The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1840-03-25

lJect, az anechDg credit nor the one most direc
Iy fatal to the arguments in favor Of the preser
, banking system. We call the attention Of tb
public to another view, taken by an able write
on the subject in the Boston Quarterly Review
After noticing the exaggerated statements c
the friends Of the present system, Of tho advau
tages Of the greatest extension Of credit,--an
OF their assumption. that the present mode Q
banking Is most favorable to that object -
The writer says" Now with ali due resper
TO the high authorities on which this unprovs
assumption is promulgated as gospel truth. W.
must beg leave 10 enter our very decided pro
test against 1t. We conceive that The presen
banking system ight with much more proprie
~ be called the anh-credit system"
IT 10 no doubt true that this system doe
bring about. by The law Of its nature. ccrtdt'
regularly recurring periods Of tin,L.d duration
in which loans Of something that passes at tn
time for money. though at a much dep, ,eeiatee
Ualue. are distributed with great freedom ana
Uery 'he discretion among The members Of a sin
| gle class Of He community. But il is equal,
certain that IL also brings with il otser periods
not less regularly occurring. and Of much Longer
duration. IN which men Of the best character
and knOun sotrency find il difficult sometime,
rates Of interest the most limited accommodation
when the objects. let us say a,e rictinS. OF the
! preceding period Of profuSion are compelled
Uih relentless sereri1y. to pay up IN highly dP
precidted currency. We have said that these
periods Of scarcity are Of longer duration than
those Of plenty. We suppose we are quite safe
IN the remark that where money is. to use the
jargon OF the exchange, easy one month 10 our
markets, IL is hght three"
We maintain that such system is ruiEo us.
equally under both the aspects, not merely TO
good morals and all regular business. but to
credit in any proper aecepiation Of the term
A condition Of society in which AT one time men
Of Hhie or no character or property can obtain
loans to almost any amount, and at another the
most upright and opuient merchants are com
peLied 10 become bankrupt from the utter inpossi-
bihfy Of obtaining rery moderate accommodations
is, as ace said before. not credit. BUT-AS AN
I'll CREDIT SYSTEM
The friends Of the present system, however
meet the above. and other objections against
the continuance of it, by asserting that to well
regulated banks they can have no application
But ;hey have not given us any very clear idea
of what We are TO understand by the term lceL
Regulated. For the sake ofthe argument, how
ever, we will admit, because nee betieve ii 10 b.
true. that the banks in this state are better reg
uldted. aud the evils Of the system, perhaps, les
fcli. than in almost any other state. The yisi
lance and supervision Of the legislature owe
these institutions. perhaps, hare also been NOR
strict. in guarding the public against abuses
and. on this decouut. their operations have prov
sd less injurious. We are not prepared to sa
that our own banks have not been conducted
on the whole, with as great propricty Punctu
ality, and fairness, aud in manner as muc
conducive to the public interests, as The ndtuJ
fhe system tpN admit. Yet no one can den
that there have been instances. erep IN his stat
in which they have operated njuriously TO tn
public. Not being desirous TO multiply instan
ces, we will give but one, which all must re
member.-In neishboring town. long bejor
diiS alleged Var upon credit commenced, an,
where half a dozen banks had been established
there wasa SINGLE INDIVIDUAL, extensively en-
gagged in business and SPECULATION; WHO. b,
some influence or other. succeeded in engrossine
the LOANS, not only Of ONE. but Of nearly AL l.
the banks in the place. At that time. the gen.
eral complaint in the town was. that hardly any
other individual could obtain a discount. All
the spare capital in the place had been invested
in banks, Of which the Directors had the CON
TRoL. and the GENERAL THE USE. The bus
mess transactions Of the General, however.
proved disastrous. He became bankrupt, and
nearly half the capital of the banks was swept
by the board. And no we'll informed citizen OF
that town, will even now say that it has recov-
cred from tho shock.
For the last fifteen or twenty years, the a
buses the frauds, the iojury to credit, and the
swndling operations, growing out Of the pres
ent banking system. in nearly all tho other
states have so fearfully increased in magnitude
and extent, that public attention has been direc-
ted to the subject; and as a necessary measure
of self defence. radical reform is now deman-
ded by the PEOPLE, With uSAsIMIrr ,ha, will
ensure success.
Within two or three years even the LrAprSs
POLITICAL JOURNALS Of the OPPOSITION have
had the independence to throw of the trsmmels
Of party, and to give their aid 10 efreetinc this
reform. They nov not only advocate ,ruc re-
publican principles on the subject but take the
lead in exposing the corruption and abuses OF
the present banking system. knowing that the
general government possesses no power over
the subject. in the several states, they openly
and fsarlrssly declare ii; and join tho friends
Of tho ADMINISTRATION, in urging an immediate
reform upon the several legislatures. fs'
In the Journal OF Commerce, the Boston
Daily Advertiser. and other whis paner,, the,c
have been published some Of the sbl.,, article.
on the evils Of the present system, (bo,h ed,o.
'ial and eommunics,ed) that we have seen
and calling the most loudly for reform. Blu,
as some Of these papers. particularly the Jour
nal Of Commerce. have been denounced. on