Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1840-01-14

BY the banks, a refusal 10 paw
specie for their notes, and an imposition
upon the community Of q fluctuating and |
deprecated currency.
These consequences are inherent in the
present system. They are not influenced
by the banks being large or small created |
EDUCATIONAL OF State Governments. They
are the results ofthe irresistible laws ofl
trade ard credit. In the recent events
which have sostfikingly illustrated the Ger
tain effects Of these laws, we have seen
the bank ofthelargest capital IN the Union
under National charter, and
late strengthened, as we were authorita- |
lively informed by exchanging that for a
State charter, with new and unusual priv.
leges--in condition too, as ii was said.
of entire soundness aud great prosperity
NOT merely unable TO resist these effects
but the first to yield to them.
Nor is it to be overlooked that there
exists claim Unnecessary dependence a.
mong these institutions which obliges them
TO great extent, to follow the course Of
others Notwithstanding its injustice to their
own immediate creditors, or injury TO the
particular community in.which they are
placed. This dependence Of a bank which
is In proportion to the extent Of its debts
for circulation and deposites, is not mere.
lyon others in its own vicinity, but on all
those who connect it with the empire Of
trade.
Distant banks may fail, without seriously
affecting those in our principal CONNER
cial cities: but the failure of the latter is
felt at the extremities Of the Union. The
suspension at New York, in 1897, was
every where, with very few. exceptions,
followed, as soon as it was known; that
recently at Philadelphia Immediately affec-
ted the banks of the South and West in a
similar manner. This dependence ofour
whole banking system on the Institutions
in a few large cities, is not found in the
/ lays Of tleir organization, but in those Of
trade and exchange. The banks at that
centre TO which currency flows, and where
it's received in payments for'merchandise
hold the power cfcontrollng those in re-
gions whence it comes, while the latter
possess no means of restraining them so
that the value of individual property, and
the prosperity oftade, through the whole
interior ofthe 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 the chain ofthis dependence does
not stop here 1t does not terminate at
Philadelphia or New York. 1t reaches
across the ocean, and ends in London, the
centre OIL credit system. The 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 ofthe New York banksln 1887
which was followed in quick succession
throughout the Union, was produced by
an application ofthat power; and it is now
alleged, in eXtenuation of the present con
dtion of so large portion of our banks,
that their embarrassments have arisenfrom
the'same cause.
From this influence they cannot nov
entirely escape, for it has its origin in the
credit currencies of the two countries it
is 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 States. It's thus that
an introduction Of new hank into the
-. J:~4o,t X o,,.t,-;ll,r.c. ,,looo. tLa H.,
.siness fthat village within the influences
of the money power in England. 1t IS
thus that every new debt which we con-
tract in that country, seriously affects our
own currency, and extends over the pur-
suits Of our citizens It's powerful influence.
We. cannot escape from this by making
new banks, great or small, State or Ma
tional. The same chains which bind those
existing 10 the centre of.this system of pa
per credit, must equally fetter every SINH
lar institution we create. Il is only by
the extent to which this system has heen
/ pushed of late, that wo have been made
fully aware Of its irresistible tendency to
subject our own banks and currency to
avast controlling power in a foreign land;
/
illustrate their precaTious situation. En-
dangered in the FIRST place by their own
Encouragement and again by the conduct
| Of every institution which connects then
with the centre ofIrade in our own. coun
!, try, they are yet subjected, beyond all thi.
to the effect of whatever measure policy
necessity, or caprice, may induce thosC
who control the credhs of England 10 re
sort to, / mean not to comment upon thest
measures present or past, and much les:
to discourage the prosecution of fair com
mercial dealing between the two countre.
based on reciprocal benefits; but it l1av
ing now been made manifest that the pow
er of inhicting these and similar injuries i
by the resistless law of a credit currency
: and credit trade, equally capable of exten
ding their consequences through all tn
ranni6cations of all the banking system
and BY that means indirectly. obtaining
particularly when our banks are used a.
repositories Of the public moneys, dan
& gerous political influence in the Unitet
r States, | have deemed my duty TO brinl
q 1.-THE subject TO your notice, and ask fot
u your serious consideration.
I Isan argument required. beyond tn
4 exposition Of these facts, 10 show the i'm
d propriety Of using our banking institution
: as repositories. of the public money! Ca
$ we venture not only to encounter the risl
Q of their individual and mutual misman
II agement,. but, at the same time, TO plac
s our foreign and domestic policy .entirel
!. ,,,7or fha. ioorfrol ,,f n FOREIGN nnoneve