Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1843-11-22

! tennessee III %
Kentucky 25 I"
believe that thousands have been in.
duced 10 think ,ha, The last United States
Bank made all these things equal. Now,
if national bank could regulate this kind
Of exchange, it could only do so by pur.
suing the same course il did in 1920, and
1921, when i, made the attempt. Wha,
was then the operation? lis branches, par
ticuIarly in the west and south and south
west, gnl possessed of the local circula.
ton, aud ran upon the local banks for spe-
Gle to strengthen the mother and central
branches a, Philadelphia aud New York;
the result of which would be 10 concen-
tra,e all the specie of the country in its
own vaults. With it's public deposits,
and the Disbursements Of the national re-.
venue, no local bank could stand its opera
tions. 10 1919, 1920 and 1921, it broke
almost every bank in the west and south.
west. The country was prosrated under
it; and such must inevitably be again the
operation Of a central Government institus
tion, with It's branches in the remote
States. Ii will use the power and re-
sources Of the federal revenues to oppress
and ruin our local institutions. am not
left to conjecture in this matter. II was
the history Of the last bank. MIR. Bddle
avowed the policy in communication, as
president Of that institution, io commit
lee Of Congress. da,ed 10Th April, 1882.
He used the following language:
1.-The whole force of the Institution was
therefore directed to strengthen that place,
(New York;) and the distant branches
were directed to avoid incommoding it,
and The Atlantic branches near to them, by
drafts upon them; but 10 pay their balances
to them with as little delay as the convent
ence of their respective localities would
permit. This is The whole policy of the
bank in The last six months. 1t will be
seen, therefore, that without dimunilion
there is an actual increase of business in
New York. and large increase of the do.
mestic bills at the branches; the increase
in New York being for The purpose of pro-
tecting the interests there, and the increase
Of the remillances being from The west
and the south to sustain New York and
the Northern Atlantic branches. In as
suming this part on The present occasion.
the bank deemed itself only acting as it
was designed TO act by the Congress which
created it. and placing itself in its true
natural altitude 10 the Government and
to the country"
think Mr.. Cheves and Mr.. Biddle
haye both declared that there was no peri
cd Of their presidency of that institution
when they could not, if they had cho.
sen, have exercised its power so as to
have prostrated any local bank they might
think proper. 1t is strange infalualion
| to see men eager to place the local insritu-
tions, particularly of the south and wesl,
at the mercy Of such an institution. Are
we prepared to sacrifice our local Stock
holders, who have vested their all iu our
State banks, for the interest of new ceu-
trail Government bank! 1t arises from
the delusion as to exchanges. Create
such bank. aud if it gives you circula.
ton that shall be equal everywhere, it
can only he done by making its paper
equal to gold and silver; and if it be equal
to gold aud silver, it will then require as
much produce, or as much Of any thing,
10 get it as to get gold and silver.
If your local paper be not convertible
then, i, will require just as much of tina,
to procure the money of a United State:
Bank as it would TO procure gold and sill
yer now, or available funds. The loca
paper would be just as much below the
United States standard as it would be be.
low specie par-that is, if the United
States Bank paper should be equal every
where; and it would only be 50, because
of its equality with The specie Standard
And this 1 have demonstrated from The
price Of bauk paper which have shown
you in The tables presented for the differ
ent years ofIhe existence Of the last bank
to this might be added the cost Of trans
porralion Of specie. Now, then, wher
you establish branches of a national insti
tuition, aud make lis circulation equal Il
gold and silver,then will commence The sys
lem Of comparing the paper Of your State
institutions with that of the branch al tbt
nearest point; and the consequence will De
that private brokers will be transferred u
the counters of the branch, and your loca
paper will be shaved there.
From its connection with the revenue
of the Government and central insli!u
ton sustained by public deposiles, it vii
get control of fictitious exchanges, and
as an inevitable consequence, will sacri
fee, 10 emergency, the distant points Il
sustain the centre-it cannot be, nor ever
has been, otherwise. This kind ofequual
izing exchanges is alt nominal. Their
may be only one half or shree-fourth
per cent. between the branch and the cen
iral institution; bur the circulation of tht
local banks will be still below par. iu ex
act proportion 10 their couvertibiliiy at ,
commercial point. This was the case, a
have shown from the tables presented
Is viii take jus,the same amount Of loca