Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1841-04-30


creation efa multitude Of State Lanhs prosso.s
Suspension ofspeeis payment. and /. ,s,.l y.,.n...
ment OF the currency and the sxchs n~s,. vh;rh "a
thing could retrieve but the rs-ssishlishmsnt Of I.
similar and larger National Bank Since that in.,i
luton has ceased to posssss the power of con,ro
s'Sen by the public deposit,s, both the currency
and the exchanges have rslapsed into confusion: and
the question now forces itself upon Congress. bv
what process the restoration can be .eeoo,p.h. "a,
Inc memorialists do rot hesitate to recommend. a.
the most easy, simple and eaectual expsdient. the
return 10 the known and tried system OF National
nank' which our own experience, and that of tho
great commercial nations Of Europe, concur in re-
commencing. That some controlling mower i. ma
eessary, must be manifest According to the repor,
OF the Secretary Of the Treasury to Congress AZ its
present session, within less than three years the
paper circulation OF the banks has increased from 7s
10 i2o millions; the banking capital increased from
Soo milions and the Legislatures of "a States
and Territories exercise the power OF ausmen,ns a,
VIII their number. Here, then, are ~ sovereign.
ties with an indefinite power to make banks. Here
are several hundred banks with an indefinite power
10 make currency. They cannot control each other;
the state Governments cannot control them, since
the power OF the State Governments is fitted morn
10 repair than prevent the excuses Of banking; SO
there Is no efficient check the exercise of power
upon which every mans property depends for il,
value, and every mans industry for its reward
ihat such state Of things can long be endured
Is Impossible. That 1t must end in total deranpe.
ments, to be reetihed only by great confusion, 10
maniies'i and II seems, therefore, the part Of true
wisdom to anticipate, and, if possible, prevent
these excuses. This can be done by two vav,
only; by the power OF the Treasury, or by National
bank. But the power Of the Treasury over such |
multitude OF institutions is necessarily very inner
ieet. IL can operate only on banks which are tb, /
repositories OF the public revenue, comparatively
lew IN number, and not able, however disposed. To
suPerintend the operations Sf other banks The
extreme penalty, TOO, which the Treasury could an
ply to any bank negligent of its credit, would be
the refusal Of its notes for revenue-a penalty
which would be rather benefit, by Withdrawing
Its supervision from the offender With every nos.
s'oie respect, toc for those who have BEEN or NAV
hereafter be, ut the head Of the Treasury. i, is
oo'ous mat there is no peculiar fitness in that de-
partment Tor the superintendent Of banks; and
'"a' 'nere may be great danger in thus making tho
o"eyeu concerns oil the country mere appendage
" subordinate department Of the Executive
NC present scheme was examined by MIR Gallatin.
'"e secretary OF the Treasury in 1909, and he ssid
oil 1t, that the State banks could no, transact the
Pu0''c business as well as the Bank Of the United
States nor" added he, sis it desirable that the
uenefal Government should, in respect to its own
operations, be entirely dependant on institutions
over which It has no control whatever. A national
oank, deriving ITS charter from the National Iesi,
iature, WILL at oil times, and under every emersen
Cyl feei stronger inducements, both from interes,
ana from sense OF duty, TO afford TO the Union
every assistance within its power" IL was tried
ey Mr. Dallas, IN 1914, and he declared that "tbe
establishment OF national institution, opera,in,
upon credit combined with capital, and regulated
oy prudence and good faith, is. after all, the only
efficient remedy for the dissrdered condition of nm,
circulating Medium" If this plan OF insulated
state banks, supe rvised, by the Treasury, be in.
sufhcient there remains only one expedien,--tbe ma
tonal oank-which has the obvious recommendation
that during forty years of its existence il succeeded
perfectly. Placed at the head Of the hanks os IN.
United States, with the public revenue TO eoll.c,
and dlsburse, coming into constant business con,ac,
with all the State banks, it, and il alone can eyer
else that habitual and gentle and salutary supe,vs
ION, which Is at once the check Of each and the a.
eurity OF them all. In Short such an establishment,
has existed, and is familiar to the habits of the CONN.,
try, and your memoralisis desire nothing better
Than to return to that system under which the com.
merce and currency Of the Union SO long pro,-
pered.
As to the power Of the government TO re-ory,n;,.
such an institution, 1t is presumed that no doubt can
now be entertained. 1t was established during the
administration OF Wash ington, and has received in
some form, more or less direct the sanction OF all his
successors. Even in refusing his assent 10 the ,c,
Of Congress passed in 1892, the present Chief Mag
'strate said "that bank of the United States COM
peient TO all the duties which are required bv IN.
government, might be so organized as not TO in
tnnse on our own delegated powers, or the reserved
rights OF the States, have no doubt. Had the Ex-
eeutive been called upon to furnish the project of
such an Institutions the duty would have cheer
fully performed"
-FOUR memorialists accordingly request, that as
the moneyed concerns Of the country are already
deransed and are tending to still greater confusion
Congress will, without delay create such an Ins,i,u
uon as Is suggested by the President, by which
great advantages may be conferred on the country.
while the rights Of the General Government. and NJ |
the States may be scrupuousy protected from en-
croachment and injury.
From the relation which exists between this CITY
and every section Of the United States, in the oper.
atoms ofuade, as wellas the receipts Of the public
funds, your memorinsts also request that the soid
institution may be located in New York.
NEw YoRK, January 4, 1887.
oor sd ne table Of ls for the purpose OF enabling
arrangement OF the exchange -Edifo Express