Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-06-01

II
where the notes were payable; and in February
leSS, committee OF the house OF representative 81
reported IN favor of bringing in such a bill Ii i
true that such an spplleaIh the result Of fals'
views OF banking but is proof Of the uncertainty o
public opniln as to the remedy Tor disorderc,
currency. During all this period, the country wal
working itself free from the disorders arising out %
the suspension Of lsli, Is, and &c. and 1t may b,
i queHioned whether the period of correction wal
fastened by the operations of the United State
Bank.
Ii not to lie concealed that there are serious oh
IIectons TO the establishment of bank of the mag
nuuoe and power necessary to the regulation OF III,
currency In the i's, place, such power is who'll,
contrary to the spirit OF institutions, which ar,
founded upon the principle Of free competition; o.
action and reaction amongst equals. A great cen
trail power, independent Of the general State GOV
ernments, Is an anomaly IN our system. Such
power over the currency is the most tremendous
which can be established. Without the assurance
that 1t will I've managed 10y men. free from the COM
mon mperiectlons of human nature, we are safel
without H. Under system of free competition, II
one bank one city go wrong the evil is soon rec
tined The laws OF trade, left to themselves, are
sure, and will soon cure the evils of individual mis-
conduct or speculation. But IL the regulator itself
goes wrong, there is no remedy, none without a
CONFUSION.
In fact, the great and decided objection TO banl
OF great power, TO act general regulator Of tho
currency, apprehension that it may itself sus
pend specie payments, under the sanction the Q, n
"
inconverub'e paper currency. This danger i.
much greater with geat national bank than with.
Out IT, In case OF war, or any great financial EN-.
oarrassment, such an institution acting in sympathy
with the predominant party in the general govern.
ment VIII be the hrst To propose this cxpedient by
which It's circulation and profits will he greatly en-
HANGED. In such period, few Interested and in
fuental individuals may easily carry such mea-
sure whilst institutions deriving their existence from
the States, are protected by the constitution from
any such legal risht.-
There is, in the nature OF things, greater danger
OF msmanagement in such an institution, where the
interest OF the managers is comparatively small
than IN institutions OF less capital Immediately un-
der the direction OF parties more deeply interested
| Our experience under the last Bank Of the u s
not such as TO give us any great warrant for the
future. On going into operation, il fell into the
hands OF SPECTATORS and IN less than years lost
more Than ten per cent OF its capital that il made
! no dividends during the succeeding two years. As
regulator of the currency its success was not re-
markahle. Ii was Obliged to hire the banks nj
New York. Philadelphia and Baltimore TO resume
by agreeing to make large discounts in those cities
IL thus kept up the imitation OF the currency which
| was the evil Of the time, and by 50 doing saddied
itself with immense losses. Under the enersetic
administration of Mr. Cheves the currency was in d.
deed restored 10 Its true character 10y reid svsren
Of contraction, but accompanied with intense M bc
suffering, which was indeed unavoidable but made
the bank and MIR Cheves exceedingly unpopular in
| extensive portions OF the country. IL was durino
this period that many Of the States attempted TO e,
pei the bank from operating within them, by taxing
| the branches and other modes OF coercion
MIR Biddle came into the administration of the
| bank IN 1873, under the most favorable auspices
after the difficulties of the currency were in GREAT
measure surmounted; and II cannot be denied that
MS MANAGEMENT was Tor many years eminently
successful, so far the interests Of the hank vers
concerned. IImay however be doub ed. whether the
country IS under any great Obligation to him as the
regulator OF the currency, far as relates 20 gucu.
tons IN the money market. Severe reyulsion. look
place IN ls26, 1929 end 1882, and the Bank Of
the United States took its full share in The eYn,n
sons which preceded them. IL was the seneraI
impression OF those who watched MIR Bidde,s coursp
that he was bold navigator; that he ken, his sbin
under press OF SAIL relying upon his skill in 1, kin,
IN canvass IN case ola squalls OF which. he has occa.
/ sionally gwen us evidence himself. Now resnIa-
tor should 90 for security, rather than pro6t-witb
much ballast carrying light sail No one can doub,
that his conraciions IN 1884 so distressing 10 the
community, were pushed beyond reasonable meas
ure, tor the purpose by that means of efsctin m,
! renewal OF the charter, under the pretence OF the
necessity OF preparing for winding up its concerns
whilst his subsequent expansion had full share an
producing the mad anu wild speculations of 1885
and 6
The subsequent developments of his opinions
IN reference TO continued and permanent state of
suspension OF spece payments, make il bur TOO
PROBABLE, that a suitable opportunity alone ,pas
wanting, for him TO have brought his shin into thai
haroor of"repose." He appears to dwell, with ap-
parent satisfaction, the twenty. five vears ,yL;L
were allowed the Bank of England. after the sns'
pension OF 1897 That suspension seems TO have been
with him iavourile topic. But he seems moi IN he
aware OF the moral distinction between that susn.n
son and our own. The Bank OF England suspen.
ded by act Of Parliament, our banks slIspend viii
out law and against law, at the pleasure o. the dsb
tor party. The continued suspension of the Rank
OF Ensiard was measure Of state policy. vyi,bo,
me slshtest necessity-very bad policy no doubt,
oNl very convenient, IN order 10 conceal the real
terms OF The immense loans made during the war
and very agreeable TO the bank directors as en-
! HANGING their profits.
bank then OF ten, or at the utmost fifteen mil
ions OF dollars capital, OF which one-hrd nigbt no
lohS 70 the government, appears TO be amply sufi.
Gent for performing the fiscal operations OF the GOV
eminent. IL should be restricted within thai s,,r
ne circulation should not exceed ten miIions oc
dollars. '''''''"S VI
II should be a bank of safety rather than nro6,
~ Is ho' desirable that us dividends should exceed
SIX, or al the utmost seven per cent. reasonable
assurance OF that rate, would be sufficient To indnc
capitalists to take up the stock There are ohio
tons TO limiting the dividends by law. as il mich,
inuuce extraVagance in salaries or clrelessness IN
| The management Possibly, however IL would -,
ue onectionaole that the surplus should he allowed
70 accumulate for period OF years then 10 e can't
| ~ DIVIDED between the government and the stock
j holders '"' SUM
1t Is believed, however that the establishment, or
/ a 'S' '"hf Hau otLler be postponed Until
he currency shall be restored in the atlantic ci,e
ne resumption Of specie payments in PhiladeInbi,
a!.u Baltimore, can hardly be DELAYED rnncb
| longer, now that the great adyocnts oC non
resumption IS out Of the way. The ATTEMPT 10 es.
taO.Ish national bank, will be decided obst,cl.
il inc way oil such resumption. At the same Tine
u VIII be much easier TO put national bank in M.
eraIOn hlier the currency IS re-estabshed than Lc
lore. The details Of such bank will reouirc ,,,
10 mature It's establishment is the last thing to he
zone m h1sie-or as a mere party measure.
! 70 IN the mean time repeal Ur modification of the
suOueasury system would be desirable The sYL
treasury system IS founded on mistaken views m
tne cuency-It seems 10 suppose that coin is better
'han lne notes OF specie paying banks. whereas in
Tuh L1e notes are preferable To coin so Iony ,s IT.
coniaIn the power to cOmmindit. The,. can ls -,
uouO lhai banks, selected for their soJty are s,er
repositories OF The public money than any indiv;d-
WIS Whatever. The idea OF keeping il piled mn in
separate mass, IN this banking country IL abI,,,b
ah' puefde. The sub-ireaSury la,y give. N cor, az
esa' character 70 bank notes which is highly ohio
IohaDle' by law oil payments are only disch,Igc.
aOie IN me Ie-n coin, whether 20 the goyernmert ~
individuals. The banks, acting as the comnon
agents OF The community, employ the aborer s,vioy
machinery which their establishment has bro.gbf
70 50 great perfection, IN bringing nbou, these n5v.
mems AZ the same time u Is no improper fgure
ol speech 10 say that every payment made in vel
Icsu''teu ,Pece-paying banks, Ike those doing bu.
sIness IN we" ork or Boston, Is actually made in
SPECIE "'. no oank receives anything which is rot
equivalent % coin-which will not Command cor,
ana Tor which Il IS not willing N pay coir. 'Tbo
suO'lrea'uy law, therefore, by compelling the s,b-
NeasLers TO receive certain bank notes ip,ros.s ,
rsk oi loss by Dlnk failures, which does not eric,
uHueT me employment ui strong banks s., r., =.