The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-10-29


much Of what we have said against the paper sys-
tenn Its remedy, however, is wholly different from
ours. We wish to eradicate the evil, while our
worthy contemporary wishes to try once more to make
"a silk purse out of sows ear'-lto make hcti-
tious nothing equal to real something-to make a
paper promise to pay, having not cents worth oil
real value anywhere, the thing as coin, which
has an intrinsic one throughout the world The In
tslligenosr concludes its article as follows; EsA
The reader who has carefully followed and candidly
considered the line of argument pursued In this discus
sion will be at loss to discover wherein lies In
our Judgment the radical of the financial evils
which periodically alict the country They spring from
an ireguated currency Doubtless wild speculation and
rash overtdng and luxurious extravaganza are the I'M
mediate of these recurring pressures but behind
them all exists the procuring cause OF thena In mon
etay system which tends by the vices and defects OF Its
structure to create the conditions most proptous to the
unnatural growth and development OF these secondary
which the sure precursors OF coming disasters
And is for precisely these monetary evils and for these
besettng dangers of business activity that NATIONAL
BANK with those checks and limitations which must ever
be applied to all deposits Of power whether In govern
nance would afford the speedest, surest safest
and widest remedy. ~ "a Rail- .s
The substance of this argument is this, that our
country is afflicted with numerous unbearable evils,
and the remedy is to create very large evil, and
set il to work convert the smaller into instru
mens Of public good. If its theory is true, then in
cities where there hundreds of petty offenders
the remedy is to secure the services of acknowl
edged hero in that line, and they will soon become
the children Of virtue and usefulness. After admit
ting that the present paper system is subject to all
the evils which we have charged, its proposed rem
edy is another national bank to regulate those now
- boaI oa,
once tried and proved total failure in that, as well
as in other respects. 1t did not control but really
caused the revusion after it's creation, in about
1919. 1t did not prevent that of 1862 nor those
of 1882 and 1888 1884 and 1885 '36, but contributed
largely to each of them. When the Integenesr says
we had no national bank after 1882 it is mistaken,
rs the charter of that bank did not expire until
1886, having been granted in 1916 for twenty years.
After it was rechartered by Pennsylvania professed
to be stronger and more powerful for good than before;
and still it utterly failed paying its stockholders, long
years afterwards only about three per cent of their
subscriptions and running thousands, including nu-
merous widows and orphans
The remedy proposed for present evils is to bring
into existence another mammoth bank TO regulate
others, although experience has proved that the
former one could not safely conduct its affairs.
A new regulator is proposed, but we are not told
who is to regulate the regulator, which is quite as
likely to need regulation as the present banks,
whether they arc large pocket affairs, which
have brought SO much evil upon the country at the
present time. There will be no wisdom, skill,
or virtue in the proposed regulator than controls the
present banks, which, it is conceded, worse than
useless without regulation. There as able and
honest men now in some of the banks can be
found to manage the regulator and they fail of sue
cess because the present system is bad. Is it pre-
tended that wiser or better be found to
troll the regulator? If so, where are they to be
found, and who are they But how can the regu-
lator regulate other banks Congress could give it
no control over State institutions. 1t cannot elect
their officers, control them, even know their
state and condition, nor what they are doing.
But if it did how will it make them obey? 1t might
buy up their bills and make run upon them, and
perhaps break them. This would not regulate, but
would ruin them. But could it attend to the many
hundred State banks if it really wished and had the
power to do so? While trying to fight them into
obedience to its wishes, (which might not always be
wise J it might be met by retaliation that would
PROSTATE the regulator itself. 1t would soon find
that blows could be returned well received. 1t
would have its own bills to redeem, and it's depos
itors to pay and debts to collect. Unless differed
with more perfect men than those who had charge Of
the old bank, it would be afflicted with it's own blum
ders, as well as rascalites and losses With beams
in it's own eyes, it would have little time and less
ability to pluck notes from the eyes of other banks
1t would find full occupation in attending to it's own
affairs. If it should engage in regulating the bust
ness of others, it would fare no better than divers
worthy people who have attended to everybody's
business except their own.
The time has gone by when national bank, how
ever contrived. can regulate either the business or
politics of the country, or make paper representa-
tive as good and as reliable as money itself
No Hypocrisy or imitation ever be made equal
to the reality it assumes to represent, whether in
currency, morals, or religion The constitution has
provided as good currency there is can be in
the world. That consisting of paper is fatally bad
and no regulator can make it equal to that Of the
constitution and none has yet been found that
could even regulate ITSELF and much less the affairs
of Others over whom it could have rightful con-
troll The currency of the constitution requires no
regulator but will take of itself and serve its
owners faithfully all over the world. A large ma