Lincoln telegraph. [volume] (Bath, Me.) 1836-1846, 1840-01-02

sion Of the New York Banks III 1887, which was
followed III quick succession throughout the
Union, was produced by an application Of that
power and it is tow alleged INT x5elsnalion of
the present condition of 80 klEao pnktlon oil
our banks, that HEeir emhafk aasients hAke aris-a
en- from thesan4e cause. - s9S 2 q
From this influence they cannot now entirely
escape Tor II has its origia- in the credit HsHrreh-
cies OF The two countries it is strengthened by
the current of trade anaezchaBge, which CEN
tres in London, and is ronderdd Amos iraesistis
BILE by the large debts cpnsractea Ahefelg our
merchants, our banka, and our tales. 5tH thus
that an Introduction Of NEW bank nto lie IN 9sf
distant Of our villages, spihess the bhsiHoss 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, serious
ly Affects our own currency, and extends over
the pursuits of our citizens its powerful inilu-
ence. We cannot escape from this by making
new Banks, great or small, State or National.
The same chains which bind those now exist
ing, to the centre of this system of paper credit
must equally fetter ever simillr institution we
create. 1t is only. by the exte at which this
system has been pushed Of late, that we have
been made fully aware CT its irr ssistibe tenden-
cy to subject our banks and currency to vast
controlling power in foreign snd and it adds
new argument to those those which illustrate
their precarious situation. They are yet sub
jected beyond all this. to the effect of whatever
measures policy, necessity, or caprice, may in
duce those who control the credits of England
to resort to.
mean not to comment upon these measures,
present or past, and much less to discourage the
prosecution of fair commercial dealing between
the two countries, based on reciprocal benefits
but il having now been made manifest ,thrt the
power oil iniiicting these and similar injuries is
by the resistlcss law Of credit currencyiand
credit trade, equally capable of extending their
consequences through all the qualifications of
our banking system, and by that means Indirect
ly obtaining, particularly when our banks are
used as the repositories of the public moneys. a
dangerous political influence in Iftsc, United
States have deemed it my duty 70 Sang the
subject to your notice. and ask for it yourscrious
consideration.
Is an argument required beyond the exposition of
these facts, to show the Improperly of using our
banking institutions as Repositories of the public
money Can we venture not only to encounter the
risk OF their individual and mutual mismangement,
but, al the same time, to place foreign aud do
mesfic policy entirely under the control of foreign
monied interest To do SO is to impair the indepe1-
denoe. of Government as the present credit sys
tenn has already impaired the independence of our
banks. IL is to submit all its important operations
whether fpeacc or war, to be eonroes or thwarted
at first by our own banks, and then by power
abroad greater than themselves cannot bring my
selfto depict the humiliation to which this Govern
nent and people might be later redaced, if
dependent upon those who may have the most pow
eiiul Of motives to impair them. s+...-
Nor Isl 1t only in reference to the effect of this state
Of thngson the independence of our Government or
Of our banks that the subject presents itself for
sideraton; it s 10 be viewed also in its relations to
the general trade of Our county, The time is not
long past When deficiency of foreign crops was
thought to afford profitable market for the surplus
of our industry but now we await with feverslf anx
iety the news of the English harvest, not 10 much
Locomotives Of commendable sympathy but fearful
lest its anticipated failure should the field of
credit there. Does not this speak volumes the pat
riot eau system be benefcent, wise or just
which creates greater anxiety for interests depend
ent on foreign credit, than fer the general prosperity
of our own country, and the profitable expectation Of
the surplus produce OF our labor? - ~
The circumstances to which have thus adyerted
appear TO me to afford weghty reasons, developed by
late events TO be added to those which have on for
nler occasions offered, when submitting TO your bet
tsr knowledge and discernment the prepreiy ofsep-
arahg the custody of the public money from bank
ing institutions.
y Nor has anything happened to lessen, in my
opinion, the fierce ofwhat has been heretofore
urged. The only ground on which that custody
can be desired by the banks, is the profitable use
which they may make OF the money. Such use
would be regarded IN individuals as a breach of
trust, Or crime of great magnitude, and vet it
may be reasonably doubted whether first and
last it Is not attended with more mschievoas
consequences when permitted to the former than
to the latter. The practice OF permitting the
public money to be used by its keepers as here
is believed to be peculiar to this country and ito
exist scarcely any whers. else To procure i,
here; improper Influences are appealed Ito UNI
wise connections are established between the Co.
yernment and vast numbers OF powerful State
institutions; other motives than the public good
are brought to bear. on the Executive and Legs.
latiye departments, and selfish combinations
leading to special legislation, are formed. 1t is
made fha ufar IF han1 t;f,..,
their stockholders throughout the Union to use
their exertons for the increase of TAXATION and
the accumulation of surplus revenues; and
while an excuse is afforded, the means are afior-
ded for those excessive issues wqich lead TO .ex-
travaganl trading and speculation, and re the
forerunncrs OF a vast debt abroad, and a suspen-
sou OF the banks at homo. = ,..;l 1T -
Impressed, therefore, as aps, With the pro-.
priety Of the funds Of The governpfilt being wiAn.
drawn from thepfiyate use "a either banks 2rins
.&Eiduals, and tie. iubhc money kdpt,by DIZZY ap.
painted public asehtsS and belieyipg as do, tkQt
such also isth6 5adghient which disclsslen nee
tiectiainand ience stluvg ,pfodIced Oh, the
public-ulindt Hk.dye +bcs snbjecc With. yoA. II
iss at ni events iesse,ta to the hfNfits q the
coflnaitnty aad-the business ol:tfi Toyeri,nentA
fkat a-decisios should be- undo. 4. ~
Most al he-asgem eats diif1ade us from
employing. ba,.ksif the -cnstbdy' and ,disbursa-.
mfnt pflthe pubic.mpney apply %ifE cquafforce
xeceips of tlcif notes faf bdblfc dne The
difference is only IN fornfN III one instance the
GoseniIdent is a creditor its deposites and in
the other for the notes it holds. They afford the
same opportunity for using the public moneys,
and equally lead to all the evils dependent upon
1t, since bank can as safely extend its discounts
on deposlte OF its notes III the hands OF an Off
Ger, as on one made in its own vaults On the
other hand, it weuld give to the Government no
greater security, for, in Of failure, the claim
Of the noteholder would be no better than that
of depositor. $40
am aware that the danger of Inconvenience to
the public, and unreasonable pressure upon sound
banks, have been urged as objections to requiring
the payment Of the revenue in gok and silver These
objections have been greatly exaggerated. From the
best es Inmates we may safely fix The amount of spe-
Gle III the country at eighty five millions of dollars
and the portion OF that which woald bs employed at
any one time in the receipts and ofthe
government, even If The proposed change were lnade