Lexington union. (Lexington, Miss.) 1838-18??, 1841-09-04


succeeded to the Presidential Office. Be-
fore catering upon the duties Of tina! Office,
| took an oath that | would preserve,
protect, aud defend the Constitution of the
United States" Entertaining the opin-
ions alluded to, and having taken This oath,
the Senate and the country will see thai
could not give my sanction to a measure
OF the character described without surren-
deriug all claim to the respect Of honora-
bic men-and confidence on the part Of
the peope--all seIf.respect--alI regard for
moral and religious obligations; without
an observance OF which no Government
can be prosperous and no people can be
happy, 1t would be TO commit a 60 me
which would not willingly commit to
gain any earthly reward, and which would
Justly subject me TO the ridicule and scorn
of all Virtu0us men.
deem it necessary al this time to enter
upon the reasons which have brought
my mind to the convictions feel and
entertain on this subject. They have
been over and over again repeated. II
some ofthose who have preceded me in this
high office have entertained and aVowed
different opinions, ! yield all confidence
that their convictions were sincere. |
claim only to have the same measure
meted out to myself. Without going fur
Their into the argument, | will say that, in
looking to the powers oil this Goyernmen,
to collect, safely keep and disburse the
public revenue, and incidentally TO regu-
late the commerce and exchanges, have
not been able 10 satisfy myself that The
establishment by This government of
back OF discount, in the ordinary accepa,
lIon OF the term, was necessary means,
or one demanded by proprlety, to execute
those powers. What can the local dis
counts OF the bank have to do with the
collecting, sate.keeping and dlsbursIng Of
the revenue? So taras the mere discount
ing OF paper is concerned, it is quite i'm
material TO this question whether the dis.
count is obtained at a State bank or a
United States Bank. They are both
equally Iocal-both beginning and both
ending IN local accommodation. VIVA.
influence have local discounts, granted by
any torn of bank, in TIE regulating of the
currency and exchanges2 Let the history
OF the United States Bank aid US in an.
swering this inquiry.
For several years after the establish
ment of that institution it dealt almost ex-
in local discounts, and during
that period the country was, tor the mos
part, disappointed in the Consequence an
IcIpated from its Incorporation. A uni
orm currency was not provided, exchang.
70 were not regulated, aud little or nothing
vas added to the general circulation; aud
u 1890 lis embarrassments had become
80 great that the directors petiloned Con
yreSs to repeal that article Of the charter
winch made its notes receivable eyery
where in public dues. 1t had, up to tha,
'erIod, dealt to but very small extent IN
exchanges, either foreign or domestic; and
Is late as 1923 its operations in that line
amounted TO little mole than 81 100000
Ter annum. A very rapid augmentation
'oon a(ler occurred, and in 1928 its deal !
ngs in the exchanges amounted TO I'd
wards Of Sl00,000,000, including the !
sales Of It's own drafts; and all these i'm.
nense transaction were effected without
he employment Of extraordinary means,
The currency Of the country became sound. |
md the negotiations in the exchanges
we're carried on at the lowest possible
'ates. The circulation was increased IN
more than S22 100000, and the notes of
ne bank were regarded as eqIal to specie
III over the country; thus showing: al
most conclnsivel y, that it was the capacity
o deal IN exchanges; and not in local dis.
cunts which furnished these facilities and
advantages. 1t may be remarked too
hat, Notwithstanding the immense trans.
c'Ions of the bank in the purchase of ex.
mango, the losses sustained were merely
omInal; while in the line of discounts
re suspended debt was enormous, and s
ovedimost disastrous to ,beIbank g. coun.
~ lis power of local discounts has, in d
cf, proved TO be fruitful source of favor. y
ism and corruption, alike destructive to '
he public morals and to the general veal. '
The capital invested in banks of dis. p
'unt of the u. S., created by the States a
this time exceeds $780, 100000; and il {
e dIscoun'Iog of local paper could have d
'oduced any beneficial effects, the q. s. s
Ight to possess the soundest currency in p
e world. But the reverse is lamentabIy e
9 fact. t.
Is the measure now under consideration G
the Objectionable character to which |
we aIIuded2 1t is clearly so, unless by n
10th fundamental article of the 18th st
rnon il is made otherwise. That arti- ii