The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1840-07-13

place. If | were member Of State Legisla-
ture, might feel myself at liberty to speak OF
them freely and without reserve; but as mem
Der Of Congress, have nothing to do with them.
This Government-unless it transcend its legiti-
mate powers-can exercise no control over them
Being the institutions Of the States, the States
have the exclusive right not only to create, but
to manage them in their own way.
Sir, the State banks, when well conducted,
may be of much public benefit in furnishing a
local currency within the limits o fine States IN
whice they exist; but | repeat that they never
can furnish general currency which will regu-
late and equaliz- the exchanges between distant
| and remote sections Of the Union from each other
The rca son is obvious. Although they may re-
deem their notes and pay all their Liabilities in
specie, and command the highest confidence with
in the limits of the State to which they belong;
vet sir. they never can enjoy the public conf
ldenee and their notes obtain general credit and
currency in other and remote States In fact,
sir, whenever they pass the borders Of their own
State, they depreciae and subject TO dis
count. And thus the traveller and the trader
from one State to another; and those who carry
their produce from one State to sell in the mar
ket of another, are not only subjected to great
| inconvenience, but considerable loss
This remark applies with peculiar force TO the
banks of the west and south west Why is it
that the notes Of the banks of Tennessee are at
discount of from ten to fifteen per cent. in New
1 CNAhtA'''OA~"
cause our banks are less sound and solvent in
| their condition, than the State banks located in
those citics2 Certainly not The banks OF Ten
nessee, believe to be in good condition, and
as much entitled to the public confidence as any
in the Union; but sir, it is for the simple reason,
that they are located in the interior, where their
notes are not wanting for commercial purposes.
And, sir, we of the south west are laid under
! tribute to the capitalists and bankers OF the
northern and eastern cities of from ten to fifteen
per cent. on all the goods we consume, merely
because their banks have the advantage of ours
in point of locality, and not because their banks
arc really better in any other point of view.
And, sir, when our farmers and planters carry
their stock and produce to the southern markets,
and our industrious and enterprisng young
men-mechanics and laborers 90 south, as hun
dreds of them do every year, to find employment
they fare still worse They obtain fair price,
nominally, for their produce and stock and fair
wages for their labor but they must take it in
the notes of the banks of those States in which
they sell their property perform labor and
when they return home with it and offer it in
payment Of their debts they compelled to
submit to shave Of from ten to fifty per cent. |
am informed that at this time the notes OF the
Mississippi banks only worth fifty cents in
the dollar in Tennessee and sone of them much
less. The State of Mississippi is our principle
market for our com, flour, pork, beef, cattle,
horses and mules, and the place to which most
of our young men and mechanics go to seek en-
ployment during the winter SEASON. The present
state of things, therefore, proves most oppressive
and ruinous to these people. Sir, it it no light
matter for the farmers, mechanics and laborers
of all classes who earn their living by the sweat
of their brow, to loose one half or even one
tenth of the proceeds of their labor.
Sir, there never was more mistaken, and
enormous opinion than that entertained by many
that the merchants and the trading portion of the
community are alone interested in having a
sound and uniform currency. They interest
ed to great extent in this important matter,
but not to one half the extent of the great body
of the laboring community. When the merchant
is compelled to pay five, ten or fifteen per cent.
premium for funds that will answer 70 pay his
eastern debts, as merchants in the south
west frequently have for sowe years past, it is
no loss to them except the inconvenience and
difficulty of obtaining them for, sir, they are
obliged Of necessity to include it in the compu-
tation of the cost of their goods, and the great
mass of community who purchase ard consume
the goods not only pay it back to them in the
end, but they actually pay this Premiam with
per cent upon il. Suppose the merchant 90 pay
ten per cent premium for eastern funds, he in
cludes it in the cost of his goods as already OBJ
served ard, then suppose he sell the goods to
the people at profit of from fifty to one hundred
per cent. as they frequently, and | may say al
most invariably do, does not every one perceive
tnat the purchaser anu COnSultf ol SoOuS,
pay from fifteen to twenty per cent. more per
every dollars worth of goods he buys than he
would have paid If there had been currency OF
Uniform value in circulation throughout the
country 1t is palpable as the noon days
sun and l repeat that of all the psople on the
face of the earth, that portion of the citizens of
this country who are engaged in all the various
pursuits Of industry and labor, are most deeply
interested in having currency of this descrip-
ton.
Sir, | believe that we must have national
currency of uniform value IN all the States and
sections of the country. We never can prosper,
either as nation or as individuals, without it.
We never have enjoyed prosperity without it. |
ha vc already said that believe national bank,
upon proper principles, is not only the best means
of furnishing the country with such currency,
but of conducting successfully and safely, the
financial operations of the government. For
forty years out of fifty, since the adoption of our
present form of government, we have had such an
institution, and il pre- eminently successful In
the performance of both these important duties
During the whole period OF its existence, from
the time it got into successful operation, there
never was any material or general arrangement
of the currency. The government received from
it bonus of one million five hundred thousand
dollars, and besides this, it kept, transferred,
and disbursed, the public moneys in all parts OF
the Union; without charge of one cent, or a
loss Of one cent IN forty years. Gentlemen talk
great deal about the losses sustained by gov
eminent by the banks and by individuals in the
management of the affairs of the treasury, and
it is true that considerable losses have been sus-
tanned by both; but, they ought to have the can
dor to state that they alludc to the state banks,
when they speak of these losses. | defy the
world to show that farthing was ever lost by
the United States bank, either by the govern
ment or by the people. Its notes were at all
times and places, throughout the whole extent OF
the country, equal to specie, and frequently com
manded . premium of from one to two per cent.
| But, sir, why need detain the committee to
argue the exPediency of national bank? No
man denies that it performed all the duties i'm
posed upon it as the fiscal agent of the govern
ment with fidelity and despatch. And it is adj
mitted by every candid man, that it furnished the
country currency equal if not superior to any
the world ever saw. But gentlemen contend that
the universal credit and currency of its notes was