Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-05-14

placed. II the credit ofihe stock should sink. tho
capital Of the Bank would decline in equal degree;
the effect Of which would be felt in all lis opera
TONS. Its paper would deprecia,e and check be
given to its circulation, il not entire suspension
Standing ut the head OF the moneyed operations Of
the Government, II is its intermediate agent IN ma
king ren'tanccs to Banks and individuals through
out the Union, and likewise between individuals,
from which much credit and influence are gained,
II not profit Ii has the means and may be con-
sldered as the most powerful agent IN raising aud
sustaining the circulating medium on par with spe
Gle throughout the UDcp, aud elevatlng the State
Banks TO that standard, by snhjeciing them to the
necessity ot reaching and adbcrug To il. to sustain
their credit and even their existence. Let the ere
dit OF Tho Government sink. and MI these advania-
ges are lost The Bank. therefore. from n regard
10 interest, is bound TO sustain il. The Directors.
except the few appointed by the Government. are
elected by the stockholders, aud are amenoblc TO
ihrm. II gives support, therefore, To the Govern
men, on principles OF national policy. in the support
III which 1t ~ Interested, and would disdan beoon-
ing an instrument ioran other purpose.
The view above presented ~ supported by expert
ence and particularly by the events OF the late
When the war commenced, the Government had nor
the funds which were necessary to support II. and
WI. IN consequence forced resort 10 loans which
were with difficulty obtained from any quarter even
III limited degree. aud uniavorablc terms. |
have not the oiiioa document before me, and can
not state the sources from, which any loans were OBJ
tanned, nor the conditions, with the decline at tho
public credit, rs the advanced. ! well remem-
Der. however. that when was called by the pfesi-
dent To the Department oil War, the 3lst OF An-
gust, 1914. the Certificates of the Treasury
selling NJ $50 IN the 500, by which twenty were lost.
II was evident that II reliance vas placed On Tho
sale Of the certldc acs only that still further decline
would cnsue, and that the worst consequences night
be npprehendcd The counlr, was invaded through
the INLAND mud maritime frontiers, ard powerful squad
ions were AT the mouth OF every bay and river
leading 10 our principal cities, which Wefc threaten
ed with attack and rum. Tie metropolis Of our
Union had been forced, aud lis pubic buildings de-
slroycd Such was the state OF tie country, aud
he funds, when entered the Department Of Var.
Under such circumstances, an appeal made 10
lie patriotism ard interest OF the cities aud banks
within them. by The Department Of War; with tho
sanction Of the President, FOR loans OF money neecs-
sary Tor thci defence and for lt OF the maritime
frontier, and the Union. Fot the firsi loan that WAS
obtained, ono million OF dollars from tie city Of y.
ioik, which took place a lew days after entered
the Department, the price was fixed. As the Trra-
snry notes were selling Tor $50 IN tue hundred, that
WAS claimed, but not aceedel to. IL WAS left toi
subsequent nd justment, TO be settled on fair prn
eiplcs. Several millions oil dollars obtained
from the District of Columbia 4 the principal cities
throughout the Union, aud according my recol.
lection At par. This proves that unlil the union Is
threatened with ruin, no Loans can be obtained in
emergencies without National Bank, otherwise
than Al great sacrifice. These considerations led IN
"A change III my opInion and Induced me TO concur
with the President IN the rroprley OF iusltning
such bauh alic the conclusion Of the war N 1915.
As to the constitutional objection, IL formed no
nous obstacle, Ia voting against IT IN the first III
stance ! WAS governed essentially by policy. Tho
construction gave To the Constitution | consider
ed a strict one in the Latter instance, was more
liberal but, according To my judgment, justified by
as p1iecrs.
llavmg concurcd Within President in the propri-
ETY. OF lnslituing the Latter bank, my opinion
not withheld, and ~, presume known. well
that it remains unaItercd JAMES MONROE.
Slas T.. Burrows, Esq