The North-Carolina standard., 1839-02-20


swelling the influence already derived from vast
moneyed means, by the use of the public funds.
Sir, It can require no effort to come to correct
conclusion, on this point The patronage in the
latter case, II must be conceded, would be hun
dred fold greater than under the measure recon-
mended by the present administration. -#
But. Sir there is one view of this system OF
State Banks, well calculated to excite fears for
the safety of our institutions, and to make US
pause, before we venture upon its trial. It is
possible, nay, 1t is probable, it would beget a
mass OF lpatroaage--not e1ecutice, but gOOern-
mental; dangerous to the rights of the States
and the nights OF the people, and menacing 10
all the relations between the General and State
Governments. Sir, pretend not TO the spirit
OF prophecy. But, we all know, that there is
party in the United States, anxious and willing
to strengthen the arm of Federal power and
history tells US, that the funding and paper sys-
tenn, has been regarded as the most effectual in
Strument, by which X can be accomplished
Let it then be established, as settled policy
that the Federal Government shall have the
power OF constituting, by compact, State instu-
iions its fiscal agents, and the enemy is already
within the walls. of the Capitol. Think YOU,
Sir, with its immense revenues-aided bv an
unlimited power over the subject of taxation
there would be no danger? 1t might command
control over the Banks themselves, over the cur
rency, and through them, over The legislation of
the States. | do not say. that this aooatld be
but, it is sufficient, it might be. Power is al
ways liable to abuse; and political power more
than any other; and where irretrievabe mis-
chief may result from its abuse. it should never
be conferred; ~ least, In, case In which there
can be no necessity for it.o1 e,r ygi.5oa VS.
We cannot fail 10 perceive, what the events Of
few years have brought to view We nave
seen prescription denounced against some banks
while others, have been taken into favor; the O.
bedient and compliant rewarded !; the disobediemt
put ander the Ban Sir, am not utering the
language of complaint, all this was proper
We have seen restrictions in the charters of some
increased, and the objects of State Legislation de-
feated. by acquiescence in the will Of the Fed
eral Government and the banks themselves
giving way, before the mighty influence of Fed
eral Power. Take for example, the conduct of
many, under the operation of the we'll known
Deposite Act, of 1886. During that period
they would not issue any bill. OF denomination.
TO exclude them from the benefit of the public
drposi!es. or the advantage to be derived from
the reception of their notes, in dues to Govern
ment but as soon as they resolved upon the
suspension OF payments. by which they forfeit
ed all the benefits of that Act, they resumed the
emission OF small notes. Let me not be under
stood, as being an advocate for the circulation of
notes of small denomination. So far from it, if
it were in my power, none should be issued un-
der ten dollars; and, would gradually extend
the prohibition to twenty; so as to furnish hard
money the dealer and paper for the trader, if
his convenience required 1t. l refer to it, only, |
to show the influence such a connection would
enable the Federal Government 10 exercise over
institutions, crealed exclusively for the convent
ence and benefit of the States and the people of
the States.
Concede, repeat. Sir. to the Federal Govern
ment authority. by nviolable arrangements with |
State Banks, having all The sanctions and force
of the hIg hest contracts, and deriving efficacy
from yonr own laws; 10 prescribe the terms and
conditions, upon which they shall become the |
recipients of its faVors and there will be every
reason 10 fear, that you clolhe it with power, by
the high rewards to cupidity and aVarice which
IFS vast resources place at Its command, to seduce
them from loyalty TO you. and enlist all their en-
ergies in any scheme, meditated against the So
vereignty and independence of the States
They are first debauched; the people next, are
sought out as victims; the busy work goes on
until the secret poison is infused into the whole
mass 1t courses through all the gates and al
leys of the body polite until the disease is so
deeply seated, sufficient power be
found to arrest it. All attempts at remedy, will
be met by plea. of the sonctity Of contracts
pighted public faith and the inciola6ilitg of the
rights Of properly. Let it not be thought
mean any reflection upon the distinguished ndi-
viduals. engaged in the management of our own
banks; with many of them, | am we'll acqnaint-
ed, know them to be high minded. honorable,
and patriotic, and would willingly repose in
hem every confidence, public and private. But,
we are but men. Let US, then, be warned by
the wisdom of that man, who said, an ass Ia
den with gold, would find his way through the
gates of the strongest city" Sir, if Govern
lnents deal in temptations. they should be SUCH
as lead to virtue to patriotism, to broherIy love,
to peace and good will; and not such as may
prove a snarelo themselves, and curse to the
community. z5 ..- .--a s.-
But said Mr.. E., are Banks safe repositories
of the public funds2 Have they heretofoTS ac-
quilted themselves SO WELL as again to merit our
confidence and tavor? Two failures should sa-
!isfy US on this head, and whatever opinions
may have been once entertained-as they no
doubt honestly were-as TO their sufficiency, and
efficiency too, as fiscal agents; with the admon-
lions of the past before US, it would be the most
lnexcusabe rashness to trust them again. In
heir conduct, we find every thing to forbid, and
nothing TO recommend. a renewal of the eOnnec-
lion To establish this, continued Mr. E., |
need not GO as far back, as the suspension of /
1914; and TO recital OF the train of disasters
&c, iiyipc auiJonca IF Of |