Maumee City express. [volume] (Maumee City, Ohio) 1838-184?, 1840-01-11

tend similar course, Inc ulrect SuperVl-
sion of the banks belongs, from the nature
of our Government, TO the States who au-
ihorzc them. 1t is to their Legislatures
that the people must manly look for action
on that subject. But as the conduct of the
Federal Government in the management OF
It's revenue has also powerful though less
influence upon them, it becomes
our duty to see that II proper direction is
given to it. While the keeping Of the pub
nc revenue iE separate and independent
Treasury, and of collecting 1t in gold and
silver, will have salutary influence on the
system of paper credit with which all banks
are connected, and thus all those that are
sound and well managed, it will at the same
time senslbly check such as are otherwise,
by at once Withholding the means of extra
vagancc afforded by the public funds, and
restraining them from excessive issues %,
notes which they would be constantly cal
led upon to redeem.
| am aware it has been urged that this
control may be best attained and exerted by
means of National Bank. The constitu-
tiona objections, which am well known
to entertain, would prevent me in any event
from proposing or asserting to that remedy:
but in addition to this, cannot, after past
experience, bring myself to think that it can
any longer be extensively 'egarded as eitec-
tive for such purpose. The history OF the
late National Bank through all Its mu'a-
tions show that 1t was not so. On the
contrary, it may after carefol consldera-
ton of the subject, be, think safely stated
that at every period of banking excess 1t
took the lead; that in 1917, and 1918, in
1928, in 1881, and in 1884, its vast eXpan-
slons, followed by distressing coutractlons,
led to those Of the State institutions. 1t
swelled and maddened the tides ofthe bank
ing system, but seldom allayca, or safely
directed them. At a few periods Oil y was
salutary control exercised, but an eager
desire, on the contrary, exhibited for profit
in the first place; and if, afterwards, its
measures were severe towards other lnstl-
tutions, it was because its own safety COM
PEELED 1t to adopt them. 1t did not differ
from them in principles OF in form; its meas
urcs emanated from the same splrltio gain;
it felt the same temptation to ovcrlssues;
suffered from, and was totally unable to
avert, these inevitable laws of trade, by
which it was itself affected equally with
them; and at least on one occasion, at an
early day, it was saved only by etxraordina-
ry eXertons from the same fate that attend
ed the weakest institution it professed to
supervise. In 1887 it failed, equally with
others, in redeeming its notes, though the
two years allowed by its charter for that
purpose had not expired large amount of
which remains TO the present time outstand.
ing. 1t is true, that having SO vast a capt.
ita, and strengthened by the use of all the
revenue of the Government, it possessed
more power; but while 1t is itself, by that
circumstance, freed from the control which
all banks require, its paramount object and
inducement were left the same--to make
the most for its stockholders, not to regu-
late the currency of the country. Nor has
it, as far as we were advised, been found to
be greatly otherwise elsewhere. The ma
tonal character given to the Bank of Eng
land, has not prevented excessive flnctua
tons In their currency, and it proved unable
to keep off a suspension of specie payments,
which lasted for hearty quarter of IA
century. And why should we expect
it to be otherwise? A national ins!i-
tuition, though deriving its charter from
a different source than the State banks, Is
yet constituted upon the same principles; is
conducted by men equally exposed to tenn
tation; and is uble to the same DISASTERS;
with the additional disadvantage that its
magnitude occasions an extent of confusion
and distress: which the mismanagement Of
smaller institutions could not produce. 1t
can scarcely be doubted that the recent sus-
pension ofthe United States Bank of Penn
sylvania-of which the effects are felt not in
that State alone, but over half the Union
had it's origin in course of business com.
menced while it was a national institution, +,
and there is no good reason for supposing
that the same c0nseq lences would not have
followed, had it still derived Its powers from
the General Government. 1t is in van,
when the influences and impulse are the
same, to look for a difference in conduct or
results. BY such creations, we do there
fore but inrease the mass ofpaper credit and
paper currency, without checking their at
tendant evils and fluctuations. The extent
Of power and the efficiency of organization
which we give, so far from being beneficial,
are in practice positively injurious. They
strengthen the chain Of d1pendence through
out the Union, subject all parts more GER
tanly to common disaster, and bind every
bank more effectually, in the first instance,
to those of our commercial cities, and, in the
end, to foreign power. In Il word, | can
not but believe that, with the full under
standing OF the operations Of our banking
system which experience has produced,
public sentiment is less opposed to the cre-
alton of National Bank for purposes con-
nected with currency and commerce, than
for those connected with the fiscal opera
lions of the Government.
Yet the commerce and currency of the
country are suffering evils from the opera
tlons Of the State banks which can not and
ought not to be overlooked. BY their
means, We have been flooded with depre-
ciated paper, which it was evidently the de-
sign, of the farmers of the Constitution to
prevent, when they required Congress to
y" coin money and regret the value of for
eign coin,' and when they forbade the
States "to coin money, emit bills of credit,
and make nothing but gold and silver
tender in payment of debts" or" pass any
law mpalring the obligation of contracts. 7"
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
exentwhlch would expelto so great degree
the gold & silver, for which theyIhad provi-
ded from the channels of circulation, and fill