The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1840-05-15
CONCLUDED from fourth pGge.

tne true Issue now before The country Ii between
sn Independent Treasury and National Bank
1.-The Pet Bank deposite system has been such
utter failure, that another resort TO it cannot be
seriously contemplated by any considerable portion
Of the American people | feel the utmost conf
should the law be ably and efficiently executed ;
but Should it fail, the next experiment will doubt
less be another Bank Of the United States.
Waving, at present, the constitutional question
on which have often expressed my opinion before
the Senate, propose taking up the Senator's ar
gurnent and prove that such a bank would not re-
gulae the currency if it could; and that even if it
felt the will to do so, it is entirely destitute Of the
power
Would such bank then, If it could control and
regulate the loans and issues of the State banks !?
In the affairs of human lie, i YOU expect one agent
to restrain another, YOU ought to render their inter-
ests conflicting This proposition is cmpmtiaally
true, when such agents are banking corporations,
intent upon declaring the largest possible dividends
among their stockholders, Now Bank OF the
United States, so far from feeling any interest adj
verse to the State banks, would have the very same
inducements with them to make eXtravagant loans
and Issues The duty of such bank, as rcsua-
tor of the currency, would be directly at war with
its interests as banking institution. You cannot
raise men above the selfish passions other nature,
by making them directors and stockholders in
Bank of the United States. When their interest as
bankers conflicts with their duty as regulators of
the currency, the history of mankind points you to
the probable result Like the State banks, they
will always extend their loans and their issues,
whenever they can do so without endangering their
own security. This is the powerful instinct of self
interest II is absurd them to expect that the pre-
sdcnt and directors ola Bank Of The United States
will ever become safe and efficient regulators of the
currency, in the very face of their own interest as
stockholders. 1t would be easy for me to prove,
from historical facts, that neither the former nor
the present Bank of the United States evefdid en-
erciSe regular and efficient control over the issues
Of the state institutions. On the contrary, when
ever their interest impccd them to extend their
own issues, they have pursued this course and
thus instead Of checking, they have given loose
rsins to the State banks. Both the Bank of the
United States and these banks have thus together
rushed on, and with united forces have ministered
10 that spirit of ovcrtrading and eXtravagent spec
nlaton which has so often dcsolated our country.
Time will not permit me to do more than refer TO
tbs vast expansions of this Bank in 1911 and 1918,
in 1928, in 1881 and in 1884. These produced
ruinous c"ntaclions and universal distress. think
may affirm, with perfect safety, that at each of
it took the lead. Has it ever preserved tho State
Ranking institutions in sound condition Let
Mr. Gaatn answer this question. lie says one
hundred and sixty-fve of our banks brok be-
tween 1871 and 1880 and during the greater part
of this period, we all know that the present Bank
OF tho United State was in active existence.
My great object, however, at this moment, is to
prove, the present condition oflhc Bank of the
United States, how hopeless it is to expect that
any similar institution can ever he relied upon as
n regulator of the currency That Bank still ex-
ists if its prescnl occasion may be called ex-
is,ence and this is the first occasion on which
have ever known the Senator to be guilty of un-
gratefully abandoning an old friend in the hour of
calamity Bofaro tukc my stat, shall cndcayor
to identify the gentleman and his party with this
institution. They lovely in life, and in death
they shall not be divided"
II is said that the Bank of the United States is
now but mere State institution. But is its char
acter changed by changing the source whence it
derives its charter /; Is it not still the same nstiin-
ton that ii ever has been, with the same capital,
the same directors, the same stockholders, and
until very recently, has it not been governed by
the same controlling wi' Has it not been eyul-
,ng'y proclaimed by its former president, that it
now has much better charter from Pennsylvania
than that which it had received from Congress
This is strictly the truth; for such charter as that
nnder which it now exists was never before gran
ted to any banking corporation, either in England
or this country. The United States, it il true,
ceased to be stakeholder but il enjoyed the
privilege Of selling their seven millions of stock,
for which it could have procured, and doubtless
did procure, a large advance.
From the very nature of things this vast monop-
DIV, with capital Of S35 900 900, could not have
become State institution. single state, with
more than a sufficient number of State banks al
ready in existence, could not have furnished en-
ployment for its immense capital. ltwould have
starved within such narrow limits.
Did 1t, in point of fact coniinc its operations to
Pennsylvania No, sir 4 aspired 10 regulate the
currency and exchanges ct the whole Union his
wa, tho high political duty 10 the performances of
which il proclaimed Itself destined. To tell ne
tina, this Bank all al once changed iia character and
became q mere State institution, merely because
it had received charter from the legislature Of
Psnnsy lvania, Is TO deny the evidence Of our own
senses. Was not the currency issued under the
nc charter as well as that under the old, declar-
cd, in 1886, to be the best currency which the
world had ever SEEM Did not the new notes COM
mand the same premium, all over the Union, with
the old ones and would they not still continue to
command the same premium il it had not fallen
fallen from its high estate
Why, sir, il became, in fact, more Bank Of the
United States after it received its PENNSYLVANIA
Charter than il had ever been before. II bought up
State banks and converted them into branches, in
Louisiana and in Georgia and it shot ont its branch
agencies over the Whole Union. In New York it
has established branch bank, under their free
banking law.
Sinrc its new charter not content with the whole
United State a. the theatre oiits operations, il has
established an agency in England, and aspired "to
beard the lion in his den," and 10 become the rival
Of the Bank of England in London iisc'f II scorn-
ID to confne i,se.f to banking operations alone
bat has invaded the province of the merchant, and
has attempted to nonopoiizc and regulate the whole
cotton trade between Europe and this country. And
vet this Bank is now said 10 be Pennsyl IVA
MIA institution.
Now, Sir, would ask the Senate, is there the
least reason to believe that If this bank had conin-
ned 10 be the deposary Of the public revenue until
Nav, 1897, that its fate would have been avcrted,
or that we should moi then have lad another gener-
al suspension of specie payments Why, sir, the
pnb- drp,siies would have added fuel to the flame
and wonli have tempted the Bank 10 engage in
Al wilder speculation The cverban,nl md over
IL. "a, ieqG ,.h;.h ,yprn conducted under tia