The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1838-04-04

The Independent Treasury bill, as i,
passed from the Senate to the House, puts
the Government precisely in the relation to
the State institutions IN which the United
States Bank stood, when it received and
dlsbursed the revenues for the Treasury.
That Bank received the issues of State
banks, located where it had Offices or BRAN
ches, and was thus enabled to have weekly
settlements, and payment of the balances
due in specie, its own notes, or an equiva-
lent. 1t was III this way that the president
of the Bank of the United Strtes held that
control over the State banks, which sub
jected their issues to his discretion, and en-
abled him to boast, in his letter to the Sem
ate committee, that there were very few
State institutions which he could not des-
troy.
The reception of the notes of specie pay
ing banks by the Treasury, with the Incl
dental power of cashing them at pleasure,
certainly invests the Secretary with a fac
ulty whrh may be used for salutary pur-
poses, or abused to produce great mischief
At such a juncture as the present, it may
be benefically exerted to aid the banks in
the resumption of specie payments-by CIV
ing credit to their issues-opening a chan
mel of circulation now closed-and, by thus
restoring public confidence, the press upon
the banks, after resumption, for specie will
be diminished. When the solvent banks
shall have been again established in credit,
and in the exercise of their regular func-
tions, the command which the Treasury may
have over their issues, through the sums
paid in for revenue, will enable it 10 hold
the banks in check by the stated settlements
To which they must be called. This, as
was the case during the time when the
Bank of the United States adjusted the
balances arising in favor of the Governmen,
from the receipt of the State bank notes,
would have the effect to prevent over.is-
sues.
But the question for the statesman is,
whether these collateral advantages, grow
ing out Of the commerce between the State
institutions and the General Government,
are not greatly ovcrbalanced by the mis-
chief which must ultimately come from as
socIating Government with bank power
Our opinion is decidedly against the con-
nectien in the remotest degree. The pow
Ter Of the Federal Government over the
banks will inevitably be abused under somo
Administration Of the Federal Government
to political objects. The united power OF
the banks and the Government, reaching
to the minutest fibres Of interest throughout
the Union, and which, like the secretly ac-
cumulated electric fluid, can at any mo-
ment be made to strike the chord of ambi-
ton and avarice in the bosom of every in
huential man on the continent, must be
omnipo,ent. The association Of the mon
ey- making power with the political power
is, in a word, utterly against the genius Of
the institutions of this country. 1t 10 an a
dulterous connection, and vitiates both.
The Union taints the Government through
out with corruption, and in bringing the
nll-swaying influence Of politics into mem
led and commercial pursuits-the banks
are swayed from all the maxims of sound
policy, on which alone they can stand. and
they become the instruments Of political
and pecuniary specula,ions combined.
Prudence and probty in dealing is aban-
doned BY thcm-the public confidence for
| feited-and the system, beginning IN pros
liiutiou, ends in bankruptcy.
/ Our settled conviction is, therefore, ihat
an absolute separation between The banks
and the Government should take place. u
is indispensable alike, in our view, TO
the interests oftbc people, the Government
and the banks. The difficulties in which
all are involved at this moment, aud which
have repeatedly occurred during the un-
happy blending ofthe business and interests
and issues of banks with Government. give
to the call for reform which is now heard,