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

Nor has II. as far as We are advised,
been found 10 be greatly otherwise else.
where. The national character given. 70
the Bank Of England, has not prevented
excessive fluctuations in their currency;
and It proved unable to keep off suHpen-
SION of specie payments, which lasted for
nearlv'a quarter of 8. century And why
should we expect it to be otherwise I a
national institution, though deriving It's
charter from different source than the
State banks, IS vet constituted npon the
same principles; is conducted by men
equally exposed TO temptation; and IS la
bic TO the same disaster; with the addi-
Etional disadvantage that its magnitude oc.
casions an extent of confusion and distress
which the mismahagement OF smaller IN
stitutions could not produce. ltcan scarce
" be doubted that the recent suspension
Of the United STATES Bank of Pennsylya.
nia-of which the effects are felt not in
that State alone, but over half the Union
had its origin IN a course of business COM
menced while twas a national institution;
and there is no-good reason for supposing
| that the same consequences would not
have followed, had it stillderiyed its pow
ers from the General Government. It is
in vain, when the influences and impulses
are the same, to look for a difference in.
conduct or results. BY such creations,
we do therefore but increase the mass of
paper credit and paper currency, without
checking their attendant evils and f1uctua-
tons. The extent of power and efficien-
cy of organization which we give, SO far
from being. beneficial; are in practice
positively injurious. They strengthen the
chain of dependence through the Union,
subject all parts more certainly to common
j disaster, and bind every bank more effec-
ItualIv, in the first instance, TO those 81. our
commercial cities, and, in the end, TO a
foreign power. In word, cannot but
believe that, with the full understanding of
the operations of our banking system which
experience 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
country are suffering evils from the opera
lions Of the State banks which cannot and
ought not to be overlooked. By their
means, we have been flooded with a de-
preciated paper, which it was evidently the
design of the trainers Of the Constitution
to prevent, when they required. Congress
to "coin money and regulate the value of
fonign coins, and when they forbade the
States ito coin money, emit bills of credit,
make any thing but gold and silver ten
der in payment of debts, or ''pass any law
impairing the obligation of contracts. If
they did not guard more explicitly against
the present state of things, it was because
they could not have anticipated that the
few banks then existing were to swell TO
an extent which would expel to so great a
degree both gold and silver, for which they
had provided, from the channels of circu-
lation, and fill them with currency that
defeats the objects 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, not OBJ
viously conferred on the General Govern
3 ment, would authorize the interference, o.
] Justify a course that might, in the slightes
degree, increase. at the expense of tht
] States, the power of the Federal outhori
j ties-nor do ! doubt that the States vii
: apply the remedy. Within the last few
!, years, events have appealed to them tor
etroocrIv, a., bo r;srorrardoJ fTbary hav,
e seer that the Constitution. though theoreti
: cally adhered TO, is subverted in practice
that while on the statute books there is ne
e legal tender bnt gold and silver, no Law
t impairing the obligations Of contracts, yci
t that, in point of fact, the privileges confer
e red on banking corporations have made
!, their notes the currency of the country
], that the obligations imposed by these mole!
< are violated under the impulses of interest,"
e or convenience and that the number anC
e power OF the persons connected with these
a corporations, orplaced under their infiu
e ence, give them fearful weight when theu
I interest is in opposition to the spirit o
D the Constitution and laws. To the people
p 1t is lmmaterial whether these results arr
t produced by open violations of the latter
a or by the workings of system of which
+ the result is the same. An inflexible' exc
d cution even of the existing statutes of most
4 of. the States, would redress many evil
Z now endured would efectually show the
? banks, the dangers of misnanage rem
: which impunity encourages them 10 repeat
3 and wouldteach all Corporations the usefu
b lesson that they are the subjects Of the Law
0 and the servants and the people. VIVA
is still wanting TO effect these objects mus
e be sought in additional legislation; or.
1 that be inadequate, in; such further consti
: tutional grants or restrictions as may brins
Il US back into the path from which we hay,
n SO widely wandered.
In the meantime, it is the. duty of tn
+ General Government 10 cooperate will
Q the States, by wise exercise of its con
: sututional powers, and the enforcement o
!. It's laws. The extent to which it may d,
! so by further enactnents, / have alread,
u adverted to, and the wisdom of Congress
may yet enlarge them. But, above all,
i is incumbent upon us to hold erect tn
: principles of morality and law, constant,
executing our owncontracts in accordanc,
| with the provisions ofthe Constitution, an
q thus Serving as rallying point by whicl
u our whole country may be brought barl
d TO that safe and honofed standard.
Our people will moi long Re insensib!
= to the extent Of the burdens .entailed upor
: fhpra hv tho falSo scxyefoyg, ff,o4 -, Ls,o