The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1840-01-04

portion to the extent of its debts for circula.
ton and deposites, is not merely on others
in it's own vicinity, but on all those which
connect it with the center Of trade. Distant
banks may fail, without seriously affecting
those in our principal commercial cities:
but the failure Of the latter is felt a, the exI
tremitIes of the Union. The suspension At
New York, in 1897, was every where.
with very few exceptions, followed, as soon
as II was known that recently at PhiladelI
phia immediately affected the banks of the
South and West in similar manner, This
dependence of our whole banking system
on the institutions in few large cities, is :
not found In the laws Of their organization,
but In those Of trade and exchange. The
banks at that center 10 which currency
flows, and where 1t is required in payments
fer merchandise. hold the power Of con,rolIs
ing those in regions whence it comes, while
the latter possess no means Of restraining
them SO that the value Of individual pro-
perity, and the prosperity of trade, thro' the
whole interior Of the county, are made 10
depend on the good or bad management of
the bank institutions in the great seats Of
trade on the seaboard.
But this chain of dependence does not
stop here. II does not terminate at Phila-
delphia or New York. 1t reaches across
the ocean, and ends in London, the center
of the credit system. The same 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 for
mer, ir their Turn, to the money power in
Great Britain. 1t is not denied that the
suspension of the New York banks in 1887
which was followed in qu ok succession
/ throughout The Union, was produced by an
! application of that power; and it is now al
/ legged, in eXtenuation of the present condi-
| ton of so large portion OF our banks, that
! their embarrassments have arisen from the
same cause.
From this influence they cannot now en-
tireIy escape, for it has its origin in the
credit currences of the two countries it
is strengthened by the current trade and ex.
change, which centres in London; and is
rendered almost irresistible NY the large
debts contracted there by ouI merchants,
our banks, and our States. Itis thus that
an Introduction of new bank into the
most distant of our villages, places the bu-
sness Of that village within the influence
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 its powerful influence.
We cannot escape from this by making
new banks, great or small, State or Nation.
al. The same chain which bind those now
existing TO the centre of this system of pa.
5 per credit, must equally fetter every SINH
lar institution we create. II is only by the
: extent 10 which this system has been push
, ed Of late, that we have been made fully a.
} ware of his irresistible tendency to subject
= our own banks and currency 10 vast con.
trolling power in foreign land and it adds
= a new argument TO those which illustrate
: their preCarious situation, Endangered in
the first place by their own mismanago'
, ment, and again by the conduct OF every
S institution which connects them with tho
r centre Of trade in our own country, they
n are yet subjected, beyon all this, 10 tho
c effect Of whatever measures policy, neces'
/ eilv, or caprice may induce those who cor
= troll the credits Of England 10 resort to. |
4 mean not TO comment upon these measures
e present or past, and much less TO dlscouI'
y age the prosecution OF fair commercial deaf
3 iug between the two countries, based on
;, reciprocal benefits but it having now been
II made manifest that the power of lnfcling
is these and similar injuries, is; by the resist
r less law ola credit currency and credit
5, trade, equally capable of extending tAelr
y consequences through all The ramifcatlons
s. of our banking system, and by that means
a. indirectly obtaining, particularly when our
D. banks are used as deposiaries of the puDc
il moneys, dangerous political influence IN
p the United States, have deemed it my du,
is ty 10 bring the subject TO your notice. ana
Of ask for il your serious consideration.
le Is an argument required beyond the sX'
re position of these facts, to show the lmPr0'
r. priety Of using our banking institutions a'
ST repositories Of the public money CaG
r. we venture not only to encounter the FISK
"a Of their individual and mutual mismanags
e- ment, but, at the same time. to p ACE ou'
On foreign and domestic policy entirely nnas
c- !he control of a foreign moneyed interest,"
70 do so is to impair tire independence
he our government, as the present credit sys
ed TEN has already impaired the independent,
n