The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1840-01-09

institutions which obllges them, 10 great
extent. to follow the course of others, not
outstanding its injustice TO their own I'M
mediate creditors, or INJURY 10 the partlc-
ular community in which they are placed.
This dependence of bank, which IS in
proportion TO the extent Of lis debts for CIR.
cuation and deposites, is not merely on
others in ITS own vicinity, but ON all those
which connect il with the centre OF trade
Distant banks may fail, without seriously
affecting those IN our principal commeFelal
cities; but the failure Of the latter Is iel'
at the extremites Of the Union. he Sus-
pension at New ork, IN 1887, was every
where. with very few exceptions, followed,
aS soon as it was known; that recently
at Philadelphia Immediately affected the
hanks of the South and West in a similar
manner. This dependence of our whole
banking system on the institutions III q
few large cities, is not found in the laws
Of their organization, but in those of trade
and exchange. The banks at that centre
to which currency flows, and where it is
required in payments for merchandise,
hold the power Of controlling those IN le-
gions whence il comes, while the latter
possess no means of restraining them ;
so that the value Of individual property,
and the prosperity of trade, through the
whole interior of the country, are made to
depend on the good or bad management OF
the banking institutions IN the great seats
of trade on the seaboard.
But this chain Of dependence does not
stop here. 1t does not terminate at Phlia-
deiphia or New York. 1t reaches across
the ocean. and ends in London, the centre
of the credit system. The same laws of
trade. which give to the banks in our prin-
cipal cities power over the whole banking
system of the United States, subject the
former, In their turn, to the money power
In Great Britain 1t Is not denied that
the suspension of the New ok banks in
1897, which was followed in quick success.
sion throughout the Union, was produced
by an application Of that power; and II i
now alleged, in extenuation Of the present
condition o; so large portion Of our banks,
that their embarraSsnentS have arisen from
the same cause.
From tins influence they cannot now en-.
tirely escape, for 1t has It's origin, IN the
credit currencies Of the two countries II Is
strengthened BY the current Of trade anc
exchange, which centres IN London, and /,
rendered almost irresistible BY the large
debts contracted there by our merchants
our banks, and our States. 1t Is thus thai
an introduction OF a new bank into the
most distant Of cur villages places the busi'
ness of that village within the influence Of
the money power IN England. II Is thus
that every new debt which we contract ii
that country, seriously affects our own cur
rency, and extends over the pursuits Of on
citizens its powerful influence. We can
not escape from this by making new banks
great or small, Stale or National. Tn
same chains which blnd those now exlslln.
to the centre of this system Of PAPER cred
it, must equally ietter every similar insh
tuition We create. 1t " only by the exten
to which this system has been pushed 0
late, that We have been made fully awar
Of its irresistible tendency to subject ou
own banks and currency to vast contro
ling power in a foreign and and It add
new argument to those which lllustrat
their precarious situation. Endangered
the first place bv their own mlsmanage
meut, and again by the conduct Of ever
institution which connects them with til
centre Of trade 10 cur own country, the
are vet subjected, beyond all tins, to til
effect Of whatever measure. policy, ncce'
sitv. or caprice, may induce those VINO cor
troll the credits OF England to resort to.
mean not to comment upon these measure
present OF past, and much less to discoul
ace the prosecution Of fair commerce;
dealing between the tUY countries, base
on reciprocal benefits but II having no
been made manifest that the power Of Il
flctlng these and similar injuries, is, BY III
re-istiess law Of credit trade, equally c,
pablo Of extending their consequence
through all the ramiiications Of cur banl
iug system, and By that means indlrectl
obtaining, particularly when cur banks al
used a. repositories Of the public money
a dangerous political influence n the la
ted States, have deemed ii my duty
bring the subject 70 your notice, and a;
for 1t your serious consideration.
l. an argument required beyond the c
position Of these facts, to show the lmpr
priety Of using our banking institutions
repositories Of tine public money! ca
we venture not only TO encounter the ri.
ol their IndlyiGua aud mutual uisnaua z,
ment, but, at the same time, TO place o,
foreign and domestic policy entirely ind,
the control Of foreign moncyed interest
To do 50 is to impair the Independence
our Government, az The present credi, 81
tenn has already impaired The nlegen
eDce of our banks. II is to submit all
important operations, whether Of peace
war, 10 be controlled or thwaTted al first ]
our own banks, and then by power abroi
greater than themselves. | cannot bril
myself 70 depict the humiliation to whit
tbs Government and people might be 500
e. Or later reduced, if the means for
ieudIDg their riVits &. 20 r.. -. ~, ia. Jaron