The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1838-04-13


the hanks he merely tlinas hem injurious TO Tie
morals and industry o. the country. lie likes
,h,n, very well, but he nevertheless behtvcs that
tbov lew a tax OF tsonty -iys uillnns annually "a
the industf, OF the country. Let Us examine,
Mr. President, how tins enormous and Ubiquitous
assessment is made, according 10 the afsuaen'
OF tho Senator from south tarohua. lie states
that there is a mass ct debt due IRON Tue
community 20 the banks, amounting 10 sI'J,-
UODO00 the Interest upon which, constituting a.
bout that SUN OF 25,00OUl0, forms tie eSeop'ion-
able tax Now, this is u"t paid by The whole
community, hut only by those individuals who Oh
tain discounts from The banks. They borrow NO
nav At six Der cent interest, aud invest II IN profit
able adventures or otherwise employ II. They
would not borrow II II they did not suppose they
could make prof, by il aud the probability is that
they do make profit by II. Instead, therefore, OF
there being any loss 10 the operation, there is an
actual gain 10 the community, by the excess OF
profit made beyond SIX per ceGt interest, which
they nav, What are banks They ara tnere or
rauizgd agencies Tor the loan OF money ard The
iiou OF monetary business regulated agen.
cies, acting under the prescriptions OF law, ana
subject 10 a responsibility, moral aud legal, TAR
|transcendirs that under which any private capl
talisi operates. A number OF persons, not ehuos-
ing to lend out their money privately. associate
together, bring their respective capitals into
common stock, which Is enrolled aud managed by
the corporate government OF bank. Il no assoc
citation whatever had been formed large portion
OF this capital, large portion therefore, OF that
very debt Of sI75. 100000, would still ex,s: in the
shape OF private loans. The Senator from South
Carolina might as we'll collect thu aggregate a.
mount OF all the mortgages, bonds, and notes,
which have been executed 10 the Uniicd States
Tor loans, and assert that tie interest paid upon
the total sum constituted tax levied upon The
community.
4 In the liquidation oil the debt due 10 the banks
trom the community, and from the banks 10 The
community, there would not be as much .tiiculty
as the Senator seems 10 spPfeheud. ffotn lhe
mass OF debts due To ths banks are H. be deducted,
first, the amount OF subscriptions which constitute
the capitals secondly, the afount - dePositrs to
the credit OF individuals 10 thur cusIouy aud,
thirdly, the amount OF their notes IA circulation.
How easily viii these mutual debts neuual'Is
each other The sane person, IA nuulbclless ~
stances viii combine himself tie relation. both
OF creditor aud ssstor.
The only gensf4 operation Of banks beyond
heir discounts aud depOsIIes, Which pefsades the
hole communtt,, is that OF furnishing eHcula.
uun IN feGeemsole paer, beyond Tbs amount ot
specie To redeem tb6Ir vaults, And can Il 0a
doubted that tn, additional supply oi money rT.
nIshes a peaceful su ulus 10 industr, and pro-
duclIyn, My eomPcus4IIng aBy casual ,Hcunsen-
lcncts which sonettuie,, though rarciy, occur
Dtuks reduce the rate Of interest aud rrpfes. -.
ordinate usury The saiutary ,udoenCc Vi bank
ing operations Is demonstrated IA countries aud
sections OF country where they prevail, Nhen cot.-
trasied with those which tiey ar, not ouHd.-
the iofmer, all Is hustle, activity, general pos
parity. The country IS be4utihgd aud adorned by
the noble works OF internal Improvement the CT.
IL. are hi'cdwth splendid edfces, aHd the Wbafses
covered with the rich productions OF our osn Of Of
foreign climates. In the latter. all il sluggish.
ness, sloIhiuluess, ana inactivity. Eag.aud, 10
modern times, illustrates the great adysnta gcs 81
banks, OF credit, and Of stimulated IDdus.fy. Con-
uast her with Spain, destitute ali thpse adsau.
tage.. In ancient unes, Athens would present
an image Of tull and active employ mens Of all 'hs
energies Of man, carried 10 the nIghest point o.
civilization, whilst her ncigbbof Sparta with bet
iron money affords smother Of the boased bens il,
OF metalhc crcuialbon.
The senator from S0uth Carolina would 90 III,
banks no hafm but lhey deemed by hsm high
~ iuiurious to the planting interest AccoftIu.
to htm they lniille pfIces, aud she poor planty
~elIs his production, tor hare money, aad has 1
pnrehAse h. supplies al the ssoln Prices prodHceS
by paper incaium. Nav, must dissent alto
gsthcr fronl The Senator'S statement Vi The case.
Eng land. the principal customer OF Tie planter, y
quite a much, il not more, paper couauy that
ours. Ard the psper-lnoney prices oi tre oa'
coqntry are neatrallz hy the paper money piicei
Of the other couotry the argument were true
that a paper money country trades disadvantage
8uslg WIKI Il hard-money c untry We ought Il
continue 10 emyloy paper medium, to cOuntcr
balance the paper medium Of England. Aud 4
se aere TO hanish pap0f aud substitute alto
gc'hcr a metallic currency, we should be exposed
TO tie very inequality which has been insisted up
on. Bn there - nothing ln that vics ii the mat
ter which Is presented b. the Senator io,a Suult
Carolina. Has be asserts, prices we're always ~
1ated 10 this country, beyond Their standard IL
! England. the rate Of Exchange would be constant
" against Us. An examination, how ever, into th'
actual state Of exchange between tie tao coun
tries tor hng series Of years. evInces that II ha
generally been IN COR favor. IN The direct trad,
between Eng land and this country, have no doubt
there - a large annual balance against u bu
that balance is adjusted and hquidatcd BY balan
c. T. our favor 10 other branches OF orr torcigr
trade, sbIch have finally concentrated 10 England
as the great centre of the eommcrcia, world.
OF all the interests and branches Of industry IL
this country. none has pt0fted more by the us'
anc employment Of credit and capital derived fro
backs and other sources, than the planting inter
est. II habiluay employs credit 10 all eounlric,
where planting agriculture prevails The State,
Of Alabama, VI ssissippi, Arkansas, and LouIslsns
have 1most sprung into exIstencs, as It we're, by
magic, o., 81 least, have besn vastly improved snc
extended, under the influence of the credit sys
ten. Lands slaves, utensils, beasts Of burden
aud other supplies, have been constantly bought
and still continue 10 be purchased upen credit su.
bank agency is all essential to give the most bens
hcIsi operation 10 these credits. But tho argn
ment Of the Senator from South Cstuilna, which
am combating would not be correct. If it wer,
true that we have inflated prices this side o.
the Atlantic, without corresponding imitation o.
price on The other side because The planter pen