The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-04-10

ffhpFsNsntd bankh has the safhe amJhhi oi eHPh"'
a under IS old chifer ID y s branches and agtn-
ces at all The important points where II formerly had
them. " has al rs head the same talented and skill
fol hnancier as before. With The exception OF The
aid OF The public money has L not the ability To do all
the aniies W lne government The country ihat v
ever did There Is Dolhing IN the way Of II and
when the President ige Ing for a lime his Loco
foeoism enlrue itwilb few millions The proceeds
oi ils own binds disbured The amount salisiac-
tory and bene6ciay 10 al par les in interest," ms
II ever did ia lis lmiesl days am one Of those
who make no objections IL The empluymeut OF any
Stale INKS as the fiscal agents Of The government I'M
der the authority OF law But do rbj>cl 10 the I'LL
cir connexion between the executive and this nsiilu-
ton, when, as was abundantly shown BY the honor.
able Senaoe from Virginia, there was no law 10 JUS
rfy II aud object sill more 10 The hypocrisy OF ;he
transac ion by which the people were gulied with
the apparent hostility ofihe executive whilst he was
IN the most loving intercourse with This delicate
| monster
The greatest and most important effect Of The pe-
neral banking law OF New York will be the concen-
Z alton and accumulation Of capital in The city of
| New Yorx. This city Is The great commercial point,
the emporium OF the union. II Is the centre Of bust
nes aud Of trde, from every portion Of the country.
/ The balance OF trade Is always iD favor. Hence,
| funds In New York, or drafts ON New York, are
more valuable than funds and drafts al any other
point. Hence, too, the importance OF sound cir
/ culaling medium, issuing from this point, which
may tend 10 produce uniformity in The currency
Hence also, the great necessity OF abundant banking
capital here, TO enable II 10 equalzs the excha ges
! 0f the country. Such an amount Of capital New
York has never before had 10 proper ion TO wealth,
| population and business, she has always been far
/ bshiDd any other commercial city of the union.
/ " iih population OF nearly 100000, and with
/ taxable property, real and personal Of more than
t,ro hundred and SIg four millions she has bank
ing capital Of only t1enty millions. This capital will
be Increased under The general banking law Of The
Stale 10 any amount required by the business Of the
country. l. will be supplied by the introduction, 10
considerable extent, al capital from abroad hope
i admin -tr ha aa rntT
duclion o foreign capitai There is no fiction in
and ii We avail ourselves Of il al moderate
interest, We shall see its effects in The increased pros
perry OF the county This capital, thus invested,
Will enable these large institutions 10 regulate the
exchanges ot The country, and BY the very compei-
lion which will exist amongst them, 10 reduce IL 10
The lowest rate. II i believed BY practical men that
! this competition Ill work much more benetcially
Tor The country Than The same amount Of capital con-
crnlrated n one institution, and chartered BY Con-
/ gress, There can be no doubt then that the Penn
sylyania Bank of The United States, and these large
institutions ni New York. can regulate the exchanges
as well ms national bank and by competition, re-
duce The rates even lower than such an institution
might do. ."
The next question is, can they furnish uniform
currency! so far as my information extends the
notes Of the Pennsylvania Bank Of the United States
are as current throughout the Union as they were
when il held lis charter from Congress. All that is
wanting Is to establish, beyond doub, the credit OF
/ The blnk. This was long since done in regard 10
Il
| holds its charter from State instead of the United
States see no reason Why these large institutions
| in the city of New York may establish similar
credit for their notes There can be no better
rity IN the world than that which is pledged for their
| redemption, namely, Stale stock and perhaps por-
tion OF bonds and mortgages on unincumbered real
estate obin the value OF which there is not the pos
| sibility OF doubt This security is set apart and
| pledged for the redemption of their notes, so that
there is not the possibility Of loss 10 the bill holder
He has not only this specific security which is so
abundantly ample but he has the security Of the resi-
due Of The capital and other effects Of the bank The
same as in ordinary institutions. When these inSt
tutons shall have established branches or agencies
at the principal commercial points in The Union or
| shall have formed connexions or associations with
| The institutions OF other States what is then 10 pre-
/ vent their notes from becoming uniform circulat
! ing medium as much as those Of the Pennsylvania
Bank OF the United States. Such notes will always
b. in demand orthe purpose OF travel or remittance
nasmucii ms they are issued from point to which
the balance OF the trade constantly tends and where
they are OF more value Than funds IN any oherplace
| BY way OF illustration, will here state fact with
! in my own knowledge. Al the close OF the recent
session Of Congress, happened to have on hand a
few hnnd ed dollars in 0otcs issued by nSliu ions
organized in The city of New TX under The Gene
| raj Banking Law. These notes were eagerly sought
! after by western gentlemen, and taken in exchange
for other funds as being the desirable for them
and equally current whether going 10 New York or
| from New York.
When The Stale Bank Deposite System was orig-
/
The Government, in place of The Bank of The United
States, the only doubt Of lis from the
fact Of the want of banks of sufficiently large capt.
tails in the city Of New York. Practical men, who
were in favor OF the system and opposed 10 the Bank
OF the United States, expressed heir doubts on the
| subject The largest capital was only tiro millions!
| This difficulty is now overcome New York has
capital 10 any extent that he wants Of the country
require. see no reason, therefore, Why in the man
ner have described, there may not be as Uniform
CURRENCY and as low rate Of exchanges as evcrex-
listed under the late Bank of The United States. do
| not say this my own judgment merely. know
il 10 be the opinion OF practical men of men who
are most familiar with these suhjects-and oil those,
too, who have heretofore been the most devoted
friends and advocates Of Bank ofthe United States
I his opinion is becoming very general IN the nor
thern portion of the country, and have doubt it
Will become SO in The west aud southwest, when the
practical operation shall be and felt there.
II the state bank system shall be revived under the
favorable auspices have mentioned and one Of
these institutions shall be made the fiscal agent of
the government. what binders il, with the aid Of the
| public money, rom becoming regulator of the cur
rency OF the country as much the late bank OF the
| United States? The government may select one or
more, as the Interests OF the country shall require
All contend for is that it shall abandon the chime
rica scheme OF individual repositories, and resort TO
those institutions which combine economy with safe
~. But we hear of alarm in rela ion to our General
4 Banking Law. Already have predictions gone forth
from the halls Of Congress Of the excessive issues Of
orr banks under this system and Of the consequent
imitation of The currency. All this is idle decama-
ton; those who predict it either wish il TO 10
pass, else their prediction is the result of very
| imperfect knowledge of the subject. The General
Banking Law is peculiarly calculated for our large
commercial cities II is not adapted to the c unlry
| as our Safety Fund system is. liz the number of
banks is multiplied the circulation each is proper
tionally diminished. Every man of practical obser-
walton knows, that in the multiplicity of our banks,
two, or three OF four issue only the same amount of
circulation now which was formerly done BY one
i channels accord
ing to the wants OF business community an increase
Of number of banks cannot permanently add TO
| 1t. The amount will be regulated BY the demands Of