The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-01-06
yIRaINIA.
VIRGINIA
Elsraets ron IA: Message III Dor. Campbell, "a tls
L,giaatare ef Yxsiata,
EtlI0r-eiii=ens ~ he SeRats
aad H,4sse of Delsg6tsss

NffaStk&g
L,gisiatansef Ifxsiaia,
EtlIor-ei iisens " he Senats
and Howse Of Deisgdt's'
The condition OF our public affairs Is in some re-
specs less favorable than could BE- wishcd-but the
numerous proyilenlial blessings which we continue
10 enjoy, Demand our grateful acknowledgements
The sources OF national greatness and Of indiyidp-
al we1lth, for which our conn,ry mas pseh always
remarkable, are yet fresh and unexhausiedi the
energy and enterprise that have already accomplish
"a so much, are undated, and are sun allured 10
e4ertion BIZ te certainly oil success whilst the IN
cnnvenicHces under which Inc country iaopis, are
temporary in their nature, and recreb!e to causes
which wise forecast, II II canned aitogeiher AVOID,
may hereafter deprive Of much Of their power 10 do
mischief
The subject which, unhappily, at this time, is
forced upon attention by It's degraded coDalloA,
Is the currency OF The country.
The advantages on the one hand, OF on uniform
and stable currency, and the evils on the oher ol
currency deprecated and unstable, cannon % easily
exaggerated The conviction OF this run Is un'-
versal The People, aud the Government as wen rs
the People, have an inappfeciable stake 70 what is
permitted 10 pass as money-h was, therefore, 10 %
expected that the appearance Of arrangement 10 our
monetary system, would give Use 70 earhest lhqui,
ries ablnt the causes which have produced u, and
that these wond lead 10 numerous propositions Of
amend pent; and as Banks form prominent part OF
that system and the exert controlling influence
over the currency il Is not matter OF surprise that
the evil by some should be imputed to their agency.
Il il all important 10 separate the accidental non
the necessary results Of the banking policy thai we
may not fall into the error OF Abandoning institutions
OF grell and acknowledged usefulness under the
mistaken Impression that they are intrinsicay i'm,
polite.
The opinions which had the honor TO express,
with much ditliaence, in late communication 70
the General Assembly, have been confirmed by sub
segment reflection. Ii would Ihumbly conceive, b.
attended b. ruinous sacrifices, public and indiydu-
al 10 abandon suddenly the banking system as II has
been established among Us, or TO restrict y IN snch
manner as 10 deny TO the community the facilities 10
which II has been accustomed. The interest of the
subject and the novel, and fear, dangerous tenden-
cy Of some OF the plans recently proposed in con-
nccion with the currency, Will excuse, II they 90
not require candid vet dilident statement OF the
conclusions 10 which my own anxious inquiries have
led inc.
Il has been more than thirty years since banking
practiscd, was Incorporated with the settled
policy of the Commonwealth. The Bank OF Vir-
gina was created In ls0f--eight years afterwards,
lime having been allowed TO witness the good or
evil tendency OF the policy, the Farmers Bank was
established Subsequently, the North Western Bank
and the Banks OF the Valley and at later period
the Merchants and Mechanics Bank OF Wheeling
were incorporated Instances yet more numerous
arising from the renewal of bank charters which
were about TO expire, the General Assembly hes by
decisive votes given expression to the sense OF the
community, in favor OF the blnktng policy, Is II
wise politic suddenly to abandon policy 50 long
and fondly cherished, and commit the property,
business and welfare Of the community upon the
issue of an untred experiment. Ii It could be
shown that the sources OF private and national pros
pcrtty would have been better developed under
different system still the consideration that the ha
bits of the community are adopted TO the existing
order Of things, and that revolutions therein would
unseie public confidence and involve unavoda bic
sacrifices might well b. set oil against the demand
for theoretic perfection. But the revcrses Of that
superstition is believed 10 be true; and that We arc
in no slight degree indebted 10 our liberal system OF
credit and exchanges for the hitherto unexampled
growth aud prosperity of our country. Without
much actual capital our country was magniiicently
endowed with all the elements from which wealth
might b. securely deriyed its position, therefore,
was that OF all others in which the facilities OF
generous credit were most needed, and could with
the mos, safely be dispensed. Among other instan-
ces of grelt and permanent advantage, may be mem
toned the works of Internal Improvements, Canals,
Rail Roads and TurnpikcS. These must have been
delayed 10 remote period, il the spare capital
necessary for their construction had FIRST to be alcu
INFLATED; and in the interim, the whole country
would have suffered for the want Of the requisite
channels OF Recommendation, and the industry
OF those parts OF IT, more remote from the sea board,
have been, 10 great degree, paralysed Indeed the
fostering influences Of the credit system, hitherto
upheld is altogether Too visible in our past history,
in the development of the rich resources of our
country, the rewards Of industry, and the growth OF
population not 10 satisfy that its agency has been
extensively and sigaaily useful. respectfully sub
init that policy repeatedly approved by the dclibs-
rate SANCTION oil The Legislature ana the community,
and hat far has been found in friendly connec
ton with the great interest of the Commonwealth,
should no; BE- lightly nor hastily departed from
II is objected to Banks that they foster spirit
Of reckless speculation, create artificial value,
and expose the currency TO dangerous convul-
Sions.
The proof Is said to BE- found in the sad vicissi-
tudes which we have lately experienced, and from
which we have not yet recovered. Until the SUE
pension Of specie payments the State Banks enjoyed
the confidence of the people and the Government;
and their agency was generally conceded TO be use
full, if not Indispensable They had been not long
before selected as the repositories of the General
Government, and under that arrangement, large
addition was made to the money which they held on
deposile The question occurs, whether the suspen
sion Of specie payments be not referable 10 causes
which the Banks had no. necessary agency in crea-
ting; and whether il be not in the reach OF prudent
legislation to guard against the recurrence of the
evil, without imparing the capacity of Banks to be
useful And after all, whether it be not better 10
incur the rick OF occasional Inconvenience from
msmanageHfent, or ndiscretion, on the part of the
Banks than submit to the greater and inevitable in
conveniences that must attend their overthrow. 1t
is BY no means peculiar TO Banks, but on the con-
trary, is property common to all inventions OF man,
for coniriyanceS which are in the main beneficial,
to b. now and then The occasion of mischief
fusion; and it is the part of wisdom not to abandon
such as generally useful buto apply itself TO the
work Of jndicious improvement.
1t is of the nature of credit as implied in the OBJ
lection, to present temptations 10 speculation and to
encourage demands for, and hence 10 raise the price
Of whatever is covecd an object of property. But
are these regarded evils to warrant an attempt to
annihilate credit 1t is the characteristic OF man,
and OF no people more than our own, and regulated
by prudent forecast, no disposition is more com
mcndablc TO anticipate coming events, and risk the
present upon the realization of their hopes This is
he A hat- iy,St