The Yazoo City Whig and political register. (Yazoo City, Miss.) 183?-1840, 1840-01-24

notes. aau an imposition upoilthe community OF
fluctuating and deprecated CURRENCY
These consequences are inherent in the present
SYSTEM They are not Influenced by the banks
being large or small, created by national or state
governments They are the results of the irresis-
tib.e laws of trade and credits. In the recent
events which have SO strikingy illustrated the
certain effects of these laws, we have seen the
bank Of the largest capital in the Union, estab-
lished under national charttr and lately streng-
thened, as we were authoratively informed, by
exchanging that for state charter, with now
and unusual privileges--in condition too, as II
was said of entire soundness and great prosperity
not merely unable to resist these effects, but the
first to yield TO them.
Nor is it to be overlooked that there exist a
chain Of necessary dependence among these insti-
tutions which obliges them, to great extent, to
follow the course of others, Notwithstanding its
injustice to their own immediate creditors, or in
Jury to the particular community in which they
! are placed. This dependence of bank, which is
in proportion TO the extent of its debts Tor ci:cula-
ton and deposites, is not merely on others in us
own vicinity, but on all those which connect 1t
with the centre of trade. Distant banks may fail,
without seriously affecting those in principal
commercial cities; but the failure ofthe latter is
felt at the extremities of the Union. The suspen-
! sion at New FORK in 1887, was every WHEREBY with
very few exceptions, followed, as soon as II was
known; that redently at Philadelphia immediate
" affected the banks of the South and West in a
similar manner. This independence of our whole
banking system on the institutions in few large
cities, is not found in the laws OF their organza-
ton, but in those of trade and exchange. The
banks at that entire to which currency flows, and
where il is required in payments for merchan-
die, hold the power of controlling those in regions
whence it comes, while the latter possess no
means of restraining them; so that the value OF
individual property and the property 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 tho seaboard.
But this chain of dependence does not stop here.
It does not terminate at Phladelp hia 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 10 the banks in principal
cities power over the whole banking system OF
the United States, subject the former, in their
turn, to the money power i'll Great Britain. 1t is
not decided that the suspension OF the New orb
banks in 1887, VIII. CHI has followed in quick sue
cession throughout the Union, was produced by an
application of that power, and 1t now alleged, IN
excavation of the present condition of so large
portion of our banks, that their endorsements
have arisen from the same cause.
From this influence they cannot now entirely
escape, for it has its origin in the credit curren-
ces OF the two countries; it's strengthened by the
current of trade and exchange, which centres IN
London, and is rendered almost irresistible by
the large debts contracted there by our merchants
our banks, and our State. 1t is thus that an in
PRODUCTION of new bank into the most distant OF
our villages, places the business of that village
within the influence of the money owner III Eng
land. 1t is thus that every new debt which we
contract in that country, seriously effects our own
currency, and extends over the pursuits OF CT
tizens its powerful inhuencc.-We cannot escape
from this BY making new banks. great or small,
State or National. The same chains which bind
those now existing to the centre of the system of
paper credit, must equally tctter every similar
institution We create.
1t is only by the extent to which this system has
been pushed of late, that we have been made full
" awtre of its irresistible tendency TO subject
our banks and currency to a vast controlling pow
er in n foreign land. and it adds new argument
to those which illustrate their precarious situation
Endangered in the first place by their own mis-
management, and again by the conduct of every
institution which connects them with the centre
of trade in our own country, they are vet subjec-
ted beyond all this, TO the effect of whatever mea-
srres policy, necessity, or caprice, may induce
those who control the credits of England to resort
to. mean not to comment upon these measures
present or past, and much iess to discourage the
prosecution of fair commercial dealing between
the two countres based on reciprocal benitits ;but
it having now been manifest that the power of fin
hicting these and similar injuries is BY the resist
less law of a credit currency aud credit trade
equally capable of extending their consequences
through all the manifestations of our banking sys-
TEN, and by that means indirectly obtaining, par
ticularly when our banks are used as dcpos tories
of the public moneys, dangerous political in
huence in the United States, have deemed it my
duty to bring the subject to your notice and ask
for your serious consideration.
Is an argument required beyond the ex-
position of these facts, to show the impropri-
ETY. of using our banking institutions as de-
positories of the public money! Can we ven-
ture not only to encounter the risk of their
individual and mutual Encouragement, but
at the same time to place our foreign and de-
mestic policy entirely under the control Of
foreign moned interest! TO do so is TO i'm
pair the independence of our government,
as the present credit system has already i'm
paired the independence of our banks. It's
to submit all its important operations, wheth-
er of peace or war, to be controlled or thwart-
ed at first by our own banks, and then by a
power abroad greater than themselves. II
cannot bring myself to depict the humiliation
to which this government and people might
be sooner or later reduced, if the means for
defending their rights are to be made depen-
dent upon those who may have the most
powerful ofmotives TO impair them.
Nor is 1t only IN reference TO the effect of
this state of things on the independence of
our government or of our banks, that the |
subject presents itself for consideration; it is |
to be viewed also in it's relations to the gen.
eral trade of our country. The time is not
long past when deficiency offoreign crops
was thought to afford profitable market for
the surplus of our industry; but now we
await with feverish anxiety the news of the
English harvest, not so much from motives
If commemorate sympathy, but fearful lest
Is anticipated failure should narrow the field
If credit there. Does'not this speak volumes
0 the patriot! Can a system be benefcient,
wise, or just, which creates greater anxiety
or interests dependent on foreign credit.
han for the general prosperity Of our own
COUNTRY, and the profitable exp ortation ofthe
urplus produce of our labor!
The circumstances to which have thus
diverted, appear to me to afford weighty rea-
ons, developed by late events, to be added