Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-12-27

ing the suspension of 1887. AT the present moment
the receipts and disbursements of the Government
made III legal currency the largest portion of the
Union-No one suggests departure from this rule;
and If it now be successfully carried out, it will be
surely attended with less difficulty when bank
notes are again redeemed in specie
Indeed cannot think that serious objection would
any where be raised to the receipt and payment of gold
and silver in all public transactions, were it not from
apprehension that surplus in the Treasury might with
draw large portion Of it from circulation, and lock il
up unprohtably in the public vaults. 1t would not in
my opinion, be difficult to prevent such nconven
from occurring; but the authentic statements which
have already submitted to you in regard to the actual
amount in the public Treasury at any time during
the period embraced in them, and the little probability
of different state of the Treasury for at least some
years TO come to render unnecessary TO dwell
upon it. Congress, moreover have before observ-
ed, will in every year have opportunity TO guard
against it. should the of any circumstances
lead us TO apprehend injury from this Viewing
the subject in all its aspects, cannot believe that any
period will be suspicious then the present for the
adoption of all measures necessary to maintain the sane
tity of engagements and TO aid in securing to
the community that abundant supply of the precious
metals which adds SO much TO their prosperity, and
gives such increased stability to all their dealings.
In country commercial ours banks in some
form will probably always exist but this only to
render it the more incumbent US, notwithstanding
the discouragemens of the past to strive in respec
tive stations to mitigate the evils they produce to take
from them rapidly the obligations of public faith
and careful consideration of the immediate interests
OF the community will permit, the Just character OF
monopoles: TO check far may be practicable by
prudent legislation those temptations Of interest and
those opportunities for their dangerous ndul gence,
which beset them every side, and to confne them
strictly to the performance of their paramount duty,
that Of aiding the operations of commerce. rather than
consulting their exclusive advantage. These and
other sauary reforms may, it's believed be accomplish
ed without the violation of any of the great principles
OF the social compact the observance of which is IN
with the useful and profitable employment of real CAPT
tai
Institutions so framed have existed and still exist
elsewhere, giving to commercial intercourse all neces-
sary facilities, without initiating depreciatng the cur
| rency, or stimulating speculation. Thus accomplish
ing their legitimate ends, they have gained the surest
guarantee for their protection and encouragement in
the good will OF the community. Among people so
just ours the results could not fail to attend
similar course. The direct supervision of the banks
belongs, from the nature of Government, to the
States who authorize them 1t is to their Legislatures
that the people must mainly look for action that
subject But as the conduct of the Federal Govern
ment IN the management of its revenue has also q
powerful though less Immediate influence upon them,
1t becomes our duty to see that proper direction is
given TO It, While the keeping of the public revenue
in separate aud Independent Treasury, and of col
Letting it in gold and silver, will have saluary niu-
ence on the system of paper credit with which all banks
connected and thus aid those that sound and
we'll managed, il will at the time sensiby check
such otherwise, by at withholding the means
of extravaganza afforded by the public funds, and re-
strainng them from excessive issues OF notes winch
they would be constantly called npon to redeem.
am aware it has been urged that this control may
be best attained and exerted by means of National
Bank The constitutional objections, which am well
known to entertain, would prevent me IN any event
from proposing asserting to that remedy; but in ad
dton TO this, cannot, after past experience, bring
myself to think that it any longer be extensively
regarded as effective for such purpose The history
of the late National Bank through all its mutations
shows that it not On the contrary, it may, at
ter careful consideration of the subject be, think,
safely stated that at every period of banking excess IT
took the lead; that in ISL, and i'll 1915 in lo, in
1881, and in lS3! its vast expansions, followed by
distressing contractons, led TO those OF the State IN
stitutions 1t sweed and maddcncd the tides OF the
banking system, but seldom allayed, safely d.
rected them. At few periods only salutary
control exercised, but all eager desire, on the con-
rary, exhibited for profit in the first place and if,
afterwards its measures were towards other IN
situations, it because its safety compelled II to
adopt them II did not differ from them prnc pie
III form; its measures emanated from the same spirit OF
GAM it felt the same temptation to ovcrssucs It su
ered from, and totally unable avert those inc
vtablc laws OF trade, By which II itself affected
equally with them and at least OCCASION At an
early day. saved only by extraordinary excrtions
from the fate that attended the weakest institution
it professed to supervise In 1887 it failed equally with
Others redccmng its notes though the two years al
lowed by It's charter for that purpose had not expired,
large amount OF which remains to the present time out
standing. 1t s true that having vast capital, and
strengthened by the of all the revenues OF the Go
vernmen 1t possessed more power; but while IT was IT.
SELF by that circumstance freed from the control which
all banks require its paramount object and indncement
left the to make the most for ITS ckhoders
to regulate the currency ofthe country Nor has IT.
far advised been found to be greatly other
wise elsewhere. The national character given to the
Bank of England, has not prevented excessive uctua
tons their currency, and proved unable TO keepof
suspension ofspece payments which lasted tor nearly
quarter of century. And why should we expect it
TO be otherwise: national institution, though derv-
ing its charter from different than the State
banks, is yet constituted upon the principles IS
conducted by equally exposed to tempta:lon and is
liable the disasters: with the additional dIsad
vantage that its magnitude occasions extent OF con-
fusion and distress which the mismanu cement of small
er institutions could not produce 1t scarcely he
doubted that the recent suspension OF the w. = BANK OF
Pennsylvana-of which the effects felt not in that
State alone but over half the Unonhad ITS origin IN
course of business commenced while 1t was natona
institutions and there is good for supposing
that the consequences would not have followed,
had it still derived its powers from the General Govern
mcnt Ii is in VAN, when the influences and impulses
are the same look for difference in conduct or re-
suits BY such creations do therefore but increase
the mass Of paper credit and paper currency, without
checking their attendant evils and fluctuations The
extent of power and the efficiency Organization which
we give, so far from being beneficial are in practice
positively injurious. They strengthen the chain of
dependence throughout the Union, subject all parts
more certainly to common disaster, and bind every
bank more eecualy in the first instance, to those of
our commercial cities, and in the end, to foreign
power In word, cannot but believe that, with the
full understanding of the operations of our banking
system which experience has produced, public sen.
ment no less opposed to the creation of National
Bank for purposes connected with currency and COM
merce than for those connected with the hscai opera
| tions Of the Government.
| Vot tho commerce and currency of the country
suffering evils from the operations of the State banks
which cannot and ought not TO be overlooked. BY
their means, we have been flooded with deprecated
paper which it evidently the design ofthe trainers
of the Constitution to prevent when they required
Congress to sscoin money and regulate the value of
foreign COINS and when they forbade the States ''to
coin money ofcred make any thing but gold
and silver tender in payment of debts, or "pass any