New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1857-12-25
TO THE PRESIDENT OF THE UNITED
STATES.
LETTER III.

skill 20 to adapt II to "the wants of internal trads
and foreign exchanges, as to prevent Huctu,.ion 10
the value of property, suod as the American historian
is 20 frequently called upon to record. "Unortu.
pately, however, in yon estimation under the con.
struction of the Federal Constitution, which has
new prevailed too long to be changed this importsn.
and delicate duty has been discovered from the
coming power, and virtually transferred to more
than fourteen hundred s ate banks, acting inds.
pendenily of each other, and regulating their paper
Issues almost exclusively by regard TO the present
" interest Of their stockhoders."
Such being the unhappy results of our Federal sys.
fem, the central government cannot, as you say do
much TO provide against a recurrence Of existing
evis" Utterly poweress itself for good, while sur
rounced by local governments alpowerfu for evil all
that can do 10 to rely upon the patriotism and
wisdom of the States for the prevention and redress
Of the evil. Htbey," as you continue, will afford
US zeal specie bssis for paper circulation by
increasing the denomination OF bank otes, first to
twenty and afterward to fifty dollars; if they will
require tia the banks shall, at all times, keep
hand a. least dollar in gold and silver for every
three dollars VI their circulation and deposits and
Il they will provide, by self executing enactment
which nothing can arrest that the moment they
D." suspend they sha 60 into liquidation believe thst
" .uch provisions, with weekly publication by each
bark Of ststemen Of its condition, would 90 far
to secoIe us against suspensions OF specepa
" menis."
Jy probable, but to what purpose None whatsoever
lhe Iecoros of State Legislatures, for the last
twenty years, present to view host OF laws having
for their object the production Of state OF things
such you here DESIRE and yet on the first occasion,
they are set aide AID unbestatingy, by the same
legislative bodies has been the famous provision 10
the Charter Act Of the Bank of Engand why IS
this Because The regulation OF the currency on TINS
side of the Atlantic has been in the hands Of men as
little capable of executing that highest and most re
spopsible Of the duties of government, as Messrs.
Overton ard Peel are proved to have been on ths
oihtr. The provision OF the Engllsh law 6elng-lke
those in our own chaiters--based upon faacy, has
DOW been twice suspended; and suspended it must
again be whenever the time shall arrive thai its ser.
vices will again be needed. So is 1t, and - must 1t
continue to be- with all similar provisions IN the char
ters Of this country long as the action OF the CEN
trsl government shall continue to be hostile 10 the
Establishment Of perfect currency; for there and not
with the local institutions, lies the difficulty, as you
may rest assured. -,
Let il be eupposed however that the States continue
TO pursue their own coursedoing, in the future, pro-
oisely as they have done In tbs pas-creatng banks
nd hbitnm and not providing, effectively for carrying
out the plan that s here suggested That they wiz not
so provide, seems very evident More than twenty
since of your predecessors denounced bank;
ard bank notes. in terms as strong as those nov used
by YOU; and since that time, their denunciatlon has
constituted an essential portion Of the creed Of the
great Democratic paty-that party OF WHICH YOU SIR
are the representatives but with other effect as yet
than that Of more than guadrupDg the number OF
repre- seRted.by more than 400. This being progress
backward, with Whist reason can We look for such
change 10 the modes Of thought as would produce
movement in the direction you desire AS l think,
with none If then the facts be as you hold them to
be-if the difficulty does really rest with the local
goyernments-snd il our only chance OF remedy Is 70
Be eoush in State dscretiep-then are we truly nelp
less; and then 10 Federal system total tahure'
Fortu ately such not the case. Fortustey the dn
culty does rot lie with the states, as you, am sure,
VIII gladly be convinced, after reading the bref sketch
Al 4 ha vVnohn
ofour banking history that WI now Dc maqe.
the good sense Of is people having early taught theh
the advantages that must result from having pisces
at which those who had money to lend could readily
mo AZ those who desired to bOrrOw-b0th paes beng
Tins relieved Of the necessity for the employment of
middlemen In the arrangement OF their exchanges
From the close Of the war; in 1888 to ISL, the aver
age number Of banks in existence Throughout the
New. England States was lG; while the Number OF
failures In all that peIiCd-embracing, as did, the
wear. in which, under French DEGREES and British
Orders In Council, the seas were swept OF Amer IA
shps-wss only four.
1855 TO Remembering not alone the times OF pua ~
on the ocean, above referred tO--of em6areoes and
non intercourse lawsuit, aso those OF the wN o.
lSl2-of the disturbed period that 10 oweo close upon
the peace-and Of the celebrated crisis OF lS2J-we
frd the rumbsr of banking institutions to have
no less than sixty while the tota number OF
failures in the whole half century, was only twenty
or TIVE in every hve years peIoG tnown
OF these failures, five took place in Msssachuset';
but by thess the public suffered httle II any, ioss
one paid all its debts second, it is believed, did
the same. OF the third, the bills outstanding at the
date Of its stoppsge but $27 900. The remain
ing two certainly paid every outs andng claim. exosP
sl9S7S; and it lie not now certain thai even thst small
cum was not subsequently paid: Admitting however,
Massachusetts, In period of fifty years. from dealing
with banks was less than 81 coo per annuu, and not
more than one dollar IN erery miuon-or the ten'
,hOaadh part Of one PER cenIoi .ns ua s NON
ence Of such institutions, and by the substitution Of
bark notes for a metallic currency Small, even as
is that proportion, it might a. think, be much re-
ducedit being based upon the laea tna' .ne opefa
the eapita whereas il might be almost safe 20 pace
them at four hundred times that amount-in which
Gaze the proportion Of loss sustained would be only
tie kundreathonsdndI PORT q one PER eem; imam ths
Quantity Of service rendered by banks, in collecting,
guarding and transferrirg property-a OF tnis Work
beipgdone without charge OF spy kind ana 10
for yourself IT, in any other case 80 sge an amount Oh
service is rendered at so small COST The orokef
charges an eighth, or quarter per cent when ne ar
ranges transfer Of stocks The wholesale oea,ef
charges %, or per cent. The retailer takes lo To-
OF 20 per cent but the bank performs an amoa9' Si
exchanges of society, in rkich n,oneyH usedcnhging
nothing Whatsoever. Sometimes banking insututon
badly managed, falls into difficulty. SO, however, Is
il with brokers and commission merchants. In tne
csss of these latter. however the loss is generally
slmost total whereas in that Of the banks. the loss
fslk almost exclusively upon those who had doae the
woik-the stockholders.
Seeing The facts TO be as stale, would ASK you !,
Mr. President, TO say if you hsd been resident OF
Msssschuset ts-and what is saii OF that State is
almost equally true Of all New England in the peHod
above referred to-wouId you have been pleased,
whenever you had large amount OF money 10 receive
10 find yourself compe led to carry yeur silver on your
back or in a wheelbarrow; or to pay commission TO
have 1t converted into gold in order thst you might
be enabled to transfer it from place TO place ana 70