The pilot and transcript. [volume] (Baltimore, Md.) 1840-1841, 1841-01-01

and consists ofpaper OF every Alhe' assueI tbe
Jer fine authority, or by the peTmisston' u on
State Legislatures. 1t 100 much Oh uiiS IF he
as mt In circulation, it was the fault Oh tle
sornarations that issued it; and if there Wei
foo many banks it was the fault OF the o.e.eS
that chartered them. 1t has been suPPSSssett'
that the United States Bank regulated the 80
Ranks. and prevented them from increasing -
numher.-Rut il could only restrain Ine oPei
tions of other banks by first receiving tneh
notes. and then drawing upon them, every week
,or month. for the balances due II hdu hV CO
frol over weak and discredlted DahKs' DecduSo
II would not take their notes; ana coulu ollig
regulate those, which were IN nIsl ciEui', a.,o
,t,5;nb conId regulate each other, by the same
onooaso of freouent settlements 1t was detec-
iE;ue too as regulator, in this particular, that
'rbon other banks discounted too freely and
stooj in need of restraints, it labored under the
same difficulty, and required to be checked In
ifs own movements; for the State banks very
seldom extended example. Wheneverit en-,
Iarged its discounts, they did the same; and
then it was rather in a situation to require as
sistance than to exercise proper control' out
If instead of being often debtor, II lad man
aged its affairs so prudently as 10 De Always
creditor of other banks, there was nothing to
prevent il from sustaining institutions that were
rnsound, and injuring others that were worthy
of the public confidence; and nothing to pre-
vent it from giving the banks and merchants OF
a commercial city great advantages over those
ofrival cities.
The national bank, however, might be pIu-
dent, yigiant, and impartial, and still be lneffl-
cient as a regulator; because the State banks
could always escape from its control, by retus-
ing to pay specie, or by otherwise dlscredlung
their notes; and thus place themselves out of
reach of the regulating, power at the very time
they stood most in need Oft.
The condition of the currency in the several
States during differant periods, furnishes the
proof, that its value depends on State legisla-
ton, and not on the influence of national
bank.
The United States Bank went into operation
in 1917, and from that period to the year 1925,
its influence was not percePtible in any States
that encouraged excessive banking. The cur
rency of Kentucky, Tennessee, Indiana and IL
linois, was as much deprecated, during the
greatest portion of that period, as that of Mis-
sissippi is now, and was gradually restored to
sound state by the operation of their own laws,
and by the determination of the people of those
States to rid themselves of paper money which
had lost its value. The process by which the
people of Kentucky were relieved from their
deprecated paper, is described in the follow
ing paragrap hS, published in Niles Register
in February 1928:
ssMore good news.-Bills of the bank of the
commonwealth of Kentucky, to an amount of
seven hundred thousand dollars, were burnt
sat Frankfort on the 18th uldmo. A few more
s'good fires like this, and we shall begin to
"expect remittances from our friends in Ken
''tucky."
"Kentuclzy is going on nobly in the work of
''burning paper money. There was lately an
"other great purifcation of the currency by
'sfre; Sl,400,0 900, in notes of the paper of the
"bank of Kentucky, besides the confagration
"of the paper of the bank of the Common
''wealth, have been committed to the flames"
The United States Bank had then been in
operation six years, without being able to
equaliss the exchanges between the western
States and the eastern cities, or to restrain ex-
cessive banking, or to correct the evils of de-
preciated currency. During that period, the
notes of many of the banks in specie paying
States, were at as great discount as the cur
rency Of any western State; and throughout
the whole country, banks continued to multiply
and explode, as if no national bank had been
employed in regulating their movements.
Some of the New England banks were able
to continue specie payment during the last war,
when there was no national bank; because
their discounts were in proportion to their
means. If the eastern States had chartered too
many banks, or permitted them to run into
every kind of excess, no national bank, no ad-
ministration of the general government, could
have prevented the depreciation of their car
rency.
The trainers of the Constitution of the U.
States had no conception that national bank
or any incidental power of the general govern
ment, could regulate or restrain the paper cur
rency of the States; and therefore expressly
prohibited them from emitting bills of credit. |
This restriction has been rendered nearly met
fectual by the agency Of banks; and the States,
after giving birth to a numerous progeny of
whose business it is to issue paper
money, insist upon the necessity of regulator
10 give their different currencies a uniform
value.
The States have ample power over their
own corporations, and their own paper money:
and there is no necessity for making use ola
fiscal agent of the general government for the
of either. If it be desirable to
suppress the circulation of small notes, to pre-,
vent the increse of banks, to limit their issues,
and to compel the payment of specie, the State
legislatures can accomplish these objects, with
out the aid ofa national bank.
Reports have been received from the Balti-
more and Ohio Rail Road Company, the Balti-
more and Susquehanna Rail Road Company,
and the Annapolis and Elk Ridge Rail Road
Company, and will be submitted with other
papers in few days. No report has yet been
received from the chesapeake and Ohio Canal
Company. The only information have, in
relation to these companies, is already known
to the public, or is contained in their annual
reports.
The Annapolis Railroad is finished to its in
tersection with the Washington branch of the
Baltimore and Ohio Rail Road, and is now
open for the conveyance of passengers and pro-
duce.
The Baltimore and Susquehanna Rail Road
has been in constant operation since last spring,
and now forms the long desired connexion be-
tween the city of Baltimore and the canals and
Eail roads of Pennsylvania.
The Commissioners, appointed for that pur-
Bile time, in examining accounts ascerta;n;ng
damages, and adjusting claims against the com,
Pany; and in disposing of the material. and
effects which remained in the possession Of
its officers era; and agents The books, maps and
papers, belonging 10 1t, have been placed in the