Litchfield enquirer., 1840-01-02


 salutarv control exercised, but an eager de- sire, on the contrary, exhibited for profit in the first place; and if afterwards, it's meas ures were severe towards other institutions, it was because it's own safety compelled # to adopt them. It did not differ from them m principles or form; it's measures emanated 1 from the same spirit of gain; it felt the same temptation to over-issues; it suffered rom. and was totally unable to avert those laws or trade by which it was itself affected equally with them; and at least on one occasion at an early day, it was saved only by exfraor- dinary exertions from the same fate that at- l tended the weakest institution it proiesseo 70 supervise. In 1887 it failed, equally with others in redeeming its notes, though inc two years allowed by it's charter for that purpose had not expired, a large amount ot whicn re- mains to the present time outstanding. !, l Itis true, that having so vast capltai,and 1 strengthened by the use of all the revenues l of the Government, it possessed more power 1; while it was itself, by that circumstance, ] freed from the control which all banks re- quire, it's paramount object and inducement were left the same<-to make the most for us stockholders, not to regulate the currency or 1 the country. Nor has it, as far as we are advised. been found to be greatly otherwise elsewhere. The national character given to the Bank of England, has not prevented huc- tuations in their currency, and 1t proved un- able to keep off a suspension of specie pay ments, which lasted for nearly a quarter ol a century And why should we expect It to pc otherwise? 4 nations s~nstitution,th though deri-
 ving its charter from different source than the State banks, is yet constituted upon the same principles; is conducted by men equally
 exposed to temptation; and is liable to the same disasters; with the additional Gfsao-
 vantage that its.magnitude occasions an eX- 1 tent of confusion and distress which the mis-
 mana nagement of smaller institutions could not
 produce. It can scarcely be doubtless that the recent suspension of the U. $. Bank ot
 Pennsylvania --of which the effects are ieH
 not in that State alone. but over halt the On-
 ion--had it's origin in Q course of business commenced while it was a national Hlstltu- ton, and therc is no good reason for supPos- 1 ing that the same consequences would not
 have followed, had it still derived it's powers from the General Government. Histn valn,
 when the influences and impulses are the
 same, 70 look fora difference in conduct or re- suits. By such creations, we dotherefore but
 increase the mass of paper credit and paper currency, without checking their attendant
 evils and fluctuations. The extent of power
 and the efficiency of organization which we
 give, so far frosn being beneficial, are in
 practice positively injurious. They strength
 en the chain of dependence. throughout the
 Union, subject all parts more certainly to common disaster, and bind every bank more effectually, in the first instance, to those of
 our commercial cities, and in the eDd to a 1 foreign power.s In a word, cannot but be-
 lieve that, with the full understanding of the
 operations of our banking system which ex-
 perience has produced, public sentiment IS not less opposed to the creation of a National Bank for purposes connected with currency and commerce, than for those connected with
 the fiscal operations of the government.
 Yet the commerce and currency of the
 coLs.try are suffering evils from the opera
 tions of the state banks which cannot and
 ought not to be overlooked. By their means,
 we have been flooded with depreciaied pa-
 per, which it was evidently the design of the framers of the Constitution to prevent, when they repaired Congress to "coin money and
 regulate the value of foreign coins,' and when they forbade the States to coin men- ey, emit bills of credit, make any thing but gold and silver tender in payment of debts," or "pass any law impairing the obligation of contracts" If they did not guard more ex- plicitly against the present state of things, it was because they could not have anticipated l that the few banks then existing were to swell to an extent which would expel to so great degree the gold and silver, for which they had provided, from the channels of cir culafion, and fill them with a currency that defeats the object they had in view. The remedy for this must chiefly rest with the States from whose legislation it has sprung. No good that might accrue in particular case from the exercise of powers, moi obvious ly conferred on the General Government, would authorize it's interference or justify a course that might. in the slightest degree, in- crease, at the expense of the States, the pow. oft tho foJaroI Iu,,thoritipc-pop 1n I<,,hf that the States will apply the remedy With in the last few years, events have appealed to them too strongly 10 be ajsregarded. They have seen that the Consli tuition, though theo- retically adhered to, is subverted in practice; that while on the statute books fhere IS no lawful tender but gold and silver, no law in- pairing the obligations ofcontraciS. yet that, in point of fact, the privileges conferred on banking corporations have made their notes the currency of the country that the obi gations imposed by these notes are violated under the impulses of interest or conven- i, fence and that the number and power of the | persons connected with these corporations,or | placed under their influence, give them a 1 fearful weight when their interest is in op- position to the spirit of the Constitution and laws. To the people it is immaterial wheth- | CT these results are produced by open viola tions of the latter, or by the workings ot | system ofwhich the result is the same.
 An inhexible execution even of the existing stat utes of of the States would redress many evils now endured; would effectually show the banks the danger of misrnanagement which impunity encoura ges them repeat and would teach a corporations the useu lesson that they the subjects of the law and the servants of the people What IS still want. ing to effect these objects must be sought in additions al legislation or, if that be inadequate in such fur ther constitutional grants ofrestrctons may bring wandered. -
 In the meantime, the duty ofshe General Gov ernment to co-oFsTate with the States. by wee ex