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


, would be hoaes, in neither lie knew rhn,
) public officers sometimes became default.
. ers and he mus, he permitted 10 ask how
) Frequently the pubic sense was startled hy
announcements, ihroush the public press,
Of the defaults aud enhezziemenis nf the
most confidential officers of bnmksl All
were frail aud erring men, aud s"me alike
in both classes, would prove unequal to tho
resistance which the tenplalions of their
situations required; but he could not see
that either system derived any advantage
over The other, from this consideration,
while he did behave ,ha, the blll under dis
cussion proposed guards against this risk
which would he found more bencbcial IN
practice Than any hitherto known to the
legislation of Congress.
! 50 far as vaults and safes were concern
ed, he lnd already admitted ,hat ench sys-
ten possessed equal advantages, and ivon,
what had been said, u would he seen That, i"a
very great ex,euf, these securities, MS aI,-
plird 10 both systems, were iIemically the
same.
! But there is anoiher and much more
important risk connrcrd with the bauk
/
the banks for saIe-keeping, dpnn open or
general Jepus,e, are necessarily subjected
To all the hazards whicl, attend the bus-
ness of ,lr banking ins,itulioGs. We
have already seen that il,e money thus de-
( posted brcomes nt once The property ni
/ the bank aud tl.at the deposi,or receives,
I IN exchange for his n,onry, The simple cr,d-
it of the institutions. II, then, i,s credit be
subjected io the hazards uf the bank IA.
business, So must he the inoncy placed on
general drposiie with il, as that u"ury ls
merely converted by the deposi,or Into ,!'at
credit.
! BY adopting this system, therefore, for
the safe-keeping Of the national treasure,
we embnrk The money Of the people in the
snme boat with the capital Of the bank we
subject it to all the hazards to which that
capital is subjected, aud we substantially ~
gree, So far as our reliance is upon the cap
iial of .he institution fnr indemnIiy, that,
If the adventure be fortunate, our money
shall be safe hut iba,, If it he unfortunate,
the risk and The lns- shall he ours. We are
not, however, Ia be placed ia the condition
of the owners Of the capital of The hank.
I tinate hazard. Oar on'y object is safety
for our money; aud I" gain that, We tnkc
nur share of The risks, without any interest
IN the contemplated profits from them 7
! Who will contend that these RISKS do noi
fully balance The safety we derive rs the
consideration for incurfing them The
bank system, then, derives no advantage IN
the argument from the secariiy afforded us
by It's capital, ~ long ~ II subjects US Ia all
lis risks without any share ia us gains.
/ Let us now balance the account, ms far
ms we have gone, aud see which system
has the advantage. inihr srcuflIy of vaults
aud safes both are equal. The secruiIy nj
iurded by the capitals of the banks j. coun-
ierbalnuccd hy The RISKS it c"mp,ls Us Il"
take, growing out of IT. banking operations
without any share III tie profits of those
operations, if fortunate. This balances
this item of the account. ln The risk grow
ing out of the misconduct and dishonesty
/ of officers, managers, and agents, The sys-
TEN proposed by the hill has - decided adj
: vantage, ia the number Of prrs"ns 10 b,
I trusted, the s;nnding and ch ,racirr Of Hose
" lio have access TO the money, aud the
$ guards against, aud punishment of, enbez-
e element. ia the bonds aud surr,ies b II
e systems would be primo Jacie, equal; bu
we have been recently Told, by adisiincuislI
, ed Senator, (Mr. Wcb-lpr.) that The collat
. teral bonds gwen by b,nts are useless pa
I per; thn, they are always sgned by officers
/, directors, and s,nckbnldcrs, of The bank 70
$ wiic, They nre sureiies, by persons Who's
! business aud fortunes are interviewer will
the business and fortunes Off bank M,
bonds must fail with IT.
: lie hoped this position was not true t.
: lis full extent; bnr he must admit that i
was likely to br irue in n very great d"gre,
!, i"r who would becoune security for banI
!, but the perspns Interested in IL! These IN
|, siiiuiious, from their nature and character
, could neither receive nor rrciprocaIe nby
other friendships than those of Interest, aud
therefore they could only look Ia The inter.
esicd io find snrriirs for their engagements.
, Not So with the public officer. lie would
have no business rridions. His official d".
lies would require his whole time, AID
whole mind. The discharge "f those dn-
ties would call for no bank EcIIrirs. lis
> sur~iies would be frlrud- ; men wholly dis
connected from him ~ business, and wbose
properties aud responsible ties could not Ice
affected by his pecunInry disasters, any
farther than their liabilities upon his bond
should produce that effect. The system
propose, by The bill, then, derived n mate
rial advanis ge over the bank system, in The
safety of the cplIsieral bonds, aud thus must
be admitted. ia the seitlrmrnt of the arcnuut