Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1840-01-09

SiVC issues oil notes Which they would De !
constantly called upon TO redeem.
am aware it has been urged that this con- |
troll may he best attained and eXerted by |
means Of National Bank. The conStitu- |
tionai objections, which am well known to |
entertain, would prevent me In any event from |
proposing or asserting to that remedy; but
in addition to this, cannot after past expert
ence, bring myself to think that it can any
longer be extensively regarded as effective
for such purpose. The history Of the late
National Bank through all its mutations
shows that il was not so. On the contrary,
it may, after careful consideration of the
subject be, think, safely stated, that at eve
nv period of banking excess 1t took the lead
that in 1917, and 1918, in 1923, in 1881, and
in 1891, its vast expansions, followed by
distressing contractons, led to those of the
State institutions. 1t swelled and maddened
the tides OF the banking system, but seldom
allayed or safely directed them. At few
Reriods only was salutary control exercised,
but an eager desire on the contrary, exhibit
ed for profit in the first place; and if, after
wards, its measures were severe towards
other institutions, it was because its own
safety compelled it to adopt them. Itdid not
differ from them in principle or in form; its
measures cmanated from the same spirit of
gain; 1t felt the same temptation to overiS-
sues; it suffered from, and was totally una
-
which it was itself affected equally with
them; and at least on one occasion, at an
early day, it was saved only by eXtraordina-
ry eXertions from the same fate that attended
the weakest institution it proiessed to super
wise. In 1887 it failed, equally with others,
in redeeming its notes, though the two years
allowed by its charter for that purpose had
not expired, large amount of which remains
TO the present time outstanding. 1t is true,
nd Stra
ed by the use ofall the revenues of the Gov
eminent, 1t possessed more power; but
while 1t was itself, by that circumstance,
freed from the control which all banks re-
quire. its paramount object and inducement
were left the same to make the most for its
stockholders, not to regulate the currency of
the country. Nor has it, as far as we are adj
vised, been found to be greatly otherwise else
where. The national character given to the
Bank of England, has not prevented excess
sive fluctuations in their currency, and it
proved unable to keep offa suspension ofspe-
Gle payments, which lasted for nearly quar-
ter of century. And why should we ex-
pect to be otherwise! A national institu-
ton, though deriving its charter from diff
terent source than the State banks, is vet tom
stituted upon the same principles; is con-
Quoted by men equally exposed to tempta-
ton; and is liable to the same disasters with
the additional disadvantage that its magni-
tude occasions an extent of confusion and
distress which the mismanagement of smaller
institutions could not produce. 1t can scarce
ly be doubted that the recent suspension of
the United States Bank of Pennsylvania--of
which the effects are felt not in that State a.
lone, but over halfthe Union--had its origin
In a course of business commenced while it
was national institution; and there is no
good reason for supposing that the same con-
sequences would not have followed had it
still derived its powers from the General Go
vernment. 1t Is III vain, when the inluen-
ces and Impulses are the same, to look for
difference in conduct or results. By such
creations, we do therefore but increase the
mass fpapercredit and paper currency, with
out checking their attendant evils and fiuctu-
atoms. The extent of power and the efiicien-
cy OF organization which we give, so far
from being beneficial, are in practice posi-
lively injurious. They strengthen the chain
of dependence throughout the Union, sub
1ect all parts more certainly to common dis
aster, and bind every bank more effectually
In the first instance, to those of our CONNER
cial cities, and, in the end, to a foreign pow
er. In a word, / cannot but believe that,
with the full understanding of the operations
of our banking system which experience has
produced, public sentiments not less oppos-
ed to the creation of National Bank for pur-
poses connected with currency and commerce,
than for those connected with the fiscal ope-
rations of the Government.
Yet the Commerce and currency of the
country are suffering evils from the opera
lions of the State banks which cannot and
ought not to be overlooked. BY their means,
we have been flooded with deprecated
paper, which it was evidently the design Of
the trainers of the Constitution to prevent
when they required Congress to "coin mo-
ney and regulate the value of foreign coins,''
and when they forbade the States TO s.coin
money, emit bills of credit, make any thing
but gold and silver tender in payment OF
debts, or ''pass any law impairing the obi
CATION OF contracts" If they did not guard
more explicitly against the present state of
things, 1t was because they could not have
anticipated that the few banks then existing
were to swell to an extent which would eX-
pei to so great degree the gold and silver,
tor which they had provided, from the chan
nels of circulation, and fill them with cur
rency that defeats the objects they had in
view. The remedy for this must chiefly rest
with the States from whose Legislation it has
sprung. No good that might accrue in a
particular case from the exercise of powers.
not obviously conferred on the General Gov
eminent, would authorise its interference. or
justify a course that might, in the SLIGHTEST
degree, increase at the expense of the States.
the power of the Federal authorities-nor do
doubt that the States will apply the remedy.
Within the last few years, events have ap-
pealed to them too strongly to be disregard
ed. They have seen that the Constitution,
thou OH theOrcficallv adhered tn is 4