Evening star. [volume] (Washington, D.C.) 1854-1972, 1857-10-23
WASHINGTON NEWS AND GOSSIP.

WANTED, REGULATOR. Our esteemed
friends of the National IntetligsnceT are again
out for an United States Bank. They believe,
according to their able leader of yesterday, that
all the existing financial trouble in the land
arises from the absence of such a regulator Of
the monetary affairs Of the country. They
quote the views concerning the natural law oil
trade Of some unnamed English political econ
omist, whose words Of truth and wisdom, we
are ashamed to say, we do not recognize, though
that they do embrace truth and wisdom, all
common sense readers will comprehend Those
words are as follower
4" First we find it in condition of ouiescence.
next improvement then growing confidence then
prosperity, then excitement, then overtrading,
then revuision-followed in turn by pressure,
stagnation, and distress, until the equilibrium of
qulescence is again attained.''
Our respected friends seem to imagine that
there is no necessity for all this-or, in other
words, that the existence of an United States
Bank would do away with any such necessity.
The practical reader, however, will be most
likely to agree with US that the English writer
In question has but reLearsed herein the inevi-
table law OF commerce, that may be more or
less modified only by the existence Of elements
in commerce restraining speculation. Our
friends of the InteiLgencer look to bank Of
the United States to do that thing. Most others
in the land, from experience, regard bank of
the United States as an institution likely to lead
to undue speculation on the part of those whom
it may favor in the exercise Of its autocratic
powers over the monetary affairs of the country
and, We sincerely believe also look to banking
hereafter ON the English system of the entire re-
sponsibility of the owners of bank stocks, as the
only check on the tendency of banks to produce
speculation that ends disastrously. According
to that system, every man, woman or child who
owns dollar in the stock of bank, is as liable
in ali his or her property for all its obligations
as the full partners of retail store are, at this
moment, for the business OF the concern, under
our laws.
Such change in the banking system of the
United States would doubtless change the pro-
pretOrship of bank stocks among US, substitut-
ing for those who could not protect themselves
rs bank stock owners, vigorous and effective
men altogether. The result. however, would
be beneficial to the country for it would at
once put stop to loans on account of favoris-
''on call, . or to railway companies at exorbi-
tant rates of interest, and would confne their
accommodations to business men in a business
way.
The country must, in self-defence, adopt that
system sooner or later, coupled with a provis-
ion authorizing the issuing of bank notes only
on the hypothecation of State stocks, dollar
for dollar. Or; in other words, the profits Of
banks in this country must and will be reduced
to II or IA per eentum per annum, less the ex-
penses of conducting them; and the public will
at the same time, be secured against their
Encouragement by the incorporation of the
feature of entire individual responsibility for ali
their transactions, in their charters of priyie ,es
Such changes in our banking system will
meet the views Of the great mass of the commu-
nifty, far more nearly than any scheme for the
revival of the United States bank under the in
auence Of the late panic