, 1840-02-22

justice, which, like the blessings of Heaven
should descend alike upon all. In a country
like ours, where 4 spirit Of daring adventure
carries our people beyond thei: means, and
stimulates them to stretch credit to its at
most tension, a system Of restriction and
moderation. rather than encouragement ana
stimulation should be recommended.
The experience of all ages and nations
shows, that no circulating medium can be
established and maintained at a uniform rate,
unless it possess intrinsic value. Any other
will inevitably depreciate. Neither the hrm
resolves Of patriotic communities, nor the
Legislative enacments of free republics, nor
the imperative cdicts Of despotic power,
can sustain any other standard of Value
The laws of trade can no more d controlled
th1n the laws of nature.
1t is the worst feature Of unequal legIsla-
ton, that while it creates separate interests,
eager for its preservation and defence, It SO
infuses itself into the affairs Of the communl-
ty, that reform itself becomes painful, and
a sudden change Of policy proves disastrous,
even to those whose wrongs il would redress.
If a simple repeal of q bad law were suiii-
cient to heal the evils that may have sprung
from it, the work of legislation would be ea-
sy and agreeable. But experience, which
has awakened public attention to the vices OF
our financial system, is obliged also TO re-
~cognize its existence. Under the operation
of this system, and Notwithstanding its evils.
we lave grown in wealth, and have enIoyed
an extraordinary degree Of prosperity. The
system has become Incorporated into orr
code, affects all private contracts, and has
an influence on all the business Of life. It's
sudden abolition would produce incalcula5le
mischief, and greater injustice and suffering
than that for which n remedy is sought. Be
sides, in the recent loss of credit submitted
to by many Of the banks in the Union, the
banks Of Massachusetts, remained true to
their engagements. therefore recommend
no precipitate action; | would council no
rash change. For any fundamental action
on this subject ! would even advise delay, till
the measures of the general government,
with regard to the collection and dIsburse-
ment Of the national revenue shall be DEL
initely settled. In return, ! would call upon
you all, by the importance Of the subject,
and the deep, long continuing and increas.
ing disasters that must follow a mistaken
course, 10 join in preparing 4 wholesome re-
form, and in erecting stonger barriers against
impending evils; if, indeed the banks which
exist BY grants from the Legislature have no,
already grown too powerful 10 be coatrol!-
ed.
live carefully ~analyze the distresses which
have pervaded our financial world, and
search in our banking system for the radical
inirmities from which they have sprung, ]
believe they may nearly all be traced to two
essential vices. The first is its character oil
monopoly; the second is its too wide expan,
sion and departure from the specie basis
leaving not sufficient specie in circula,lo nlor
the security Of a uniform currency.
A bank charter partakes Of the nature oil
a monopoly. 1t confers powers and rights
valuable to the corporators and important
to the pnblic, from the enjoyment Of which
others are excluded. The authority TO is
sue paper promises for circulation, and to
transact other business on spanking princi
pies" is one Of the "particular and exclusive
privileges, distinct from those Of the comm
nity,' which is an essential element Of mo-
nopoly. Were these powers and privileges
conferred only upon one individual or corpo-
ration, the exclusive nature Of the grant
would, at once, show its unreasonablenesi
injustice. The multiplication Of charters
and the compensation received for them
may diminish the character of exclusiveness
but will not change the nature of the grant
And while they may mitigate some OF the
evils, they will increase the strength and
danger of others.
A monopoly is, in the first place, al injus
tice; it is counter to the democratic princi
pie, which can alone give vitality to our in,
stitutions. A monopoly cannot rest on the
doctrine of equality. 1t must, however
be conceded that the profusion with which
bank charters have been lavished, has al
least, taken from them any special value: MOI
is it believed, that the regulation ofthe bank
ing system by 4 general law. would create
any large accession of competitors to tho
existing banks. The great evil Of the mo
nopoly, does not, in this Commonwealth, liz
in the exorbitant value Of the privileges con
ferred. But the act of special legislation
which creates a bank, does in some measure
imply a pledge Of the State in favor of The
institution. The State calls it into exist
ence. The men who contribute its capital
whether real or nominal, are NOT alone re
sPonsible for it. By granting a charter t.