Southern pioneer, and Carroll, Choctaw and Tallahatchie Counties advertiser. (Carrollton, Miss.) 1840-1842, 1841-06-12

tneTeU
excited might be paramount, and force th +
banks, under the direction of the stockholders
to unite in common effort to save the couu h
try But the great object is to prevent such Il
crisis, by command of funds, which woul b
enable the government to arrest il. In ever
other object the State bands would fall
There being no standard TO which all mus
adhere, no connection between those of tn, 3
dinerent States, and many Of them with limi +
ted funds and in Unbiased circumstances, tho,
would neltheh regulate the value of coin, O
exchange, nor facilitate remittances.
A national bank occupies different ground h
connected with the government by its charte
and It's capital, which consists of stock, il +
which the government participates in Ger
tam degree, there is no instance in which, OF
principle, there can be difference of interes
between them, and many powerful considers
tons by which the interest of the bank mus
stimulate 1t to support the credit of the gov
ernment in any situation in which it may b. \
placed. 1.-THE credit of the stock should sink
the capital OF the bank would decline in eoua
degree; the effect Of which would be left il
all Its operations. Its paper would depre
ciate, and a check be given to its circulation
II not an entire suspension. Standing at the
head OF the moneyed operations of the gov
eminent, il is its intermediate agent in ma
king remittances to banks and indivduaE
throughout the Union, and likewise between
individuals, from which much credit and in
fluence are gained, if not profit. I, has the
means, and may be considered the most pow.
ertul agent in raising and sustaining the cir,
culating medium on a par with specie through
out the Union, and ofselevating the State
banks TO that standard, by subjecting them ID
the necessity of reaching and adhering TO IL
to sustain their credit, and even their exis.
tence. Let the credit Of the government
sink, and all these advantages are lost. The
bank, therefore, from regard to interest, ID
bound TO sustain il. The directors, except
the few appointed by the government, are
elected by stockholders, and are amenable tc
them. II gives its support, therefore. 10 the
government on principles of national policy
in the support of which it IS interested, and
would disdain becoming an instrument for any
other purpose.
The view above presented is supported by
experience, and particularly by the events OF
the late war. When the war commenced,
the government had not the funds which were
necessary TO support it, and was, in conse-
quence, forced to resort to loans, which were
with difficulty obtained from any quarter even
in limited degree, and on unfavorabIe terms.
have not the official document before me,
and cannot state the sources from which anv
loans were obtained, nor the conditions, with
the decline of the public credit as the war
advanced. / well remember. however, that
when ] was called by the President 10 the
Department of War, on the 3lst Aug. 1914,
the certificates of the Treasury were selling at
$50 in the 500, by which $40 were lost. IL
was evident that if reliance was placed on
the sale of certificates only, still further de-
cline would ensue, and that the worst conse.
quences might be apprehended. The country
was invaded through the whole inland and
maritime frontiers, and powerful squadrons
were at the mouth of every bay and river
leading TO our principal cities, which were
threatened with attack and ruin. The me-.
tropolis of our Union had been forced, and its
public buildings DESTROYED. Such was the.
state of the country, and the funds, when r
entered the Department of War. Under such
circumstances, an appeal was made TO the
patriotism and interest of the cities, and banks
within them by the Department of War, with
the sanction of the President, for loans Of
money necessary for their own defence, for
that of the maritime frontier and the Union.
For the first loan that was obtained Zone mill
lion Of dollars from the city Of New York,
which took place few days after entered
the department. no price was fixed. As the
Treasury notes were selling for $50 in the
500, that war claimed, but not acceded to.
1t was left for subsequent adjustment. TO be
settled on fair principles. Several millions Of
dollars were obtained from the District Of
Columbia, and principal cities throughout the
Union. and, according to my recollection, at
par. This proves that, until the Union ia
threatened with ruin, no loans can be obtain.
ed in emergencies, without national bank
otherwise than at a great sacrifice. These
considerations led to change in my opinion
and induced ine 10 concur with the President
in the propriety of instituting such bank
after the conclusion of the war in 1915. AZ
to the constitutional objection, il formed nc
serious obstacle. In voting against il in the
first instance, | was governed essentially bJ
policy. The construction gave Ia the con