The Ohio Democrat and Dover advertiser. [volume] (Canal Dover, Ohio) 1839-1840, 1840-01-10

Fseutng TO thatremedyi but IN addtiUn 10 this,
Eoannol, after past experience, bring myself Il
think that X taR.any longer be axienseysly re
Leanded as effective for sucha purpose. 1h'
histoTy Of this late National Bank rthrough nj
its mutations shows that il was not 20. On IN,
icsRirary, il may, after carsihL consiIeratio,
of the subject, bs | think, safely stated, that a
every period Of banking excess itiook the lead
that in 1917, aRd 1878, in l623in 1881, and il
1884, its vast expansions, followed by dislresE
ing e0niIactions, led 70 those Of the State insti
ttutions, 1t swelled and maldeue6 the tides O
the banking system, but seldom allayed, or sat;
" directed them. .Ata few periods only was
salutafy centtol exercised but an eager desire
I on the contrary, exhibited for profit in the frs
place; and IT, afierward, its measures were Sc.
l'vrse towards other Institutions, il was'beeaust
its own safety compelled itto adopt them. i
did ne, differ from them in pfincipIs or in form
| its measures emanated from the same spirit o
gain, il felt tho same temptation TO oveSissues,
il suffered from, and wastotally unableto aver
those inevitable laws OF trade, by which it was
itself affected equally with them, and at least on
one occasion, at an early day, il was saved on
ly by extraordinary exeriions from the same iate
that attended the weakest institution it professed
to supervise. In 1887 it failed, equally with o.
thers, in redeeming its notes, though thetwo
years allowed by its charter for that purpose had
not expired, alarge amount ofwhich remains to
the present time outstanding. II is true. thut
| having so vast capital and strengthened by
the use Of all the revenues Of the Government,
il possessed more power, but while it was IL
self by that circumstance, freed from the con-
troll which all banks require, It's paramount obs
ject and inducement were left the same,t to make
the mos: foFts stockholders not 10 regulate the
currency Of the country. Nor has it. as far as
we are advised, been found to be greatly other
wise slsewero. The national character given
to the Bank Of England has not prevented ex-
cessive fluctuations ir their currency, and pro-
yed unable to keep of suspension of specie
payments, which lasted for nearly quarter OF
a century. And why should we expect 1t to be
tlIerwisel A national institution, though de-
irving its charter from different source than the
Stale banks, is ct constituted upon the same
principles, is conducted by men equally expos
ed to TEN ptation, and is liable to the same dis"
asters, with the additional disadvantage that its
magnitude occasions an extent of confusion and
distress which the mismanage ment Of smaller
institutions could not produce. kcanscaroey-
be doubted that the recent Suspension OF the u
nited States Bank of Pennsylvania, Of which
the effects are felt not in that State alone, bot u
YER half the Union, had its origin in course Of
business commenced while It was national In
stiiution and there is no good reason for sup
posing that the same consequences would not
have followed had it still deriYed IFS powers
from the General Government 1t is in vain,
when the influeaces and impulses are the same,
IN lnnly Car A,H. in, cnnI,.of for roaulfG
By such creations we no, therefore, ifincrease
the mass Of paper credit and paper currency,
without checking their attendant evils and tuc.
tuatiOns. The extent Of power and the'efficien
cy Of organization which we give, so far from
being beneficial, are, in practice, positively in>t
juriJus. They strengthen the Chain of depen-
dance throughoutahe Union, subject all parts
more certainly to common disaster. and bind
every bank more elfectually, in the first instance
10 those ofour commercial cities, and in the end,
to foreign power. In word, cannot but be
lieve that. with the full understanding OF the
operations Of our banking system which expe>
rience has produced. public sentiment is not less
opposed to the creation Of National Bank for
purposes connected with currency and com.
merce, than for those connected with the fiscal
operations Of the Government. ...
Yet the commerce and currency of the coun-
try are suffering evils from the operations Of the
State banks which can not and ought not to he
overlooked. By their means. we have been
flooded with deprecated paper, which It was
evidently the design Of the trainers Of the Con-
sttution tn prevent, when they required Con-
gress 10 coin money and regulate the value Of
foreign coin,' and when they forbade the States
tn coin money, emit bills Of credit, make any
thing but gold and silver tender in payment o!
debts or pass any law impairing the obliga-
tion of contracts II they did not guard more
explicitly against the present state Of ttings, II
was because they could not have anticipated
that the few banks then existing wero to swell
to al entent which would expel to 40 great de
gree the'gold aud silver, for which they bad
provided. fiom the channels Of circulation, and
fill them with a currency that defeats the OBJ 4
jec,s they had in view. The remedy for this i
must chiefly rest with the States from who's,
legislation il has sprung. No good.that might
accrue in particular case from the exercise o
powers. not obviOtsy conferred oil the Gener.
al Gov, ,nnleiit, would authorize its interference
or justify acuurse that might, in tie slightest dc.
gee, increase, at the expense Of the States, the
power Of the Federal authorllies-nor do doubt
that the States will apply the remedy. Within
the last few yearA, events have appealed to them
too staongIy to be disregarded. They have seen
hat the Constitution, though theoretically ad.
hered to, is subrerted in practice; that while OIL
the statute books there is NO legal tender but
gpld and silver, no law impairing the obga-
tons of contract, yet that, in point of fact the
privileges conferred on banking corporations
have made their notes the currency Of the coun
try; that the obligations imposed by these noes
are violated uader the impulses of interest or
convenience; and that the number and power Of
the persons connected with these corporations
or placed under their influence. give them
fearful! weight when their interest is in opposi.
ton to the spirit of the Constitution and laws
To the p opte it is immaterial whether these rs
suits are produced by open violations of the lat
ter, Or by the workings Of system Of which
the result is the same. An indexible execution.
even of the existing statutes of most of the
States woald edress many evils now endured;
would effeotuaLy show the banks tho danpera