Independent Democrat. [volume] (Canton, Miss.) 1842-1844, 1842-11-05

The Creole publishes to-day the letter OF
General Hamilton, of Texas notoriety, to
Mr., Calhoun on the subjects of Bank and
the assumption ofState debts. We would
adopt, and call the public attention to the
following remarks on the letter, made by
the Charleston Patriot:
In Gen. Hamilton's opinion as to the
causes of our moneyed arrangements, we
we cannot concur. Gen. Jackson had no
more agency in producing them than he
had in the revolution that overthrow the dy-
nasty of Bonaparie. 1t is looking at the
mere surface of sub iect to connect the ques-
ton of the currency with any supposed
state of the law, instead Of the real cond-
ton of the public mind. If General Jack.
son had sanctioned the act of Congress
that re-chartered the Bank of the United
St1tes, such an institution would have been
imperative as restraining and regulating
power over the currency. The people of
the United States collectively, and all the
State governments, after long period of
calm repose in commercial and monetary
affairs, were pre-d disposed to rush into every
species of hazardous enterprise. 1t was
the periodic return Of one of those moral
maladies that occasionally seize communi-
ties, like that which drove the people of
France into the speculative excitement of
the Mississippi scheme, and the British ma
ton into the mania that was connected with
the South Sea bubble. All the circum-
stances that favor a speculative excitement
were ready to be brought into activity in the
United States in lS33.3i. Interest of
money in England was at 2 and 2 10 per
cent. per annum, and while the inclination
to loan on the one side of the Atlantic, and
the disposition on the other side to borrow,
existed in their fullest force, moneyed
crisis was inevitable. The epidemic of
speculation arose as one of series of
epochs in our commercial hi,tory--it
spread from individuals to communicable
corporations - to States it was, in short,
one Of those maladies of the moral world
which would run its course in spite of all
parchment barriers or artificial preventives
AMI restraints. 1t is then easy to conjec-
ture what would have been the restraining
power Of Bank of the United States under
such general condition. of the public mind.
The Branches would have been inopera.
tive. They would have been either taxed
from beyond the limits of the States, or
there would have been moral power
brought to bear on their administration,
that must have prevented their checking
the irregular and distempered action of the
people and the States. There would have
been in some of the States, no smaller mum.
Der of banks created than were chartered;
while in others expedients would have been
contrived, to paraizc the branches. so as to
meet the state of public feeling in every and
each division of the Union.
The action of the Joint Stock Banks in
England affords a striking illustration of
his view Of the subject. The act allowing
he formation of such banks was passed in
828. 1t was dormant power, however,
lntl 1888 and 1884 when the public mind ,
'ecame turned to speculative investments t
n manufactures. The power then acted S
n sympathy with this condition of things. q
The law allowing the formation of such in
titutions was a dead letter until public
pinion called 1t into action, and so soon as
came fully into operati N, the power of {
he Bank Of England as a restraining and c
ounteracting force over this new influence t
yas found TO be feeble and Ineffective
was so because between public feeling
nd the action of the English Joint Stock .
Banks there was correspondence, as there
,as at the same period in this country be-
"een the popular wants and wishes and
le action of our banks, with that of the
ifferent local legislatures that created them.
his would have existed had there been a
ank of the United States with the largest n
apital and credit and the most unbounded C
over, by law, to establish branches in
very section of the country. This ques- v
on therefor of the currency, in its irregu- :,
r movement, at shorter or longer periods, ;
ust be considered, TO be viewed phio-
officially, in connexion with the then ex- b
ling state of the public mind, in a country, n
here banks and their administrators are h
art and parcel of the community, and an r.
nanation of those popular impulses which =,
lape all our institutions to good or evil "
IL
From the ". o. Jefcrsonian. NJ