The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1844-01-12


arrangement 10 its affairs, they commenced I
heir work early. II was proclaimed tha,
he agency OF State Banks would be again
escorted TO. The States we're exhorted 10
establish Banks, with view 10 carry out
he new system, aud the people were told
hat under It, not only would the finances Of
he Government be as well or better admin
stored than they had been by the Bank of
he United States, but that the exchanges /
should be at least as low and the currency
as sound. Accordingly, the State Banks
we're lrebled in number and capital, the
deposits OF the public monies were taken
from the Bank Of the United States before
the end Of It's charter, and placed in them.
They were encouraged to lend freely, and
10 furnish bountlful supply OF
exchange and for three years, the country
was assured by the most triumphant asser-
tons Of the public fanctIonaries, that the
experiment had succeeded in every particu
lar. While yet the notes of exuta,ion at
this great achievement in finance and cur.
rency, were still sounding IN our ears, in
May 1887 the bubble burst the system
failed-lhe Banks suspended payment
their paper deprecia,ed--and with twenty
millions of its money on deposit in their
vaults, the Government was obliged TO re-
sort to 40 issue of Treasury notes 10 satisfy
its daily expenses. BY arrangements aud
indulgences, they have since all paid up
the amounts then held in deposit, except il
may be a comparatively small SUN. But
the event showed, and their former adyo
Gates now admitted, that they did not an.
swer the expectation Of the country. Whet
was next 10 be done like masnanimous
sacrifice Of the pride Of opinion, with ,ha.
which characterized MIR. Madison and the
| Congress Of 1916, would have counselled a
return to the safe and tried paths of expe.
rience. But Mr.. Van Buren,, the then
President, had proclaimed uncompromis-
ing hostility to Bank OF the U. States"
and must needs propose some new scheme.
He therefore brought to the consideration
of Congress the Sub. Treasury system; by
which, abandoning al! care over currency
and exchange, as not within The powers o.
the Federal Government, (exeep, so far a:
the former is embraced in the power to coir
money and regulate the value Of foreign
coins, II is proposed lha, all the dues o
Government shall be collected in Gold ans
Silver, aud be KEEP, by individual deposito
ries. have not space TO discuss tina, pro
Ject here. Lei IT suffice TO say, tina, il pro
poses to abandon safe practical methoc
Of administering the finances and regulating
the currency and exchange, for the specu-
latlve opinions Of those, who signalIy failed
4 IN the State Bank system, ia which they
/ p.olessed equal confidence. Or, rather
that We shall prefer to our own American
successful experience Of half century, iht
experience Of Continental Europe, and G
Asia. But it has been condemned by tn
judgment, Of the American people, and mos
unequlyocally by those 0! our own State.
Whilst, however, advocate the eslab
''shmeni Of Bank of the United States,
ls not toJ the sake of the Bank, or 10 layo
us stockholders, as is sometimes unfairi,
euafgea " those holding opposite opinions
: out lot me PGolc b>pefits that are expected
10 aow from il. Wher>rer abuses nav,
existed in former institutions, f.nd do,,t,
not there have been many they shos,l +,
guarded againa,, and prevented for the Il
ture. To say that this cannot be effected
is to deny ordinary wisdom 10 the Legisl;
iure, which has the power 10 fashion III
+ Charter a, their will, or to suppose unfallt
, fitness or corruption IN those, who are /
5 expound or execute the Laws. To forsak
: every scheme, into the administration {
= which abuses may creep, insiead Of loppin
; Oft and suppressIng the abuses as they ar
] discovered, will be 10 make Guyernmer
= itself constau; series Of new experiment:
That Bank affords the cheapest mode
keeping and dlsbursing The public MONIES
manifest since no compensation is paid
for this service, however great may be III
amount, or disian. the place Of paymeu
from the place Of receipt. Tha, il IS safes
10 equally evident, for whatever embezzie
meuts, frauds or accidents may happen Il
the Bank, lis whole capital stock, as vel
as other means, are liable to make 200,
the deposnes in It's vaults. These are ad
d yan'ages which recommend il as hsca
agent OF lie Government. /. was found i
fracIlce TO possess another qual!ty-tha
OF lowering exchanges and forcing the loca
Backs TO keep their circulation in a SCUM
: state; which renders il peculiarly desirabl
: TO \. Carolina, aud those other State
which do not find market for the larpes
part Of their productions, within their owl
Z limits, but carry them to other States, an,
, from the necessities Of trade, receive il
plymen. the cUrrencies Of Banks, owe
which their authorities have no coatsol.
! was one Of the ea;ies, of those wht
advocated ID the Legislature Of the State
the policy and justice Of distributing INC
proceeds Of the Public Lands among tht
States Of the Union. do not conside
this fund as having been contemplated b,
.''o fsapers Of the Constitution, among The
Heal'7 'ot Inc ~-J:-a.y support Of Govern
ment, and u has not been SO considered Il,
others, if we have reference to the imne.rss
grants which have been made of il, from
time 10 time, to States, State Corporations
benevolent Institutions for Educ,,;a, h. -