The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1840-03-25

8 public, very correctly we lhink, To make 81
its own opinion upon the MANNER in whiel
= affairs in that institution have been conduct
!. ed. A lis, Of loans to individuals is alst
!, appended. The following has been made {,
Directors Of the institution
John E. Cost-r e256, ,426.
Campbell p. White I29, ,59S.
~, Thomas Suffern 57,69S.
y james Mcbride 33, 500.
There can be no doubt (query y lha
every dollar Of the above is amply secured
{ ard will be paid To the institution bu
what picture Of the SYSTEM does it pre-
I sent to The world FoUR DIREcroRs OF 4
BANK obtaining loans To the amount o
HALF A MILLION OF DOLLARS, while HUs
DREDs OF MERCHANTS, TRADERS and 9th
ERs, Dith go"d business paper, have beer
turned away from that institution with the
decIarntion that they hare no money ia
loan From tpo to three hundred custom.
ers could have been satisfactorily accoinmo
dated by the above amount loaned to FoUR
DIRECToRs; and The want of which have
compelled many to suspend payments. or
ask for an extension Of their notes. Let MS
not be understood TINT this system Of loan
! ing TO Directors. large sums of money, i,
con nfnedtot the Manhattan Bank, II PREVAILS
GENERALLY. ms we apprehend, and noe haze
IN HiS PRACTICE the SOURCE and FOUNDA-
TIoN Of most Of the TROUBLES under phich
thus CRY and STATE are nO,o suffering, and
hrequires FORTHWITH the ACTION Of the
LEGISLATURE Of the STATE.
A Director of n Bank is gudrdion--a
trustee, and is in honor bound to discharge
his trust faithfully. He cannot discharge
his trust honestly and faithfully, if he takes
from merchants and traders the FACILITIES
required TO sustain their CREDIT and busi-
ness operations. They who petition the
Legislature for Bank Charter, predicsted
their prayer on the w0nts of the pubie,-on
the necessity Of more Banking capital; but
certainly not on The WANTS or sPECULATIoNs
Of the DIREcroRs That The loco-fo
have been in error on many points connect
ed NTH Banks and the currency admits Of
no doubt; Bur 1T HAS NOT BEEN ALL Err.
RoR. THBY ARE RIGHT IN SOME THINGS,
AND PARTICULARLY THE ABUSES OF CHAR
TERED INSTITUTIONS"
Now, we do not know the extent Of Major
Noah's authority in the whig party, or whether
the doctrine which he has pro omulgsted as whig
in New York. will be received hereas orthodox,
or denounced as locofoco. but we believe il 10
be the true one; and he denounees. in no
measured terms, as the SOURCE and FoUNpArIoS
Of the existing distress in that state. tho very
sys,em, which is so ardenty advocated by the
=. party in his. On this point. Major. we mos,
certainly agree. But we shall not agree in de.
nouncing the Government as the AUTHOR Of evil,
which ySu have now. either Inadvertently oI
honestly, attributed TO ANOTHER CAUSE. Ii
this you will please excuse us. That cider
is little too hard, to our taste.
Il With the aid Of what We consider good au
' thoriiy, we have thus succeeded, we trust, il
demo onstrating the fslsehood Of the original prop
osllion (THE GRAND AssuMTIoN RATHER) Of III
lriends,-' That the present banking system i.
favorable TO credit five have done this
we have shown, as we think we have conclu
sively. that every step in the argument. by
which the MAIN PROPOSITION, is sustained, i.
full Of sophistry. and founded in consideration ns
not only erroneous, but directly the reverse o.
the truth il certainly cannot be necessary 10
notice either the minor assumptions or the pa
rade Of figures, Of the writer in the Herald
which are predca,ed on the SAME FOUNDATION
and rest upon the same or similar argume nts
for their support. Nor shall we do this. Our
main object has been, not so much to follow
the writer through the various aud intricate
windings OF a long chain OF Improved assump-
tions. as to expose the fallacy and insecurity OF
the foundation on which the whole supersiruc-
ture is based; and to call the attention of the
public 10 the true source,--the original and ef-
ficient cAUsE,-of all our existing embarrass-
mens,
| THE REMEDY.
Having now clearly seen, and fully exposed
the injustice Of the complaints that have been
made against the administration, as being the
AUTHOR of the present distress Of the country /;
we proceed very briefly TO notice the various
measures that have been proposed by the gov
ernmeni for the correction and prevention OF
the abuses, which we have pointed out.-and
! from which the existing embarrassmen,s Of the
country have unquestionably arisen. And as
IL is against the introduction OF these measures,
that portion Of the opposition as ciamor-
GUS as they are lavish and reckless in their a.
busc Of those who have been instrumental in
bringing them forward; We proceed 10 notice
them in ds,ail,-and leave the pubic TO decide
on :her merits. as well az on the motives Of
their authors.
The rihsr measure proposed, is to separate
! the financial concerns of ,bs ca,.,n,., -.
those oil the bsnas. This is acknowledged. on
sli sides, 10 be all the power the general gov
ernment possesses directly, to correct the abu-
sss OF the banking system. Ii is also aeksowl-
| cdsed that this msaaure. 40 far a IL nae. ar