The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1840-01-07

ton OF that power; and II s now alled9ed in exten-
uation of The present condition of so large portion
of our banks that their embaI easements have aris
en- from the cause,
From this influence they cannot now entirely
cape, for its origin in the credit currences OF the
two countries; il is strengthened by the current of
| trade and exhange, which centres in London, and
is rendered almost irresistible by the large debts
contracted by our merchants, our banks and our
States. 1t is thus that an introduction of new
bank ino The most distant of our villages, places
The business of that village within the influence
of The money power in England 1t Is thus that
every new debt which we contract IN that country
seriously affects own currency, and extends
over The pursuits of our citizens Its powerful nf1u-
ence We cannot escape from this by making new
banks, great small, State or National The
same chains which bind those now existing TO the
centre of this system Of paper credit, must equally
fetter every similar institution we create Ill on
" bv the extent to which this system has been
nushed of late that we have been made fully aware
of its irresistible tendency 10 subject our own banks
and currency TO a vast controlling power IN a for
| eign land and it adds a new argument to those
who illustrate their precarious SITUATION. Endhn-
| gered in the first place by their own mlsmanage-
ment and again by the conduct OF every institution
which connects them with the centre OF tade IN
own country, they are yet subjected, beyond all
this, TO the effect OF whatever measures pocy' ne
cessity, or caprice, may induce those who control
the credits of England to resort to-. mean not to
comment upon these measures present or past @
much less to discourage the prosecution OF lar com,
merciai dealings between the two countries, based
on reciprocal benefits; but ii having now been made
manifest that the power ofinfilctng those and SIM
liar injuries is, by the resIstloss law of credit
currency and credit trade, equally capable Of ex-
tending their consequences through all the rami-
fications of our banking system aud by that means
| indirectly obtaining, particularly when our banks
are used as repositories OF the public moneys,
| dangerous political influence in the United States,
have deemed it my duty to bring the subject to
your notice, aud ask for it your serious consdera-
ton.
Is an argument required beyond the exposition Of
,,o. show he
banking institutions as repositories of the public
money? Can venture not only to encounter the
risk Of their individual and mutual mismanage-
rnent. but the same time, to place our foreign ~
domestic policy entirely under the control of u
a foregn moneyed INTEREST," To do so is to impair
! the independents Of our g"vernmet, as the present
credit sy stem has already impaired the indepen-
dence OF our banks, 1t is 10 submit all its inpor
tant operation, whether of peace or war, to he CON
| troIled or ihwaried at first by our own banks
and then by power abroad greater Than themselves
I ! cannu, bring myselfto depict the humiliation 10
! which this Government and people might sooner
or latter be reduced, if the means for defending
! their rights are to be made dependent upon those
who may have the most powerful OF motives to
| impair them
! Nor is it only in reference 10 the effect OF this
! state orthiugs the Independence of our Govern.
mcn mt Of our banks that this subject presents it.
self for consideration; 1t Is Ia be viewed also IN lis
relations to the general trade of our country. The
time is not long past " hen deficiency of foreign
crops thought TO afford profitable market for the
The surplus ufour industry but now await with
fcyerish anxiety the English harvest, not so
much f;om motives of communicable sympathy, but
fearful lest its anticipated failure should narrow the
field of credit there. Does not this speak volumes
to the patrol? Can system be bcueiicent, wise or
just which creates greater anxiety for interests de-
pendent foreign credit than for the general
| prosperity of our country, and the profitable
expectation ofthe surplus produce of our abors'
! The circumstances TO which have thus adveIted
appear to me to afford wcighty reasons, developed
by late events to be added To those which | have
! cred llpn FIN q tn
your better knowledge and discernment the pro
priey ofseparating the custody OF the public money
from banking institutions Nor has any thing oc-
Cured TO lessen, in my opinion the force of what
has hecn heretofore urged. The only ground on
which that custody he desired by The banks,
is the profitable use which they may make of the
money Such use would be regarded in individuals
as breach of trust, crime of great magnitude,
and vet it may he reasonably doubted whether first
and last il is not attended with more mlschlcvous
consequences, when permitted TO the former than
to the latter. The practice of permitting the pub.
lie money be used by ITS keepers here, is be
leved to be peculiar 20 this county, and 10 exist
scarcely any where else. To procure it here, i'm
proper influences appealed to; unwise conneX-
ions al established between the Government and
vast numbers OF powerful State Institutions; other
motives than the public good are brought to bear
both on the Executive and Legislative departments
ard selfish combinations, leading to special egisa
ion are formed. 1t is made the interest of bank
ing institutions and their stockholders throughout
the Union, to their exertiuns for Ii increase Of
taXalioh emu Tue uccuhu""n u. SUI pius revenues
and, while excuse is afforded, the means are
furnished for those excessive issues which lead TO |
extravagant trading and speculation, and the !
fnrerunners of vast debt abb Dad, and suspension
of banks At home.
Impressed, therefore, as | am with the propriety
of the funds of the Government being Withdrawn |
from the private of either banks or individuals,
and the public money kept by duly appointed pub !
lie agents; and believing, as do, that such also is !
the Judgment which discussiun reflection and ex
perience have produced on the public mind, leave
the subject with you. 1t Isl at all events essential
10 the interests ofthe community and the business !
Of the Cover nment, that decision should be made !
1 am aware that tho danger Of Inconvenience TO
tho public and unreasonable pressure upon sound
banks, have been urged as objections To requiring |
These objections have been greatly exaggerated
From the best estimates we may safely fix the a.
mount of specie IN the country at eighty five mill
would be employed at any one time in the rece pts
Of thnl 10y, iE lie |