The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-10-26
From tie Nsp York Times.



There are several points in The doctrine OF cur
ysney 70 which We judge expedient most earnestly
10 call public attention al this crisis.
One OF these hinted in our Saturdays paper, Is,
that far from looking with the bysterica alarm ex.
pressed by some people at the trial through which
| our banks are now passing, we should regard that
trial as an experiment OF The deepest philosophical
interest, and lesson Of conduct indispensable 10 the
future success OF those institutions. IL cannot Too
often be repeated that currency is an essential part
Of commefce-lhe most delicate and important part
OF H. We admit, and one that has been hitherto very
imperfectly understood, either By theorists or BY
practical men. We need more diversified, more ex-
lensive, and more precise and definite experience
upon the subject II Is just as absurd 10 suppose that
the use OF paper money can be learned IN any other
way than by long practice and at the risk Of occa-
siona disorders, as il would be 10 expect that any
other part OF The business of a great mercantile
community should be well done by inexperienced
people. When TO expand or 10 contract, what paper
and how much Of 70 discount, how far foreign ex-
changes a safe test OF the relative value Of the
money Of different countries, what amount OF cir
cnaiion Is indispensable TO the ordinary transactions
of COMMUNICATED questions are presenting
themselves every day TO banker, and can be an
swered only BY one whose eye Is made sharp and
steady by long habit, who is always al his post and
on the alert who watches every cloud on the hori-
zon, and feels every breath Of breeze from any
part OF the compass. Your banker mast be mer-
chant and man Of business. Governments are wholly
incapable Of performing his functions. They might
as well pretend 10 give orders for sea hghi or the
conduct VI a great battle on land, They never
NEEDLE with such things without doing harn-they
have no means OF acquiring the coup dell maitaire,
and they are too much aloof from the scene Of ser
vice 10 take advantage of It's shifting circumstances
There is no safe dependence on any thing but the
sagaeity 81 men 81 action conlinually on The spot
The same objections seem to US TO be, though GER
tany not in 70 strong degree, against all pretended
general regulators, bank parlors, committees, &C.
We are more and more disposed 10 believe from
every thing we of these matters, that currency
like the commerce of which il is an indispensable
instrument and ought to be faithful exponent will
at no distant period be left TO regulate itself Free
dom of trade IN money will be found TO be at once
the simplest and The safest Of preventing abiI-
ses of all sorts. We are aware how deeply rooted
the prejudces OF men on this subject and
far from proposing any sudden adoption OF system
for which the times not yet ripe. But we are
deceived il they are not becoming So and the very
things that are passing before eyes here in New
York. tend fully 10 confirm us in that idea.
We have said we thought this experiment inte-
resting, because among other reasons, il showed, or
is likely to show that The State bank system can be
conducted with success If let alone by mischievous
or laundering administration, and that even amid
the greatest difficulties. Let New York but get well
over this crisis, and all other parts of the country
mast conform their currency, or what amounts TO
the same thing their mode OF doing business 10 hers
Her commerce is really the commerce Of The whole
country. Let things be kept straight here, and they
cannot go wrong 10 any great extent or for any
length OF lime elsewhere. But ii we vanquiSh, as
"
being forced TO alter course, il will be The clear
est proof that can be required that actual system
OF banking is, in all essential particulars the right
one for our situation. Al.
We say in all essential observation-disclosures in
some particulars our free banking law Is not quite
free-too much is still referred to the management
and superintendent (never to be relied on) OF pub
lie ofncers loo much stress laid on securities to be
given, &c. The only adequate security, the only
Sleepless superintendent is competition. But all
necessary changes will, we doubt not, be made
circumstances shall call for them, unless some sud-
den CONFUSION destroy the foundation of the whole
fabric. II is on The brink of such chasm that we
are now standing. The irmness of our bank direc-
tors can alone save US from the fearful consequences
OF sudden change in our monetary system, and
preserve Tor US the germ above which future bank
ing establishments will naturally form themselves.
They will educate the community in the currency
business and difficult and complicated as that bust
ness now seems, it WILL after the experience of few
years, be found Just as manageable as any other
The idea that currency is essentially matter of State
prerogrative, is false one-but this is sill the
greatest obstacle TO the success of banking And the
kindred idea that general regulator is needed, has
hitherto inspired distrust of banks chartered, or
authorized by the States. Nothing can reiuta that
notion TO the satisfaction of the public but actual
pertinent.
As 10 the distinction attempted to be set up by
some OF our contemporaries, between what they are
pleased to call chartered monopoliesn that to say
incorporated banks and banks formed under the late
law, II is altogether untenabe. What is corpora
lion, to which no exclusive privileges are granted,
but limited partnership mot prruiieged by its char
ter? There never was a wilder tallacy than is i'm
piled in The abuse of the term monopoly" nor can
we imagine a more shallow inconsistency, than is
displayed bythoSe who affect 10 defend banks form
ed under the banking law, while they exhausted the
vocabulary of denunciations against institutions,
standing, to all practical purposes, precisely the
same footing. ."-
But the subject of interpretations" is too impor-
tant to be treated Of merely by the way and we
may, perhaps, find moment to take it up at some
future time. 49,.