Cheraw gazette and Pee Dee farmer. [volume] (Cheraw S.C.) 1838-1839, 1838-12-05

They must not Oe lliitoe lii0 iooiS VI Poi'J'
or the victims Of demagogues and hence,
would have their intercourse with the gov.
erument strictly regulated by statute.
have limited the capitals Of these banks
at no, less than two, nor more ten millions
ofdollars. No State or Territory will re.
quire less tran the minimum, and iew
should exceed the maximum amount. The
one is large enough,o ensure resPectabl'Ity
and usefulness other could no. exert
such power by contraction or expansion OF
its discounts as seriously 10 affect tic busi-
ness of,he country, orthc value Of property !;
and, guarded and restricted, rs | have pro-
posed, there could be no danger 10 liberty
or The Union.
The responsibility Of the States is pro-
posed, in order to afford the most unqurs-
toned security to the deposiors and noe
holders, and to remove all distruSt from the
general government, ,ha. it may embrace
the proposition at once, and set this DIS
tracing question forever at rest. Inc
States would incur TO hazard in their
guarantees, is no bank Of respectable sze
has ever failed to pay deposits and issues,
however their stockholders may have tarei.
But the State is 10 rc;ain the supervising
power, and may SO control it as 10 make
her security as perfect as she desires.
In cases OF emergency, we have seen
several of the states promptly coming ior-
ward las they should do when any lmpor-
tan, interest is involved) 10 the lelief OF
their banks, by the loan o!theIr credr an !
funds. Prevention, however. is be ter than
cure and the plan proposed will, think,
obviate the catastrophe.
The guaranty having been gwen, the is
suing of,ho stock merely points out the
mode Of settlement, in case of failure and.
after all, it is but financial arrangement,
giving time to the banks 10 wind up their
affairs, if necessary, and projecting the peo-
pie from rapid and ruinous pressure IN The
collections or their debts.
The large size of these Institutions, and
the enhanced value Of their issues, would
soon drive out OF circulation The notes ot the
lesser banks and compel them to wind up
bv limiting their circulation and returning
II on them for specie. So that, IN the end,
the great evil Of numbcr!css small banks,
with insufficient capitals, would be rened.
led, and the wkole number Of banking ms l.
tutions in the country would rot exceed
,l,at of the United States Bank and lis
branches,
The use Of similar kind ofno:es. and the
issuing Them oaly from the principal banks,
would impress lhem upon tho memory
render the signatures and general character
Of the bills as well known as these OF the
late United Safes Bank, and thus tac'i'iate
their circulation and diminish the chances OF
forgerics. -
The r, cievabiiity Of these noes, in a!
the dues Of the General Government
throughout The Union, would render 1t The
interest of the banks to keep exchanges at
fair rates, TO prevent the collection and ac-
cumuIaii. Of ,lleir notes in large MASSES at
poin,s where trade has tendency 10 con-.
cenra,c and tic states may lnerpose sta
,wes Tin the stead OF compe;ition 10 guard
against over issues. Indeed The sphere OF
competition, if there Le good n i, will
only be enlarged. instead OF the several
hanks Of lhe same state. vieing with and
harrassing each other, the rivalry Will be be-
tween the banks of the diiieren, states, and
they will more eaectualiy and uniformly
keep each other in check and order whist
at home we will have tho full use and con.
cen,ra,ed vigor of all our capital.
A serious objection urged gains the late
Bank Of the Uni:ed S;I.ss was, the large A.
,noun, of money wicdcd by one set OF
men, enabling them TO contract or expand
the currency, and thus 10 operate upon the
business and polilicks ofthe country. This
objection, in my cs !nla;ion, holds much
more strongly against The mammoth iust'-
,u,ions now becoming common at tho
north. and free Of the straint have pro-
posed.
The Bank of the United States was re-
sponsib!e TO, and controlled by, Congress
for her acts in al The states. But these In.
s,itutions, holding charters from the states,
can only be controlled by the power from
which they derive their being; and this
power will never be exerled except for acts
injurious TO their own citizens and improper
within their own limits. Beyond their linn
its-in other states they are almost irres-
ponsibe, and their conduct will be marked
by the wanton abuses of,hc most unres'rain-
cd depotism. Efyou require illustration,
turn 10 the Pennsylvania Bank ofihc Uni
ted States, dealing in cotton and local bank
s,ock-appropriating almostexcluslvcly the
trade of the staple Of the country. Pen
nsylvunia either could not, or would moi
control her and ~itllou: some further re.
straint than that Of the States, we will
again sss the legitimate business of our