The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1838-02-21
RHoDE-IsLAND REPUBLIcAN, FEBRUARY FL,


basis for The paper circulation, which III
banks will, "fcourse. continue, growing o,
OF their private operations.
That The demand for Specie may,
some extent, diminish The profits of tnnl
ling, is more than probable but if the e.
! feet shall be TO restrain the issues of III
banks, TO keep upon them constar
sense of the necessity Of more specie cap
tai 10 meet their Liabilities, the operation, a
past experience abundantly proves, will b
greatly beneficial to the community, an
will work rather a benefit than an injury I
the institutions themselves. Ia the mes
time, the disbursement, by the Government
of the specie it receives, cannot fail, not on
| ly To give stability and confidence, to som
extent, nj least, to the general currency, b
continuing in active circulation some por
tions of the gold and silver upon which III
whole is based, but must, to the extent q
the circulation, have tendency to strength
en- the banks against sudden pressures, an,
unfounded distrusts, by enabling them, tn
more easily to arm themselves with coin.
What are the tendencies of the opposite
system upon the banking institutions? Re
cent experience has answered this inquir,
more forcibIy than it was in his power {,
command language TO answer it. The eff
feet was to promote fearful expansion
when large amounts of public money wer,
placed upon deposite, and ruiDous contrac
tIons when the necessities or the policy o
the Government required its payment. Th,
effect wns to stimulate to dangerous exces
ses, not the banks only, but their customer,
also, when money was abundant in tn,
Treasury, and to add to the pressure, BY
heavy calls from the Treasury, when there
was a scarcity. In short, the effect of the
latter system upon the banks had proved
upon trial, to be unmxed evil, while the
influences of the former promised to be
rather favorable than unfavorabe.
Fifth. The next and most important
comparison between the two systems, was
the influence of each upon the Government
of the country and its finances. The pro.
posed system would place the money ofthe
Government, nt all times, within the power
and control of the Government. 1t would
enable the Government, ut all times, to pay
its debts in currency not deprecated, n
currency equal to the standard of the Con-
s,i,ution aud the law. 1t would render the
Government financially independent, and
maintain it in that position. Under such n
system we should no more hear, what we
were now daily hearing in this hall, that
honest citizens had been defrauded, by be-
ing paid their demands against the rreasu-
~ in hank paper, which was deprecated,
hat q.
indemnify them for their losses thus occa-
stoned. These were some of the benefits
certain to be derived to Government from
the adoption of the system provided for by
the bill but there was another, and, in his
judg ment far greater benefit, equally Ger.
tain TO flow from its adoption. 1t woule
exempt the Government from the constan
and innumerable impuiatons of injuries tt
trade, to the currency, to credit, 10 the pri.
vate affairs of individuals and banks, from
its financial movements. Was any person
whom ie addressed insenslble to the NOR
al and political evils growing out of these
complaintsl To their strong tendency to
ALLEVIATE the feelings of the people from ouI
most valuable institutions, and to bring
them to look upon oil governmen, as d
curse and not II blessing; as calculated, not
for their protection, but destruction aud ru-
in lie would remind the Senate, very
briefly, of the course of these complaints
for the last four years.
The Government removed the public mo-
ney from one single bank and placed it in
several others. A clsmor followed the act
a panic was excited banks failed, mer-
chants failed, money was made scarce, the
currency was disturbed, credit received a
shock, and for some four months in sue
cession, we heard nothing here but scenes
of distress, general ruin, and almost famine
and all in time of as grent plenty and album
dance, not of the neccessarle. of life only
but of money, ms our couatry ever witness
ed The panic passed off, and business of
every description, and enterprise of every
character, sprung into increased life and
activity. The public lards commsnced to
sell rapidly, and our revenue became ex-
cessive. Then came the second complaint,
which he proposed to notice; and it was
that The whole splendid public domain, that
rich inheritance from our fathers Of the
Revolution, under the operation of the I" pet
bank system" was gong or gone; was be-
ing exchanged, for what' For "bank rags"
That complaint lasted us for the most of
one session of Congress, but nothing was
done, by legislation, to remedy the evil
The accumulation of revenue had by this
time come to be vast, and this gave rise to
a third complaint. II was double in its
character and contradictory with ITSELF and
ye, it entertained us during large share of
one of our sessions, and finally prosaced
legislation. 1t was to-day that the Govern
ment was actually locking up in the banks
all the money of the country, while the