The Madisonian., 1840-02-13
COMMUNICATIONS
roR TIE MACEDONIAN.
TO THE PRESIDENT OF THE UNITED
STATES-No. V

Bank. On the subject Of such blnk mean not 10
dwell. lis recommendations and lis disadvantages
its merits and lis errors, have been frequently and
SO fully discussed ever since General JackSono first
Message TO Congress, in December, 1929, as TO make
The topic somewhat stale; and The revival OF that in
stitulon, moreover, 10 be the present purpose
OF nei her OF our two great political parties. fei
cannot PASS by your denial Of efficiency of such
bank IN securing 10 the country sound and uniform
currency, when we have such satisfactory evidence
10 the contrary. Thus from 1871 to 1871, while the
first Bank Of The United States was in existence,
there was no general bank suspension, and but few
bank failures. During the whole OF This period, the
public had in The paper OF the National Bank, cur
rency equal in value TO gold and silver or rexceeding
i, all over the country Yet three years after It's ex-
iSience was terminated, general suspension OF all
the banks, except part Of those in New England,
took place, which suspension was followed By such
general di order Of the currency, that in 1916,
new Bank Of the United States was camorously
called for. One was accordingly established and
established yet less by the agency OF It's former
friends ihan by that Of its ancient opponents. The
effect is well known II Immediately separated The
sound banks from the unsound, and while the latter,
which had shot up like mushrooms in the nigh, OF
The suspension, soon wiihered away, the former
found themselves compelled 10 resume the payment
Of specie, and they continued To pay il from 1878 to
1886, when the charter Of the National Bank ex-
pred. In the three years which have since elapsed,
there has been one general SUSPENSION and another
extending TO three-fou Of the Union When we
see that these disorders in the currency never took
place during the forty years that we had National
Bank and that they occurred on three several occa-
sions during the eight years of its discontnuance;
and when these consequences were distinctly fore
and foretod what betler proof of its beneficial
control does the subject admit OH To insist that
these events are casual and unconnecied implies
degree of faith your part, supposes stretch of
il in The people, which throws that Of phrenolo2y
animal magnetism far in The rear
That b,ih these banks may not occasionally have
imprudently expanded their issues, will not deny.
To contest this would be to ascribe TO them infai-
biily. But what mischiefs arose from their impru-
dence compared with the evils OF suspension-of
shin .pIaslers-of paying from IL 10 20 per cent for
draitS on New York-oi finding the value of our
money evapora,ing in your pockel and of being
under the necessity OF getting note shaved 10 pay
the post oiice7 While You gentlemen in Washing
ton, who have the charge Of the public affairs, are
tree 10 choose whether you will receive your sala-
rieS in specie or yet larger amount in bank notes,
you are mol likely TO know what The people suffer
from the of the currency, and the multiplied
evils that have arisen from the ill-slarred inter-
meddling OF the Administration. Every species of
productive industry cramped and impcded, both in
the business OF buying and selling--the means of
distant remittance arrested, except on runous terms
the commercial intercourse between the States
proporonably obstructed-necessitous creditors un-
able 10 collect and willing debtors unable to pay
cd aSk hon
nani his habits and feelings and compelled logive
it however inconvenient Verify, all the money
which has been drawn from the people during the
prodigal Administration Of the last ten or eleven
years. is lar short of the tax, which in finance
have levied on their lime feelings, and productive
industry
In maintaining that National Banks much
exposed TO the necessity Of suspending, as local
banks, you disregard the experience afforded by
our own country, during the whole time that we
had National Bank that is, during nearly four
fnhs Of our national existence; andyou refer TO the
Bank of England, which was not able TO prevent a
suspension that lasted tor twenty-four years. But
this suspension as have already stated, not the
consequence OF its own imprudence, its reckless ef-
forts to swell the profits of its stockholders, nor yet
Of the uncomfortable laws OF trade-circumstances
which you assume must effect all banks alike but
by reason Of the large foreign subsidies made by
the British Government 10 the Continental Powers,
and which consideration induced the Legislature il
sell 10 interfere, and not only TO sanction bu, to or
der the suspension. We know that the Bank in
1895 and 1906 srenuousy resisted the application
OF the Government for further loans, and The some
what perempory character of lis refusal ON one oc
casion furnished some four or five years since,
fayorite theme to the enemies OF the Bank OF the
United States, TO descant on the insolence and the
power of these great moneyed corporations. Thus,
banks refusal TO lend its own money TO the Govern
men to be sent TO the Continent on the ground that
il would be fatal 10 its credit appeared 10 the obque
vision OF our patent democrats, 10 be stronger in
stance Of dangerous political power than was fur
nished by the Government in pressing on the
Bank Tor further loans, and BY finally exlorling them,
bringing about the mischiefs that had been predict
ed The history Of this Bank, then, confirms the
inierences deduced from our own.
The real interest OF bank is indeed always to
redeem its notes in specie, and to the motives OF
safely and permanent profit may be added, The sane
tons OF law. A National Bank, lhen having far
greater powers might b. expected 10 use them for
the preservation OF its credit il experience had not
taught Us The same fact. Nothing can be more gra-
luitous than your remark, that if The presen, Bank
of the United States had derived its charter from the
General Govcrnment that is, had it been invested
with the powers of National Bank, we have no
good reason 10 suppose !, would not have suspend
ed payment just as it has done with The powers of
State Bank"
If such sir is your real opinion, which will not
permit myself TO question, suffer me 10 recall to your
mind, some of the iacs in the history OF the great
Pennsylvania Bank, which may help TO clear your
vision on the subject.
AT The time that General Jackson made war on