The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-08-24
Loans AND DISCOUNTS.

We promised to say something on this subject, and
though we have not time to go into it as fully
as desire to d. will do what time and
space may enable The business of borrowing
and lending in country in all others, is matter
of great Importance IL great results may be brought
about in relation to it by legislation, it by
follows, as all experience shows, that they always
favorable to the industry and prosperity of the people
We incline, confess very strongly, to this par
ticular, to the general maxim Of Mr. Jefferson to let
such matters, as much possible, alone We be-
eve that every man is best to be trusted in lending his
money and that borrowers, who really had rea
sonablc security TO oe would rarely fail to find lend
No, that should make objection to the diffe-
rent States pursuing their own systems of policy by
encouraging creating institutions, properly limited
and restrained to give such facilities their varying
situations might be thought to require But deci-
dedly think it should be left to the States to do this
because their conditions and circumstances all differ
TO require difference in the legislation, and
also for many other necessary for pre-
sent purpose, to particularize. We therefore
against this power of lending and borrowing being
assumed, in any way, by the General Government.
And we consider that, when done in the form of a
great National Bank, with such capital and such
privileges enable control the loan business Of
the lesser institutions and individuals in the States
land that is the very purpose and ayowed by its
ends) ii is impossible to give it any shape that will
not make it a vast machine of mischief
| We wish now to give to all readers and to the
whole public brief view Of the of operating
such institutional manner, essential to its very
ture, and known by experience have been the prac
tice of all such corporations.
Its immense means put in the hands of certain
Directors. When power, and especially vast power
like this is conferred the greatest care and caution
should be used in selecting those who are to WELD it.
and to fix their responsibility. Now, the persons for
whose benefit this and every other power Of this Gov
eminent should be created, the People and the
persons (at least great and controlling extenD to
whom this power is given are elected by and respon-
sibe to the wealthy stockholders thus incorporated
and not TO the People. Here then, is an iphcren
radical vice-but let that pass.
These gentlemen are appointed-and let il be sup
posed that the most udicous selection has been made
that they are men of wealth, and Of business,
both which, to extent, they ought to be. Say
the parent board is here with branches in all the com
mecial cities. They meet-nine, twelve, any
other number-they meet in private The great funds
of the corporation distributed for loans in the DIFF
eren cities according the proportions which they
may be thought to require.
| Here there is some room for favoritism and the
working of private feelings and interests; and these
facilities may be made, in some of the States, more
abundant than they ought to be, and less in Others
but let that pass,
! In the course of their discussions in concave, as
their operations proceed proposition is made, which
in its general effects, in It's effects upon particular
commercial city State, is 10 bear powerfully upon
The state of busincss--is 10 make money plenty or
scarce-o raise lower the prices of stocks and all
property--to change the state of the money market
Every body sees that is the regular of their
operations and without imputng bad motives these
Directors such propositions not only may be made,
but will and must be made. The temptation to make
them unnecessarily will be constant and great, and
this NAV be marked as another inherent vce-nherent
in the nature of the sysem-but THAT too, pass.
Suppose il done-honestly fairly necessarily is
considered and done What is done Why, reso-
luton of few lines is passed and entered-not IN a
public record but in private book, sealed to all the
world.
And its effect is 10 work great and decided change
in all matters in any way connected with money-a
thing which, like the AIR, enters everywhere, brea,hes
upon every II is to stop or TO swell and acceie
rate all the currents of bushes and This effect may
be every here, only in particular places Or the
purpose may be fash oned produce directly OPP
posie results in different pacesto give new wings TO
the trade Of one place and to curta those of another
This is what is done; for The sake Of argument,
(unhcard of concession,) have supposed il to be
honestly done