The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-01

ISL we reply 70 the OpltCtiou tuat - 49,
Hshnent Of the one bank system would bs scnes.s
Of monopoly most favorable 70 the eneou,tass,''.S
ard security oftavoriisn In the matter o. ioFhs anu
discounts al bank. This wonld pc an ~
objection. IL allowed 10 hive ior rs g ~
IN most OF the States. They who urge Ihis oplec-
lion 10 the one bank system, assume hat Inc man.
aQcment of the bank Is 10 remain nnchanged ana
identical with thai OF the existing panks. ms as
sumption IS necessary give plausibllily 70 the OBJ
lection II has been resored 10, notwithstanding II
has been declared that the management OF the bank
must be made by the charter essentially different,
in a variety Of important items from the manage
ment Of the existing banks, For instance, that the
same persons 10 be directors Of the bank, shall en-
low only short and fixed term Of consecutive years
ofeligibiily 10 the olee that the directors be paid
a moderate salary, 10 be fixed by the charter
Of the bank that no director, during his term
Of service, shall borrow Of the bank, in his own
name, or that OF another, larger sum, at any
one time, than 50 900; that the Indebtedness or liza
bililies TO the bank, OF any body whatever whether
an individual, or partnership or chartered COM
at any one time, exceed moderate amount TO be
fixed BY the charter of the bank that the loans and
discounts Of the mother bank and branches shall be
so regulated as never to exceed twice the amount
branches be made by the charter as independent as
practicable, Of the mother bank. And, notwih-
standing they who are acquainted with the secrets
OF bank management, say liuie reliance i to be
that the charter should be carefully framed 10 Sc
cure the greatest possible publicity in its manage
men5 and 10 forbid that the bank be conducted with
a view tothe largest possible profits. Its manage
ment should be such, within the provisions OF the
charter as TO show it was established for the public
good and not for the exclusive benefit of the stock
holders. The publicity Of its management should
TELL whenever and to what extent, Il had venured TO
trangress the limits of its defined authority.
3D. But, say the directors, II one bank may be so
restricted, and if so restricted, would answer the
purposes of It's creation, why may not many banks
be so restricted effectively and would not many be
more consistent than one, with the principles OF de-
mocracy 7 Now, let whatever this objection fairly
means, be granted. IL must be granted on the other
side that one of the important faculties OF State
Bank notes. is, thar they shall have credit beyond
the borders of the State in which they are issued;
that the citizen who starts from home with bank
notes Of his own State ia his pocket, may travel in
other States and in any direction without being
put to the blush of wounded State pride and to the
more serious Inconvenience OF finding his money
discredited in the ratio Of his distance from home
Under The State Bank system comprising a multi
ude of them in each State, their notes cannot have
this faculty, although when in the State in which
issued they are al any time convertible into colin
Men who make II their business and daily study,
can scarcely tell, when the bank notes Of distant
State are offered 10 them in their ordinary transac-
tions, whether they are convertible ntocoin or cur
rent al home, Money changers frequently cannot
tell OF course, the notes rejected in The ordi-
nary exchanges OF other commodities for money,
in the usual course of trade-rejected, not because
they are not convertible into coin but because they
not kno,cR to be so, in distant parts II would
be otherwise, necessarily, to great extent, under
the one bank system. Every man having sense
enough, and the sagacty Of interest is quick, to de-
cline receiving bank note not known TO him TO be
current at home, would very soon become acquaint-
ed with the fact of the existence of but bank in
each State Appraised of this fact lie would argue,
that The people of the State depend on their bank
for their circulating medium Arguing thus, he
would be satisfied that the note offered is current
at home. Being satisfied Of its currency at home,
he would take il in trade
Sd. Il is objected moreover, that the one bank
system is imprac cable in this that the 26 States
will never act alike ON the subject. The principle
from which this objection springs is prolific
OF Obstacles to every good undertaking. On the
same principle, objections have been started against
all the changes in government which have taken
place from the beginning Of the world to the pre-
sent time In this instance, it is mere scare crow
to intinidae the irresoue, and TO seduce the waver
ing into the support of some Treasury scheme or
some National Bank II is as specous as il is unge-
nervous. In fact, Il amounts to this, if all will not,
none shall do good"
A part from the contemplated connection of this
system with the general government, in relation to
il or its fiscal agents, 1t Is not important that any
Stale inquire, ariH any other State do tikclUie?
The important and true inquiry is simply this, nil
IL ioork reL? Ii so, let it be adopted The system
Of many banks has been tried 1t does not work
well, and has been found wanting. Why persist in
the system Of many banks, whether the general go
vernment is 10 be divorced from bank agency no2
In any event, each Of the States will want sound
currency. The system of many banks cannot sup
ply thai want which must be supplied Does the
sensible man persist in error perceived or the vir
tuous man forbear good purpose from fear that all
others will not follow his example Has any en-
lightened people ever been known TO forego reform
in their civil poity from fear that all the other
tions on earth will not follow in their footsteps
Let some of these States take the lead in the sug.
gested change in their system OF finance, and the
beneficial results will soon be SO manifest 10 be
embraced by all.
4lh. 1t is objected by some who think the one bank
system would work well, that it cannot be carried
into effect because there is want of power in the
federal government TO influence effectuay the legs-
lation OF the States on the subject To this objection,
we reply, that no direct interference by the federal
government with State legislation would be counte-
nanced except far il has authority to take part
in securing amendments Of the constitution; much
less would any other direct interference be recon-
mended by any one having proper respect for the
reserved rights Of the States No Legislative Ex-
ecutive proceeding, passing beyond the express
grants OF constitutional power, is necessary to be
taken by the federal functonarieS, in order 10 con-
strain well ordered system of State banks. Let the
federal government keep within It's appointed sphere
exercising its delegated Poaoer to coin money,
gulae the value thereof, and of foreign CON-" and
its bcnecent privilege of receiving whatever repre-
sentative of money, it may by law consent may be
received in payment OF dues to it, and the States for
the necessary purposes of their domestic trade and
transfer and of INSTRUMENTATION, will soon de-
wise and establish system of Stale banks which
will furnish medium that may be taken by the
federal government in It's receipts of revenue, and
when thus taken, be equivalent 10 specie II is by
such negative influence that the federal government
may constrain the establishment Of an efficient sys-
tenn of State banks, and at the same time, not be
chargeabe with improper interference with the le-
gislaton of the States.
9th Another objection has been urged against
this one bank system, which, as we understand it,
we answer last being of least Importance II is this
that such system of State banks, each being de-
pose bank would in effect. and in an objectionable