Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1840-10-24


er, or during which, according TO my Impressions
larger proportion of the banking capital of the State
Incorporated Satisfied Of the unsoundncss of the
principles upon which the institutions OF that day were
founded, and convinced that instead nj aordng to the
community sound circulating medium and to business
useful facilities, they would operate in nrously in both
respects, made with single exception connected
with the war, and which has been repeatedly explanedO
throughout the whole of those eight years. an active,
vigorous, and unvaryng opposition 10 the increase Of
such institutions. was also strenuous in my efforts to
place the subject upon footing which would take from
them the character Of monopoes, and produced, as !
hoped, better practical results Recalled to the service
Of the State eight years afterwards, and finding that
the disposition in favor ot the then existing system
of banking had, apprehended, acquired too strong
hold upon the public mind, and that the system had
become too extensively interviewer with business trans
actions to be wholly changed, employed the brief Pc
rod OF my administration of the State Government
in inducing the Legislature to protect the bill holders
and the community at large against loss from bank
failures by the establishment Of the Safety Fund Sys
tenn
How much that measure was derded and misrepre-
scented At the time, and in what estimation it is
held BY those whose Of duty forced them To
oppose It's adoption, need not inform you. An
preston Of my opinions of and disposition towards the
State banks having been called for By communica-
ton addressed to me while candidate for the Preslden
cy, they were Al that time thus given:
81 have abiding reliance on the intelligence and
virtue OF the people. Temporary inconvenience may
result from the folly fraud of these institutions but
the remedy Will soon be applied. people like those
of the States composing this Contederacy will not long
stand " aud the currency of their respective States
corrupted the value Of property unsettled and all their
interests deranged, b. tie nprudrncc cupdity of
these interpretations, without finding and enforcing
eiiectul., and at the same time constitutional RENE
dy. These observations do not proceed from desire
to deal harshly with the State banks Although have
always been opposed 10 the increase of banks, would
nevertheless pursue towards the existing institutions
just and liberal contemplating them in the rghitul
enjoyment of tie privileges which have been granted
TO them and extending 10 them the good will OF the
commnnity long they discharge with fidelity the
delicate aud important public trusts with which they
have been invested. But all experience having shown
that there delegated power liable 10 abuse
than that winch consists III chartered priye res Of this
descr ption would be astute in watching the
of the banks, and ygant and prompt in arrcstlng the
siahtes. aspiration their part IN follow bad exam
pie by seeking 10 become the masters when they
designed TO be the servants Of the people.
Raised by the favorable consideration of my country
men the head of the Federal Government, my oii-
cial relation TO the State banks WIS far changed
10 restrict nv action III regard to them TO such points
only properly required by their connection with
the administration of the Federal Government or with
the legislation OF Congress
In my first annual message, December, le'1, they
were thus spoken of
1.-The discon,nuance Of the of State banks for ifs
cal purposes ought not to br regarded as measure OF
tahlished and conducted, highly useful to the bust
ness Of the country and will doubtless continue to exist
IN the States, long they conform 10 their laws aud
found 10 be safe and beneficial How they should be
created what privileges they should ENJOY under what
Utilities they should act and to what restrictions
they should be SUBJECT arc questions which, as observ-
cd ~ nreuious helnr :" -" S"'o~ ;" 49,
tai Government can have motive TO encroach. Its
duty toward them is well performed, when IT reirans
from lcgsating for their especial benefit because such
legislation would violate the spirit Of the Constitution
and be unjust to other interests when it takes no steps
impair their usefulness but manages its affairs
make it the interest of those institutions TO strength
en- and improve their condition for Ike security and wei
fare d! the community at large They have no right
to INSIST on connection with the Federal Government,
the Of the public money for their own benc-
fit The object of the measure under consideration -
10 avoid, for the future, compulsory connection oil
this kind. II proposes 10 place the General Govern
mem regard to the essential points Of the collection,
sac.keepng, and transfer of the public money, III d
situation which shall relieve II from all dependence on
the will of irresponsible individuals corporations to
withdraw those moneys from the Of private trade,
and coniidc them to agents constitutI"nay selected
and controlled By law; TO absta from improper inter-
ference with the industry Of the people, and withhold
inducements 10 improved dealings the part of IN
dvlduals give stability l., the concerns ot the Urea
sury to preserve the measures Of the Government
from the unavoidable rcproachcs that flow from such
connections, aud the Banks Themselves from the inju
rious effects Of supposed participation in The political
conflicts Of the day, from which they VIII otherwise
find il difficult To escape.
In nv next message, December, l>3- they were
advered 10 ia the following languag"
g IL Will not, sure, hc deemed ont Of place Tor
me here to remark, ta, The declaration u my views ~
opposition to tie policy Of employing banks as drposi-
tories Of the government funds, cannot BE- nstiy CON
s,rued as indicative o! hostility, official or personal,
10 those Institutions 10 repeat IN this form, and IN
connection with tins subject, opinions VIII ch have
uniformly entertained, aud on all proper occasions ex-
halv %
the form Of exclusive privileges, and, rs STATE nags-
trac aiming by appropriate Legislation TO secure The
community against the consequences OF t,clr OCCASION
a! acknowledgement, have yet wished To see them
protected IN the exercise Of right conferred by law,
and have never doubted their utility, when properly
managed, IN promoting the interests Of trade, and,
through that channel the other interests of the com
muniiy To the General Government they present
themselves merely as State institutions, having no ne
cessarv connection with lis legislation is adnins'ra-
ton. Like other State establishments, they may be
used not in conducting the affairs OF the Govern
nent public policy and the general interests Of the
Union may seem Ia require
And III my last annual message tie following views
Of the subject were taken:
ain n country so commercial rs ours, banks OF some
form will probably always exist; but tins serves only
to render the incumbent on rs, notwithstanding
the dscoura g,nentS Of the past, to strive IN our r.
sDcctiyc stations mitigate the evils they procuce-to
take from hcn as rapidly the obligations Of public
faith and careful consideration of the immediate m
tercsts Of the community will permit, the unjust cha
racter of monopolies-to check, 50 far as may be
practicable, Jy prudent legislation those temptations
Of interest and those opportunities for their dangerous
indulgence, which bcset them on every side, and to
contine them strictly TO the performance Of their para
mount duty, that OF aiding the operations ofcommerce
rather thcn consulting their own exclusive advantage
These and other sauary reforms may IT is believed,
be accomplished without the violation of any OF the
great principles of the social compact, the observance
Of which is indispensable 10 It's existence, or ncTer-
ing any way with the useful and profitable employ
ment Of real capital.
"lnstuons SO framed have existed, and still exist
elsewhere, giving To commercial intercourse all neces-
sary facilities without initiating drpcca;ing the cur
rency, stimulating speculation Thus accomplishing
their legitimate ends, they have gained the surest qua
good will of the community. Among 4 people 50 Just
as ours the same results could not fail TO attend TO
similar course The direct supervision OF the banks
belongs, from the nature of our Government, TO the
" ie I'm thplr I,ppiS