Political Beacon, Volume 1, Number 1, Lawrenceburg, Dearborn County, 7 October 1837 — Page 1

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BEACON. Term $3 PER TEAM. . .334 PES CENT. DISCOUNT MADE ON ADVANCE, OR 161 0AT II A LP YEARLY PAYMENTS. VOL. I. LAWREM EBDRGH, (I A.) OCTOBER 7, 183T. Mh 1.

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MESSAGE Fit OS THE j' RESIDENT OF THE UNITED STATES, fm the two Howes of Confrrem, al tbe cnmnwrn enttiu of ilw first Session of the twenty-fifth Cangrem. I , Uuv Citizens rf the Senate and iff the House of ifrawWinet.

The act of the 3d June, 1836, regulating the JerGitsofthe public money an directing the employment of State, DiBtnct, and Territorial banks for that purpose, made it the duty of tbe Secretary of tlie Treasury to discontinue the use of such of them as should at any time refuge to redeem their notes sn specie, and to substitute other banks, provided a sufficient number could be obtained to receive the public deposites upon the terms and conditions therein prescribed. The general and almost simultaneous suspension of specie payments by tlte hank iaMay last, rendered the perf ormance of this duty imperative in respect to those which had been selected under the act; and made it, atjtbe same time, i impracticable to employ the requisite number of the nrescribed conditions. The specif-

ic regulations established by Congress for the opposite and safe keeping of the public moneys, having thus unexpectedly become inoperative, I felt it to be icy duty to afford you an early opportunity for the the exercise of your supervisory powers over the subject. . , 1 was also led to apprehend that the suspension of specie payments, increasing tbe embarrassments before existing in the pecuniary nflairs of the country, would so far diminisbthe public revenue, that the accruing receipts into the Treasury would not, with the reserved five millions, be sufficient to defray the unavoidable expenses of the government, until the usual period for the meeting of Congress; whilst the authority to call upon the States, lor a portion r rimuwited with them, was too restricted

by it, were a foreign debt contracted by ear citizens, estimated ia March last, at more than thirty miilioM of dollars; the exteimoa to traders in the interior of oar country of credits for supplies, greatly beyond the wants of the people; the investment of thirty -nine and a half millions of dollars ia unproductive public lands, in the years 1835 and 1836, whilst in the preceding year the sales air ranted to only four and a half millions; toe creation of debts to

adopt suck further measures, wtdun the constiteiionsil eompHi-icy of Congress, at will be beat calculated to revive the enterprise sad to promote the prosperity of toe country. For tbe d t posi te . busier, and disbursement, of the ctvesm, National and State banks have always, wasaa temporary and limited exceptioes, bees heretofore employed ; but, although advocates of each system are still to be found, it is apparent

be domestic as well as the foreign exchangee m carried on by prima houses, often, ifnoi generally, witlwuttbe asristaaceof baoks. Yet tbey extend throughout dist itiC! orcreigoties, and far exceed in amount liierenl exchanges of the United Stales. There is bo reason amy our own may not be conducted ia tbe same iraaoer, with eqttal cheapness and safety. Certainly this might be accomplished if il were favored by those must deeply interested;

ad few cm doubt that their own interest, as well

as tbe general welfare f tbe country, would Ue

an aitnott eountless amount, for real estate m exist

iog or anticipated citios and villages, equally unpro- that tbe i vents of tbe last few months have greatly dactive, and at prices new sees to have seen greatly jaufftaeated the desire. lun exieuns araonf' the

disproportionate to their real value ; tbe erpeadi- petrrde of the United States, to separate the fiscal ' promoted by feat-ins such a amWt in tbe bauds of

tore of immense sums m improveiuents, which, tu derations of tbe Goverameat from tboseof indi-1 Toes to whom it properly belongs. A system many cases, .have ueen found to be '"ously improv- VMjua!(1 bauM mm private itferest, etTlerprise, and ident, the diversion to other pursuits of mach of the . . . J"""1"- i !... - -, 3? laborthat should have been appliod to agriculture, tofWiteiasjtionrftafA.M athjcalagetrt, , compeution wmutthe.id of legislatore grants

thereby contributing to the expenditure of large sums tstcregara the popular win, iwmwmjmm,wwtqmJimpe,:nmm

in the importation of grain from Europe an expen- B"J,nmy 8nc unequivocally cxpressscu. on uu p-. te yum kmm ay.

dituw which, amoimtinir in 1834 to about two 1 ,ueslten of floraestic policy is there stranger evi- no rxiena sss sitoe txmpltoti to iraflc nseii;

hundred end fifty thousand dollars, was, ia thefir.it

two quarters of the; present year, increased to more than two millions of dollars; and finally,

without enumerating othor injurious results, the ; '"ese seutiineuts are, or a reason that tbey should

rapid irrott'tli nmong all classes, and especially in t uc changed.

donee that the snniimMin. of alarpeninioritv are "d it wouki put as end to those complaint ol

deliberately fixed, and i cannot concur with tliose '. oegkeet, partiaJity, tnjosiioe, and otipressius, sslidt who think tbey see, in rec-nt events, a jiroof that a tbe nnavoidahle results of ratctfeteoce by tbt

government , in tlie premier concerns ol individuals

All former auenipts on the jmrt of the fiovcrutnetit

our groat comtnerctai towns, ur luxurious liulnts founde too often on merely fancied wealth, and detrimental alike to the industry, tbe resources, and tbe tuoruls of our people. It was so impossible that such n state of thing?, could long continue, that tbe prospect of revulsion was present to the minds of considerate men be

lore it actually came. None, however, bad cor

rectly anticipated its severity A concurrence of

circumstances inadequate of themselves to produce such wide spread and eJumitotiB eiiihairruiismonts, tended so greatly to aggravate thorn, tint

hey cannot be overlooked in considering their

hiHlory. Among these may be mentioned, as

. T . ....,..,,. aiifltr-iniit n

toenable the department u -"7.- Una nrominonL the Preat lossof cnnilal Hiistuined

mmint frnm that BOUrCC J nOSe appreilcIIHluun nave T " a , bmm 1S bv subsequent results, which render it by our commercial emjKriurn .nine fire of Oeoomcertain that this deficiency will occur, if additional j hor, 183V-a losB.the effects of which were unn'eans be not provided by Congress. i dorratad at the time, because postponed for a seaTlie difficulties experienced by the mercantile in-. go,, he the great facilities of credit then existing; terest in meeting their eng-agemenfa, induced ilium , (ne digturbmg effects, in commercial cities, of to apply to me, previously to the actual suspension ! ,ne tranRjcrli f ,,e publidHnneys required by the -L i..,!,. for indulsencc upon their bonus ., u.r I,..,., tsar.- J tt

aI BLrCtUE PJ- t l 111 urn Ut;jrirIIV- butt oi vwaauy ...... uaau hiv n.v.nun; v.-. tor duties; and all tho relief authorised ! a(iopted by the foreign creditore of our mercftniits

tn reduce then debt!,, and to withdraw from the

United States a large portion of our specie. However unwilling any of our citizens mav

.i.. 'a h.,rllu irrantod. The dependence

of the Treasury upon the avails of these bonds, to enable it to make the deposites with the States- re- ;,! hv led me in the outsot to limit this in-

dulrmnee to the first of Septeniber, but it has since beef extended to tt first of October, that the mutter miffht be submitted to your farther direction. Questions were also expected to arise m the recess? in respect to the October instalment of those deposites, requiring the interposition "' ''""PA provision of another act, sjmk about thesume i :.-.lorf tn neciire a faithful compliance

with the oblimtion of the United States, to satisfy

all demands uson

Events, similar ia their origin and harcUt r.

heretofore frequently occurred, without producing any sud) change; and the lessons of experience must be forgotten, if we suppose that tlie present

overthrow of credit would have been prevented

the existence ot a national bank, rrenencss to excessive issues has ever been the vice of tbe banking system; a vice prominent in National us

well us State institutions. This propensity is as 'subservient to the advancement of frivatc interests in the one as in the other, and tbuse who direct I tliera both, being principally guided by the same

views, and influenced by the same motives, will be equally ready to stimulate extravagance,oreinor-

prise by improvidence of credit. How Btrikinjjly is this conclusion sustained by experience. Tlie Bank of the U. States, with the vast powers conferred on it by congress, did not or could not pre void former and similar embarrassments; nor has the still greater strength il has hoen said to possess, under its present charter, enabled it, in the existing emergency, 1o chuck other institutions, or

even to save itself, lu Great Britain, where, it

curry its legislation, in this reppf,foriiier tliMi

wib) of great magnitude, iofaeroat ia iu rery satMire, and against wbidi no precautions can effectually ;juii n.;? Unforeseen in (lie organiKlion of tbe Govern -meet, tad fwcedon tlie Treasury by early neecsnjes, tbe praciice of employing banks, am in truth from tbe tgnniog,'more a mcnure Ot cm ergency titaaof Brand policy When we started into exitteace as a nation, iu addition to tbq bardene of tlie acts goveraateat, sre anaaacd all tbe brgebat baaorable load of debt wUcb aras tbe price of oar Jibcity ; ban we besuts to weigh down

toe intunt induftry of the country, by resoruag to adequate taxatioa for tbe atccssary revenue. Tbe facilities of hanks ia return for tho privileges tbey acquired, were promptly o&red,aad perhaps too readily recdsed, by aaemWrieeed iteasary. Dataaj Uae Iw;- contiataaoce of a national debt, and

Ike rnterven lajdifBcalties of a foreign war, tbe caatnectiua wus con tinned from aamivaaaf ronwM

but the causes lave lone since oasaed wJ

bave no cmtreencies that make hni m-f-i.r.

to aid the waatts of lite Treaaarr, we bate m load of Ulitional debt to oroi ide fCur. and wlawai mm.

was desiged U the Cunstitniioti, Imve ia tbe d 'ual deposnc a lasarplua. No mjblic interest.

proved injurious, and have served only to convince Increlore, now rerruirei the icnewal of eosaec-

the great body of fhe petrple, more and more, ol i : lo "at c ireumstuiie.es have disaolrea. Tbe

die certain dangers of blending private iattrest I F1"1'-' oipaniznion of oar gorerptaent, the

with the onerat ions of nublic basineas and tbt re is 'aw? i'l oui resources, i.'ie scotftai bannonv

no rensou to sujipose that repetition of tlictaawar l'l"eli prevails befweta tbe dsfaitat States, aad

would be more successful ; wnti lotcigo rowers, tu enable as aw to scltact

It cannot be concealed that there exis)s,inour .'s"' 111 niost consistent with the coiiBiltutior., conimuniiy, opinions and feelings oa lliis aatbjecl d most coaducire to ibe public wt-harc. Should in direct opposition to each other. A large portion j coimeti (be Treasury Jarafourtb time ofthem, nowbining great iui ili"ence, activity, ilie loctd hatdts, k can aasly be aadkr a caav and mfluenoe, are no doubt sincere in their belief "if'1'"" that past failures have arista from accideii. ttliwt the operations of trude ought lo be assitodby 1 "t inhwxwt .ddbtif. such a connection I the pt regard a national bsrtk as j A danger difficab if sol impossible to be aronnocesaary for ilns putpuse, and they are dSsandmed in such au awtingesneni, is caadesUifciagly cvi-

tteweiy measure that does not tend, sooner m mlue Beiy crcarttiy 1nch a has now been later, to tbe MublisbmBil ofsocb aa instil tttinn. '""-'d. A suddea act f tbe banks a' rusted On ibe other hand, a majority of the people te 'Cu tl.'t' 'untif & e petiiflr defritfat the Tieasbelieved to be irreconcilably opposoe to ibai roea- "I S liioih w agaacy d itte Gwuntuux. snre;:hey consider such a concentration of power "J the ability to pay iu crediiote ia the (Ourrcaty dangerous to their liberties; and marry of them "' 'mvc sfbl to fJemaud This cW-

regurd :t ns u vmlalion of the Conslitoliim. Tliis ! ctnin3iance us llnciualion ol conontneTce could

I. M it. i a I collision of oniiiliin Imu dniilii ii.au - - " dfa have

lua irw-fj O'-rii UlirDitlllU LilUHL'B IlUb OeUIl UlieilUMU . " kwwwi 'Jm mi,

the cnibarmsBiiieiu

heretofore have been to assign to these causes the chief instrumentality in producing the presout state ol things, the developments subsequently made, and tbe actual condition of other commercial countries must as it seems to me, dispel nil remaining doubte upon the subject. It has since npiMsared'that evils, similar to these suffered by bv ouraelves, have been experienced in Grcut

with tho same effects a national bunk, possessing (wwere fur greater (has arc ttsked for by the warmest advocates of such on institution here, line also proved unable to prevent an undue expansion of credit, and the evils thai flow from it. Nor can 1 find any tunable ground for the rc-cBtahlisluneni nfa national hank in the derangement alleged ai present to exist in the dnmestic exchanges uftbe country, or in the facilities it may be capable of ufibrding them. Although advantages of this sort

... I ...1 !. CL . 1W..-.I. r .l.TT

11 oi urc i. mi - , j .:.., J ; j j ,i . , Hmioipun.u wneii i e ursi nun 01 Hie V. li ... ,u...ip or its eou valent Britain, on the continent, and indeed, throughout . . i .i , , tliem in specie or lis niuinirai, ; uniaui, i w ' . ' . Jisiotos was created, they were regarded us an

llr ...... iui ill mr peritm vi

i bv., f ,nv hank note, not converti-

holder; and tlie ability of the Government, with m Ilions on deposite, to meet ita engagements in the manner thuTrequired by law was rendered very doubtful by the event to which 1 Inferred. Sensible that adequate provisions for these unex-

igencies coutu oniy oe m y vngrem., that some of thorn would be indispenea-

rv to the public service, uciore me regu- . " J ,1, la. I. t . . .!!'.

vour rneeung; bhu uniiuimum mwm3 . .1 l: . !,.!

icM! at me earii"i mmmmim powers far the relief of the country,

T nnt. with nropnety, avoid subjecting you ss

the inconvenience nf assembling at as early a day as the state of the oopu tar representation would perni. . i .1.., l !,,, dose but toatice to your teel-

: ; ut;; thnt this inconvenience will be

" in the hope of rendering your

. J . iUJ y tim smiinfrv.

1 the revulflion through

k:-i, ta.UA In,: nagsetl mua ftcniiiuiuw uio-

aVIllUU r, saaw J . , e ;.l cumion arose, aad p ifgl8l.?'Jft i ABneMi This was not surprising. I ue

operation.. of credit are so diversified, ind the ; inllu

net mem m

i impartial

ment,

sion, fail4to attribute:

cisef'resaonTor by mutual ever n phcerinf' reflection,

to

cies, which were by no means tavorauie in tne u.covery of truth. It was hardly to be expected, that .. i .i nf iIm overt!

who diaapproveu m r"-i , -

in relation to the currency, wou,u, ... -

feeling proauceu ny "

to that policy any ex.." monetary affairs of the coon-

became connecteu wiui u.

of party; opinions wore more

considerations; and dit-

nrobnfiwd whicli might otherwise have 1 . 8 i k,. th rr-

ponpeaaion. It is. how

that circumstances of

a community so inteht-

arrivine at correct con

firm belief oi thistrutli,

1 proceed to state my views, so tar as may an itsary to a clear understanding of the remedies I feel ,it my duty to propose: nd of tBe rasMB w'l,c" 1 ihive been ted to recommend them. The history of trade of tbe United States for the hst three or four years, affords the most convincing valence, that our present condition is chiefly to be

.ittributed to over-action man me uem.irem o. I utiness, an over-action deriving, perhaps, its first : r, .tPPdpnt causes, but stimuJated to

!i. j.'.i let. itvui -1,vv' . - . . - ;. j . -.oni.pnpes bv cxcassive issues ol

bank paper, aad by other facilities for the acquisition and enlargement of credit. At the commencement of the year 1834, tbehaadtireapuof the United States, iacludiug that of the national bank then existing, amounted to about two hundred roiii r j.iTf... tk, nautii then in circulation to about

ninetv-five millions; and the loans and discounts of

tan banks to throe hundred and tweaty-lour mil ion,. Between that time and the first of January, being the latest period to which accurate accounts h,veBLn received, oar baaking capital j as mcreased to more than t wo hundred and fifty-one on -lionsour paper circulation to more than one hundred and fbrtv millions, and the loans ami discounts to more than four hundred and fll this vast increase are tobeadded, the many millions of credit acquired by means of lbrejgn loans, contracted bv the States aad State insUtutions, and, above all, by the lavish aecommodat.ons extended by foreign dealers to our merchant. The rnnsnnn-n ! this redundancy of credit, and of the spirit of rechleas specuratton engendered

the commercial world ; and that, in other countries,!

as well dm our own, they were unifbrmlv preceded

by an undue enlargement of the boundaries of

trade, prompted, as wnn us, uy unpreceaenteo eximiisionB of the eyumms of credit. A reference to the nmnttnt of banking capita I, and the issues of paper credits put in circulation ra Great Britain, bv banks, and in other ways, during the years

1834, 1635 and 1836, will show an augmentation -j

ol the paper currency mere, as mucn nwpropor tinned to the real want of trade as in the United States. With this redundancy of the paper currency, there arose in that country also a spirit of adventurous speculation, embracing the whole range of human enterprise. Aid was profusely

given tn projected improvements; laige investments were made in foreign stocks and loans; cred

its for goods were granted with unbounded liberality to merchants in foreign countries; and all the means of acquiring and employing credit were put in active operation, and extended in their effects to every department of business, nnd to oven quartet ol "the globe. The reaction aras proportioned in its violence to the extraordinary character of the events which preceded it. The. commercial community of Great Britain were subject

ed to the greatest difficulties, and their debtors in

ibis country were not only suddenly deprived of

accustomed and expected credits, but called up

on for uavmenis, which, in the actual posture of

tilings here, could only be made through a general pressure, and at tbe most ruinous sacrifices. In view of these facts, it would seem impossible for sincere inquirers after truth to resist the conviction, that the causes of the revulsion in both countries have been subitanitally the same. Two nations, the most commercial in tbe world, enjoy

ing but reeenuy nas ssmami . hi --" prosperity, and maintaining with each other tlie closest rotations, arc suddenly, m a time of profound peace, and without any great national disaster, arreetr in their career, and plunged into a state of embarrassment and distress. In both countries we have witnessed the same redundan

ry of paper money, and other Untitles ol credit;

the same spirit ol sjiecuiation ; inc same pamai suc

cesses ; trie same uinicuuien anu mreiwi, ou, a ieugtb, nearly tlie same overwhelming catsatropne. The most material difference between lire results

in the two countries lias only beeu, that with us laere baa occurred an extonsiv derangement in the fiscal affairs of the Federal and state Governments, occasioned by the suspension of specie payments by the banks. The history of these causes and effects, in Great Britain and the United States, is substantially the history of the revuhnon in all other commercial

countries.

The present and visible effects of these circumstances on tbe operations of the Government, and on the industry of the people, point out the

objects which call for your immediate attention.

They are to regulate by law the sale-keeping,

transfer, and disbursement, of tbe public moneys;

to designate tbe funds to be received and paid by the Government; to enable the Treasury to meet

promptly every demand upon it; to prescribe the terms of indulgence, aad the mode of settlement to be adopted, as well in coltecttng from individuals the revenue mat has accrued, in withdraw

ing it from former depositories, and to devise and

to whtfih the coinmeruia!

transact inns of ibe country hive lately beeas posed. Bunking hag become n political topic of the highest interest, and trade has aidferetl in tire conflict of parliei A speedy termination of this

stale ot things, however desirable, is scarcely to

il the nublic revenue had hrum

colleclccVthc legal turrencv. and keot -.11 (lint

torno JPfbfiioers of tbt- Treasary The citizen wlisferimney was in barnr. reeewca it bach Htnet the suspension, at a sacrifice ia its amount i whilst he who kept in the legal ctinoncy of liul country, and in his own prawcsairui. muHucs witb-

e expected. IKr have seen fur neaifly half l4,ut ;JoMt'tue current 11!8 business. The Got

contury, that ttiose who atlvocute a national bank vim m xue situation ol toe ttosaiei, by whatever motive they may he influenced, con- 18 ',,VU,VB0 1,1 ''te embarxaHanieiils it could not siituten portion of our community loo numerous l'e suiTi red had il pnssued tbe cssame of afe rat

io allow tistu hope tut an early iibunoonnient of uarrasBmeras are, moreovor.

incidcnlui accommodation; not otic which tin

Fodural Government was bound, or could be called upon to furnish. This accommodation is now, mdeeo , after a lapse of not many years, demanded from il, as among its first duties ; and an omission to aid and regulate commercial exchange, is treated os a ground uf loud and serious complaint.

Such results only serve to exemplify the constant

esircaniong sume ol out citizen I, to enlarge the

powers of the Government, und extend its control in subjects with which it should not interfere.

They can uover justify the creation of an institution

to promote such objects. On the contrary, they

justly excite uniung the community a more diligent

inquiry into '.he character of those operations of

trade, towards winch it is desired to extend such peculiar favors

The various transactions which bear the name of domestic exchanges, differ essentially in their nature, operation, and utility. One claw uf them consists of bills ol exchange, drawn for the purpose of transferring actual capital from one part of lite country to another, or to anticipate ihe proceeds of property actually transmitted. Bilk uf this description are highly useful in the movements of trade, and well deserve all the encouraiiemoni

which can rightfully be given to them. Anulhur class is made up of hills of exchange, not drawn to

transfer actual capital, nor on tlie credit of property transmuted, but to create fictitious capital, partaking at once of i ho diameter or notes discounted iu bank iS of banknotes in circulation, swelling the mass of paper credits to a vast extent in Ihc.mnst ob

jectionable manner. These billsitave lonned,lur Ibe

last fow years, a large proportion of what are termed

the domestic exchanges of tlie country, serving a the means of usurious profit, and const itulini' tlie

. m m . . . r-a.

riiostunsuie anu precarious paper m circulaiion This species of Irafic, instead of beini; upheld

ought to be discountenanced by the Government

and the people. In transferring its funds from place to place, the Government is on tlie same footing with the private citizen, and may resort to the same legal means. It may do so thruugli the medium ol hilh drawn by issclf, or purebaased from others; and in these operations it may, in a manner undoubtedly constitutional aad legitimate facilitate and assist ex

changes of individuals founded on real transactions

oi trade. Ihe extent to which this may be done.

aad tho best means ofefiieciirg it, ate entitled to the fullest consideration. This has been bestowed by the Secretary af the Treasury, and his views will be submitted to you in his report. But it was not designed by the Constitution that

the Uovernment should assume the management of domestic or foreign exchange. It ia indeed

authorized to regulate by taw the commerce

between the States, and to provide a general standard of value, or medium of exchange, in gold and

silver; but it is not its province to aid individualin the transfer of their funds, otherwise than through the facilities afforded by tbe Post Office Department. As justly might it he called on to

provide for the transportation of their merchandise. These are operations of trade. Tiiey ought to be conducted by tboae who are interested in them, m

the same manner that the incidental difficulties of other pursuits are encountered by other classes nf citizen? Such aid has not been deemed ne-

cessary in other countries Tlrroitghoni Europe

iheir favorite plan. On (lie other hand, they must

indeed form uu erroneous estimate of the intelligence and temper of the Amoricnn people, who suppose that they Irnve continued on Blijjlil or in sufficient grouudo, their persevering opposition to such an institution; or that they can he induced, by pecuniary pressure, ot any other combination of circumstances, to surrender principles tbey have so lung maintained. My own views of tho subject are nnchanoeil

They have been repentedly and unreservedly announced to my fellow-citizens, who, with toll knowledge of them, conferred upon me the two highest offices of the government. On the Inst uf these Decisions, 1 felt it due to the people to BppriaB them disiinctly, that, in the event of my election, 1 would not be able to aa-

opcrate in the re-establishment of a national bank. To these sentiments, 1 have now only to add, -the expression of an increased conviction, that (lie reestiiblishment of such a bunk, in any form, whilst it would not accomplish the bene iicial nurnuse

promised by its udvocales, would impair the right-

iui supremacy oi me popular will ; injure the char acter and diminish fhe influence of our political system; and bring once more into existence, a concentrated moneyed power, hostile to ih? spirit, and threatening tbe permanency of our republican institutions.

Local names nave been employed for the depos

j ite and diminution uf lire revenue, at all times lie money to the custody and control of local

aogmomed by these aalutary and just has which forhid H to use a deprecia ted tarrency, and, by au doing, take from the government tlie ahiiity which individuals have or accorotoodarrur their tauiBat tiiins to such n ctttaBlrophE. A system which can, mat ime onrotomidpeaM, when -there is n large revenue laid bt . tluMiMKUlnU

prevent ilffiarlicatiun nnd the ase f ibe money of tiie people, in the mantipr nnd ir tm -j.i

- - - --a UUIULID they have directed, cannot he wise; hut who car think, without painful reflection, that, itntfW it id.

same unforeseen events might have hefeBen us in the midst of a war, and .taken from ua,l the mo mmil which most wanted, the use of those very means which were treasured up to promote tbe general welfare end guard our uational rlohi? IT.,

such embarraamieiite and to sucii dangers will

government be al ways vxpoaed, white it takes tire

moneys raisen lor, and necessary to; the public service, out of the hands t hs own tsIcasB, asjal converts litem inion sseae right action against corporations entrusted with the possession cjiiiem. Kor can sach results lie oliectuailv ruatdHdapair,.,

in such a SVSlem. without irumafmt,

live with a control over tho banks thnm..

wither State DrWairanal,tlari mhjhj wim reason

ue oojecieo to. uurs ra, ptnhalih tbe onU.

government in the world real is liable, in it."

management of ite fiscal concerns, to curren ces like iheso. But this imminent risk knnt

only danger attendant on tbe surrender of the pnb-

parlially.aml on three dillerent occasions exclu

siveiv; lirsi, auierior to ibe establishment of the first bank of the United Stales- secondly, in the interval between the termination of that rosliiulion and (lie darter of its iwcenssor, and thirdly, during the limited petiod which has now so abrupt

ly closed. Ihe connection thus repeatedly attempted, proved nnsaladactory on each occasion, notoithstanding the various measures which were

adopted to facilitate or insure its success. Ou the

last occasion, in the year the employment of

the Htate Banks was guarded especially in every way whicli experience and cannon could suggest . Personal security was required, for the safe keep trig and prompt payment of the moneys to he rcce.ved, and full returns, of their condition were, from time to lime, to he madu bv the dennsiinrms

lu the first stages tho measure was eminently auc-1 fjjjjf r wtU Mjected to appeals made in every

eesului, nolwiuiaianuiag the violent oimosilirm of I " w", D"e"-'y nieresi can sugpat

,i- Aut- utumb, uuuer auj

Pill

HSjsBaesL I hough the object is aid to the T

ury, its efieci may be to introduce into the nperti lions of iIk Government influence, the rnosi sublle, founded on intcroata the mrMiaoffiah. The use by the banks, for their own benefit uf the money denpsited with them, has received the sanctum of the Government Iron the ccromeitpeweni of thin connection. The meney received from the people, instead of iieingjksaalilJ it needed fur their use m, in conaequenan ef this authority, a

'"""i w.ucii unreouniB are mane tor tlie profit ol those who happen to be owners of atsck in tne bunks selected as depositories. Tlie eupuosou and often cxaggeratet! advantages or such a boon as tvilBaiways cause it to be sought for with avidity. I will not stop to consider on whom the mtronan? nn-.iiem

to it is to be conferred; whether the setectioe and control be entrusted to Congress or the Executive

.l is. i. r ... TT:....i o , .i

i ne uaith oi oil uiiiieu otaies, anu Uio unceasing effortsmaoe to overthrow it. The selected bunks

performed with uueliiy, and witlwut any embai rassment to ibcmaelves or to the community, their

engagements to ti- government, sud (he system

promised to bo permanently useful. But when it became necessary guilder the act of June, ltiSKj,

to wiinuraw irom tliem tue puuiic money, tor the purpose of placing il in additional institutions, or fur transferring it to the States, they (bund it, in

many cases inconvenient lo comply with tire demands of the Treasury, and numerous Prussian

applications were made for indulgence or relief. As tbe instalments under the deposite law became payable, their own embarrassments, and tire ne

cessity under which tbey lay of curtailing their discounts and calling in their debts, increased the general distress, and contributed with other causes, to hasten lire revulsion in which at length, they , in common with other banks, were fatally involved Under Iheae circumstances it becomes oatr solemn duty to inquire whether there n any connec huh between the Government and banks of issue,

ii a system, are stimulated ti

maae mc most at their lortunate acquisition; u.e deposites are treated as an increase of capi. .1; luu and circulation are rashly augmenteu, atal when

ine puuiic exigencies require a return, it ie attended with embarrassments not saw ided fcr, r. foreseen. Thus banks that thought themselves most fortunate ivltau tlie public shade were received, find liiemsel sat most embarrassad when the season of payment suddenly arriUSB. Unfortunately, too, the eviU of the systeaa aras not limited to the banks. It sumuuues a smeanl raahness of enterprise; and aggravate the tluctua Irons of commerce nnd the currency. This resuh

was striKtngly cxtuDitad iuring theoporBtions of the

mie oeposiic system, ana especially m the rtsretatses ef public basis. The erflar which ultimately directed thepsymeatof gold and silver m sash nstrchases greatly checked, hut could sot attasether prevent the evil. Specie was indeed we ddrkali to be procured thau tlie notes which the bank - could themselves create at pleasure, but attii, tern obtained from them as a loan, tuu rtrtumsti as a d iwait.. , which tbey were again at liberty to use, i' only passed round the circle with dimtmslice specConcluded en fmtrtJt page.