The Washington union., 1857-11-21
PRINCIPLES or THE NEW ANTI DEMOCRATIC
H PARTY-A NATIONAL BANK. ~


national bank. to be chartered by Congress. Tho
advocates of the proposed corporation ascribe 70 II
perfections and qualities Of magical and superilu-
man kind 1t is TO regulate the finances, as well as
the business and currency of the country, and keep
some thirteen hundred State banks in order prevent
their contracting bad debts, loaning when they
ought not, as well as to prevent their Issuing too
many or too few bills, and see that they keep the
right amount of specie in their vaults, and prevent
oyertrading by merchants. Some marvellousy wise
and active man is to be selected who will not only
keep his own bank in perfect order, "a sort Of man
never yet found but also regulate thirteen hundred
establishments scattered in every nook and corner
of the country, often thousand or more miles dis
tant from him, about which he know little or
nothing. t
Everybody but the contriyers of this new party
knows that nothing short of omnipotence can accom-
psh thousandth part of the duties which IL is pro-
posed to commit to the corporation proposed Con
gress we all know, cannot exercise itself confer
upon corporation anybody else thepower to exer
cise any direct control the State governments
institutions created by them, nor will the peo-
pie ever assent to any such interference by Con-
gress or any agency or corporation created by
or under its authority. national bank would
be equally as powerful for mischief as for good, and
by nsmanagement might produce the very evils
.that ought to be remedied. 1t might create expan-
sion when contraction was required, and induce con-
fractions when expansion might be the most proper.
1t might stimulate speculation when it ought to be
checked and seek to check it when not excess
sive or did not exist at all. 1t might require
suspensions of payment by other banks when
they could and ought to pay, and might con-
tinue the suspension for its own purposes regard
less of the interests of other banks the pub
lie. 1t might raise or lower the price Of lands stocks,
merchandise, and farm produce to suit it's pur-
poses or those of its managers It might make spe-
Gle plenty or scarce and bills Of exchange high or
low, without reference to the course of trade and
business. We say this upon The theory of the ad-
vocates of such bank, that it could regulate and
control at its pleasure. If it could such power
lodged in corporation, over whom neither national
nor State governments could exercise any control in
these matters, would be most dangerous to all other
banks, and business well welfare of tho
country. If it could not control, then it would be
no more powerful for good than any other moneyed
corporation sgt
If such corporation had the wish to do good, is
there any certainty that it could even control its
affairs better than other banks manage theirs
Would the officers of such bank be wiser or better
than those in State banks Where would such
men be found In what way could they as
certain the condition and exercise control over
Stafa hanku What ,yould euch a hank do if tla
State banks should refuse obedience? If the latter
should not disobey the laws of their States pun
ishment could be inflicted. If the great national
regulator should make mistakes and behave
bad, who would regulate punish it (? 1t might
sink its capital and no one outside could find
it out until after it was gone. This no power
on earth coHld remedy. All the statements and
examinations of the late national bank did not
prevent its becoming utterly insolvent, and sink
ing some ninety-seyen cents upon the dollar of its
capital A great regulator is no more to be trusted
than little one, and with of presidents and
cashiers, it could not regulate the thirteen hundred
State banks, many of which are as well man
aged and probably better than the national bank
ever was. But is it safe for the business and
currency of the country to have aggregated un-
der control, if not at one point, capital so
large that it could issue it's commands to the in
sttutions and business of the States? 1t would re-
qure over a hundred millions to enable it to make
much headway in controlling the State banks by the
use of its capital. Where is such capital to come
from? Shall Europe furnish it and control our bus-
ness and currency? Shall it bo established with
real money or stock notes, bonds and mortgages,
stocks, &c.2 Every weinformed banker knows
that if such bank is not founded upon real money,
it not only cannot control Others but is in danger of
failing ITSELF because one can bank upon securi-
ties fled away beyond his control and which
only available in case of failure. A bank based
merely upon debts has no real money and although
its notes may be ultimately paid, partly so,
control the currency of the country but will
have enough to do to take of its own crcula-
ton. Combinations against it by those it attempts
to control might easily PROSTATE it. Then, if real
capital is necessary to the amount of hundred mill
lions or more where from what sources is it to be
drawn? The mass of the people prefer to manage
their own means but if they invest in bank stock
they prefer to do at home, where they know the
managers, and can keep an eye upon them. The
capitalists Of one city are not likely TO send their
means to another to be managed. They will prefer
to use it at home.