New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1853-02-07
DAILY CRESCENT.


FOR the CrssHanf
Free Banking.
E5iSorf Creet-There ia question which will claim
the consideration Of the legislature intimately con-
nacted with the prosperity Of this City and state the
establishment Of system of Banking uhch while II will
by the concentration of capital tend to The development
9 the # the country and the Of
the mechanical will at the time furnish cir
euliting medium that shall be guarded and protected
all times be eonverbls into specie A. civilization
has extended itself the world and commerce and not
the strong arm If force il regulating the destiny Of
tions every thing which tends to facilitate and render
easy the Intercourse Of man has claimed nconsdera
bic portion ri the thoughts and time Of the gifted and
learned In the days that past the system Of Bank
ing surrounded with such tissue intricate theo-
ries that the mind shrunk from the investigation Of
suject in which the misty outlines ndistinety
but the experience Of the present day has realized
the that Banking is regulated by the laws which
govern tradethst. in truth it is but appliance Of
trade in which money exehangeable value.
dependent upon the general laws which regulate
It rue that the present day a not without its
theories By it il contended with much psusibl-
ity, that Currency and Banking entirely different
things the belongs Government, the other is
pursuit pc followed ike any other mercantile oeeupa
ton.
i is contende1 that Currency should rest upon the
country and BY being made receivable for s
dues it is not necessary 70 have any other basis u rest
upon But the fiscal affairs of nations ehangaLe in
their character Currency resting upon such basis
part.ke II this chapgablensss and therefore would
not be fixed and stable standard Of va!ue-withou this
essential requisite Currency be capable Of per-
forninr its proper functions Currency is put the repre-
sentative Of the productive industry Of country and to
answer the objects Of its creation must be fixed and
its character Hence the selection Of gold and
silver the Of the wealth Of nations 1t is not
that the gold and silver Of themselves possess this nrin
-.
changabe their character and having other requisites
as measure of values they have been recognized By the
civilized world the standard by which the productive
industry Of country shall be estimated 1t is Of impcr
lance then any adjunct which may beempoyed to aid
OF facilitate the application Of this Of values TO
the productive industry Of country should be Of such
character be readily referble to the source from
which springs If it permitted to wander SO far thai
its paternity cannot be discovered ceases to be tbs
thing it purports to be but character Of il
own Instead Of being that Fixed standard Of value which
et and flows alone by the trade of the world it become
wave which rolls and wels the various means Thet
mans skill may employ until in its wild and mad caree
it oyereaps itself and though the white foam may fo
time dash around it, yet it sinks into gloom an1
darkness And the experience Of the past has proved thai
every departure from specie standard Of values has GOV
cred the country with bankruptcy and ruin Ii then w
are to reason for from the lesson Of the past
to learn wisdom from the Of day vi
will be careful tolerate system of Currency unless
i easily and readily referribie tolthis fixed and sab
standard Of values.
Tie establishment of banks is but the necessary conse
duence Of the extension Of trade and bank note
only the declaration that so much specie is deposited
such place deliverable the return Of the bank note
paper therefore is but substitute for specie for the pur
pose Of convenience and economy but to answer as sub
,tue it must perfectly represent it and be convertbl
into it at will So long possesses this importan
requisite to facitats trade by essenng the
bors exchanges From possessing this capacity OF
wing labor paper Currency and Banks have sPruT
into existence the necessary consequence Of the c
arred commerce of the world The question is not nc
one If Banks but it i TO determine the proper manner
20 organizing them that they cannot depart from spec
standard Of values and yet at the same time exte
to trade those facilities the want of which has called the
into existence In most Of the systems heretofore adol
ed has been attempted to throw such restraints arou
r. the Banks and guard their various operations h
- they could not depart from the line Of their duty
laws however wisely framed have to be administered
who subjected to passions and unless the line
their duty be regulated By principles acting upon the
which they cannot resist they too apt to be guided
their feelings and interest And the experience OF the pa
has shown that no laws have been sufficient to restra
banks in their proper sphere. And why is this simp
because laws but rules OF actions deducibe from sou
general principle and the principle itself The trl
!
restrictions but in the application Of those general pr
L cipes which are self-actiDg in themselves II Is tru
that the restrictions which you may throw around
2 Bank may be founded correct abstract views b'
they are not the resulting effects of the CONNER
Of the country The laws Of trade are like the ce
trp,a and centrifugal forces constantly acting on ca
j other and preserving just equilibrium. II these Ia
are permitted to act upon Banks as upon the 9th
branches they will govern each other
preserve that just equilibrium which is so necessary
. the prosperity OF county Banks are but the offices
which registered the balances resulting from the CO.
of the country and if permitted to work free
gulaed by the laws trade their condition will
e the index to mark the increase or diminution OF
wealth Of country Few and simple are the regaiatio
which should be imposed by law. and indeed almost
only one is that which should render certain and Of
application the convertibility Of the circulation il
specie Since the recharering of the Bank Of EngaC
in S32 when it was required that one third pf the amou
the issue should always be hand in specie the sa
y rule has been adopted in most of the charters that ha
u been granted by special legislation such provision
worked well so long the Bank under the manas
uent of honest aud able but the history Of the p'
Is repea with instances of the bankruptcy of nsuto
with this provision This Is provision fixed in Its Oh
racer and not adapted those expansions and contra
j. tons Of trade and consequently Bank thus deprived
that svlf-actug principle, which accommodates itself
the commerce of the country. must fail in meeting
~ Of trade or render itself liable to fall into bankrupt
The experiences Of the present day has shown that VII
the law has required full and ample security for the oir
ss atiou. the rest Of the operations OF Bank shot
be left be regulated by the general laws Of CONNER
1 When the circulation is Of rapid and easy conversion
specie remaining all times but the representa-
40 Of that specie. and thereby constituting fixed a
~ stable measure of values the community is protect
. from those disastrous results which spring from
- worthless and deprecated Currency Currency rei
10 lated by the deposit Of securities of such unques
able character as to themselves the representative
spece will be free from those expansions and contr
ne tons incident Currency springns from the hoE
fasry or selfish considerations Of different Institute
governed alone by the artificial enactments Of Law
a. the issues based upon these deposits can never exc
the thing they represent, which is fixed and stable It
aari Of values their employment in the active conce
IL life must be regulated by the increase or diminutio
the productive industry Of the country. That it is
prcrogatye as well duty Of legislation to look wei
the nature and character oi the securities and TO see
tey ara such as can at all times be readily maio ava
BE for the redemption in specie of the Currency ba
upon them cannot be doubted but when legislation
scsuls to regulate the internal operations Of Bans
. sanaers out Of its sphere, The circulation Of B
" I,iug protected and the Currency which it gives to
- country being thus made to conform to liked ana
80 ;,.a tanlari of values the rest of its operatl