, 1840-10-03

moment when | was about'to my
Journey to Philadelphia, that was apprized
by a letter from a friend, who had been a
member of the preceding board, that he
feared, in a fep months the Bank would be
obliged to stop payment. This was. indeed,
l~ppaling news. When | reached Washing
ton, | received hourly proofs of the probabii-
IN Of this event. In Philadelphia it was
generally expected"
1t has been said, and is probably true, that
nothing but The vigorous and prudent man.
agement Of the new President, Mr.. Cheves,
then saved the Bank. At all events, the
millions of public money she then held in de-
posite were in the greatest danger; certain of
being withheld for a time, and perhaps of
being ultimately lost. A gosrrnment ought
not to incur such a risk as that. Had the
Bank stopped payment. a call for an extra
session, and a resort to Treasury Notes, would
probably have been necessary. The stop
page of a bank ought not to cause the stop
page of the wheels of government.
This is not the chief objection to a United
States Bank; but it is one objection to it,
and a serious one.
1t applies, however, far more strongly to
the State Bank Deposit System, than to the
United States Bank. The actual losses un-
der that system have been considerable.
By document No. 10 Of last Congress
(at page 13) we learn that there was lost.
from 1917 to 1886, of money deposited with
Banks, nearly nine hundred thousand dol
lars. without reckoning any thing for de-
preciated notes. Yet a United States Bank
was in existence all that time. As for the
losses resulting from the suspension Of 1887,
they ale not vet finally ascertained. But
we find, in the last Annual Report Of the
Treasurer (at page A. the following item:
'The principal now Que on the Trea-
surer's depositcs in Banks other than
the United States Bank SI,l49,904."
Here is more than a million of dollars still
outstanding. But the actual loss was not the
only evil. In 1887, when. the Banks failed.
they held betwceR fuenfy or thirty millions
Of government deposites. This they either
could not, or would not, pay in par curren,
cy to government, and, in consequence, 60
vernmen,. with all these millions of surplus,
which ought to have been in her treasury,
was actually on the verge of bankruptcy. and
compelled 10 run in debt TO pay her daily
current expenses.
Thus we have proof. that the public mon
ey has not been used Tor private purposes
without both risk, and embarrassment, and
actual loss.
So it always must be, while Banks are
suffered TO use it. They are managed (bott
State Banks and a United States Bnnk) by
men not chosen by, or responsible to the
People or Congress. Whether they shall be
well or ill-managed, does not depend on the
Government. Congress has no power tt
prevent their suspension, or TO punish then
if they suspend. They may stop payment
when they please, for any thing the Fedora
Government can do TO prevent IT. .Wher
they do stop payment, they may refuse tc
pay the Government a cent. though they
owe her millions, and though at the momen
they suspend there may be millions IN theH
vaults. They may become the worst kline
of deiaul;ers; men who can pay and who
wiU not pay: and yet neither the Presiden
nor Congress can either punish or contro
them.
Banks NAV be. and often are. well mana
ged; and then the risk is small. But they
NAV be, and often are, scandalously man
aged, and then their security is absolutely
worthless. No set Of men everswindled the
People so extensively, or with such lawdefyin9
assurance, as have the Banks in some regions o
our country. Here is one paragraph OF
hundred that have recently gone the rount
of the papers, exhibiting tbs state of curren
cy and morals to which the Mississippi Bank
have reduced that unfortunate State:
"a letter from a New York merchant
now at the West, gives a deplorable accoun
Of the state of the currency in Mississippi
The bills of the best Bank in the State are
T 65 per cent, discount, and from that to Is
SO; and the bills of several Banks would no
bring a dollar a bushel, and these Bank
have out from Se,OOo,Ooo to S4,ooo,oo(
; circulation. He adds:
. "Such complete destruction OF property
, credit, reputation, and moral character
: probably was never witnessed before: there
is scarcely a solvent man lett here; and II
; some dozen places in the State which | have
visited, utter ruin and desolation are STAMPED
, on every thing; scarcely store oPen' ant
{ houses and stores going to ruin on every
side. A store, house, and lot, which durin!
the speculation, was sold for $4,000, wa
cold a fau dave since for less than O