The Madisonian., 1840-02-04
COMMUNICATIONS.
yoR rHE sAD,sosI4s.
TO THE PRESIDENT OF THE UNITED
STATES-No l..

SIR:-More than half your late Annual Message,
which is by no means a shoH one, is a disquisilion
on banks and currency and whether such UNUSUAL
copiousness on single topic inleoded merely
10 instruct The uninformed or, as Is probable
TO vindicate your party for the utter failure OF an
their past schemes Of finance, well as 70 prepare
them for new experiment, Il deserves fu ana
candid consideration.
That consolidation ] have given TO il, and il find
10 il much in which entirely concur yet also ind
much in which your views appearto me to be dan
gerous as well as mistaken. The grounds OF my
opinion will be conveyed to yourself and the public
through The same channel. in thus yenfuring 10
break lance with you, am not unmindful Of the
odds encounter. Iwe know that nneieen.twen-
eths Of those who elevated you power, will give
weight TO your mere assertion, than 10 any lo
gc, however sound, that can advance; but alsD
know, that the honest and independent minds OF The
residue will respect your opinions only so far they
are supported BY reason and truth. To this small
portion, as well the unbiased Of all parties,
write, and 10 their decision, confidently appeal
While examine both your facts and arguments
with frankness, | hope not to forget tha, courtesy
which you known never TO violate, and 10 emu
late that equanimity by which, in spite OF your
pledge TO tread in the footsteps OF your predecessor,
you are so honorably distinguished
You open The subject By alleging The late failures
Of be banks as afJrding good cause for breaking
of all connection between those institutions and the
Government You infer that they unsafe de-
positories of the public money, and consequently,
that the officers of the National Treasury must be
the keepers well disbursers OF The national
venue.
Before any thing is said on the merits OF this
scheme suffer me to examine the reasons which you
suppose make ii necessary. These reasons are, the
general suspension OF the banks in lS31-the partial
suspension al the present time-the insuffcency OF
the excuses urged by them for the last suspension
the innovations in their course Of business, such as
becoming borrowers hemseyes-esablishing agen-
cies abroad and dealing largely in stocks, and even
merchandise. Thee practices mean not 10 defend.
With you regard them abuses Of the banking
privilege, BY which the institutions are less able 10
discharge the paramount duties TO the public Of sup
plying il with safe and uniform currency, and Vf
rendering permanent aid 10 commerce.
Blu, do not agree with you, that these conse-
quences are inherent in the presen, system" Of
banking, if by the present system" you mean 10
designate banks OF circulation issue. That sys-
tenn may be retained and those abuses be corrected
They do no, exist in mos, OF the Statcs and in all
aware OF no banks, To- which the practices you
10, have been impaired, except the Pennsylvania
Bank Of the United States the Girard Bank, some Of
the banks in the southwestern States, and perhaps
few in The city Of New York. For these mschef,
then, your party, BY whose policy those banks were
engendered, must be held responsible.
But if the evil consequences OF which You speak,
are not airly attributable ban OF circulation still
less can hey be considered 1Ihe results OF the ire
sstible laws Of trade and credit That there will be
occasional fluctuations both the debtor and creditor
side of dealings in foreign trade and ha, banks
must be more or less affected By these fluctuations,
will be conceded, but il does moi thence follow that
banks necessarily aggiavate these Irregularities
that the banks themselves compelled By them 10
stop payment. We have abundant proof that banks,
constituted according to the system still prevalent,
may remain hrm and unshaken amidst the most try
ing yicissi,sdes of,Eade Thus, the srs bank OF the
United States retained rs credit animpaired, from
1871 10 1914, under all The difficulties 10 which the
embargo, non-inportaiion, and non-inercourse pro-
iec,s gave rise Is successor exhibited equal sta
bily frosD tS6 until the expirasioO Of rs charter 10
1886 and il would ia We continued to exh Bit il the
present day 10 the same way that il weaiheIet the
storm OF 1919, isonsh under the guidance OF an un-
skful pilot, and that Of rs25, if your predecessor
had no, in an eyl bour, declared war against it,
and BY appealing the lowes preJudices OF the ig
norant TO back his popularity, bad not finally pre-
vailed. The Bank Of England too after over
coming its frs, difficulties IN starting, AID which
had to ir origin with The Tories OF that country
supplied the puhiie, IRON h97 to i791, WIKI cur
rency e9rai 70 gold and silver; aud il X suspended
cash payments then the suspension was aot caused
b. its own imfrudence, or BY the course of trade,
but principally BY The heavy loans and subsidies
which the Government bad granted sothe Continen-
tai Powers and which exceeding the means OF pay
ment, by exports a merchandise, dyained lhe Bank
OF its gold.
But yon say, that The suspension 81 the United
States Bank in 1887, and the present year, would
no, have been prevented b. continuance OF It's
charter as National Bank, because il was
strengthened as you we5e auihos hati rely inform
ed by the charter ii received from the State OF
Pennsylvania You here, no doubs, refer to re-
mark made BY the late PTesiden, Of that Bank, in
which for the sake of encouraging the stockholders,
OF ve1ing his enemies, or perhaps, under the naur-
al bias Of his wishes and sanguine temper boasied
that the coodisition Of the Bank was really better
under the new charter than il had been ander the old
one. But suffer 10 ask did yuu believe him then,
or do you believe him now7 II you do not credi;
this bold assertion Of Mr. Bddle, it does not seem
very dignfed in President of the United States TO
| found an argument on il, n grave address both
Houses Of Congress; and, il you do credit it, then
must we sappose you very Iitle acquainted with The
subject OF banking. Il deserves to be unmarked that
the only occasion that you have cited, (Mr. Biddles
authority has been Car the most uutenable PROPOSE
ton he ever advanced. But in truth, you were not
deceived. No man knows better than yourself, that
policy, as we'll courtesy, has its conventional Ian
gnage in which the words not be taken TOO liter
ally Rni when General Jackson negatived the re-