Newspaper of Burlington Free Press, January 3, 1840, Page 2

Newspaper of Burlington Free Press dated January 3, 1840 Page 2
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formed, run through all lite mode nrkpepinj Iip ptiblininoapyili.it li un born hitherto in uc, and w. iiUii.iKiii.uihy mi nRir.iv.imi ,iif.r...,V.i oi I lIulVi III II bllilil' lIllDlljll llll! I'f 1 1 II i II I (if pteiv todeni, Mini r.iiiiiol ilii'infnio ho nn-fnlly rrfencd to n ,i li!l "I nil' ciiiiipir.uno fiiii'iy nl culler. Aililitmn.il iiifnrin illun will iibo be fiinii.-linl bt the ipiioi I nf ilie fcoiptiiiv nf lli liPii'iiiv. I" ln" ply In ti r.i'l nude upim ili.il nflirci liv ilic lio'ie (il ipprrncntiities nl Hip. List spmiin, ipqtui nig lie ui'cl iiifni m.iliim mi dm oulijrcl (i I ilcf.uilla In public, nll'ireis nr nip-pis imilrr p.uli Oflmiii i-f titioit fmin 17S0 lo 1S37. "I'll is document will be cub milled in von in n few tl.it . Tlie cciicr.il resnli (hulpppnilriil nf die pnjl ollirp, which is kept pep tiniteiy. mid will b staled by h-elf,) ?n f.ir in diet' bear npnii '.hi? subject, me lli.it l lie lose.s which have been, nnil urn hkelv In be, mjtaincil by .111 cI.im nf iigeiils, b ivn been ilie urealPiil by banks, including, n riqiiliril in ilic lenjluliun, llinir ! prce.iatFil paper icccivrd fir public diie ; llint die next Ingest limn been ht difliiusin: nfliccisj anil Ilie least by rollce.int ami teceitcis. If die ln?e. nn duty bunds ate included, diey alum! will be llneelniil iliiiee In bnlli cullrclnr anil ieceiers. Our ttlin'c experience llipipforn furnishes die Wrongest ctiilencc dial die ilcshed legislation nl congirfs is it lone warning 10 iiutiie in dene opera tions die highest digicd nf reiiiily nnil facility. Surli id.-o appears in li.it t been'llie experience of oilier nation'. From die icults of in(piine mule by die scciclniy of die neasitrt in i rg.u ! in the practice unions diem, I inn enabled In Male dial in Htenlyitto out of Itveiity seven fiiicign gnvpi iinient?, finin winch iiniluiibipil iiifiinn ilion Inn been ubliihieil, dm ptilihe. innnejs me kept in cli.ti Hi of public, oliicci'. "I'll i rnncuiienie ol npininu in fatur nl' dial h 'Ipiii i. peili.ips as great us cxitt on any qiiejiii.n nf uilern.il ailuiiuisliaiiuii. In Ibt' modes ol'busilioss nnil tiflicni 1 restrain' or dislm r.--i nr officers, nn legal change was produced by t be s-uspon-lnn o' ppocto nnynuMi'-i. Tin; report !n-t r i Tc r r r 1 1 to will lie found In enn'rnn also liincl) uo fill information in relation to ibis suhj-ct. I heretofore assigned to Con gress my reasons for believing that the establishment of an Independent National Treasury, as contemplated by the Constitution, is necessary to the safe action of the Federal Gov ernment. The suspension of spe cie payments in 1S37, by the banks having the custody of the public money, showed to so alarming a de gree our dependence on those insti tutions for the performance of duties required by law, that I then recom mended the entire dissolution of that connection. This recommen dation has been subjected, as 1 de sired it should be, to severe scrutiny and animated discussion ; and I al low myself to believe that, notwith standing the natural diversities of opinion which mav be anticipated on all subjects involving such important considerations, it has secured in its favor as general a concurrence ol public sentiment as could be exj ee ted on one of such magnitude. Recent events havo also contin ued to develope new objections to such a connection, beldom is any bank under the existing system and practice able to meet, 011 demand, ; all its liabilities for deposites and uVfi a"'J !1 "fhuieut export of our produc- nutus in cii dilation. It mnintnini)1 ll0,,!; " ""ct anv; necessary pa.tinl pay , . . i menu leave Iho 11 w of credit undisturbed. specie payments, and transacts a' al, n(1I)l,ars l() ,,e )r0f ,,,,. ( ns sm, n profitable business, only by the con-J u. is checked by any Invitation abroad, or lidence of the public in its solvency ; hy an inability to make payment there in and whenever this is destroyed, the "; P'oJcioin. iheovds .f ihv ys'.n are demands of its depositors and note-;!... holders pressed more rapidly than J re s to pay (lie debt due, m Htuopiv Gold it can make collections from its' and silver arc timrolore ilrnwnin cxc!ian;o debtors force it to stop payment. 'or ll,r,r ""'c". irom ibo b-ink-s. To keep This loss of confidence with its, UP ll,.,',r M,,,!,'' "f0"'"' ,ll,0MI ';"'"" i iont i ar ouliffcu to call ti no n tbnir own debtors, consequences occurred in 1S37 and wno pny lh(Ml) prjricip:tiiy .r, ,lelr oWIl ,,. afforded an apology of the banks for j which are unavailable i ihem ns they their Suspension. The public then nre In I ho morclmnts to meet ihu InrciL'n acquiesced in the validity of the , ciinnil. Th- cniN of ibe bank-Mburefore. 1 i ! ,i o. I I in hiicb rtn-'rijeucics, ol ni ce-'.-il V, exceed excuse; and, while the State Legis- lol nam,;nn nrllllC0 rnrr;(I,nil,lll2 Jature, did not exact Irom them cuiiailmout of their nccninmodntions and .d their forfeited charters, Congress ' i lie currency, at tin; very innm'tit when in accordance with the reoom- ,hp "'f'0 "r lrfl,1,-' re''JTf-: it mi inenn mendation of the Executive, allow- V'11'"'"' f"J hT' Tl, "",,ns,"y "' . . .i ii 'I""' prcs-iire on Ihu cotnmnni'v is in pro ing them time to pay over the public ( pnrlllin tl, lho prrv)(11H lt,eraiiiy ..r credn money they held, although com- and cmrq. cut exj anmn of ihe currency pellfcd to issue Treasury notes to forced sale. . f properly a ro inadu at Ibe supply the deficiency thus created. ' ""'f'f Pcnasin nro mnst if ' .cil,. nlm,.nn,.n (I. I reduced, nntl lho worst cnlamnies to in 4l l.,,1,i.aiii....i ii.t.. .u "v. Itl'vidin are only at last arn s.ed. er motives than a want of public: opn violation of their oi.iw'an..ns conlidence under winch the banks seek to justify themselves in a refu- j ,,IP,r ""'i'ss f"1 nn imposition upon tin sal to meet their obligations. , C'nmpiiy l fluctuating and d, predated Scarcely were lho country and gov-l eminent relieved, in a degree, from tho difficulties occasioned by the general suspension of 1S37, when a partial one, occurring within thirty months of the former, produc ed new serious embarrassment, though it had no palliation in such circumstances as were alleged in justification of that which had pre-1 viously taken place. There was j noUiing; in the condition of the' country to endanger a well man aged banking institution; com merce was deranged by no for eign war : every branch of manu facturing industry was crowned witli rich rewards ; and the more than usual abundance of our har vests, after supplying our domes tic wants, had left our granaries and store houses filled with a surplus for exportation. It is in tho midst of this than an irrodecma hlo and depreciated paper curren cy is entailed upon the people by a large portion of tho banks. They are not driven to it by lho exhibi tion of a loss of public confidence or of a sudden pressure from their depositors or noteholders, but they excuse themselves hy alleging that rim ftun-ent or business, and ex change! with foreign countrieSjWhich draws the precious metals from their vaults, would require, in or der to meet it, a larger curtailment of til C II !oal1S to a Comparatively .... Pii. . . ... small portion oftlic communily,tln h it will bo convenient for them th bear, or perhaps safe for the banks to exact. The plea has ceased to be one of necessity. Convenience and policy arc- now deemed suffi cient to warrant Ihesc institutions in disregarding their solemn obli gations. .Suclitonduct is not mere ly an injury toindividual creditors but it is a wrong to the whole com munity, from whoso libcra'ity they hold most valuable "privileges whose rights they violate, whoso business they derange, and the val ue of whose property they render unstable and insecure. It must be evident that this new ground for bank suspensions, in reference their action is not only disconnected with but wholly Independent of the pub lic, gives a character to their sus pensions more alarming than any which they exhibited before, and greatly increases the impropriety of relying on the banks in the transac tions of the Government. A 'a'fje nntl highly ropcclnbto por. tinn of our banking "in'titinious tire, n nfi'irdj mo unfeigned pleasure to Plate, exempted from all b aniu an account ol i Ins second delinquency. They hove, to their great credit, not only coirirned to meet their rnirngrmcnU, lint have even repudiated the grounds of -inpcnHun now reported to. It in only by such a course that 1 1) o confidence and good will of the community can he preserved, and, in Hie srquel, the best interests of the institu lions ihemselves promoted. New dangers to the banks arc also daily di?closed from I lie extension ol that t-ys'.ein of extrnvagraiii credit of which they nie the pillar.". Formerly our loreiirn com iiictce was principally founded on nn ex change of commodities, incliid ng 'be pre cious metals, and leaving in its transactions but little foreign debt. Such is not now Ilia rase Aldrd bv the- (neililins nficirrVii by Hie bank', mere'credil has become loo cimimunlv Hie Imsio nf tr.wle. Mnnv nf the banks themselves, not content 'will. largely stimulating this nystem mining others, have nsurf.ed the business, while they impair the stability, of the inecauiile community ; they have become borrowers instead ol lenders; they establish their agencies abroad ; they encourage the is-ue ol Suite securities until lho foreign market is glutted with them ; and, unsnti-fii'd with the legitimate use of their oun capital and the exercise of their lawful privileges, they raise, hy large loans, additional menus for every variety of speculation. Tlie disasters attendant on this deviation from lho former course of business in Ibis country, ate now slnred ahke by Initio and individuals, to nn extent, of which there is perhaps no pre vious example in the annals of our count ry St Ion;; ns a willingness nf the foreign Ion by by the bank.s, a reiuMil to pn v fiP' eio lor Tlip,0 c,)n(!rn,.cl,cn. an inherent in the preseni sysieui. They arc not inlli- cneeilbyihe banks being large or sinull created hy National or hta'o (jovcrnments l liey are tho results ol tho irresistible laws of I rade and crot'it. In the recent cvnis which have so strikingly illustrated 'he certain etlucts o( these laws, wu huva n'.'ti the built of the largest capital in lho Union, e-iublished under a National char- oulborafve'y informed, by exchanging tlu.t for a S atu charter, with new and unusual privileges in a condition too, as l was smu, ol entire soundness ami great prosperiiynnt merely utiablo to resist these effecls, but Ibo first to yield to them. Nor is it to be overlooked that there ex iatD acbain of necessary dependence among these inatitutions which obliges them, to n gieai extent, to follow the course of.othnrs not withstanding its injustice to their own unniediaio creditors, or injury to Ihu par. licular community in which thev arc placed. This dependence, nf a batik, which is in proportion to tho extent of us debts for circulation and deposites, is not mere ly on oihers in its own vicinity, but on all Ihnsij which connect it wild lho cenlro of Undo. Distant banks may fail without seriously affecting those in our principal cnuiiucrcial cities, but the lailoro of the latter is felt at the extremities of tho union Tho suspension ut New York, in 1 037 was every where, with very few ex ceptions. followed as soon as it was known; that recenily at Phi'ndulphia immediately aflee'ed the hanks of tho south ami west in a similar manner. This dependence ! our whole hanking sys'ein on ihe institu tions in a few very largo citieH, is not found in the laws of (heir organization, hut in thoFO of trade and exchange. T(he banks nt that centre to which currency flows, ond where it ia '(quired in payment' for tnerchninbze, hold ilia power of tun trolling thosT! in togioiis whenci! it comps, while the latter pn ses no iiientH nf fc" slriiining theui! po that th value of intlitjd ual properly and the prn.penty oftrnie, ihrough tlie whole interior of the cqin try, nre mnijn lodipend on lho cpm or bad iinnngriuetit n( ilm Innking itMi tntions tn the great heals oftrado and on the seaboard. 13iil lh'n chain of dependence doe- nnl ntnp here, ll does not terminate at I'lni ailelphia or Now York. It reaches across the ocean and ctul.s in London, the centre of 1 1i c credit system, Tho Fame lawi ol I ratio which gtvo to tho batiks in ntir principal cities power over the whole bank ing vtcm of the United S'atc-, Euhject i no tonner, in their turn, to Hie nmney power in Great Dntaiti. Tt is not tlenied llnii lho fti'penston tifthc Now York banks in 1037. which was followed in quick fuc cesMon throughout lho Union, was pin duced by an application of that power; and it is now alleged, in cjtoinntion of the present condition of so lirgo a por lion of our banks, that thef cmbirrass. nietits have arisen from the tamo caiifc. Prom this influence they cannot new entirely epcape. fur it has iH origin in I ic credit currencies of lho tw countries, il is strengthened by the ctrront. of trade and exchange, which crnt'is in London, fc is rendered nlmosi irrcHstp'o by tho larpe ('cb's contracted there by our merchants our Viniik and our elates,' It is thus'tbal nn intrnilnc'inti of n new , batik into the most di-lart nf our villa'cs, placrs the businci-'s of that village w n'nii the ii.fliirnco of the money power in England. It h thus that every new debt which wo contract in thai conntrv, seriously nTects our own currency, and extends ovtr tho pursuits of our iiizens its powerful influence. Vc cannot c-capo from t Ins by making new banks, real or stna'l, state or national I ho sane clnitw winch hind those now exist ing to tho centre of this system of pa per creiii. tnot equally letter every sim ilar inslnitioti we create. It is only by th-1 exteit to which tl is system has been pmhei) o? h'e, bat wc have been niad ful'y awa-o of its irre.silahli! tendency to subject or own banks and currency t a vast coil rolling power in a foreign land anil it mid a new a'gument to those winch l.ll,,-,rn"3, Pfcnnnii Hit uat innj En uafigerpu ii, Ilic tirst place tiy ineir own ' mifmanagedpnt. and again by the conduct j '".every institution which connects them wen iiii! eeprn "i irnue ii our own cniltl t ry. t bev ari tubjec'eii, beyond all this to the cited 1 1 whatever measures policy necessity, of caprice, may induce those who cut rol he credits of England to resort to. I incao not to eminent upon these measures, (indent or pa-', and much less to discourage hc prosecution of fair com mercial ilealutt between tho two coun'ries b'iseij on recipweal benefi's . but it liav ing now been nvule manifest that tho poty. er of mil cttng these and simihr injuries, is, by i It o resi-lle-s 'aw ofcredit currency and credit trade, equally capable utixiond ing l heir consilience through all the ramification of nor banking sys'eio, and bv that means jml rectly ub'nii ing, particu larly when our linnk- aie u-etl as deposi tories of the pnb'ic innnovs, n dnnjrernus (P. loir.il ii. ilornc' io Hir Uoi'ed Kiiilej, I have denned il u y (liny lo bring the sob j cl to your nn ice, and a:-k for it your te nons cniisiileialtdii. . Is an argument required beyond the ex po-ilion ol'lliesc facts, to -how lho impro priety of ii-ing nur banking institutions depositories of th0 public money . 5 Unit we venture tut only to encounter the ri-k of their ird vidual and mutual inir. management, bit. nt the saino Mine. to phire our igreign nut domestic policy entirely under Hie contiol of n foreign moneyed in terest ? To d o i to impair the mile, petidence of oir g. vernillrnl, ns the pre--ent credit sysem has already impaind i hn indepenc" nir banks. Ft is to mbum all iU itiiporatit eperntions, whether of pence or war. in ho controlled or ihwatli'd at fist by our hunks, ami then by a power nbnad greater than themselves I cannot Ining nysell to dep el the huiml iat inn n winch t bis government and pro pie might In" sinner or later reduced, if t he means for defending their rights are to be undo depndenl upon those who may havo the most powerful of motives to im pair then. Nor is it oily in reference lo tho effect this stain of thugs on the independence of our govrrnmeit or of on r batiks, that, the oibject n'occiti iise f for consideration ; it is to hr vie veil also in its relation? to ihegeoeril frado of nor cuiuiry. The Mine is n n 'o'g past when deficienc) ol foreign cripswas thought to afford a nro fiinbto ma ke for thu surplus of our indus try ; but imwwo wan wilh feveiisli nnn1 leiy the newiof the Rogli-li harvest, not so much fruT motives ot cnuimennhlc sym pathy, but leirful lest its anticipated fail ure should nrrotvjthe fild ofcredit there Ones not tlj.spenk volumes to the pat1 not .' Can i sy-teui bo beoificent, wise or just, wlnti creates greater anxiety for uiiere-its de nileiit on foreign credit. than for the giiujal profperity of our own coun try ami ino jrotitatno exportation ot tlie surplus, prodico of our labor ? The circinisiances to which I have thus ndvertjil, appear lo nio to iifTord weiglny red oes, developed by late eveuti to be added 'o those which I have on for mer nccnstois ofil-red, when suhmiittiiig to your bolter knowl-Mlgo and diFcerntneut lho propriety of separating too custody of the public money from hanking institutions Nor lias any thing occurred to lessen, my ( pinion, ihe only ground on which that custody can bo desired by ihe banks, is the profitable uso which they may make of the money, hocli uo would ho 'egar dud in individuals as n breach of trim, or a crime of great magnitude, and yet it may he rcaeuuauly doubled whether, fir-t and last il n not attended with more mischiev ous consequences, when permitted to the former than to thu latter. Tho nrnci ic of permitting the public money in ho tisr-il hy Us keepers as horo is boliived to ho puculiar lo this country. and to exist scarce ly any where else. I o procure it here. improper nitluences nro appealed to; tin wise ccniiection9 aro established between tlie gorernment and van numbers of now crful statu institutions, ; other motives than I Ii o public good nro bolli brought lo bear uoin on i no executive, and Legislative do par1 incut, und ecIHsIi combina'tionf, lend. ing to ppeciol legislation, are formed. It is made lho interest nf banking institutions and their stockholders throughout the Union lo u f o their exertions for tho in crease nf taxation and the nncumu'nlioii ol a surnlus revenue ; and while an excuse is nflitdeil, ihu means aro luinii-hed lor those excessive issue, which lead to ex irnvagant trading and sper.ulatinii, m'd nre I be forerunners ofn vnst debt abroad nntl a suspension of the banks at home. Impressed, therefore, as I am, with the propriety ol the funds of tho Government being withdrawn from the private use of cither hanks or individual, mid ll o public money kept by duly appointed agents; and believing, as I do, that such also is the judgment which discission, reflection, and xpenence have produced on the public mind, I leave Ihe subject with you. It is. at all events, essential lo Ihe interests ol the cotniiiiinily and the business of the government, that a decision should be made. Most of tho arguments that di'suade us

from employing banks, in the cnslody and disbursement of the public money, apply witli equal lorcc lo the receipt of their notes for public dues. The difference is only in form. In ono instance, tho gov ernment is creditor for its deposites, and in lho othar, lor the notes it hold. They afl'ord the same opportunity for using the public moneys, ond equally lead to all the evils nllcndont upon tt, sinco a bank can as safely extend He discounts on a depoil of its note in I he hands of a public officer, as on one made in it b own vaults. On i lie other hand, it would g ve to tho govern, met t no grenicr security, for. in case of failure'-, the claim of ihe note holder would be no better than that ofn depositor. I urn aware thai the danger of inconve nience to the public, and unreasonable pressure upon sound banks, have been urg. ed ns objections to rcqnring the payment of ilic revenue in rold and silver. These object ioas havo been greatly exaggerated. From the best estimate, we may safely lix the amount of specie in the country nt eighty five mi'lions of dollars and the por tion of that which wou'd be employed al any tunc in ihe receipts and di.-biirscmen!-of t he government, even if tho proposed change were made at once, would not, it is now, after fuller investigation, believed, exceed four or five millions. Ifthe change wore gradual, several years would elap-c before thut sum would bo required, with annual opportunities, in the mean time, to alter the law, should experience prove it to be oppressu-e or inconvenient. The por. lions of ihe comtnui ity on whose business the change would 'iimediate'y opmte, are comparatively small, imr is il belli ved that lis i (T' ds would be in the Icatt unjut or injurious to I lieio, In ibe payment nf duties, which con stitute by far lho greaier portion of the revenue, a very large proportion is derived fn m foreign cotntnisHoo houses and agents of foreign manufacturers, who sell the goods consigned to them, generally ot auction, and after paying the duties out of the avails, remit the nsi abroad in specie or its equivalent. That the amount ol duties should in such cises, be retained in specie, can hardly be made n mailer nf complaint. Our own importing ui-toIi'mi', ly wlpoo the r. .--.I c nl tl,- do'ies is paid, ate not only peculiarly m leres'cd in inuioiaitnng a round currency, which Ihe measure in question will espu cially promote but are. from Ihe nature ol their dealings, best able lo know vhen specie will be needed, anil to prncu-e it Willi the least difficulty or sacrifice. Ite.-i. ding, too, almo-t universally in plase where ihe revenue is received,' and where the draf's used by the government tor tho disbursements must concent ra'e; i bey have every opportunity lo obtain inI u-e i hem in place of specie, should ii h for their intern-i or convenience. Of th number of i hese d rails', nnil ihu facilities! they may afi'rd as t ell as of the rapidity with winch the public hinds are drawn and hor-ed. an idea may be drawn from the luct thai ol nearly twenty millions of dol lars paid lo collectors and receivers during the present year, the average amount hi thotr hands at any one lime, has not ex. cei ded a million and a halt"; and of Ihu fit'. eon millions received by the collector of New York alone during Ihe present year, the nverage amount held by bin subject to draft during each week, have been less t ban half a million. Tho ease and ol'eiy nf the operations of the treasury, in keeping ihe public money, ere promoted by the application of its own draf's to liie public dues. Tho object ion arming from having them too long out, standing, might he obviated, and thev made to nfl'ird the merchanls and banks holding Ihem, an equivalent for specie, and in mat way greatly lessen the amount ac tually required, Still less inconvenience will attend tho requirement of suede in purchases of public lands. Such purchas es, except when made on speculation, ore in general, but single transactions, rarely repealed by the some person; and it is o fart, that for tho last year and a half, du ring which the notes of sound banks have been rfccived, more than a moiety of these payments has boenv voluntarily made in specie, being ;i larger proportion than would have been required in ihreo years under th'j graduation proposed. It is nnreover n principle thnn which none is buter setllec by experience, that thuHippI) of the precious metals will al ways bo hund ndrquaio lo tho uses for which thej aro required. They abound in countries whore no other currency i allowed. In our own slates where small notes aro excluded, gold and silver supply their place, When driven lo their hiding places by ba.ic suspensions, n littlo firmnesf in the community soon restores them in sufficient qtni-itity for ordinary purposes, I'oslago and uilier public does hnve btv-n collected in cim without serious incoiire iiteuce, even in suites where a deprecirird paper currency has existed fur years, mid this, wuii die aid of treasury noies ttr a part of tho lime, was d ino without liter, i rnption during tho suspension of llfl7. Al tho present moment, the receipts and disbursements of the gnvorninrnt ar mado in legal currency in the largest portion of tho Union no one suggests a departure from this rule; and if il can now oe sue. ccssfully corned out, il will bo su oly nf tended with even less difficulty wlnn bank miles are again redeemed in fpeeio. Indeed I cannot think that a Kiious ob jection would aiy where bo rnicd tniho receipt and payment ol gold ami silvc in all public transactions, worn il tint fn- nn apprehension that n surp'tw in tho treitoi ry might withdraw a largo portion if it from circulation, and I' ck It up ntipn.fpa hly io Ihe publ'C vaults. It would in.i, in iooooi i ' "' : authentic statements which I hav tiltonlv subtinlletl to you in regard lo Hie acliial amount in the treasury at any one lime during the perino embraced "n them, and tho litilc probability of n different siato ol the Trc.i'tify for at least some ycats to come, seem lo render It unnecessary to dwell upon it. Congress tnnreover, as I have before observed, will in every year have an opportunity to guard ngiinst it, should the occurrence of any circutnMnnco lead us to apprehend injury from this source. Viewing the subject in nil il as pects, I cannot believe Hint any perioo will be more auspicious than the prc-er.t lor lho adoption of nil measures necessary lo maintain the sanctity ot our own en gagenieiits, and lo aid in securing to tne di-asler. and bind every banl- more effec'u coiiimunity that abundant pupp y of the j ally, in the first instance, to those of our precious metals which adds so much to cummercial cities, and, in lho end, to a tueir prosperity, ono g'ves sucn incriasuu , stability to all their dealin Fn a country so commercial as nus, banks io some form will probably nlveys exist ; but this serves only to render t Hie more incumbent on u, not withholding lho (liseniirairom'-nts of I he past, -i "rit" io our respective stations to indirafe the evils they prnduce: in take from ln.i ts rapidly as . the n'lhga'inns of public fnilh and a careful con-iderotinn of tiic imnndi ate inicrests of the commuoity will petittf, tho unjust character of motnpnlies : In check so far as may be practicajlo by pni dcoi legislation, those teiiipiaton of n terest and thoe oppnriuuilies fur thiir dangerous indulgence which beset ihem m every side, and io confine thcin strictly o the performance of i heir paramount dtiV. thai of aiding the operations ol cotinnerr-. rather than consulting their own exclii'i p advantage. These and any other saUnay) reforms may. it i? h.'hevi'd, bo accemphs. ed wiihniit the violaiion nf any of the gre I principles of Micia I compact, t he ob-ervatn of which is indispen'ahlo to Us ex's'enc, or interfering in any way with the useM and prnfiiablo employment of real capi'a, Institution? so framed have c.vstcd ant still exi-t elsr where, giving to cemmerci:l inif rcnursc all necessary facilities, withoti inflating or depreciating lho currency o stimulating specula! inn. Thus accomplish ing their legiiiniaie ends, they have game, the surest guarantee lor their prutec'iot and encouragement in tho good will of tlx community. Among a people so just n our--, the same tcsnlts cnu'd tint fail (n at' 'cud a slindnr course. The direct supervis too of the banks, belongs, frnm the naiun of our government, io the -lates who au thorns- them. It is lo iheir lrgiflaiure that the people must mainly look fur action on that subject. But as "ihe cnndncl ol the Federal government in 'ho manage mant of its revenue has also a powerful, though less immediate influence upon tin in it becomes our duly to see that a p-oper direction is g v.-n lo it. While the keep log of the public revenue in a separate and i.l.-r,...U,..t -.-...j. ... .l.r: ol it m gold ti ml si'ver, will hive a -nliiia ry influence on the sy-tpm of paper o'edit with winch nil banks are connected, and ihns aid those that are sound and n-ell managed, it will at iho same lone sen-ibly check thn-e vt Inch aro otherwise, hv at once withholding t li means of exttnvi gance nflorded by the public fun-Is. uul restraining them fVnm excess. vu issues of notes winch they would hi.- cnns'ant'v cal. led upon to redeem. I am aware that it has heeu urged ihu this con'rol may hi- hoi nitained and r erteil by means of a National ISnik. The e.onsiuuiional olij.-ctions wlrcli I nio well known in eoteriii'ii, would prevent m ii any event from prnpn-mg l)r as-enhng ii that remedy; but in addition lo this. ran not, after p-ift experience, hnng my-cU' to lint it cat. any longer h- exten-ively reganleii as ill cHvo ir such n iiuroo.o. tor such a niiron-e. Pne hi-inry of i he late Nal ional Bank Mi'o II its inutnlioos -hows thai it was not fn. On lho cinlriiiy.it may. alter a careinl citisideratinn ol th,. subject, be, I dunk stfely slated thin at every period of Ban kng exce- it took 'he lend, that in I"I7 nul lfllf;, in I J.I tii 1 03 1 . ,ind io lfl.31. Us vat expansion., follmveil by di-lrcstuig coitrnciions, led in thnso of ilm S'nio nt stiMiions. Il stti iud nnd ninldenrd the lid s of lho bank ng syslem. bill seld-m nllineil or safely directed t hem. At n IV perixls only was a salu'ary control e.v-r ci-ci. but on eager desire, nn Ihe contrary exhdited for profit in the firs' place; uml if, altjt ward--, its measures wire severe to wardroiher iiisiiln'ioiis, it wrs because r own sifetv rompelled n to adept Ihem. It diil-iio d'fiVr froiii t hem in principle or in form; its measures emaiiotid frnm Ilie same mri' of gain; it fell i lioinnio temp lotion 'j 'iver-i-nit-H ; it sufieMil frnm, ami wns loit'lv unable lo nvert tlnso inet tnlile latvenfl-ade by which it was s'sclf oflecled equallytiitli litem: and at lea-t on ono oc casion, otnn early day. it was saved rnly by extrao'dinary exertions friin i ho Fume falo that blended lho wcaked iosiiiniion it professed to supervise, ln 1037 it failed equally wi'.h others, in redeetiiog its no'es, ilifugh the two years allowed by Us char le for I li n purpose h-n1 a ojtpired, a large amount nf which remains to tho present tune outttuiding It is tine, that having so vast a copilo nnd strengthened by thu use uf ail lho ru venues of tho Govcrninent, it possessed more power; nut tvlnlo it was itself, by that circti'nisiance, (reed Irom tho control which nil banks require, its paramount ob ject and inducement worn left lho same-- to mako the most for iis stockholders, mil to tegiihiie ihe currency nt lho cuuntrv, Nor has it as far as wo aro advised, hei'i - found lo be greatly otherwise flu-whore. Tho ninionnl character given to tho bank uf tins iii.t prevented excessive flucluotions in llieir curreney, nnd it proved tinublo In keep ofl'a snspeiision of speciu payinents, which lasted fur nearly a quarter of a cen tury. And why should wo expect il to bn otherwise? A notioan weliiutipn. though deriving its charier from n different source l han lho stain banks, is yet constil.i.eil upon tho fame principles ; is conducted by men equally ajposed to triulaiion ; ami is liable to Iho enmo disaHers; wi"' ",0 ou' li"onr, tlisadvantngrj that itn magnilndo 'ccasmnt an extent of confuVmn and dii ,p?4' which tho misminagtmerit of smaller '""'"I'lntis could not produce. It can scarcely In doubted that, the recent pus n'Mittori of ihe United States Flank of l'nniiai.1.. . n ... . over -oi- iitnnn .,, , hnsiri I' ortgia in a course of I -" " -vniifj wjn u IIUIIOII- "1 mhi in ion s nn, t here is no m,d rcnon r M.ppu.uig ,! famQ conFPqlJpncc(, (Oll.liinn,...,! I.. :. . ll " ""iiowpi . m( it nil Mi orivnil powers from tW r,nn,a (:.,., 1 1 is vain, when the influence, anil im- , ' ,nrV"c '"look for a difference? ..conductor results Uy PUc, creation9 wo do therefore but inctcns,. tho mas of piper credit and paper duncy. without cheeking their attendant evil 8d fiuctua linn. The extent of power anj the effil ciency oforganizition which we nive,so far mini uemg oeneiictoi, are in practice posi- tjvnly injurious. They strengthen th? , iiinuuiieiiuu inrougoiii uie union, Slllliect all narts morn eerlnmlw to nnmmnn. lore.gn power. In a word, I caonot but believe that, with the full understanding of lho onerotioos of nur hanking system which experience has prduced, public sentiment iff not less opposed to the creation of a Na tional FJank for purposes connected with eurrency and commerc, than for those connected with the fiscal operations ot ihu Government. Yet t)io commerce ond currency of iho country arc suffering evils frnm the opera tions of the state banks which can not ami ought not to be overlooked. By their means, wo have been flooded wilh a de preciated papr, which it was evidently iho design of the fratners of tho consiitu turn to prevent, when they required con gross to "com money and regnlatu tho valnn of foreign coins," aod when they forbade the sintes "to coin money, emit bills of credit, make any thing but gold and si'ver a lender in payment of debis," or "pass any law unpiring the obligation nf contract." If they did not guard tnnro explicitly against the prrsenl state of thing- it was because thry Gonld not have nnttct. pated that lho few hanks then cxisiine- were to swell lo an c.Vent which would expel to so grool a degree I he gold nod liver, for which I hey had provided, from the channels nl circulation, and fill ihem with a currency that defeats tho object thev had in view. I'ho reoidy for this must chn fly rest with the S'alcs from wdio'e legistatinn it has sp'iiog. No good ihat might accrue a particular ci-e from t he exercise of powrr--. not obvtoii-ly conferred on lho neral (loverii'iioni , would au'horize tin interference, or j n ify a cour.-e that might in the shghte-t degree, inereas" at Ihe ex pense of t he S a.es, t lie power of the Federol authorities nor do I doubt that the Slates- will apply the remedy. Wuhin lho lat few years events have appealed to them loo strongly to ho disregarded. They have een that Iho Cnnsiiiulion, though theoretically adhered lo. is subvi rted in, practice: that while on I lie statute books there is no legal 'ender hut gold and silver, no low imnnjeing lln- ob'g-itlons of con tracts, yet titjiii point of lac), Ihe privi. 'egos conl-rreWhu hanking corporations hnve made their notes the currency of iho country ; that the oblignlioiis imposed by ihe-e note., are violated under I he-impul-esj of interest or cnnvoriience ; nod that Iho number nnil pint or of I he persons connect ed with the-e corporations or placed under ihe:r influence, give iIhmii a fearful weight when their inlero-t is in opposition to'lho spirit of the con-li'inion and laws. 'p the people it is nuiKileriril whether these re-u'ts!iri produced by open violations of ti e I liter, or hy the workings ofn y.si. in of ivli-ch 'he re. n't is ihe .ain. An" lofl-xi-ble exeetii ion even of Ihe existing statutes! ofino-t of lb Slates, would redress many i vi's now enduri i! ; tvou'd rff ctua'ly shnw In-Innks the danger of ini-manai'ement 1 ; '. ' ;y , "i,r""t'? Mr,n 'P'; , ' .. ti-i.ni -on i on I inev are Ilie -nil -els o tlw, law a ml Hie ervante of the people. Wliof is si winning in i (T. rl the-e nhieels imui lie sought in nddiltonnl legislation; or, it lint In- inadi quale, in such further cruisli I'lt'oml grants or restrictions as may bring us back into ilie path from which we have so widely wandered. In Ihe meantime, it is the duty of the General (Jovernmont to co-operate with the Slnles. hy n wi-n exercise of its coosli. luminal powers nnd the enforcement of it existing laws, Tho extent to which it may do so by further eoac'meois, I have already adverted in. and the wisdom of Coogres's may jet enlarge thorn. But, above oil, it is incumbent upon us m hold ereel lho principles nf morality and law. cmistnntly executing our own cmiiracis in nccordancn with the provisions of ihe Constitution, nnd thus serving as a rallying point by which ""r whole country nnv ho brought back to uni soieanu nonoreu sinnuard. Our people will not ho long insensibl to die extent of the bnrdpns entailed upon thm hy the false system that has been operating on their sanguine energetic, mid iiiilustfi us character ; nor to Iho means iirce-s i'v to extricate themselves from these cuibnrrasmcnts. Tlie weight which presses upon a large portion of the Pcoplo and the States, is an enormous debt, for, cign nnd domestic. The foreign debt of. our States corporations, nnd men of husi. iien. con scarcely be less l lion '.'00 OUO. ("00 of dollars, requiring more than ten millions u year 10 pij inu miti"' sum has to bo paid nut of tho expnrU of country, nnd mul of necessity cut ofl im ports to dint rxteoi. or plunge ine cuuuirv ' umre deeply in debt frnm yenr to year. It j t" eay to co dial mo iucrn.su t n. 1 foreign ilebt must nugmcnl lho annual tic j mmi'l "u Ibe exports to p-iy the inreret. nd to Iho same extoiil dimmih Ibo "- pirts; nnd in proportion lo lho enlarge ment nf the loreign tli-lit. anu ino : queiit ii'creao ol interest must bo the de crease of the import of trado In lieu of the comforts which it now brings us, wo might hove nor RiRantie bunking institutions, nnd splei"'1"' "ul "J '"any mstonens profitless, railroads and caniiltt, iibsorhin" to a jrcat extent, in '"Icrem upon ihe"capiial borrowed to con sUuci them, iho surplus fruits of national industry or years to come, nd eccuring