Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-02-17

consequences Of the system of Stale Bank drpes'les'
In the face of recent md experience ooth 10 W
Treasury and to the country, would proof OF Ihese |
tons be called for? That experience furnished me
ciearesl and strongest proof and those whom mao "o'
convinced it in vain for him 20 attempt 10 cohVhce'
BY TACT argument Such To his mind were tne col
parnive influences of the two systems upon Inc ""'F
nl..nl of the country and lis inancrs
Srh He wuud extend his comparison 10 s'"se
other poin,-lIe influence Of each system upon lf W.
neral currency and dismiss this part OF me
The system proposed clear and certain IN Us &c,
ton i'm this particular. 1t would secure s"u- ""u
standard currency for the National Treasury, whether
that currency should be gold and silver OF bank pe
and il would exempt that Treasury from The iurtua'ehs
of an unreaua,ed and varying currency Solar, there
fore as the money operations OF The GoreThmeht cou
influence the currency generally, the influence exrrsed
5y this system must be sanitary as IL must be to sustain
general currency equal to It's own STANDARD II 'ia'
currency should come, in time 10 be gold and SILVER only
the system would exert another benehca' influence IL
wo,d not only present standard of currency worthy
of imitation but the extent Of the whole pubic ds'
bursprnents il would constantly circulate among Inc
people basis for the paper currency OF the Stae oanh
and thus aid the in ping their oil coin
stable and firm and equal in value 10 con Itself Beyond
these nurnces il would leave the people and the states
to regulate, in their way and without inc n.eie
renee of Federal power hnt portion OF the general cur
rencv which, by the divisions of power under our sys
tenn falls within their Jurisdiction, and is the constant
snh,ct of their action. It wnnd then he clear to ALL 1t
that portion of the currency should sink below The sian
dard of currency for the public Treasury. that wrongeS
listed somewhere in State Legislation, or in the manage
ment of those entrusted by State legislation with The
regulation of That currency and the Federal authorities
would b- free from mpulalon or snspicion and would
stand before the whole country holding up the true stan
dard Of currency and inviting from the State authorizes
a correction of The which should at any time dis
urb drpreciac that portion committed to their care
How in this respect, does the opposite system acG-
The State hanks are much the greatest ii not to The
entire extent private institutions controlled by private
individuals and private interests, and owned in WHOLE
or 10 the exten, of minority of the capital by private
citizens as private property. Private gain, then, MS
necessary and natural consequence o the very consu-
ton Of these banks, their principle oi government
and equally necessary and natural consequence
they would keep that portion OF The currency which they
authorized to furnish for the country, at sound
standard vamp when private interest, and the prospect
of private gain should direct, and they would suffer
TO dcpreca,. BY the same rule. Give them the national
treasure and permit them 10 subject tito the fluctuations
OF their interest and stable currency he expected
either for the Treasury the people? Who are the
legitimate customers Of the banks More particular
ly the merchants. Their business perpades not the
whole of their own country only, but The whole ci-
vzed world The laws oil the States Of the Unlnn
therefore, regulations much too limited for them
and even The laws and regulations Of any single Govern
ment, as 10 either trade currency, nre but municipal
in their character, when applied to their operations
Still they themselves have local habilnions, and the
case may we'll and frequently occur when il is vastly
mand specie TO export in liquidation OF their inregn
debts than that local banks at home should redeem
their nutes in specie. What in such condition oftrade
and OF the mercantile int res will always BIZ likely TO
be the condition OF our lUca banks: Sci aside the consI
deraon that the merchants may be able control those
institutions from the stock they hold, and merely
assume that they The principal debtors /" III" banks,
and are 10 continue To he their principal customers -
Let the argument rest here and We The banks The pms
ssssan and control Of the national treasure. Which IN.
eres. would prevail: Would the Treasury OF The c"un'
try be sustained and the payments TO The public cIedI
nrs be made in specie, its equivalent or would the
and wishes Of The merchants be consulted. and the
currency be made bend 10 private and corporate IN
lprest Let The experience of last year answer the IN.
qury. He would express his confirmed opinion. that,
under such system, the currency al the public lrcaSu-
~ must share all the aud fluctuations n fore gn
and domestic trade, and all the hazards Of corporate
banking private interest. Hence the operations OF
the Treasury Itself must be suspended, the law OF
Congress- TO currency. violated whenever revuisIons
shall Cypress the country, and the customers 81 The
banks the alternative he resnrted as recently has
been By the national auIhGrrs 10 c0nv"ke Congress,
relieve the banks and the public debtors, and rrS"rt tn
credit of the nation to sustain its Treasury, until the
natural operations OF heahtui business shall again re-
store The equilibrium
Such in his mind, the probable Influences of The
two systems upon the general oil the country
He would now proceed To answer n very few Of the
prominent INFECTIONS made the bill and pass, as rapid
ly possible, to his conclusion The FIRST o' these OBJ
ieclnns which he would notice, that The system pro.
passed By the bill was attack upon the State banking
Institutions calculated destroy their credit add useful
ness. This, if true. grave charge, and therefore
required consideration. IN attack must be an IN
Engagement Of vested right, "r course OF treat
menl manfesy against The public gond MS to PaFlake
of wan,nnness aud imnornny, or spirit ct revenge
Was any right of acsc institutions proposed 10 BE- in.
fnged upon; Did their charters granted by the States,
for fixed aud specified purposes. include among those
purposes The sni"keeping or profitable use, OF the mo-
npy of the whole country? Wns there provision That
they should be fiscal agents of the National Treasury, nr
That their credit should be sustained by the money and
credit Of the people of the U. S: No Nosnch Prov
heard of in the charter OF any Stale BANK
No right of the institutions WAS them intringed. by with
holding from them both the keeping and use of lie pub
lie money.
Was any faith, or confidence due from this Govern
To the States. 10 these Institutions OF their crPa.
tinn violated by the proposed separation: The States
had chartered banks for particular locations, with capt.
tails such the lnrutons seemed To demand, but would
any pretend that in granting these charters, the State
legislatures had counted upon the money in the National
Treasury or the credit Of line Federal Government, sus
tain and make useful the banking institutions la which
they giving he and power banks o issue and
discnunt Did any Stale Legislature ever. by word
died. cause to be understand either BIZ the Eerpc,
the inst buttons. that banks OF ier creation mere
powcess and helpless, and that the life and
health giving principle 10 be breahed into them by
an extension Of The patronage Of the Federal Govern
ment, in the shape Of profitable Of lis mGnry, and
n command of its confidence and credit Never. Had
the Federal Government. by any ACT expression, au
,horizrd expectation of this patronage and confidence
except upon conditions which had been violated BY The
banks and had ihus forced separation between them
and the treasure Of the country: fIe aware Of
such act expression The separation exists, and has
been forced upon the nann hy The banks themselves and
the simple question is, shall renew il? In what sense
the decision of that question: however that decision
may be made, be attack upon The banks The idea
mistaken nne and the objection, in any light in
which it could be viewed nnfnun'ed and uni us
lie proposed however for the purpose Of illustrating
The truth of This conclusion and making il clear
call the minds nt Senators single chapter in our
financial history. During forty years Of the existence
of the Government under The Federal Conslitutinn
recollection, but BE- believed the National Bank had BEEN
for the whole period The exclusive depository of The pub
lie money and The exclusive fiscal ngenL Of The Treasury