Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1838-10-13
comm unieations
For he Dsmee.a az.


% consequences.
= The arguments brought to Dear on this cues
ZION are numerous ard Of course interesting, as
Inv the perponderance Of those on either side sup
oortsd by reason and facts, will the calm and
uppreiudiced mind be governed.
Twill therefore give brief detail Of the most
prominent arguments brought forward by the
conieuding parties, IN support Of their respective
opinions.
The Federal party contend, that by lauludIn-
Gus construction Of the CONSTITUTIONS the SUI
premo law of the land, that National Bank,
comes within its provisions, and that IS not on
, " expedieni, but absolutely necessary hat such
an institution should be established to restore
sound currency, aud act as balance wheel,
, Whereby the exchanges both foreign and domes-
tic should be regulated, and also by It's power to
force the State Banks to confne their issues 10
the legitimate proportions Of correct banking, or
in other words, to keep them in condition to re-
deem their notesa all tlmes,o demand with spe-
Gle. In support Of their first position, that Of
lis consttutOnality," they refer to the fact of ITS
having received the sanction Of two Presidents
In support Of their second position, " that of en-
pediency and necessity" they assert that the pres
ent embarrassed condition of the country is ow
| ing to the want Of National Bank, that it is i'm
possible that a sound currency can be restored
without the AID and assistance Of such an institu-
ton. In support OF their third position, that
National Bank Is necessary as great regulator
of foreign and domestic exchanges" they assert
that by the experience of the past, all parties
must admit that during its existence 1t kept ex-
change at the lowest possible rates at which they
can be furnished and that in consequence thereof
National Bank ought again be rcsorted to,-this
argument was pressed on the country by the fed
eraI party with much force during the called scs-
sion Of Congress in 1897, when exchanges were
some twenty five per cent. in favor of Europe
and in similar proportion between all the States
Of the Union-the same argument is continued
up to The present day, but with not quite so much
force OF effect.
The Democratic Republican party contend
dent and dangerous to the liberties Of the people,
They deny its consttutionality, as the letter and
spirit Of the CONSTITUTION demand strict con-
struction--as It gives the power alone to Con-
gress to fix and regulate the value of colns,-
they deny therefore, that this clause in the Con
s,itution can be converted into a Bank with the
power Of issuing three dollars Of paper for one
Of specie in its vaults, and in denying this, they
have the strongest evidence Of common sense to
sls,ain them. They deny that the argument of
expediency which was used so successfully in OBJ
tanning tho former charters Of National Banks,
because Of the embarrassed condition Of the
Treasury on both occasions, when the subject Of
their being chartered was brought forward, is now
altogether inappGcabc, as the greatest danger
now 10 be apprchended is from surplus revenue
which is now, and has been the case for some
time. They deny the necessity of a National
Bank to control foreign and domestic exchanges,
and in this they have been hiumphantly borne out
by the experience of the past year, for although
at the period Of the called session of Congress-
exchanges were in favor of Europe some twenty
per cent. which is TO be attributed to the previous
overlrading OF the county, and also TO the I'm.
menso issues Of the denaonalized Bank Of the
: United States,-notwltbstan this, in the shor
4 space of four months afterwards, exchanges no
only came down TO par, but were actually some
five or six per cent. IN favor of this country AM
have continued so ever since, the efforts Of Mr.
$ Bldde TO tire contrary Notwithstanding. Al tn
same period when foreign exchanges were a
6 much against us domestic exchanges were equal
Q " derangcd owing TO the suspension of speci
II payments by all the Banks Of the Union, and thu
u consequent distrust in their solyency, and ais
y from the fact that large balances were due trou
N the Southern and Western States TO the CONNER
d clal emporiums Of the North. During the de
81 ranged condition of monled exchanges, it becam
o. n settled axlom'of the Federal party, that tn
- State Banks could not resume specie payment
e. or that domestic exchanges in particular coul
he not be reduced to their proper rates. without tn
IL magic influence of National Bank. Whg
says the experience Of the last six months Q
a. the truth ofIhis Federal axiom 1t emphaticall
" pronounces it false for more than two thirds {
~ the Banks of the Union have resumed spoci
~ payments, and tho remaining third will do lk,
u wise in few months hence! that domestic e,
;. changes are at this moment at as low, and in m;
IL ny instances lower rates between those State
that have resumed specie payments, than the
~ were ever furnished by the United States Banl
- is beyond even doubt as by reference to Il