The Madisonian., 1840-02-13


and prosperity. Blu, aler General Jackson refused
10 pass The bill for The renewal of its charter and its
stockholders were fsin to solicita charter from the
Stale of Pennsylvania, see how materially lis cir
cumstances we're changed. As The charter it OBJ
taiued was granted by It's political opponents who
either felt fegned its chiefs resenlments the most
rigorous conditions were imposed: II was required
10 pay bonus OF millions TO The State, which was
uble The bonus It's predecessor had paid 10 the
United States II was further required 10 subscribe
10 several railroads and canals then in progress or
medilaled, none Of which conld be expected TO yield
iair dividend for many years, and some might
never yleid one. SO unusually burihensume were
'hese efns thai many persons thought al the time
lhey ouSht mol TO have been assented TO- and il may
be iairly presumed tha, they would have been re-
Jec'ed II the hope had not been entertained with
some confidence, that most of the branches in The
southern and western States would have been con-
tinued. ! hese States had all solicited branches;
they all wanled The ala of capital, aud the bank
| never stood higher in their favor and confidence
than al The termination of its charter The desire.
TOO, 10 obtain a seeming triumph over their arch
enemy, probably also influenced The stockholders
lie also seemed TO have regarded the establishment
in The same light as he and most Of his adherens
pursued II with The same implacnble hatred which
they had felt for The national bank though The OBJ
JectionS made 10 such bank no longer had any
application. The expectations Of the stockholders
were disappointed Parry discipline prevailed in
the State legislatures against the previous wishes Of
the people, and the branches OF The national bank
being compelled 10 wind up their affairs, the Penn
sylvania Bank not suffered 10 replace lhem and
the capital il could be collected was concentrated
in Philadelphia. In closing The concerns of the
hran he loss w nof nh nd tba
whole OF il fell on The new bank.
After a considerable proportion of the bank capt.
tai had accumulated in Philadelphia, il was soon
found to be disproporlionae 10 the Of single
State, and Of course new expedients resorted
TO for empl yng The excess, by way Of securing re-
spectacle dividends TO the stockholders. For this
purpose believe agencies were established in some
Of the States, which exercised Of the func ions
OF a bank without the name; and we know that
State stocks were purchased 10 large amount, and
that the profits and temporary resources Of The bank
were greatly enlarged by the issue Of post-nocs
payable long after date.
In the business of domestic exchange every
where, and in that Of discount out OF Philadelphia.
lis profits were greatly reduced by the numerous
rivals which sprung up every where on The dissolu-
tion Of the National Bank, and which all the infu-
ence OF the admin sraon had been exerled to call
into existence. Some of these rivals, TOO, had The
efficient aid of the public deposi,es, then reaching
| an unprecedenied amount
Ifthe profits OF the new bank were thus abridged
by the action Of the Government, its hazards were
also greatly increased General Jackson looking to
Spain and Portugal for lessons in political economy,
two Of the foreign States, apprehend, whose sys-
TENS of finance your Secretary has consulted en-
deavors, like those nations, 10 increase the quantity
Of The precious metals beyond that which the country
would obtain by the spontaneous operations of
merce. Gold and silver were industriously i'm
ported, often when remitiances could have been
more advantageously made by bills or merchan-
disc The avowed purpose was TO prepare the
Try for The benefits OF metallic currency and TO put
down the paper circulation. But the experiment
proved like the attempt to extEguish fame by spirits
of wine, and the gold and silver imported became
the alimen; OF new banks aud new issues of bank
notes. The natural consequence Of this redundant
circulation was degree OF over-tradng, both at
home and abroad beyond all previous example, and
heavy foreign debt. The price Of cotton having
fallen al the same time, and the monetary transac-
tions of the country being yet farther embarrassed
by some of the measures of The Government all the
banks, comprebending The great Bank of Pennsy-
vania, which had no peculiar advantages over the
rest, found themselves compelled to suspend specie
payments or be drained of their last dollar
pray, sir, now TO compare The situation Of the
Bank of Pennsylvania with what had been The silua-
lion of the National Bank, if lis existence had
been prolonged. II would have been free from the
grievous burthens imposed by the new charter. II
would have had the cooperation Of its 25 branches
and have continued its safe and profitable business
OF domestic exchanges OF which it had almost the
monopoly, by doing the business cheaper and better
than any other banks. No part of its funds being
locked up in State securities and being employed al
most wholly inexchange or in the discount OF business
paper, they would have been more readily avaable
and the Bank would, besides, have had amount Of
specie on hand sufficient 10 meet any run that twas
practicable to make. Nor would the same demand
for specie for foreign remittance have existed ifthe
! expected discontinuance of the National Bank had
not aided by the influence Of the Administration, so
stimulated the creation Of new banks.
.Tosay that bank thus crcumsanced, would have
suspended payment because another bank similar in
name, capital and motives Of action, but with ncrea-
sed liabilities, diminished resources and engaged in
more precarious business had suspended see TO
about remarkable insist that if the mercury
had been as much above the freezing point it
now is below it, the ice in the Potomac would have.
been as thick as it now is or to contend that
chan: who had failed after he had sustained heavy
losses and had been deprived of some Of the most
profitable branches of his business must still have
failed without the changes merely because he was
the same individual having the desire of gain,
and subjected to the casualties of trade This
logic may suit the columns OF mere party journal
and may be addressed 10 willing ears from the has
lings, but, with due Difference, it hardly seems
worthy Of Presiden, Of the United States II ever
| in n cha If