The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-03

and embexzcmente Of tna most conloentia olncers Of
banksI All we're fral aud eirng men, aud souie ske
ia both classes would prove unequal 70 the resistance
which the temptations ot their situations required but
he could that either system derived any sdsan-
tapc over the other from this consideration, while he did
believe that The bill under discussion proposed guards
against this risk which would be found more beneficial
10 practice than any hitherto known the legislation Of
Congress.
So far as vaults and safes were concerned. he had
already admitted that each system possessed equal al
yanages aud from what had been said il would be seen
that, very great extent these securities, as applied
to both systems, identicaly the same
But there is smother, and much Important, risk
connected with the bank system Il Is, that ALI moneys
placed with The banks for safe-kesping upon open or
general deposIle necessarily subjected 70 al the ha-
yards which attend the business Of the banking insiu
tons. We have already seen that the money thus de-
posted becomes at once the property Of The bank aid
that the deposor receives IN exchange for his money
the simple credit OF the institution H. then, its credit
be subjected to the hazards Of the banking business 80
must DO the money placed general deposse with IT,
that money merely converted by the deposor into
that credit by adopting this SYSTEM therefore, for The
safe-kecpng OF the national treasure wo embark The
money Of tho people ia the boat with the capital Of
the bank subject 10 all the hazards 10 which tha
capital subjected, and substantially agree. so lar
reliance upon The capital OF tie Institution Tor
indemnify that IL The adventure be Fortunate our money
shall he safe but that, be unfortunate, the risk and
the loss shall be We to be placed lntbe con-
dtion Of the OF the capital Of the bank We are
not to share in the profits OF fortunate hazard. Our
only ohject safety for money and 10 gam that
take our share Of the risks without any interest the
contemplated profits from them Who will contend that
these risks do MT fully balance the safety We derive as
the consideration for mourning theml The bank sys-
TEN, then, derives advantage IN the argument from
the security afforded by capital 50 long It sub
ecs all lis risks without any share III MS gains
Let MS balance the account, far as we have
gone and see which system has the advantage In the
security Of vaults and safes both equal The secu-
rly afforded by the capitals Of the banks is connerba
anced by the risks compels TO take. growing out
Of its banking Operations ihout any share the pro-
fits Of those operations, if fortunate Thus balances
this item of the account In the risk growing oUt Uflle
misconduct and dishonesty Of officers, managers, and
agents, the system proposed 10y the bill has decided
advantage, the number Of persons 10 be iiused the
standing aud character OF those who have access TO the
money aud the guards against. punishment oil, enhez-
element IL the honds and suretles both systems would
be- priiaa lacie. equal but have been recently told,
by distinguished Senator, (Mr. Wehster,) that the
collateral bonds given by banks useless paper that
they always signcd ly officers, directors aud stock
holders Of the bak for which they suretes by per-
sons whose business aud fortunes interviewer with
The business aud fortunes of the hank and that when u
fails the slretics upon our bond must fail with H. Ito
hoped this position not true to lis full exten but he
admit that 1t likely be true IN very great
degree for who wond become security for bank, but
the persons interested in ii These institutions, from
their and character could neither receive nor re-
ciprocate any other friendships than those OF interest,
and therefore they could only look to the interested to
find sureties for their engagements. Not with the
public officer He would have business relations.
His official duties would require his whole time, and
whole mind Tho discharge Of those duties would call
for no bank facilities His surees would he friends;
men wholly disconnected from him in business, and
whose properties aud responsibilities could not be affect
ed by his pecunary disasters any farther Than their la
bi,es upon his bond should produce that effect. Tie
system proposed by the bill, them derived material adj
vantage over the bank system in the safety Of the COLA
tera bonds and thus must be admitted, in the settle
of the account, have two advantages over the
antagonist system, and to be the safer Of the two
(To DE coNcEuDED)