Southport telegraph. [volume] (Southport, W.T. [i.e. Kenosha, Wis.]) 1840-1850, 1840-10-20

violation to regulate the little ones MS
objection, we think, must generally be made
on the ground that there is not now any sys-
tenn Of regulation operating on the State
Banks. But the fact is quite otherwise.
The orbits of the State Banks are quite
within the field Of attraction. They are
checked now, by the laws which surround
them like the atmosphere, and reprovc them
Tor every wrong movement. The Sc laws
are inlalhble in wisdom. They never act
enormously. No system of regulation can
be created which will not sometimes act
enormously, and SO aggravatc instead of
counteracting evils. In speaking Of a great
bank regulator, it seems commonly to be
taken for granted that the management of
the Banks is very weak and childish, but
that the management Of the great regula-
tor would of course be very wise. Such
an impression must be wholly groundless
There is as much wisdom, and as nteli
gent a comprehension Of probabilities, in
the management Of the Safety Fund banks,
as there ever will be in the management
Of National Bank. If left to there own
sagacity, the local Banks will be likely to
shape their course according to the state of
trade; but if they are subject to the phys
cal control Of great regulator, they only
watch the movements of their master pow
er. The at of banking, with them, will
consist chiefly in finding out the temper
and interest and hobby notions of the d.
rcctors to whom their affairs are subordi-
mated. They will MT enquire how cxchan
ges stand, and what is the condition Of the
crops: they need only to know what is the
state Of balances with the regulator. They
follow its leadings. and if it should fall out
that the blind are led by the blind, then
they will all fall into the ditch togcthcr-
While the local Banks act independently,
some of them will be likely to act prudcntIy,
and these will be check upon those which
are too daring. But if one master spirit
is to rule the whole, this advantage is lost;
and if that master spirit happens to adopt
wrong opinions, how great must be the
damage! We doubt, therefore, whether
taking our affairs as they stand, great
regulator would DO any thing to ensure
regularity. In these remarks we have gone
upon the ground that a National Bank
would be managed always with liberal in
tentions-a thing, by the way, very unlike
ly to happen.
But there is another important view Of
the subject. If we know what the True
policy is, should we not make some sacri-
fees to bring it into full operation? If we
have gone hall way 10 the truth, shall We
turn back because there is yet some error
left When a bad system is half broken
down, shall we build it up again because
there is some fragments left; or proceed
until the right system is establshcd?-
When our fictitious system Of State Banks,
with great central regulatory, was in full
operation, Il wise man might we'll have he
STATED about disturbing the system, howcv-
er thoroughly convinced thai it was bad
But the horrors of the break down have |
been endured. There is no more mischief |
to be done, and the question now presented |
IS, whether we will cndeavor TO dilluse |
right sentiments among the States, and so
gradually bring about the repeal Of all re-
strictlons on the use Of money, or build up
the wrong system again, with good reason
to apprehend that by doing so we entail
upon our children repetition Of The hor-
rors we have justcndurcd.
But there is still another view of the
matter, which is Of some Importance
There is no great danger Of the indefinite
multiplication Of incorporated banks by the
State Legislatures. Not so much that the |
Legislature will be too wise to grant char
tiers, but that moncycd men will be too
wise to subscribe for the stock. The |
Bank stock OF the country, taken in the |
aggregate, is hardly worth one half it cost.
Loans on bond and mortgage have pro-
duccd better returns than Bank stock for
i've years past, or any other series of
years which may be named. In fact for
five years past, we presume, the earnings
of all the banks in the country taken to-
gether, have not been equal to the aggrc-
gate OF losses. How many Of them have
lost their capitals entire; and in the u. S.
Bank alone, It's present price shows a loss
from par Of over thirteen millions Of dol
lars. Bank stock is out Of favor generally
throughout the country. There is hardly
a bank any where whose stock would sell
for the actual par value of its assets. If
the State legislatures were TO enact ever so
many Bank charters, their stock would
not now certainly be taken up. There is,
orthe present, therefore, a stopper, placed
upon the creation of Banks, more effica-
clous than the influence Of National Bank
ever was, and this stopper is provided by
the quiet operation of the laws of trade
1t has more strength than all the Legisla-
lures of all the States; and is not this an
ethcIent regulator The experience of
this country has not proved that the cxis-
tence of National Bank is calculated TO
prevent the creation of State Banks. Tor
during the twenty years existence Of the