Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1839-12-30

insb,Iity,o make pay men, there in our pfsess-
e iions The evils of the system are disclosed. Inc
paper currency, which might nerve FOR domestic
purposes, is use, ray tie deLt due in EuIors.
Gold md silver therefore drawn, in exchange Tor
their nctrs, from the banks. To leep up theu suP-
ply Of CON- these Institutions obliged 10 call up
IN their own debtors. who pay them pin eipsy IN
Their ON notes, which are unavailable 10 tism
AZ they 10 the merchants 10 the foreign de-
rDrnd. The calls OF The banks, therefore, in such
entrgencies, II Necessity exceed that demand. asd
produce \ corresponding curtamen' Of their ss-
Communications and Of The currency, III the very ne
ment when the state ofifadc renders it most incos
,tu.nt 10 be horne. Tie intensity Of OF his Pros
,ute on tie community is IN proportion TO the pre-
yious hbcraliy Of credit, and consequent expansios
Of the currency; forced sales Of property are made
ai the time whr', the means OF purchasing most
reduced, and the worst caamilies 10 individuals
only At las, arrested by anepen violation OF their OBJ
legations hy the banks, refusal 10 pay specie for
their notes, aud imposition upon the community
Of a ilurtuaiing and deprecated currency.
These consequences are inherent IN he present
system. They not Influenced by tho bank. be-
my large small. created by National or STATE Co
sernmcnts. They are the results Of The ifresstibls
laws Of trade and credit. In The recent which
have stnkiley illustrated the certain effect II
these laws we have the bank Of le largest capt.
tai the unlon. established undcra National char
ter, and lately Strengthened as Nc are anlhoratlv.ly
informed by exchanging that Tor Stale ehatirr.
with new and unusual ptivlegrs-in condition too,
n, II WAS SAID, Il cnlte soundness aud great prosper
hynot merely unable TO resst ilese effects, bul The
first 10 weld 10 them.
Nor Is it 10 be overlooked thai there exists a chain
oi essay dependence among thtae institutions
which obhprs Them, Ia great extent, 10 follow tho
course OF others, notwithstanding its injustice to
Their own immediate CREDITORS, injury TO The par
ucular community IN which they are placed This
dependence Of a bank which is proportion 10 the
extent 81 its debts Tor citeulaon aud deposites, 10
not merely ON Others in It's own vicinity, but all
those which connect II with the centre Of uaGc.-
ID stanl banks may fd "ifhout seriously affecting
those IN our principal commercial cies; but tho
failure oi The latter is felt nj the rxtrcmlrs ofths
Ution. The suspension ut New York, IN 1857. was
every where, with very lew ,Nccpiioes, followed, as
soon rs II was known that recently u, Philadelphia
Immediately affected the banks a tho South aud
West IN n similar manner. This dependence oiour
whole banking system on the institutions In lev
large cities is MOI found in the laws of their ofgan-
cation, hut ~ those OF Trade aud exchange. The
banks ~ that centre 10 Which currency flows, and
where IL Is required IN payments Tor merchandise,
hold the pnwr, Of conlrollng those in regions whenco
II comes, while the latter possess means OF re-
s'raiu,ng them SO ,ha, the value oiind,ldnal pro-
pely, aud the prosperity Of trade, through the
whole interior Of the counu,, ME made 10 depend
on the good or bad manago cement Of The hiking m
situations IN the great OF trade the scaboard.
But ihs chain of dependence does stop here
il does not terminate AT Philadelphia or New Yo,k.
IL reaches across the ocean, aud ends in London,
the centre OF the credit sysiem. The same laws Of
trade which give 10 the banks IN our prime pal cities
po" er over the whole banking system the United
States subject the former, IN tlelrtuiu, 10 The
ney power N Greai Britain. Il IS not denied rbat
The suspension of the New \ ofk banks IN 1887,
winch was iotluwrd Ia quick succession through
The Union, wasprodncedb by application Of ihar
power; and II Is now alleged IN extenuation Oft
present. condition of 30 barge portion of our banks,
that their enbalrossnenls have asen from the same
cause.
From this influence tlIny cannot now entirely IS
cape, tor II has its origin IN the credit eurtencies 81
The Two countries II Is strengthened by the current
,i trade and exchange, which centres in London,
aud rendered almost irresistible by the large debts
contracted there by our merchants onr banhs, and
States. II is thus that an in odnt tlon o. new
bank into tho distant Of our villages places tho
business Of that village within the ilfueuce Of tho
money power III England. IL is thus that evcfJ
new debt which contract IN thai country serions-
ly affects our own currency, and extends over the
pursuits OF our citizens lis powerful influence. We
cannot escape from this by making new tanks, great
orr small, State o, National. The same chains which
bnd those existing TO the centre Of this sysism
Of paper credit, equally fsuer every similar in
siiiutlon we create. II is only by the extent TO,
which this system has been pushed of late, thai We
have been made fully aware OF its irresistible ienden-
cy 10 subject banks and currency tn vast
controlling power IN foreign land, and IT adds
new Argument To those winch illustrate ther preea-
rIcus situation Endangered IN the first place. by
then inismanag tmtnr, and again by the eondnct
of every institution whIrh coun'cts them with the
Of ,ade in country, they are yet sub
jecled, beyond all this, 10 the effect OF Whatever
measures policy, necessity. or caprice may induce
those who eonlrcl the credits Of England to resort Ia"
| mean to comment upon these measures. lre-.
sent past, aud much less 10 discourage the prose-
cuon Of fair commercial deaiing between the two
countries, based reciprocal benefits hut IL hav-.
ing been made manifest thai the power ot in
fleeing these aud similar njutes is, hy the resIsess
law Of a credit currency aud credit trade, equally
capable OF extending then consequences Though
all the qualifications Of banking system. and i,y
that means, indirectly obtaining, piiicularly when
our banks used as drposnories ui lie public mo-
ncys, a dangerous political influence in the United
States. have deemed tn,y duty 10 bring the sub
ject to your notice. and ask Tor your serious cou-
sderation.
Is an argument requh ed, bcyot the exposition Of
these facts, 10 show the npfopriry oil using our
banking institutions as repositories Of the public
ney Can we venture not only TO encounter The
risk of The individual and mutual rnsmanagement.
but, al the same time to place our furrign and do
mesiic policy entirely under the control Of foreign
money ed interest To do so is to impair the indc-
pendcnce OF our Government, the present credit
system has already impaired the Independence of
our banks 1t is 10 submit all lis important opera
lions. whether of peace or wal. To be controlled or
thwaried nj first by our own banks, and then by
power abroad greater than themselves. | cannot
bring my self 10 depict the Humiliation which this
Government and people might he sooner later re-
duced # The meaos for defending their rights to
he made dependent upon those who may have the
most powerful ofmotiyes TO impair them.