The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-12-25
BANKS AND BANKING.

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ga hard money government They had recent and
terrible example before them of the Disastrous conke
qences arising the attempt substitute paper money
for Specie and were determined IL possble forever to
prevent a resort TO such fatal expedients. ss58l
Accordingly they ordained that nothing but silver anu
gold should be legal tender in the United States ana
that mo State should emit bills Of credit make any
thing but gold and silver legal tender in payment OF
debts. One would suppose, had not experience demon
sated the contrary that these provisions were srcient
10 secure to the United States for all time to come
specie currency That this prohibition was intended 10
apply to bannotes is beyond all doubt because ~ una,
time they were known by no other name than bills OF
credit But even if not bills o credit gen
eric term conprehending every species OF paper currency
which, as a matter OF course Is issued on credit
This, then, being emphaticaly Intended for hard
money government ia not an ipcrsQys subject ef I'M
qny to trace the various steps by which IT has by de
grees become one Of the most notorious paper money
governments In the world The first step was the char
tering of the Bank of Pennsylvania which now figures
80 prominently in the class of delinquents am OLD
enough remember the opposition of many distinguish
ed to this measure. But the government waltea
money the bank was willing to loan 1t II they would fur
nish the means, and the oprositionwas overcome or
senocd Tho bank said to the government allow us TO
make money out of nothing and we Will lend you as
much as YOU want 1t in this way that the Bank Oh
England originally obtained Its charter by bribins the
the government with loan. So with the Bank Of France
and every national bank in Europe. All IArtasei their
charters by loan douceur in some shape or othcf'
/ and the people were sold to money corporation on
which government conferred the means OF robping the
without directly picking their pockets
The precedent being thus established and the right OF
State to issue bills of credit by deputy tacitly recog
nised by the general becoming thus sharer
in the spos of the people the result was almost una
vodable Setting aside all discussion of the great CON
stuonal question of the right Of State to issue bills
Of credit was argued with degree Of justice, that
il banks were really great public benefit TO State,
every State was entitled to its share and that If one State
would issue bills of credit all the States had equal
right This reasoning would have been perfectly logical
provided such right had existed Every State, accord
ngly began exercise the right at pleasure, md as rs
always the case position before untenablc became al
most impregnabc by being defended by array Of pre-
cedents. repetition Of wrongs became the foundation
| Of an established right s, 4,, ss3ass.f4 s4
But it win be asked how is this lcgalized outlaw 10
he restrained within proper bounds; how to IN
do what we have done remedy the evils which have
flowed from evasion violation of the letter and spirit
of the constitution refrain from presenting any
scheme that purpose because it easier to point
out abuses than apply remedy and to deal frankly
with you 1t is firm conviction that in this case there
is remedy but death For nearly half century have
seen our State legislatures cobblng and tnkerng at
attempt to make II hold water The obstacles to all
radical reform such be possible without destroying
the whole system deeply implanted in the nature of
man The temptations to abuse, and the opportunities
for its indulgence too great for flesh and blood to
bear BY banking system 1t is rendered the interest
of the banks to violate the provisions of their charters
because every such violation increases their profits and
their dividends Every debt they incur to the public is
source Of gain to them, and thus premium is offered
for evading or violating the laws After having afforded
both the temptation and the opportunity, does the egis
ature suppose that bank directors and bank officers
different from other men, and that they fatcn them
| with cobwcbs tsg N 81 ,asgttf,sa
The experiment has, should think, been tried often
enough and failed often enough to satisfy any reasonable
that the defects and abuses of our banking system
are innate ncurable and beyond the reach of legislative
wisdom or virtue. These slippery nonentities without
body soul and without any personal responsibility,
to have been created purposey to defy eyade the
laws with impuny, and one might as well shoot at.a
shadow as attempt to bring down of this species of
| high-fying game. M H3F
But methinks your readers holding up their hands
in holy horror, and hear them excaimng 'What would
you abolish banks of issue altogether, and at blow
rest the public prosperity through every branch Of bust
ness Would you deprive the merchant and manufac
tuer Of the privilege of trading the capital Of others
diminish the wages of labor throw thousands of indus
rious people out of employment and turn the whole
world upside down r. Even So my friends i would
senture all this from conviction that the first OF these
evils would be blessing in Disguise that others i
agnary, and that all of them would be but tempora-
| ry They would not last as long the effects of
bank reactions revusons, contractions expansions,
and suspensions that perpetuay throwing the
try into convulsions and they would
| turn. The cure would be radical and we should DO
forever freed from those harassng vcisstudes that not
only try the purses, but the integrity of man, every
one Of which is far injurious to the permanent pros
pcrty of the country and the happiness of individuals
than would be the utter anihation of the rotten ns
curabe system of banking which has done more to arrest
the natural and wholesome progress Of the country to
inro the national character and corrupt private and
! public morals than all other causes combined
II don't require you TO endorse these sentiments They
are too radical and in the of the day radicasm Is
secuted by all gentee people, especially i'm England.
Now for my part would not give much for any reform
that was not radical All other reforms but temporary
expedients for putting off the evil day and only insure
it's return with aggravatons. Instead Of graphing
manfully with the enemy and choking him outright at
the risk of getting few scratches, stter ourselves
with having done wonders by tying his hands with a.
packhread and leaving his legs at liberty go where he
pleascs We act like the nervous patient who prefers
dying Of modification TO having his limb amputaed
We prefer rsin return Of the gout rather than resort
to the necessary regimen prevent its recurrence AN