Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1840-04-21
NUMBER XXI.


to express an opinion as to the best
system of maintaining the purit~ of the
currency of the Commonwealth,
through the agency of Banks; and
were I so called on, ] might find very
few to support my opinion. The PIE
sent plan Of confederation of Banks,
withouta controlling power in any de-
partment, / consider eminently defec-
tive-but all sudden changes in pecu-
MARY concerns are so obviously haz-
ardous, from the arrangements they
produce. that it is perhaps better to
bear the evils we have, than to resort
to experiments that might fail in prac-
tee, however we'll sustained in theory.
Whether, indeed, it would be practic-
able to render Bank of Discount and
Circulation, in this country, always
secure against the contingency of sus-
pension, and at the same dme1so pro-
ftable as to induce individuals to take
share in it, is subject well worthy
of the reflection ofthose who direct the
public measures ofthe Commonwealth.
That the purity of the currency ofev-
cry country should be the paramount
design, is unquestionable, and that the
present commissions and throes of the
monied affairs of the most commercial
nations of the world will ultimately re.
suit in some well devised scheme to
effect this object Is, | think, hardly
less questionable. 1t will, | presume,
be admitted, that the supply ofthe pre-
cious metals (when the immense a.
mount of them whichis annually appli-
ed to the Arts is taken into view is
wholly inadequate, as an exclusive cir
culating Medium, to the extended and
extending operations ofthe agriculture
commerce and manufactures of the CT
vilized world. The circulating medi-
UNI Of one country may consist almost
entirely of gold and silver, but should
all other countries adopt the same pol
icy, the inevitable effect would be to
render those metals so dear, that ge-
neral and ruinous fall in the prices oil
all commodities and of every species
of property must follow. Keeping
gold and silver, then, as the mere stan
dard and measure of value, we mus
find some substitute for the general pul
pose of circulation, or we uAtreturr
to the primitive habit of barter. with al
It's inconvenience !; and the great desld
erQtuna is, to obtain the best substitute
; for the precious metals, as a circula
: ting medium, and so to regulate tina
r substitute as to render it as stable an
t uniform as possible. With these gen
t eral and perhaps unnecessary remarks
c | will proceed to answer your partlcu
lar interrogatories, as well as | can.
5 LIST and I'd. The strongest objec.io
l had 10 the acceptance of the ne'
o charter, was the despotic manner b
: which it was forced on majority {
. the individual stockholders. By tn;
r acceptance, the stockholders were de
] prived of many of the privileges the
O had enjoyed and paid for under tn
q old charter; but an insurmountable o
( lection, also, in my mind, were tn
( terms imposed by the 9TH and 9Th sec
4 tons of the general Banking Law, b
r which severe penalties were INQUIRE
e in case ofrefusal to pay in specie an
i note or bill due by the Bank, and til
q charter deemed as forfeited at the m'
: ment of such refusal. Ihad, too, mi
g ny minor objections, which it woul
/ be tedious to enumerate. The polio
K OF inhicting ercessipe penalties on pc
y sons or corporations, fora violation
: law, which may be resorted to, to pr,
= vent a greater evil, is always doubtful
r The most that should be done in sue
a case, would be, in my opinion,
e annex such penalty as would make
9 the interest ofthe Banks to continue
h pay their liabilities by rendering the
! subject to double interest, (12 p
cent? to be recovered in the ordina
e way Of other specialities, and not by Il
: summary process of motion on te
i days notice. The Banks would NJ
It then suspend their payments for liz
: causes, whereas when the cause was.s
! potent as in the years 1887 and 1873
: the severest penalties the law can i
flict must bein great measure in Of
n erative, because it then becomes an
e fair of mere calculation whether it
V better to begin the work of closing Il
o concern at once, (ifno relief be graz
5 Eted,) by putting all the creditors
), the Banks (note holders and depos
IS tors) on an equal footing, or to conti
At ne to pay those who are most pressir
S in their demands, so long as there
:. any specie, and leave the more forbe
It ing and more distant creditors to r
: ceive their money as it may be cole
d tied from the debtors to the Bank.
! should deem the managers of Il
; Banks unfaithful to their trust, we
II they to make this discrimination in
/ yor ofthe least deserving of their cro
> itors. Every one understands III
) the Banks greatly depend upon t
confidence ofthe community for the
existence. No one believes that Ban
Of discount and circulation are alwa
,e prepared to pay all their liabilities