Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1840-01-06

their prosperity, and gives such increasing stnblll-
~ to all their dealings.
In a country so commercial as ours, banks IN
some form will probably always exist; but this
serves ONLY To render il the more incumbent on
us, Notwithstanding the discouragemcnts of the
past, to strive in our respective stations 10 miti-
gnte the evils they produce to take from them MS
rapidly as the obligations of public faith and a
careful consideration of the immediate interests oil
the community will permit, tho unjust character
of monopocs; to check, as far as may be prac.
ticabe Ivy prudent Legislation, those temptations
of interest and those opportunities for 4 cir dan
gerous indulgence, which beset them on every
side, and to confne them strictly to the perform
ance OF their paramount duty, that of aiding the
operations of commerce, rather than consulting
their own exclusive advantage These AMI other
salutory reforms may, it is believed, be accomplish
ed without the violation of any Of the great prin-
ciples of the social compact, the observance OF
which is Indispensable to its existence, or inter
fcring in any way with the useful and profitable |
employment of real capital.
Institutions so framed have existed and still ex- |
list else where, givingto commercial intercourse all
necessary facilities, without initiating or dcprecia-
ting the currency, or stimulating speculation
Thus accomplishing their legitimate ends, they
have gained the slirest guarantee for their proiec-
ton and encouragement in the good will OF the
community. Among people 50 list as ours, the
results could not fail to attend simila course
The direct supervision ofthe banks belongs, from
the nature of Our Government, to the States who
authorize them. Ii is to their legislatures that the
people must mainly look for action on that subject
But as the conduct of the Federal Government in
the management of ts revenue has also power
ful though less Immediate influence upon them, 1t
becomes our duty tn see that a proper direction is
given to it. While the keeping of the public rev.
enue in II separate and In dependent Treasury, aud
the collecting it in gold and silver, will have sal
utary influence on The system Of paper credit with
which all banks connected, aud thus MD those
that are sound and well managed, it will ut the
same time sensibIy check such otherwise,
by mt once Withholding the means of extravaganza
afforded by the public funds, and restraining them
from excessive issues of notes which they would
be constantly called upon to redeem.
! am aware it hos been urged that this control
may be best attained AMI exerted by means of II
| National Bank. The constitutional objections
which am well known to entertain, would pre-
vent me in any event from proposing or asserting
to that remedy; bur in addition to this cannot,
after past experience bring myself TO think that
it can any longer be extensively regarded for sucn
II purpose. The history of the late National Bank
through all its mutations shows that it was not so.
On the contrary, it may, after Il careful considcia.
ton of the subject, be, think, safely stated that
at every period of banking excess it took the lead
and in 1917 and 1873 in 1893 in 1881, and in 1884,
its vast expansions, followed by distressing con-
fractions, led to those of the State institutions. 1t
swelled and maddened the tides of the banking
system, but seldom allayed safely directed them.
At a few periods only was salutary control ex-
ercsed, but an eager desire, on the contrary, ex-
hibted for profit in the first place; and if, after
wards, its measures were severe towards other in
stitutons It was because its own safety compelled
it to adopt them 1t did not differ from them in
principal or form; its measures emanated from
the same spirit of gain; it fell the same temptation
to over issues it suffered from and was totally
unable to avert those laws oftrade by which it was
itself affected equally with them; and ut least on
one occasion, at an early day, it wos saved only
by extraordinary exertons from the same fate that
attended the weakest institution protested to sii
pervise. In 1887 it failed equally with Others in
redeennS it's notes. though tho Two yonrs allowed
by its charter for that purpose had not expired,
large amount OF which remains to the present time
outstanding.
IL is true, that having so vast capital, and
strengthened by the use of all the revenues of the
Government, it possessed more power; but while
it was itself, by that circumstance, freed from the
control which all banks require, its paramount oh
Ject and inducements were left the - to make
the most for its stockholders not to regulate the
currency of the country. Nor has it, as tar vr
are advised been found to be greatly ot,crw sp
elsewhere The national character given to the
Bank Of England has not prevented excessive
fluctuations i'll their currency, and it proved una
bic to keep off suspension of specie paym 'nts
which lasted for nearly quarter of a century. =
And why should we expect il to be otherwise 2
national institution, though deriving its charter
n conS,;,n,od ,,o, ,he sane rrnc;nIes Is conlyc
rod nv mon anualIv exnosed 70 temntaton !. and
ia I;sTe n ,be same disasters with The odJi,;onn
J;sodvantaga that i,s macn,tude occas;ons an ex
tent of confusion and distress which the mismon
t agement OF smaller institutions could not produce
, 1t can scarcely be doubted that the recent sus-
pension Of the United states Rank NJ pennsvlva
min of which ihe eff;.cs are fs M, in ,I,nr S,,,
aIoue Inn, over inf the Union had ;s or;,;n II
n course of hns;npss ro,,nsnreJ ,,i;ls !, ya, ,
national ius;tu,;nn. and ,here ia M .,ooj r.,so'
for sunnn.;ng rh,, IN same c,nsen,,rnces ,vnnI'
mt I,y,. f,li,y.J hat !, iii, J.r;v,.J ;,s n,',a
/, il in vain ,vtsn 'hc ;,,g,,euccs and ,,,,,,se