The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-03-27

THE WAR UPON THE BANKs-TfiE
| STATE OF CASE-THE PENNSYLvA-
MA LOAN TAKEN BY THE GlRARD
/ BANK. 0
A few days since we noticed the fact that
the loan OF about million and quarter Of
dollars, advertised for by the Governor Of the
State of Pennsylvania had not found single
bidder, either from corporations or individuals.
We also commented upon the message Of the
Governor in consequence, sent to the Legis-
lature, denouncing all the banks Of the State,
and pouring forth anathemas against those
banks, In particular. in Philadelphia, in which
the State holds an interest, for not having come
forward and advanced money to the State,
whatever their own pecuniary condition might
have been, and unmindful Of the claims Of the
commercial community upon them.
The case presents a singular anomaly.
The Governor Of the State of Pennsylvania,
in imitation Of the Chief Executive Of the
United States has been the advocate Of a
divorce Of Bank and State" He, however,
when disappointed in obtaining money from
against the banks, for having abstained from
establishing an intercourse between them and
him on behalf Of the State The banks do
but carry out the policy advocated by Mr..
Pennsylvania, and they are assailed for SO
doing.
Thus things stood. The "Divorce Of Bank
and State" was accomplished. What was
the consequence! Why, the public works Of
the State Of Pennsylvania were arrested, and
the Government Of the State was without the
means to prosecute them. Had they con-
tinued thus, who is there who cannot foresee
the evil consequences, to the State generally,
and the distresses to thousands of poor la
borers and their families, that must have en-
sued!
II was while things were thus situated, the
GIRARD BANK Of Philadelphia came forward
and relieved the Governor from his embarrass-
ment, and furnished him the means to prose-
cute the public works, by taking the loan Of
over million and quarter Of dollars bear
ing interest at the rate Of FIVE per cent. per
annum. What else but spirit Of patriotism
could have induced that bank to have relieved
the State from the exigencies that pressed
upon it, The State was not interested in the
| stock Of this bank,--the bank owed no fealty
to the State-nor had the State any claim upon
the bank Of any sort or character whatever.
II was wholly independent Of the State and
the State authorities. Money, in the great
marts Of Philadelphia and New York, at the
same time, commanded on the best security an
extraordinary rate Of interest-the post notes
Of the Bank Of Philadelphia having been sold
at the rate Of nine per cent in Philadelphia
and those of the Bank Of the United States
at the rate Of eight per cent. in New York.
We give these facts, that the people may
justly appreciate the policy that has been adj
vocated, and still is urged upon the country,
Of Divorce Of Bank and State," and making
war upon the banking institutions Of the coun-
try. Who can fail to perceive, in the instance
we have referred to, that but for the loan made
by the Girard Bank, the State improvements
must have stoppedl So would it be with the
Government of the United States. Was the
country to become engaged in foreign war,
and ten or twenty millions Of dollars be called
for suddenly, to meet the exigencies Of the
occasion, where would the Government OBJ
tain tiff the banks should refuse to furnish it
We cannot but hope, that this evidence Of
the inability Of the State to get along without
bank, assistance, or that, the dependence on
each other, between Bank and State is mutual,
and that there exists reciprocal obligation,
will be duly acknowledged by the Govern
ment of the State Of Pennsylvania and that
it will make due impression on the Execu-
tive Of the United States, and lead to an a5an-
donment of the war which he has so long
waged against the banking institutions of the
country. Whether our wishes shall be re-
allied, time alone must determine.
MR. VAN BUREN,, AND A NATIONAL
BANK.