, 1840-02-22

nor individual besa,Iowed to break a promise
with impunity.
And here | cannet but express an arprehen-
sion, that all systems which, whether under
a general law or under special acts, shall
have the effect to oblise the faith or tie opin-
ion of the government, in favor OF the re-
sponsibility of banks, will be essentially
faulty. A general law compelling banks 10
deposite securities with an officer Of the
government whether treasurer or comptroll-
er, must have the effect to convey to the
people the idea that the securities thus depos-
tied are, IN the opinion of the government
sufficient. If | am right ip considering this
indirect pledge Of the public confidence, as
one Of the radical vices OF our system, you
will perceive that | cannot consistently rec
ommend a sy&n"m which would, it is true,
change the 10 Of the pledge, but would in
reality renew !. IN a stronger form than be-
fore. A promise must rest on the ability
of those who make it, and in the determina-
ton Of the government to preserve the invi-
olability of contracts. The legislature ought
to take upon itself nothing but the preserva-
ton of that mviolability, and for that reason
ought not to be checked in its course by
such sentiments as would naturally arise in
behalf of institutions, towards which, il had
already shown itself favorable, be departing
from the rules Of equality in creating them.
The vice Of monopoly in our system has
another evil. /, separates the banks from
the action of general laws, and binds them
together by the nature of special legislation,
in giving TO them peculiar privileges and in
~teresls. Nay, we heve seen banks them
selves holding conventions and usurping the
power 10 decide, when, and under what cir
cumstances they would recognize the valldl-
" of their own promises TO pay on demand;
and, relying upon their claims ioI exemptions
and i~nulgencies, publicly discussing the pol
icy Of an honest fulfilment Of their obliga-
tions. A strong, concentrated &united inter-
est is thus made 10 operate, not only upon
public opinion, but upon legislation ITSELF
In proof that has been the case, | need but
refer TO your own journals. While ! per
ceive that the suspension Of specie payments,
by the banks, was, by a large majority, de-
clared Il breach of their charters, invol ing
a liability Of their fortune, it is with grief |
read there law justifying, or the part OF the
banks, the suspension Of specie payments, by
4 vital repeal Of its penalties, il was enough
for the public 10 have exercised 4 voluntary
lorbc1rance. If my view il just. It was the
duty of the legislature, If it interfered ut all,
10 have interlerei for asserting tho inviola-
b,lity ofcontracts. But such is the vice oil mo-
nnroly: it WINS 10 It's defence the power that
gave it being, and Ill the interests involved in
II, act with unity in protecting themselves
against that 10 which individuals cleerfully
submit. | am fully persuaded that there i.
danger that his sy mpathy, on the part OF the
legislature, will continue till the character OF
monopoly is done away. | have a convic
ton tina, never shall we be safe against supen.
sions, till suspension and bankruptcy are held
10 be synonymous; till the idea of bank con,
ventions and bank concert be abandoned,
and each bank shall for itself individually
resolve, always, honestly to keep its promis
es. IL isso in the mercantile world. Each
merchant acts for himself. In reference 70
this branch Of the subject, the true remedy
is obvious. BY removing the character Of
of monopoly. each bank would lose the ap.
parent endorsement of the Commonwealth,
and would be thrown on its own resources
to stand or fall as its integrity might require
The second essential vice Of our system
Its great expansion, and the wide introduc,
ton of paper as the exclusive currency ior
sums as small even as one dollar-is one 10
which The attention Of Massachusetts, ought
especially to be direbted. We are n manu-.
featuring and commercial people; and we
have been suffering from 4 system of hostili
ty TO Amirican industry. 1t is not when
considered as a domestic question, that this
evil in our banking sysctem presents its
worst aspect. 1t is when we comntemplaie
our relations to foreign states, that we are
made fully sensible Of the cause Of our suffer.
ings. Our currency, except for the sums re
CURED for change, is composed wholly Of pa
per. Very little gold circulates among US.
Even silver dollars have almost disappeared
from the currency. Their place is taken by
paper. Now this paper pretends to be con
ve:tible into, and equal TO specie; but the
experience of the few last years has proved,
that as an aggregate, it is not. Tie great
expansion Of the credit system raises prices
to an unnatural height-far exceeding what
would be possible in countries like England
and France, where gold and silver form so
, large a portion Of the currency. The for
eigner is, therefore, by the instinct of inter
, est induced to flood this country with the
n