith the limited supply of the precoas
metals in the world, the idea OF abolishing every
conventional medium Of circulation, end returning
TO an exclusive metallic currency, must be regarded
as altogether behind the progress of The age. Least
Of all, is IL adapted 10 new and growing country
like ours where credit and anticipated capital have
already achieved such wonderful improvements, and
where so much yet remains TO be affected BY their
necessary aid
/ had hoped to be enabled TO communicate to the
General Assembly, the intelligence that all The prin-
cipal banks in the Union had agreed on day 10
commence redcemng their notes in specie, and la
ment that cannot convey that desirable nforma-
ton. | understand, however, the prospect of COM
mencing al no very distant day is favorable, and
thar the banks in our own State have been, and are
now ready 10 fix on an early day; that they should
do So is greatly to be desired but however anxious
we may feel on the subject ii is duty to act as
10 render the operation lle distressing as posi-
Bile and avoid every thing which may tend unncces-
sarily 10 disturb the public confidence. Il will be
seen from the last return Of the Bank Of Virginia,
made the LIST of November 1898 that her liabilities
for notes in circulation deh's and deposcs, amount
ed 10 the sum of $s56 $50 81, and her means,
exclusive OF her stock and excluding her real estate,
TO meet these Liabilities TO 50 1926 026 g. The like
liabilities of the Farmers Bank Of Virginia at the
same period amounted 10 "a, 1854 81, and It's
means in like manner inclusive of its stock, and ex
GLIDING its real estate, were S6i3TS96 s. The
condition Of the other blnks in the Commonwealth
renders no less the holders Of notes and de-
positors of money.