Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1838-03-23

|CC01tOT 'T0ln iSuutn Su'"'i""
be the friend of State banks, !
lacked the whole banking system
United States. He is their TREND
he only thinks they are all unconstitutional
Why, Because the coming power is pos.
sessed by the General Government, aud
tina, coming power, he argues, was intend
ed TO supply q currency Of the precious
metals; but the State banks absorb the
precious metals, and withdraw them from
circulation, and, therefore, are in conflict
with tho coming power. That power
according to my view Of it, is nothing but
a naked authority to stamp certain pieces
of the precious metals, in fixed proportions
Of alloy and pure metal, prescribed by law,
so that their exact value may be known.
When that Office is performed, the power
is (unctuS o0fcio; the money passes out OF
the mint, and becomes the Lawful! property
of those who legally acquire it. They
may do with it as they please. throw 1t into
the ocean, bury it in the earth, or melt 1t
in crucble, without violating any law.
When ii has once left the vaults of the
mint the law maker has nothing to do with
il, but to protect it against those who at
tempt to Gebase or counterfeit, and, sub
scquen,ly, to pass it as lawful money. In
the sense IN which the Senator supposcs
banks TO conflict with the coming power.
foreign commerce, and especially our com.
merce with China, conflicts with it much
more extensively. That is the great ab.
sorbent Of the precious metals, and is,
therefore. much more unconstitutional than
the State banks. Foreign commerce sends
them out of the country; banks retain
them within it. The distinguished Sena.
tor is no enemy to the banks; he merely
thinks them injurious to the morals and
industry Of the country. He likes them
very well, but he nevertheless believes
that they levy a tax OF twenty five millions
annually on the industry Of the country
Let us examine, Mr. President, how this
enormous and iniquitous assessment is
made. according to the argument Of the
Senator from South Carolina. He state s
that there is mass Of debt due from the
community to the banks. amounting tn
Si75 900 900, tho interest unon winch.
constituting about hat sum Of S25 600 900,
forms he cxccp,i0nable tax. Now, this
sum is not paid by the whole community
but only by those individuals who obtain
discounts from the banks. They borrow
money at six per cent interest, aud invcs,
i, in profitable adventures. or otherwise
employ il. They would not borrow it i
they did not suppose they could make prof.
by it; and the probability is that they DE-
make prof. by il. Instead, therefore, o
there being my loss in the operation, there
is an actual gam To ihn community, by the
excess Of profit made beyond SIX per cen,
interest, winch they pay. What are
banks? They are mere organized agencies
for the loan of money and The transaction
OF monetary business; regulated agencies
acting under the prescriptions of law. ant
subject to responsibility moral and legal
far transcending that under which any pri
vate capitalist operates. A number o
persons. not choosing to lend out thei
money privately. associate together, bring
their respective capitals into n common
stock. which is controlled and managed BY
the corporate government Of bank !
no association whatever had been orned
large portion Of this capital, n larg" por
ton. therefore. Of that very debt Of Sl75,
100000, would still exist, in the shape o
private loans. The Senator from South
Carolina might as well collect the aggre
gaze amount of all the mortgages, bonds
and notes. which have been executed il
the United States for loans, and assert that
the interest paid npon tie total sum con,
stitutcd tax levied upon the community
In the liquidation of the debt due to the
bank from the community, and from the
banks TO the community, there would no,
be as much difficulty as the Senator seem:
to apprehend. From the mass of debt.
due to The banks are to be deducted, first
the amount OF subscriptions which cons,.,
tu,e their capitals; secondly, the amount
Of deposi,es to the credit of individuals il
their custody; and, thirdly, the amount o
their notes in circulation. How easily will
these mutual debts pcutraliZe each other
The same person, IN numberless instances
will combine in himself the relations boil
o! creditor and debtor.
The only general operation of banks
beyond their discounts and deposites, which
pervades The whole community, Is that o
furnishing circulation in rcdeemablt
paper, beyond the amount of specie L
redeem 1t IN their vaults. And can it be
doubted that this additional supply of none,
furnishes powerful stimulus to industr,
and production, fully compromising an,
casual Inconvenience, which sometimes
though rarely, occur' Banks reduce The
rate of interest, and ropress inordino,c
nsury The salutary Influence of banklnc
operations is demonstrated in Countries
aud sections of country where they prevail
when c0ntrasted with those in which thew
are not found. In The former, all is hustle