Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1841-01-16
No. IA.

| tnetn as q matter Of positive right, ana COngIeSS
have, in pursuance of this undoubtod expression
Of the wishes Of the States and People. enacted
a law; and yet, by the simple interposition Of
| the will Of one other branch Of the Government,
the will and power of the People and the States
are rendered Of no effect.
If we analyze all the objections to banks, as
instruments for furnishing currency it will be
found that they resolve themselves mainly into
two, which are said in pract &c 10 be the natural
results OF the system.
In the first place, il is sad that the banks use
the credit which their characters give them to ex.
tend the circulation OF their paper; that, either
from imprudent management or from fraudulent
motives they at times refuse to pay gold or sill
yer for their notes; that this deprecates the value
or their paper and to the EXERT more or less,
Of such depreciation. occasions loss 10 the hold
crs Of their bills. That instances have occurred
in the past history OF banks 10 warrant this Oh
lection, no one can deny. But it is not true,
that this has been elder an invarable or genera
consequence Of orr system Of banking. The
occurrences upon which this objection is founded
have been occasional with chartered institutions,
and not general. If we compare the losses sus-
tanned by the community, from the partial and
total failures Of incorporated banks to redeem
their promises, with the failures and bankru pit.
cies Of individuals engaged in trade, to the same
e1ent, we shall find the latter exceed those Of the
former class by an almost incalculable sum.
That banks under the management Of men, like
all others Of our race, not perfect, either in in.
egrity or wisdom, have sometimes failed, is fact
mot less nationally inferred, from the imperiecton
Of all human institutions, Than it is clearly
shown By historical facts. Il could not be ex.
nected that any Conlrivance Of man, would
always and invariably, produce the good, and
nothing else, which it was designed TO effect.
Our admirable system Of government sometimes,
through the wjIrul delinquency Of those to whose
care it is entrusted, fails to bring all the bless.
iuCs is calculated to besow; yet for these coca
sionaI failures, no American statesman thinks Of
abandoning our system Of republican liberty,
and going back to the royal Or despo:ic govern
5 ments Of former times, for better state OF
} things.
t If the community were deprived Of that credit
E which is now furnished by banks, any one con.
versant with the enterpri,ing spirit Of our people
| will at once SEQ that individuals and voluntary
a associations would furnish That credit in other
e forms. 1t then becomes a question which Of
J. these two is safest to the laboring and producing
t classes If this be the true question, and our
j. experience is not utterly deceptive, its solution al
= once results in favor OF incorporated companies
a guarded BY every provision which the wisdom o
Il the Legislature may suggest.
c The second objection 10 banks, is, that lrey
l. expand their crcu alton at one time 10 an unu
su al extent, and thus raise the price Of labor an,
. property and by sudden Withdrawal of tha
} circulation, either from necessity or choice, re
a duee the value of boh,--tlus, by reducing tn
y value OF the debtors means of payment, il
l. effect augmenting the amount Of the creditor
L demand against him. That this may be- and h.:
IF been often done by banks, is cerlauiy true; bot
n that the same amount CT credit IN any other form
/ or sudden influx Of the precious metals, ant
y its sudden eiIlux, would reduce the same evils, /
:, equally true. Instances of the latter kind ar
lie numerous and too well known to testify me in
y. recapitula:ing them here, in which banks had NJ
IS the remotcst influence; happening in countGe:
E. too, where metallic was the only currency.
r In those instances, however. in which hank
lie have produced either Of the evils complained o.
,e it is worthy OF consideration, whether the lau
re Law in the institutions themselves, OF originated i
er an extraneous influence exerted upon them. |
r. the notable instance Of suspension OF specie pay
L mens by the Bank Of England in 1857, it is
Il well known fact, that an order OF the King an
e Council given to the bank produced it, and thu
Z it was continued by an act Of Parliament froI
A. time to time, till the year 1928, when by tn
Or judiclous arrangements OF the bank it resume
n payments without producing any arrangement
IL the commerce Of the country or pre- udCe 10 II
n, finances Of the kingdom. The large issues, an
ed consequent suspension Of the banks in our couI
ID try, which took place from 1912 to 1920, hay
'e been, with great Justice, ascrbed TO the loar
v made by l:.e Government Of the Banks, whiC
y We're the only means Of prosecuting the wa
IN which, returning upon them at the close OF Il
as war, with a foreign demand for specie, wiki ii
'o failure in business, at that time, OF many Of the
Sh debtors, rendered suspension inevitable, and
en- many instances were followed by an ultima
Use close Of business. Amongst the causes that pr
IS, duced he recent suspension in 1887, the inf
nd euce Of the Government, though by no means
to tended. is nevertheless distinctly perceiva5
Inc The whole revenue Of the General Governme
ed were deposited with them, under an inirnctic
er. from the Treasury Department, to use them
rs banking capital. \ confidence in their streng
ed, arising Iom tbs conneXon with the Cover
all ment, natural enough, though, as the eve
csc proved, delusvc, contributed greatly to tho
On large issues pror to 1885, of which so mu
the complaint has been made. The contraction
gS,t 100, which have followed, producing the M
ven disastrous ei,ec's upon the country, although
u.s. great extent necessary consequence Of P
vious over issues, were nevertheless hasten
ETY. and pushed TOO rapidly forward, by we'll me;
ow endeavors on the part Of the Legislature to i
to prove the currency, Survo, 4" the past hstt
5 Of of such Institutions, and ay@.ug ourselves o
the jspassjona.e view Of our own "r'1yS, as well