Newspapers / The Weekly Raleigh Register … / Dec. 3, 1838, edition 1 / Page 1
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; . -e. I WjCTT-- .- . " . - i , . - ii- i i Mlld II j l - mrm,, . JiJPWW M - -TfH H f jS ' f H JR JWlaaaBa f$: ' a:t Her plauK Of ali; dcliglitf ill peace, liiitrap'd by patr gcVHe 'like VJotllcr."" If.' 1 : ; ' ", '. -..rnU. c. -"7-"' ' "" T'"" '1 ' '7 r-ii'n iii ii'iiiiiMii'iiii'ir i ----rf'T" fi ' li i - ' i' li ii i i' i niiiii '" i- JOSEPH G AliES " SONY? Wlpffj leVyrfcnedhi overtaxed; The f ando, afford such reW,Vrcusana4 might idebted t( lief natural , ad vaj'lage-CJjuVbet General Govnnient; it bHHiewdaty Search t . . ' J . - - v 3 ,Bahk lent Jhomselyrs t ihe madrttss of the hour, demand. Under suclt' respeptablo xampIs,A an J more to the tihcial omp1niueiit of tlo credit system, ant "a "sultetitute'for the National Bahk.' " ' rhPin'Pvnr whiMtifiPV wpiv mWnnf- kDlTOllJ A. N D R op r I kt o R? i J th'ir circulation waa enlargcd, Iheir ttbintj io eus- at; the sugaeaUon of Wj w-pectabli ci.izcu This enaWtd her. at au rly period camn feJ!f ! v "trf ';frA : lain themwlve diminished, andjlhe destruction of I deemed itdue to Ihepeople lo surnmoti the Coun, a genetous rivalry with EiropeaiirrimCTreand Snd'I ask yoftr a tentiou toaiid jw candid can- ui?n e J D5r-- , ino,rV,-42C' ; ; 1 -TERMS. " the Bank of. the, United State compUwl the work ciTtf State toadv1e with meaa to the course which miuiufactun-s. ThU furnisht'd her tlje tneans faf 1 wJeration of. nrYeasbn,-rheir nor.nnet1v Is rofS. ljie btates af ha-VC,, WllS.tateat -anniwtrtrn.rpi vlnttft But not ortlv waa the period. fur itnpoaitiff -H would 111 to pursue. After viewing ihosit-.' I ht lmldt2 called liet maftttfactoiieiMitd tfcinff.'l airiMnnlrtabrimiivjt!firinii.ThA finit rhkrtrwt t least Jias, a Jeeri DecuniarV stake iO tWQOl 8l3 half to advance! i i - - rf ' Gj" Person? residiuj .without the State .will required to pay the wiiolk amount of the year subscription in advance, v 4l 4 1 ; For every 16 tinea ??e ycTirst insertion on dollar ; eah'suhsequenrtiisertioWvJS cent. ? Court' Ordera -and Judiciat"AdverttsemVni wilt be charged 25 per cent higher;?and;adedueiTon of 33f pcr'cntiIlr'maa'ejrfruinlh'sTeeuiar prices,! for advertisers by ihe year"Vi CTj l.KTTEn to tlt Jditors must he post-paid. To the .i&ttlft-gffi he General XstimMy of J Gejitlbmex i Ju entering upon thedifcharge of the public duties n joined by the- nonstilulion, we shoukl not be unrnindful of our abundant-cause of gratitude to the Authoc of all good for i the many blessings beneficently v lavished -upon' our common country. Though the products of; agticnlture may not have reached their usual abundance, enough has been realized to meetlhe wanta of oar people, and industry through jail its other avenues has been fair ly rewarded. . .w "M-jr-iC'.v W'ii:--i The laws have been administered without com .laint, our rights natural, civil and political have lijecn justly regarded, and we havd beeu blesed with all thosB moral urid physical enjoyments which con stitute the sum of human happiness Encouraged by tjiese considerations, than, let us ptceed on the jJath of our duties, determined to deserve "a continu ance of nrs faTor aud protection who rules the des- ti nies' of Nations v ; ' -: ;r . " " ' '?"'' In laying before you the condition of the, State, with such suggestion of Improvement a pper1o me worthy of Iegistatimi,T am crisoled for the knowl edge of my nwn deficiency ;tj"'tKe recollection that you come fr'om "every seCtiou'of our State -are iden tified with its various interestsrare acquamted with its wanls and capab11ilies,ondji a qualified tbye"uijeyrrtn7ptlynny omission "on my part Tlie novelty and the imposing magnitude of re cent events, will aflord you: matter for much and se iious consideration during the present session. Hie deranged circulating mediumof trade, the cramped situation of bur monetary institutions, an.J the hew scheme for the establishment of Sub-Treasuries by the General Government, all demand your anxious reflection ; for they are intimately, associate J will the interests of oUr constituents. - During a period ul profound peacei' and in the midst pi unexampled prjiisperity and happiness, the country has been pre; dictated from her high enjoyments, and plunged (ujith ik natural causes to explain it) into the abyss of i wide' spread misery and ruin. "Although the re cuperative energies of a new and rich country an J oi a singutariy euierprisiug people, uavc uitj, pciiun ted us to be, permanently, depressed, yet the lesitons of past ex iserience should not be lost upon us. We should liBvesligatd and understand the causes of thee calamaties, that we may apply the proper rem edies to prevent their recurrence. . Vv e must not continue to float upon a sea of uncertain experi ments i. .we must settle upon some permanent and practical system of policy , something defined and well; understood, else public apprehension is kept alive, business is retarded, and enterprize destroyed. Bear with ine, then, whilst, with becoming defer ence, I endeavour to investigate a subject which my ene of duty will; not. permit me to pass ly . The-seeds of tbpse disasters, I believe were sown in 1HI6. Measures were then adopted, from what motive it is not now necessary to enquire, which have greatly contributed to the misfortunes of 1836- or 'pu .i:..i...J..noic -.1.1 .. to those of more recent occurrence, except that .they were more extensive and severe. We-had just emerged from a harrasing and expensive war, which had greatly increased the public debthad vxbausted the tesources of the; country, and inflicted on her citi zens extensive pecuniary injury. The Banks h id sus pended apec payiiicntt the currency and exchang es) were uUeely deranged, confidence was destroyed and credit paralyzed. Under' iuch circumstances, our soil, scarcely free from the pollution of.lhe ene my, Congress decides on taxing the ? people to dis charge the public debt of two wars." t or this pur pose the tariff of duties of 1816 was adjusted, and wks gradually increased up to 1S28, -when the bill troi properly denominated "the bill of alomina'.ions" w is passed, establishing a yet higher rate of duties, and prospectively increasing it. ' In many "instances the lax was so high as absolutely to prohibit the im portation of articles of prime necessity The war lea to the creation of our domestic manufactories at the north, which were subsequently fostered ami in creased under the auspices of the tariff, and thither wei were driven to purchase at high prices those ar-ticjk-s which an exorbitant: tariff had expelled from our commerce. Other commodities which our niaii - ufactories were unable to supply we continued to import, because of their necessity, but burdened with a tar, which 'Uevelf, I' believe, before in the annals of legislation, i was exacted from a free people. Take, fur instance,the tax of nearly two cents oh iron, 3 to 4 cent on sugar, per lb., 20 to 28 cents per bushel on salt, iu cents per gallon on molasses, ana on all other articles of prime necessity from 30 to 250 per cent, which certainly would never have been submitted to but for the plausible appeal to the pat riotism of the people to pay the public debt. A To regulate and improve the currency , and ex changes, and to furnith a safe depository, Jbr, the Public Treasure, thus rapidly accruing, the , Bai.k of the United States wa chartered. After strug gling with the untoward circumstances which gave it being, it succeeded-at length in realizing the ob jects of its creation afforded a currency and rate of cxcnairge equal ii not superior to any ever enjoy e.il by this or any other country,; and performed, its functions as fiscal agent of the General Government to the entire satisfaction of every predecessor of Pre sident Jackson. i;' - V-,- ' ... - But the operations of this oppressive and unne cessary tariff continued to draw, tnuney j from the many to the lew, aim for purposes oilier than the current exper.se of ihe Kernment, unlif J8S6. Tlie credit of the country was stretched to its ut most tension and every means resorted to for relief. The distresses -of 18 19, '20 '26 gave fearful warn ing f ihe coming', danger; and but for the liberality arid wise forbearance of the Bank of the V. States, th crisis would have been much more calamitous The relief afforded by the Bank, however, was but temporary and falUrjou. The cause of ruin was tod deeply laid,' and the drain continued to do it wirk silently, iiisidlousiyVhut sure iinlu ivuru .. !'.! ' t ..:1' r Jtl il -i. Buiiiuiita-u lucreusc; iiieir importations,' speculation w as fostered, arid credit extended, with thp delusive hope of removing embarrassments, ori- the Tarift" most' unbropmous, i but 1 the . inducement for soloing (the payment of the. public Jebt) jnost unsatisfactory aud nnwiseiV WeVcfe"called upon by no principle of justlceof wisdom nr of patriotisiu t discharge that debt at "that moment.,.;. Il was .a debt created by ouMwu warsand uuder peculiar cir- cUmtances.viiiWe:entere(t-the rnNneyntarketaS a, borrower -youugfanlil with' impaired credit. ir'Qur institutions hew and bntrfed,and their stability of- l;n questioned. apitalisU availed themselves "of an inese usauvauiages,f ana rmpoea upou us tne highest preuiiiiin tor.the use of thetr furcls. it was a mere money arrangement, neces ity on wthe pne hand, and profiton- the other, involving uo oiieprin ciple"(vf Kttrjifiism of liberality r y" v 'The Report of the Secretary of the rreasury show that the Government was pften most ucuriously dealt by. - "iVe were then under no oblightiou to the pub. uc ctcunBr to anucipuie his ueinanus, anu n surely was neither wise, pat riotte or just fo any ohject--i liort of absolute necessity thus tou oppress an iil- Teaay.:exhaustedndvposrateu : ,p: , Consiileredjn a fiuau sti U more at a1bss tonderstand th'e n necessary haste of the Goverrnnent in" paying the public debt. A large portion of it bore, an interest of 3, 4t4$6z 5 per cent., and money," at the time it was discharged, was worth the fuH fegaf interest of tlie country, from o to. a per cent.- Drawing money Irom the People under such circumstances to pay tocaiMtalists-tnany of i hem fireigners was a fruaticial operation,' the wisdom of which may well be questioned. This Tax, thus imposed, and thus collected and , disburs ed, from the many to the few, soon again sought investment in "stock- iu - Factories, in Bonds -of Merchants and speculators, at an interest of from 6 to 8 percent. Avery small portion however, found its way to the 8outh.CThe hkhf"tate of. interest in jNew York, and her great natural and factitious ad vantage tor trade and commerce presented aiUac- 4wwsrliich we of this section could not boast, aud most of the investments concentrated at that point. it may nt4 be unprofiubie,,anl it is certainly in teresting, to-examine for a moment"," the enormous imouiii couecieu irom ine people . in twenty (-iv) year by lle demand of the Federal Government : Say Public DeU in 1816 i, J i $120,000 000 , Interest on half as reduced to 5 er cent. $00,000,000 i Surplu : . ,t .. : r 'pr & $il 1 006 ,000: i 20 years support of Government at 15 - - ? ' millions per year v?U p $300,000,000 Showing the extraordinary autn of f$ $52 1,000 ,000 .subtracted from the earning of industry in 20 year to pay the r Public Debt -and interest support tae General Government and create a ui fAa& I have dealt in round umberwithout regard to fractious. It is sufficiently afceurate for my purrwse, which is inerCy to exhibit the astounding amount of 'Taxes which is levied on tha consuir,er. of foreign merch andize, besides the extra amo0.tpaid on goods ex peJed ff om, our matket hy the Tariflf, which wo had to obtain 'from manufactories, of this country t ; This disjwsition of this money in seeking the new iiivesimenxs wwniciu nave auuueu. aoaeu 10 a large line of discounts by the various' Batiks; 'urged and stimulated to improvident exjwnsions, gave a ihow of business and prosperity , unparalleled in ouf coun try. But it was hollow and fallacious.!, The peo ple had been drained, weakened and impoverished by taxation, and they were unable to withstand the the reaction which awaited them. President Jackson made a systematic attack upon the credit system, "lie declared "that all who trade on" .borrowed capital ought "Co break;" he attack cd and put down the UiJ ted States Bank; and east distrust and odium upon the issues of all banks, by his circular requiring the payment for lands in specie. This gave warning to merchants, bankers and capitalists, who, with the instinct of self preser vation, tiimmed their sails to the coming, storm, .husbanded their resources, r called in their means, land reaction and ruin commenced. The public treasure had been deposited with a few local banks, and, with the hope of healing the wounds which he had inflicted upon the commerce J and credit of the country, the President determined on the Pel Bank system. This he promised should' answer all the purposes of the Bank ot the United Stales, unattended with 'its evils and dangeis. While theifeposita continued to accummutate, these promises seemed in the way of fulfilment, and the Piesident congratulated tlie public on his sue cess; yet the reaction went on; a wound had been given to public confidence-which the healing pow ers of the President could not reach; produce was pressed into market, and the price declined; stocks went down, prop rty changed hands at reduced prices.- the banks curtailed, and in turn were press ed for the payment of their debts; the . deposites were withdrawn, a further curtailment was necess ary; no hope of relief remained; confidence ' was desiroyed, business paralized, and the suspension followed with all its train of bankruptcy and ruin. The local Banks, in their torn, were discarded and denounced as unworthy the confidence of the gov ernment or people, They have" terminated" a eerie of ill digested and pernicious experiments a vacillating policy of wretched expedients; taxing to pay off the public debt and to protect home manufactures ; , establish iog Bank of the United States at one .moment, and pulling it down as unconstitutional at the next; ' creating a high protective tariff to-day and destroy ing it to-morrow: collecting a surplus revenue from the wants of the people patronizing, carressing and stimulating into madness and folly the Banks of the States, and then denouncing them for failing to accomplish what no rational being could have ex pected from them. They could not regulate the exchanges, .and it was equal fully to expect that they coqtd withstand the shock, which a flood of circumstances " bey ond .their control drove upon them. They, were compelled to suspend payments, until time placed another crop in market .to remit the, balances of European creditors, and to repair losses at home. ' ' 1 "" '", -: My confidence in ohr local Banks is not impaired. They have suffered with ihe.couotry generally, been unfortunate, perhaps imprudent: but they are the arms ot our credit system, and -with the improve ments and Umitattotw which- Experience has sug gested, they are essential to us, and ought to be sustained. The Bauks of this State, from a com parative examination of llieir conditio; witli the itislilulions of the other States, stood at the jeriod of the auspeusioQ in a very favorable position;, and I was impresscu vim me opinion tuai tiiey, ii uy, could have sustained their paymehta; throughout ihe pressure,-. Elut.their able managers who knew their situation iiesbelw and they followed iheijgeiM with 'laudable sxiy Mloweu in the resumption , arul hoveet their pi "' Boon :'l after ' the -suspehsioii of '' the Banks, the Legislatures of ? ieVefalState "were convened to arrest, if possible, the downward course of things, uat.ion of the Banks and the wints pf the comrau nity, a convention of the General Assembly was not deemed necessary, It.was believed that no assis tance.could be. afforded theso institutions x-pnsis-, tent- with the right 'of "the people, aud 4hat a n-' pie protection was afforded the community, by- tins penal clause tof the charters, a'Jowing 12 per cent, interest yon refusing to Vedeeiri" their notes. , y The sympalliy ofour citizens with the sufferers of the times, even to the hunted banks.' is slrohj "evi dence, of their liberality,' forbearance "nnd .riirht-. mindness. Demands were seldom made, and of very inconsiderable amounts, t Few .'were found, Shylock like, to require the pound of flesh; for - the position of the banks was looked upon as a e.'da,:ni ty raiher than a crime. ; , . . ... The Bank of the United States having been put down by one President, and pronounced unconsti tutional by the present incumbent,- the local banks haying been denounced and discarded,, no alterna tive, unfortunately, is left the President but' jo devise some new system as the fiscal agent of. the Government. This has heen announced to- the public under the imposing title of tlie "Independent Treasury,' and has beerr twice reccommended to Congress, and as often rejected ly thathody, though composed of a majority of his partizans. . They had the best sources of information and amjde op portunities to investigate the subject fully It has certainly been very elatmrately . discussed- at two sessions, and rejected under- circumstances which would seem to demand the acquiescence of every republican, who holds the doctrine "that a majority ought to rule. But it is hot submitted to"; every exertion' has' been ma'de, and' is still making by the immense influence of Executive patronage, to reverse thia twice decided question. An apeal has been made to the people, the subject has been car ried into our State elections, and tlio public mtud eieu wiin ti, from uie ejeciions oi our consiaDies to that of the executive. ': It has been made ihe test of 1 jv 1 o.-i.j- i 1 ucuiuui lisrii. VJIUC oeilttiors anu UOIIorao:e rv " . 1 1 " . 1 - ii : . . . . - . I Representatives have taken the stump at elections, atbarbacues and dinner tables in defence of it. Tue cupidity of creditors has been appealed to in sup port of it. They have been invited by the Secre tary of the Treasury Jo protest his own drafts on the Banks wherr specie was refused, in order 10 make them equivalent to specie aud available in the j market at a high premium, to' pay custom house duties. This is no fiction, it is a fact; and the Government has been dishonored by her own offi- i cersfora petty reward of profit on "the salaries . thev are receiving from her5 bounty. The honor. able members of Congress were proflered specie by a circular of the Secretary in the payment of their compensa'ion. With such inducements, incentives and ajqteals, we5 would not oe astonished to see this ne w device become the law of the land against the dispassionate wishes of the people. I umlert nd the " Independent Trc sury"to mean, reduced to its naked proportions, the ap pointment of new" Agents by the Govemmnii, whose duty it wll be lo receive the public !u s from the people in-. gold and silver only, keep it in safes and vaults. and pay it out to the salaried ' 1 i. . - "ihcers anu ouiersm coin ooiv.reic-cting the use of banks as depositories and their notes as a me dium of payment, whether convertible into specie or n V, - This meaviirc I consider wr-Mij in principle. No Sl;ite g;.veriiincnt would bestistaiue.i in exacting- Irom the people coin on y in the pay ment of taxes, laud s '.cs and entries, nor 0 11 il individuals be tolerated in a course so dious anl oppressive. , . ' The cinp'oyment r f gold and silver only, in all ir insactions be.tween the government and people, if practicable at all, would be- ii. conve nient and expensive. Hut the impracticability of condutinjf the business of the country with a specie currency, only, is not denied. 1 U e industry of our agriculture, commerce, Irade, man must tht n mcessarily have a mixed curiei(icy of' ufactnres and internal improvements of every dos snec'ie and bnk notes the one, a. coi dinj' to criution: and is rendered more essential to Our wel- V "f ; V. " ve v,o- ll.n T.ut . Ixrif " li i.nuir Junlb'.nn f.-Mlt. -f'. ..... .. , ..... , .(..v . ...... . . ... - . : .o-. .i- i i . , imy oiusi. tuiix tji .coiiu ci. 1 ne ieiusi or me ty Government to receive tlie people's cir ency must lepfecie it or produce a constant ilium upon the Batiks, which must-des' ry tiicir use fulness. On the score of safety, Hue 'independent Trea sury is to meparticul..rly objectionable. Few of u sure ignorant that the officers of the U.S. ales are appointed more frequently f om political considerations llun fioni intrinsic merit, and too frequently from noisy demagogues, who are always the most forward and ptrtn.uciouTappi -cants for office. Tlfe deposit in the 1. cd buiiks must, from their nature, be more s cute than with such officers. They are .guaranteed by the capital of the b.ink, aud tlm watcldnl e)e of sell interest is - perpetually u; o i them . 1 speak rim fly in reference to the officers and the nattagement of Ihe Binks of this Staje ; and from personal knowledge, 1 am very certain that noSub-Treasury can be organized with wliicu I wou u so cuiiuaeniiy uiti tisl my per sonal funds as wi ll our Banks. But this Sub-Treasury scheme must increase the number f -rhcers, and the patronage oi the Gencr.il Government, already swollen bi- (Hid all proper limits. 1 have an insuperable .object ioir to seeing the agents of "the G ver n- ment spread over the stales, Willi Hi.- control ot money or powvr of arty kind, to operate o.i i-ur. habits, manners and feelings, or to inHuence oui ekctive fraucliise. We have already :i Mmt without coin, an Arsenal without need, Collec tors ami tiosts of Custom, house officers, t ah our potts of entry, ami Post M tsltrs,; 1 ke li e locusts-itf Kgii They form a phalanx, which no patriot can contemplate Without just appre hension, or thiok of incieasiug witho.it dismay. - Some advocate the scheme, because in its operation, it will be hostile to the local li.i. ks : and that, in their lint tires, they ure an'aoni-ti-cafyhd ianuot exist togetheri - Are. we prepar ed for the destruction of our Banks, and, with t'lent of our trade and enterprise ? Are we willing to witness a reduction i the value id our property of one half or iorc h Destroy ou bsmlisiund webwdt witness th'js, or the humiba ting ilterna'-ive of being Ustatued by foreign capital. . x , 4, iy V-.'V' :.. We are told that the independent Treasury will relieve the South from ! the -shackles of Northern tradetWenable her to establish a ' direct intercourse wijib! foreign countries build up her. markets, and uiutotthe whole South in trade, interest and feel ing. Nothing surely was ever roore fallacious. Did its northern projectors originate it with , ibis view, or uo mey uov 6uaiaiu u upon sucn motives: Hardlygentlemen. f. These shackles of Northern trade, of which we have latterly heard so much, proceed from causes not so easily overcome. The North is much in- improved her navigation v and cousLructed her ronds and c.inals. . I hee improvomonts soin reacted up tin induiry,VfKe facilities to the lariner: encourage nwl to the -mechanic, and - employ ment to tabour iiilevery; description. -" These tjects (except -coin iucrf.e) w're greatly fostered by th'e" warr" suhse q..eutly by ihe tarilf ,ml afterwards by tlie money thrown into circulation, by the payiueut of the public "debt. " -( Our course 'was vastly "different, our energies w ere oi reeled to the quiet pursuits of agricultural lite. Always fearful of ovei Lunkitig, we employed the credit system lor no valuable improvement; our rade was originally Ui.islly wit'.i liurop.'; there we shipped our products, aud received in return, man ufactured good.-, to supply all our wants. Gradually, however, our trade boan to be transferrctf 4o"tlin North. We begun to find tliat tliere we could meet with foreign goods imported ii) northern ves sels and by noik.ie'u caphal, which added to tLeir own manufactures, ot gi eater extent and variety, and actually cheaper in price,' than we had ' been J importing directly; because they better understood thu wants of our. Had.-', had siwre capitaland could dant a small aitrtment to our convenience, Beuoc ! the transfer; but the Northalso c'ousumes' largcTmainiri;T stock to bo taken by individuals; into the oi our ra v material, wnicti renuers cue traae reutvu Ily beneficial to us. , fs3 The State to transfer all its stocktaud urrherchauU are a calculating and. paiustaktugj fnWls- n thA Rant nnrl tn 'rtffiita irirp - v 'i evr''' ft"ft,-,i it tiring lrt Atrtiri ntul final Hintr rtrnfit in i nn'n urn t I ver a direct European trade, or the present stateof things had never existed. The t:itv ofNcw Yrk t possesses natural advantages so greatly superior, to any other port in the United Slates,, that sho . has trot only the trade of the South, but of nearly ail the Northern and Eastern Slates in a greater or less degree - - f - ' '-.";..: -. ';.. . Fo build up home markets is certainly highly de sirable, and ot primary importance; but it -cannot he effected by Convention: Their, collected wis .1,,. .1....:,.. ... ,1. . , i..-..,i. u" niajr ucisc m- a.ua, uui lucjf . uiuai uu aukii l' ... 1 1.1 ' 1. means as have before produced the same Jesuits such as have enabled the North to compete with Europe. We must extend the credit system af I frd the -means to erect manufactories, to build ships, to improve our navigation, ;,u open caiml and construct turnpikes and rail ways, to improve and use our water power, and to work the mines of ores and minerals with which our State so richly abounds. And we mustdo what is of paramount importance, irrect Seminaries of Education,' to qual- ify our children the better to improve our nat ural advantages, to keep ihe children of the wealthy at home, aud fivoid the extravagant expense aud the uncongenial . habits which they . acquire a broad. We must encourage our own mechanics, and import nothing that we can make at home; and finally, .we must do as our brethren of the North do, stay at home ourselves; except when profit or busi ness takes us abroad and cease to spend our lime and substance in idleness and extravagance. We should' forbear to cultivate sectional and geo graphical feolings. sThem is i danger in it. It is enough to keep the lino of rights aud attachments between the State and General Governments sepa . 1 '.1: ..: . ri. '.! V r . rate and distinct. 1 he object, of our compact was trade, friendly intercourse, and strength of numbers; and I should learn with regret the incipiency of any measure that would tend to plant a bitter rivalry or angry alienation between the North uiul South We have but one peculiar Southern interest lo guard, and that is sufficient tu bind us together with chains of adamant. We loojc with confidence to the Constitution for protection there and u hen that fails the South, as one man, will know how to protect bercself. j A circulating medium of uniform value and in sufficient amount, isthe great desideratum of our extensive and enterprizing confederacy. It is the life-blood of the various branches of our sprcadin f f .1 . " Iare Dy tne extern oi our union, the variety ot our sun anu tiwnait;, uihi ui uui peoine, uiuernii; amwsi . . .. . . k . : as much in - wants, halits and manners. Thi all I important circulation, I apprehend, cannot be .sup ; plied without the cre.iit and protection of the Fcd . eral Government, exerted, either direcdy, in the es tablishment ot a National Bauk; or. indirectly, un der proper regulations, in favour of the Banks of tU State. .' The people very wisely gave to Congress ihe pow er to. coin money, regulate tlie value thereof, and to fix the standard of weights and measures." But it yvould not be more unreasonable to lestrict the country to the identical weights and measures, fur nished by the government, though they afforded not one-tenth tUu supplv required, than it would be lo limit it to the use of the coin thus regulated for the receipts and disbursements of the general govern ment; if it was right to do so, the government should feel itself bound to furnish sufficient supplies .both for its own and the people's uses. The leading design of these grots lo Congress, was to render:what"was before irregular, uncertain and deranged certain, defined and uniform ; other wUe there could be no precision, no uniformity, and ful little justice in the collection of taxes and duties in the various sections of ihe Union. But the grant "to regulate Commerce with foreign powers with the Stales and' Indian tribes," indicates very strong ly the intention ot the framers of the Constitution upon this subject, and their sense of the necessity and propriety of regulithig the currency, be it what it may- v 5 a " - A National Bank bein? considered unconstitu tional by the present Chivf Magistrate, cannot, of course, be established during his term of office, un- Ivss a constitutional majority can lie obtained to control the veto power, af which I confess I enter tain no hope, 1 The necessities of the country have twice called such an institution into being; and un der the auspices of our most enlightened and patri otic Statesmen," it fully realized (lie expectations of its friends and supplied the wants of the country . Still, it has been made the stalking horse of the demagogue, and made .o bear upon all our elections, from the elevated Chief Magistrate down to, the humble constable i end yet, so impressed was the country with Uh utility and necessity, that, despite of the popularity of the late Presidentwho was op posed to it, it was, re-chartered by Congress by de cided majorities, and fell a victim to the veto pow er. The constitutionality of its establishment seems to be a question never - to be settled ; and if the scenes Of its re-charter are always lo be acted over and the public mind excited and disturbed by the misrepresentations and agitations of corrupt parti sans it may well be questioned whether the advan tages of such an 'institution, highly as I . value it, are not countervailed by the improper uses to which its enemies basely prostitute it. Under such cir cumstances, with no national currency and our ex- I changes deranged, with no hope of action by the banks' in the countryjar yet in existence':- and in good I -credit aud" no one' within "my knowledgeof respectable sldrrdlng; has evef- been i refused : are charter whert applied foflt Jv ational . politics1: have never entered into "-theirs management ; antheir contractions and expansions can never affect jlm busiitss. of the country like a National - Bank of fa.rgr . capital,' ramifying into many States " V' 5 Aconsiderahlo reformation, alteration and .im provement would be necessary, however, in order to make the local Banks meet my views, . They are at present too numerous 4 tneic capiuu generally too stiiiiU; and the variety of their notes so great, that: it is almost impossible to fix tipon the memory the character of thu signatures and viguetles; so as ' to avoid the dan ger-of forgeries. Some of their loca tions .are iucomeuienl .depositories It will in evitabJy lead to rivalry and dissatisfaction, jealous ies, and more than aft, -to a depreciation of the is-, sues of ihe rejected Hanks. - T? - I propose then, that our Stale leail the way in the reform of our Bank'urg system, and respectfully rec ommend the chartering of a Bauk with & capital of ten millions of dollars, allowing ihe existing Banks. lo subscribe all their Capital Stock into itilbe re details ot which, u is not now necessarv to enter. iu me r tjuerai vjroveruuieiii as a ueposiiory . 1 -J Mlds; the safety anil fortlicorning.of which inHlic ktud of jmonevrtlepositeda be guaratvteed by tlte State in Such "a tnatl- tier as shall be satisfactory, to the General Government, and in. the event of the of the Bank being unablelto rneet the.- payment of the depOsites of ihe ,G eneral " G o VernhieiU, tlie State to issue stock for the aitjount in favor of the Government, bearing 5 per cent, interest until ihe Bank is able ta re? sume payment. For these services reti cle red to the General Government- the notes issued by the Bank to be fiecelveU la payment 'of all lis duesi atid oiv tjie fur tVier condition that the otrrer States prepare their Batiks in like manner, and for like pur poses, namely: That each State and Terri tory shall designate by law one Bank, and more if its trade and necessitieseruire it, of capitals not exceeding tetti nor less than two millions of Dollars", as its own deposi tory and the depository "" of the General twovernmentj'ana it requestea oy tne lrest dent of the -United .States, oilier Banks for that purpose; a second Bank however in rto case to be hcartered or designated until the capita of the first, twhich shall be the maximum amount, shall eniirely taken and so on to the third, fourth and fifth ,whh necessary. , The notes of the Banks 4hus made depositories, to be engraved on simK lar5aper and to resemble each othef as nearly as possible. - Each State shall desig nate to Congress the particular "Bank ten dered as a depository,' atjd the acceptance bv the General Government shall be under an act of the Coftgressj land all their inter course regulated by law.,.; If any State re fuses or neglects to come into lhearrane ment the tnoney collected in each State by the general Government shall be transfer red to a depository of some, other State, nor shall the money collected in the refus ing State bet received; in any thing but coin. Thus fostered, sustained and patronlz- ed by l General.Government and guar ded by the supervisory power of the States which guarantee their fidelity, these insti tutions, 1, have no doubt, would afford as near an uniformity :of currency and of ex change as by any possibility can be arrived at. ' '' ' Under such high sanctions loo, capitalists would be induced to ' invest iheir lunds in such stocks with "alacrity and confidence. And the notes of these Institutions from the credit reflected on them would circulate so freely and extensively as to enable them to supply the amounts necessary for all the legitimate ises of the country. - An increase of banking capital in our own State is certainly, necessary to meet the wants of industry, and to perfect the works of improvement already commenced to say nothing of other works equally necessary to be made, liut unless some arrangement can be effected to convert the unnatural hostility of the General Go vern ment into favor to the State banking insti tutions, you may charter Banks, but capi talists will not be induced to hazard' their means in the stock. . To borrow money; aslsome of the States have done, in order to furnish capital for their Banks, is idle. If the Sub-Treasury is established, bank notes instantly become discredited, or their sphere of usefulness' is made so limited that theywill -find it ha zardous if not impracticable to loan out more than their capital, aritf their profits will be insufficient to sustain - them. ...The suggestions I have made to you, are the results of an anxious reflection upon an in tricate and all important subject and it .af fords the only projbable outlet which" has occurred to me of . extraction .irom Jour fi nancial difficulties. I have attempted noth ing more than a general outline of the plan; its "details, should you deem it worthy your consideration, 'cajv be arranged at your con venience. This subject, is so important, that I must crave . a few" moments indul gence in making a further brief illustration. I have said that the intercourse between the Banks arid General Government must be regulated by law3 Tliere must be no controlling or discretionary power in the officers of either Government. Wo have hfT Tannic and H ,Vt hitrhftr lntftrp.st:. 4rt nll. in the character I they vsusrirUand iuthe facilitie5 ihey atfojrd the Tarqiejrtn.vaDUiDg, and.Uie merchant ,tn: purchasing-commod liesahdwjR musfiiot aUovr them to become I them s hqul d ber pro mpUyahd i ndignan tly resisted. riiey; ?must- tiot tie maue .tne tools of party or Ihe : Victims of tfem agogues, and hence I would havo ; the ir in teripou rse with-the JpVernenttricyT statute. I have IimitethV ca)itals of these Banks at not Jess 4han twqnqr milttonsr of dollars- Noi Stal orerritory will require less than the minimum amount The one is'l iwllilyjr9rrt.ise !shJ not exert such powrer. by1 contraction or' ex pansion ofJts ;dscQi'j4ise.rlo1y, trr alf iectith businespi of -the countryj. or the value of prnnertv ; . and guarded, and res- trictexi,! I havprojpAseiI,lheVeould be xKl'.Lil il :iK. -l4 U i'.Tf .urii? -v-s. ,1. posed; in -ojdeitrffqr4j tioned ecuritv tor theepbshofsitandtuote holders and toMm thegenerrobvernment inaliulrolpsttlon disacfg question tes.wo?il4icprltna an tie," as no Batik of respectable 'size ha3 ver failed to pay depOsites and issues' however their. irtO'KhpIderi'ay ;have fared. Bui the StateS irlire power attdiVmay soi exeftsiserit alltrjmake her security. as perfeeCas jhieleiires,iln cases of emertfehjjy Iv&lha the States ' pOtn ptlyjjcph they slioulddarhefinyXim t est is i nyolved) tji 'iKeie.lief pt their Banks bv the foaii of their 'credlf aud funds fPre- ventton, however,, is-better. .than cure and the pian proposed, wilU I thinkviobviate the cata8tfohte;ir been . given, tne issuing; oi me siock merely points out tlie mode of setlte7neut tn caie f fail ure, and after al( it.buija TBnanoiti ar rangemeut, giving time to -the Banks , to wind up" their iiTairs," if necessary, and protecting the people from a rapid and ruin ous Jpressuri inj fthe coHectirjn f ; their The largeAeizelf :ihesQ institufions . and the enhanced vaue oif-thejr issues , would soon drive out Qfi circulation the l. notes rot the lesser Banks land compel themf to wind up by limiting tlieir circulation and retu rn irig it on them, fc r spele othiat inhe -end the great 'fflU, of numberlesraall Banks with insufficient capital, would be remedied, and thfe wole number of' banking institutions in the'courljtryooldfioilxeeed that of . tlie United ? Sates ; !3ankan(y ts branches. Thii usejpf of notes anikthe issuing them ; only from the principal BanksUvbuld impress tljem upon the memory rpnder the sigriaftiresvand general characte of the bills as well known as those of the lit e United States Bank and thus facilitate their circulation,and diminish the chances of forgeries.- Vi . Tlie reeeif abijitjrbf ttiese npteaii'aU the dues of the GenerarOovernmentjf; through out tllB Ulliun,. Ifruuld vemUr . U tb ittbrot of the Banks ; to! keep - exchanges at - fair rates, to prevent the collection and' accu- m ulatton ofheinotes in large ' masses at points where irale has a' tendency to con centrate, and the- States may interpose statutes ( in the f stead of competition , to guard againsto'ver istlejt. Indeed,'4 the sphere of. competition if there bo" any good in it, will dhly;;be: enlaiged. Instead of the several Banks of the. same State vicing with arid arrassing each other,, the rivalry will be between .the : Banks of. the differjeni States ; and thejT will more efiec tuallahd uniformly I keepieach "otherTin check: iHd order, whUstttlXome' .' wWfitl have the full use! and concentrated vigor of all Olir capital. A serious objection urged agamst a Bank of the United States ? was the large amount of money wielded by one'eet of tneu, . en abling them to contract of expand the 'eur rency, and then to operate upon the busi ness and politics iof the country. This ob jection, in my estimation, holds much more strongly against the Mammouth Institutions now becoming common at the North and free of tlie restraints I, have proposed. The Bank of the United States was responsible to and controlled jby Congress for her acts in all tlie State. But , these institutions holding charters from thffStates can only be' controlled .by (the power from which they derived theibeing, arid this power will never be exerted except for acts inju rious to tlieir owii -ciltzens and improper within jiheir JftwJ limits- Beyond their limits in other Stla'.es, they are almost irre sponsible, and their conduct will be mark ed by the wantonj abases of the most un restrained despotism If you require il lustration, turn toj the Pennsylvania' Bank of the United Stakes' dealing in cotton and local-Bank stocks!, appropriating almost ex clusively the Iratfcf the great staples of '(Continued to fourth page.) tne sport on meyicttm .orany powejf- They , holdtheirj rights sunder: ihe 5jtmei' sacked guarantte by twhtclt ourlanda'i'ijnd other nrooertv is held, and anv invasion of heresppnsiHihtyoflh
The Weekly Raleigh Register (Raleigh, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Dec. 3, 1838, edition 1
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