The Washington union., 1857-11-26
BANKS AND BANKING CONTINUED.

American citizen now comedies that our paper-cur-
rency system is fatally defective, and does not
swer the purposes for which it was professedy de-
signed. In the time Of peace and plenty-ina sea-
son of health when there was no public calamity
the whole system exploded with no assgnable cause
except the people had no confidence in the failing
banks. Their all stoppling down at once, the bad
and rotten pulling downthe others with them proved
that they were not entitled even to the confidence
they had enjoyed. The Solons of the day are now
trying to devise new system Of paper currency.
They not content with good and perfect one
provided by the constitution but they desire to pro-
vide substitute, though they cannot agree what it
shall be. Every one which we have bears
about the same relation to good currency that hy
pocrisy does to real virtue.
Some of the aged andrespectable worshippcrs ofthe
old United States Bank wish to revive that emphati
callycondemned concern. An inventive genius pro-
poses that the United States shall issue two
hundred millions Of stocks which shall constitute
bank capital ; and that when the stock shall be de-
posted with the Treasury Department it shall coun-
tersign and issue bills to the deposting banks to the
amount of the stocks thus pledged for redemption
The inventor forgot to show how the banks were to
get money to buy the stocks with and did not seem
to appreciate the consequences of withdrawing one
or two hundred millions of specie from circulation
and piling it up in the treasury to get the govern
mcnt stocks to start with If the banks had that
amount of real money on hand they might bank
upon it without issuing bills at all. Why should
the government receive money and issue stocks for
it when it does not need money to meet its expenses
The government is authorized to borrow money |
when necessary to meet public engagements, but it
has no such power when the object is to become
the trustee for corporations to receive their money
and give obligations for it, and then to receive back
such obligations and hold them to the credit
ors of such corporations. Stocks issued for such
purpose would have no legal validity and if the gov
ernment could be sued the holder could not
But why should the government be engaged in
mass of this kind ofdetas enable State corporations
to try to make good paper currency, which human
ingenuity never did or can, after laws under the
constitution have formed the best in the world :?
Why become the trustee or manager for banks more
than for farmers in the management of their bust
ness OF the planter in selling his cotton the
chanic or manufacturer in vending his wares ?
If bank in Texas should fail it would take more /
than any one would be likely to have Of its
bills to pay his expenses to come to she treas
ury to get his money; and when he arrived, he
might be compelled to await sales of stocks before
his bills could be redeemed. If the inventor con-
tempated that when these banks failed the treasury
would be opened to all bank creditors, what would
be the condition of the government when the banks
should all fail togetherf 1t might leave the nation
without dollar even to prosecute of defence
Ifhe answers that the money paid in for tho stocks
would be on hand to pay with then why issue the
stocks at all Why not issue bills countersgned !
at once on the receipt of specie dollar for dollar?
If such should be part of the invention, then We
should like him to point out the clause in the I
constitution comforting authority upon the national
government to become the trustee and man of bust
ness for corporations which none seem willing to
trust with the control Of even their capital. 1t
may be that the State governments have power
to engage in such agencies but the national govern
exercise it for the convenience of State corporations
when, it has already provided as good currency as
can be made 1t would be aiding and giving credit
to corporations in making paper money, when
we all know that they are continually falling
and occasoning great losses to the community.
The inventors who have substituted the States in
place of the United States have shown about lit
tie practical business knowledge. We have
proposition for central institution, under State
troll, for receiving securities and money which to
issue bills As contrived the losses in the end
would fall upon the State. One proposes that such
bills should be lawful tender. He forgets that our
national constitution forbds making anything but
gold and silver a tender in payment of debts. But
why this great anxiety to get up substitute cur
rency Why not let well enough alone? Why try
to make that equal to real money which cannot be
made so in tho very nature Of thingss Shadows
casnot be made solid substance. The pretencc that
gold and silver is inconvenent in use is gross fall
acy SO far as nine hundred and ninety-nin in thou
sand are concerned. We, and those about us,
would like to enjoy such Inconvenience The masses
will readily endure il. The few who have such
large means that they put to inconvenience--et
them get up deposite institutions, and leave their
money in thcm and take certificates of deposite and
pay the expense thereof, instead of continuing sys-
tenn which has proved 30 fatal Let it be made
high crime for custodans Of depostes to suf-
fer the removal of them. ~
Some system Of this kind will accommodate those