Spirit of the times. [volume] (Ironton, Ohio) 1853-1858, 1856-01-29
pWLITICAL. L
THE BANKING SYSTEM.

In an address to the stockholders Of the Uni
ted States Bank, at their meeting in 1S5c, Mr..
N. Biddle, the president Of that institution,
slated that FIVE hundred and forty four Banks
had been established in different parts of the
country. He added that one hundred and for
ty.four Of these Banks had been openly declar-
ed bankrupt, and that about fifty more had sus-
pended business.
Mr., Gallatin, in his "Considerations on the
Currency and Banking System" published in
1881, gives list Of three hundred and twenty
nine State Banks tlen in operation, having
nominal capil ais of the amount Of one hundred
and eight million three hundred thousand eight
hundred and ninety eight dollars. This sum,
added to the capital Of the United States Bank,
made the whole nominal capital Of these insti-
tutions upwards of one hundred and forty three
millions Of dollars. ttt3s
These Banks issue notes which serve as sub
stitutes for coin. t.
They grant credits on their books. and trans.
fer the amount Of credit from one merchant to
another. -t ~.
2 They receive money on deposit.
They buy and sell bills Of exchange.
They discount mercantile notes.
They buy and sell public stocks.
All these are important functions, and If on
ly one of them be i'll performed the community
must suffer inconvenience. g..
The Banks are scattered through nearly all
the States and Territories which compose our
Union; but they may all be embraced in one
view, inasmuch as they all substitute paper fol
specie, and credit for cash, and are all en-.
dowed with privileges which individuals do moi
possess.
= BY their various operations immediate and
remote, they must affect, for good Or for evil
every individual in the country. Banking is
not local, temporary, or occasional cause. II
is general and permanent. Like the atmos
phere, it presses everywhere. Its effects are
felt alike in the palace and the hoyeI.
To the customs Of trade which Banking in
troduces, ali are obliged to conform. A man
may, indeed, neither borrow money from the
Banks, nor deposit money in their vaults: bu
if he buys or sells it is with the medium which
they furnish, and in all his contracts he mus
have reference to the standard of value which
they establish. There is no legal disability Il
carry on commerce in the safe, old fashioned
way: but the customs of Banking have intro
duced a practical disability. II is no longe
possible for the merchant to buy and sell 70
ready money only, or for real money. He mus
give and take credit, and give and take pape
money, or give up business.
Bank paper is not a legal tender in the dis
charge Of private debts: but it has become, il
point Of fact, the only actual tender, and thu
sudden refusal Of creditors 10 receive 1t woult
put IL out of the power Of debtors to compl.
with their engagements.
~ Credit, the great rival of cash, Is completed
controlled blythe banks, and distributed by then
assaults their discretion. fA In, I,
These institutions may contribute little t
the production Of fweaith but they furnish tn
means to many for the acquisition of wealth
theyappear to be the chief regulating cause 0
the present distribution Of wealth. and as sucl
are entitled to particular attention. N
"In copying England" says Mr.. Jefferson
"wedo not seem 10 consider that like premise
induce like consequences. The Bank mani
is one Of the most threatening Of these imita
tions II il raising up moneyed aristocrac
in our country which has already set the gov
eminent 1t defiance, and although forced
Weld a littleon the ffst essay OF their strength
their principles are unyielded and unyieldina
They have taken deep root in the hearts Of thl
class from which our Legislators are drawn, an
fhe son to Cerberus, from fable has become his
tory. Their principles take holdof the good
fhcir Delf Of the bad, and thus, those " hotn til
Constitution has placed ssguards 10 its portals
are sophisticated OF suborned from their duties
That paper money hos some advantages nul
be admitted. but It's abuses are also invetetate
and that it, By. breaking up the measure Of val
ne, makes lDttesy Of all private property ca
not be denied, Shall We ever be able to put
Constitutional veto upon il r
y These are fofcible remarks. Those whic
fcllow, by another writer, place the subject i
. evomewhat different, but not Len striking poir
Of REV. III IA
ain most disquisitions upon the ioxious ten
,dency Of Banks, much stresi has been hid uE
~ itn ,nianiiea thev have power to iufllct.
excessive loans and consequent bankrupte,
and b. creating and circulating > permanei
Sees Of currency. Gould these tHo evils
avoidsd, many believe that Banks would )
inaoiious, Z Segfet y dim. T. Sna not |
thoss vAo inaGns that Basis. iasoTosste
asasssfs g.s''t ;its Y : .s;si