Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1841-12-16

al, is, no doubt, most ardently desired by the
great body of the people. But, surrounded as
we are by other institutions beyond our con-
troll, and placed in condition we cannot en-
tirely prevent, it becomes question Of grave
consideration, whether the requirements of
the charters of our own institutions shall be
rigidly enforced, or further time be allowed
them to prepare for resumption. As the pc
Rod will speedily arrive when the relief here
tofore extended to them will expire, this ques-
ton will, no doubt, attract at once the calm
| consideration of the General Assembly. In
| arriving at a correct decision, due regard
should be had to the past as well as to the
actual state of things-thc condition of the
| Banks and the business ofthe country. The
whole nation is yet suffering from the banefnl
| effects of overtrading, overbanking, and their
inseparable concomitant,a disordered curren-
cy Wild speculation and extravaganza, the
natural consequences of the immense accom-
| mediation afforded by banks whose cupidity
seems to have placed no limit to their issues,
| have been attended as usual with painful re-
| action. Many of the State Governments. too,
have contributed in no small degree TO the en-
barrassment of the times by appropriations to
works of Internal improvement, which could
only be met by contracting an immense for
eign debt which has materially affected the
state of our foreign exchanges. 1t will require
time to allay the agitation which has been pro-
duced by these causes. The lessons of eXpe-
rience they have taught, it is TO be hoped will
be remembered. In the mean time, the recu-
perative energy of our people will tend to re-
store more hCalthful condition. Our Bars
must feel the beneficial effects Of such
change, and if prudently managed, may soon
place themselves i'll an impregnable position.
1t should be remembered that the withdrawal
from this State of the capital supplied by the
Bank of the United States has imposed upon
our State Banks the necessity for more len
lent course towards their debtors than might
otherwise have been required. The accom-
mediation afforded the Commonwealth in loans
to meet the public exigencies, has also contri-
buted to prevent that contraction of the circu-
lation which it should be their object to effect.
Under existing circumstances, it would seem
eXpedicnt to extend the relief afforded by the
act of the 10th March last, limited, however,
to period, which, while it may afford due
time for resumption, will preclude the idea of
future indulgence. Whatever your wisdom
may provide, it is essentially important to the
credit of the Banks themselves, to the interest
OF the Commonwealth, and TO the restoration
OF a sound currency, that care should be taken
that another resumption be not followed by u
notlIer suspension of specie pay menus.
1t cannot be denied tIattie reckless course
of many of the Banks throughout the coun-
try, and especially the late Bank of the u. S.,
has had the effect not only of weakening the
public confidence in all such institutions, but
of creating strong prejudice against those
whose affairs have been prudently managed.
1t is generally admitted, that the whole bank
ing system requires reform. But sound poll
~ HOT 10. =,
should be resorted to. Such restrictions
! should be imposed as experience has proved
| necessary, and such reasonable indulgence
should be extended as the public interests
| may require. The forfeiture of the charters
of these Institutions in most of the States will
greatly facilitate the reform which is so much
needed. 1t is Indispensable to their whole
| some regulation that the State should possess
salutary control over the issue of their notes
| But this control cannot be ehectual while the
! interests OF the State as a stakeholder are l.
| Identified with those of the Banks Whenever
| an entire separation of these interests can be
| effected, the former will be more independent
| III eXacting. and the latter more cautious i'll a
voIding penalties which may be incurred by a
| violation OF their charters. If this be true of
| the State Governments, it is no less true when
| applied to the Federal Government. To as
| soclate that government as an eqnal partner
with private stockholders, is to detract from
and degrade its high and responsible position.
| There is moreover no warrant in the Federal
| Constitution, for the collection of money from
| the people 10 be loaned out at interest through
irresponsible agents to irresponsible individu-
ais. But it is matter of history, that the
| trainers of that instrument failed to adopt any
of the propositions which were submitted 10
invest Congress with the power of creating
corporations. Apart from these considera-
| tons, me insnpnrable objections which have
ever been entertained by large portion of
the American people, either upon the ground
OF constitutionality or of eXpediency, should
forbid the exercise by Congress of the power
to incorporate u Bank, or to establish corpo-
rations either for fiscal or any other purposes.
The opinion seems to be gaining ground that
such an institution is not indispensable as a
regulator OF the currency, and that the fiscal
affairs Of the nation may be conveniently
managed without its agency. The conduc!
of the late Bank Of the u. S., which has pro-
we'd SO runous to the country, and SO corrupt
! Ing and demoralizing in Its influences, in all
lis ramifcations, is well calculatedto strength
en- the impression. An increased circulation
OF The precious metals is Indispensable TO a
sound currency. To attain this object, and
to improve the currency throughout the I'm
ion, it becomes the impcrious duty Of cach
member OF the confedcracy, by proper regula-
tons, rigidly and prescverirgly enforced, &c
reform IFS banking institutions, and to ensure q
speedy rpSuiuDfion of eDncip r,aVunpufs ON q