Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1841-11-16
THE CURRENCY, CREDIT, &c.

Gilmer, RspreSeaialiee Ia Congfess lrOd
Virginia, to his constituents, IN vindlcI
tion Of his course in the extra session.
There are many causes cOnspiring Il
render the subject of the currency on,
ofihe most complex in our system of GU
Vernment, and 10 cOnceal from obserga
ton the true sources Of our em5Itr2ss
ments. All the errors OF state aud fed
e-li legislation with all tho evils result.
ing from tho blunders Of seven and TWEEN
~ governments, aud much Of The dssp.
poinimeut of private indiscreion, all IS
OscriOed TO a deranged currency. AN
excited fancy is too apt TO depict banK
ss the great moral aud political panacea'
While these ideal benefits are so much
exaggerated, they who venture TO call
.pubiic attention TO what they consider
ihe true causes aud the true cure Of our
detaAQed currency are denounced as en-
emies Of the credit system. At ali haz
ard of incurrng this denuncialion, must
invite your attention to this subject as
one of moIe practical importance to you
than presidential election nearly Eou.
wears in advance. aver then as the re
suit of some reflection, that the whole
difficulty un this subject proceeds from
the radical defect in our banking system
Ifthestlte banks we're what they should
be, there would be no necessity for the
agency Of the federal government to be
invoked to project the people against the
incompelency, the frauds or the delu.
sions of their own local banks. Conce-
ding (what am moi satisfied is the fact)
that national hank could be created and
managed as TO afford relief against the
evils Of the state bank system, such ro.
lief in the nature Of things must be only
temporary, and would fall far short Of the
inherent evils Of the system itself -
There is moro danger, apprehend, that
The state banks, as they are now consiiu-
ted and for the most part administered,
would Oyerrule a national bank for evil,
than that it would overrule them for good.
The chief good anticipated from a U. S.
Bank il the caution and restriction il
would impose on tho issues OF the State
b1uks. May not the State governments
do this? or is it admitted that a bank
once created is beyond the reach Of tho
government. creating il? Our State
banks in many instances (t is certainly
90 in Virgimia) are part and parcel Of the
government. BY errors of Legislation as
! conceive, they have become so deni.
fod with the operations Of The government
(tselfa banker) that the representatives
Of the people dare not require the banks
to obey the laws.
They have attained TO a species Of ex-
empton from laws which bind the State
itself and every individual in it. They
suspend the payment Of their debts at
pleasure, and not only with impuniy but
with signal advantage. This results from
the banks being part Of the government, !
its treasury, aud in many instances its
president and directors. The State is
their chief stakeholder, the principal Of |
the blnE itself, and must suffer its fail
share if the bank Is made to obey the
laws. Yet the Stale as a partner in this
corporation, like the other Stockholders,
is not bound for the notes contracted or
the notes issued by the corporation, al.
though these notes are permitted To PISS
Us money. The only responsibility in
q banking corporation for the nore.holder
or creditor, is in The corporate fund and
effects. The stockholder may be worth
4 million and yol the corporation be una.
bio to pay five dollar promlssory note.
The consequence IS that we fad megl.
gencs in tho management Of the corpora.
lion, and a want Of confidence in its aOllr
y to meet its engagements
When we consider that the banks are
iot only exempt to great extent from
'bedience to the laws, but that they are
Untitled to privileges and advantages !
which no other corporations and no in.
Viduals enjoy, it would not be unjust Ia ,
hem as il certainly would NOT be to the y
ublic, to require that the credit Of insti.
llions which are authorized 10 furnish 4"
ircullting medium, should be based on :.
oRe solid, substantial foundation. This
an only be done by limiting their issues. e.
} that the bank note shall really repre- - :,
INT the gold and silver, which il pur y
1ris to represent, or, by rendering those ~
no own and derive the profit Of bank p
Ocks liable in some manner for the :,
,bts Of the corporation. The debts of D. D.
bank are different from other debts Pi
; promissory notes are evidences oi WI
.bt against it, These are permitted uo. pr
n our laws iOplss as money or curren. "'
:. The holder who exchanges for them 70
labor or his property is the creditor of %
. bank. While his property and his an.
'EsOn are liable TO the bank for what ba Oh
ay owe it, as the borrower Of its obliga. .ne a
ms TO ply, only tho corporate funds of wo
oanK are bound to him for ils debts, ge'
q inIs while their whole business con. wh
We ~ Lending to others al the usual in. oIo
resi- ine'r own promissory notes. The anl
STEM 70 mus based on principle OF
'Itlous credit and there Is not that re. !
substantial probability about IL. which w.,
me can justify the confidence which l. ~
lsan~~.nt.1. '"'Nh 70 ON