Newspapers / The Weekly Raleigh Register … / Jan. 3, 1840, edition 1 / Page 4
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I! t 1 t J 1 - . 4s r xk 11 If! fttmfer of terms' to be heH in each or the courts com; e posing the ninth circuit, the i distances between, the places at which they sit, andfm thence to the seat - - f Government, are ineikNo be stich as to len r t'WhfBBpoMiUe forthejuihjeW ,nrcaU to per t Ibrm, i BHer corresponding with the puMiccxi E4 geneien; his term and circohdoiies.!;A reisiofi.there 4yjbfth;ntwniigcmeht of he circuits seems, i to be called for, and is recommended Wjow. notice. f-I think H proper t(r ealt your attention 10 the pow ' er assumed by Territorial Legislatures to authorize the Issue of bonds by corporate 'companies- bit 1 the A 'guarantSTof the Territory Congress passed a law : jnA836,proviJtngUat no act of a Territorial Legtsl- i tore ioeo'rpoiittac banks should have the force of law - until apptoted by Congress, but acU of a very creep- j tioBal character previously passed oy me wgiwiiwo ; - ef Florida, were suffered to relrtaln in force, by virtue plef whkh bonds may be issued to a very large a njoout 4 Uiose institutions, upon the fcitk jpfthe Territory. , A resolution intending to be a joint one passed the Senate at ths same session; exprewiiig uie sense or iVnonua tliaf lh ftu-a in -irctiiUl otlffht not tO be wuumcw .wm. wv - -- a - - . . ' L-.- k... r-;i.i Mahu .f Rpn. f Tesebtatives for want of time, and the decd amend nenls bave pot been niade...;.The inlcres Involved re of great importance, and the auhject deserves your early and careful attention. . , ' 'W- -f The continued agitation of the question-relative to . the best mode of keeping and disbuMingihe , public money, still injuriously affects the ; business of the , .country. The suspemion of specie'paymfnts in 1837, i reodered th use of deposite banks a prescribed by v the act of liRSC. a source rather of embarrassmei-t than aid, and., of necessity placed the cuU.dy of most of the public money afterwards collected fit charge of the public officers. T The new securities for its safety, . which-this required, were iTpriwcipal , cause of toy U.JU.t-. 5 fiii i,iii tn.ll in manvires whose rizbts luey violate, wnose tusuesa iney I conrenfng an extra session of Congress; but - in con al the last session to obtain the authority of Congress , topunuh the use of puUic money for pri vate purpo i poses as a erime, a rneasure attended under other : GovernmentrwitU signal advantage, was also unsud cesgful, from diversities ot npiuion in that luxly, not v . withstanding the anxiety doubtless felt by it to afford : every practicable eeurity.i" The result f this is still to- leave the custody of the public money without those safeguard which have been for several years 1 earnestly desired by the Executive ;nd as tbe remedy Vis only to be found in the action of . the Iegislature,it imposes on me the duty of again fcubmitiing to you tlie , propriety of passing'a law providing fur the safe keep- ing. of the public moneys and especially to a.-k t,hat : its use for'private1 purpose by any ofticers entrusted with it; may be declared to be a felony, punishable w it h penalties proportioned to the magnitude of t he offence.' L : These circumstances, added to known defects in the existing laws, and unusual derangement in the ' . general operations of. trade,baye, during the last three K: years, mtich increased the difficulties attendant on the - , collection keeping, aiid disbursement of the revenue, t called forth corresponding exertion from those -I having them tit charge. . Happily, these have been successful beyond . ex pectation. . Vast sums have been collcctedlmd diobureed by the several Departments with unexpected cheapness and ease; transfer have -' , J been readily made to every part of the Union, ! how- ever distant; and defalcations have leen far ess .than was s . aniicipnted, from, the absence of adequate r legal restraints. Since the officers of the Treasury and . Post Office Departments were charged with the cus r, tody of most cf the public moneys received by'them, ' ,iW there have been collected sixty-six' millions of dollars,- -and excluding the case of the late collector at New York, the aggregate amount of losses sustained in the r collection cannot, it, is believed, exceed sixty ihou ' sand dollars. The defalcation of the late collector at " that-city, of the extent and - circumstances of which , Congress has been fully informad, ran through all -the modes of keeping the public money that have been hitherto In use and was distinguished by an aggra vated disregard oT duty, that broke through the res- : frflinta nf iorv svatom unit rnnnul lViprf.rt liAiiu. t .fully referred to as a test of the comparative safety of ,' either. Additional information will also be furnished i oy me report oi inepecrcory oi tne i rcasury, in re nlv to a call made noon that officer bv the House of -Representatives it the last session, requiring detailed information on the subject of defaults by public offi- j cef s or agents under each Administration, from 1789 tci 83r This document will be' submitted to you in a few days. The general results, (indepciMJent of the Pst Office, -which is kept separately, and will be stated by itself, so far as they bear upon this subject are; that the losses which have been, and ant likely to be sustained, by any rlass of agents, have ben .the greatest by Banks, including, as requited in the 'resolution! their uVpreciated paper received lot public dues; that the next largest have been by disbursing officers, arid the least by, collectors arid receivers. If the losses on duty 'bonds are excluded, they alone . .ym ihj iiireeioiu inose uy doui ch icciors aim receiv- era. i uur wnoie experience, tnereiore, iurmsnes the .strongest evidence that the desired legislation of Congress is alone wanting to insure in those opera rtion the highjrst degree of security and facility. Such also appearavio-bavo been the experience of other na tions. Frtfm the results-of inquiries made by the Secretaryyof the Treasury in regard to the practice -among t)iem, ,1 am enabled to ..'state that in twenty . two out of twenty-seven foreign Governments, from which undoubted information has been obtained, the public money's tire kept in charge of Public Officers, i This concurrence of opinion, iiL favr of that system, is perhaps aa great as exists on any question of inter nal administration. i( ' In the modes of business, and official restraints on j3isbursihsrontccrs. ru Iccrul chan-rc wa nrmluced bv :-'V ' i anohAnainn ef anAsA a n a n ft 1 1..W referred to will be found to cmitain also much useful t .. ; information in relation to thiis subject. ' . L ;U. I have, heretofore assigned to Congress my reasons 'V for benevtng thatlhe estahlisluneut of an Indeocnd- cni National Treasury, as contemplated by the Jon- ; stitution,' is necessary to the safe action of the Fede ral Government. The suspension bfspecie payments in 1837, by the Banks hairigthc custody of the pub--lie money, ahowod ton at arming a degree our de ; pendence. oii, those institutioh3 for the performance of duties required by law,1hit I (hen recommended the f entire dissolution of that ; connectioii. This reom L mendation has been subjected, as I desired it should :'; be, to severe scrutiny and animated discussion; and 1 f' Allow myself to believe that, notwithstanding the uaiu ral diversities of opinion which may be ahticipated on an fcunjecis involving sucn unportani considerations, It has secured iu hs favor as general a concurrence of public sentiment as could be expected on one of such magnitude, iki - Recent venls have also continued to devclopc new lections to such a connection. Seldom is any Bank. under the existing system and practice, able to meet, ., o(i demand all U liabilities for deposites land notes . in cireulation". It maintains f-pi-cie payments, and j transacts a profitable business, only by the confidence of the public iuils solvency and whenever this ii r destroyed,the demands of its depositors and notebold i; erspressed more 'rapidly than i t can make cnllec- tioria from 'ts debtors furco it tn ston navment This I loss of confidence with its conseouemes occurred in J837,and aflirded the apdogy of the banks for their suspen8Sph.lThe public then acquiesced in fiieWa- Udiiy oihVexcuse; and, wlule the State Legislatures did ot eHct fr&m tfieir forfi iteil charters. Congress, I j in accordaneewith the rccommendatinn of the Exec jryeV allowed theuVtime to pay, over the pubiie mo ti ey, thy' )ie!d;''ah.h4f;Cmlle(. $o issue Treasury notes to supply the deficiency thus created. u2 . , i i t now aprjearilhat Jbereare othefrootives than a f want of.pnbie nfideiekr which the Banks seek vf ? Justify themselves Jn a refu'saHomeet their pbhga U "j00 -Scajrcelj were the, Country and GovnpeBi i relieved, in A degree, fro'ni Hhe jdrfficulties 'occasioned 4:.I,?!.ral suwsioi oTl93T; when: a partial I one; occurring "within!thJrty months f the former f f produced new and w 1 baa no palliation, in such circumstances as were al H ,r 1eg4 tnltjusti0cat ion of . ill lit which had previously taker! place. There was litithinff in the condition nt th eountry to endanger a well managed bankiug in stitution; commerce was t'eranged by no foreign war; every branch! manufacture iiuIimIm ntAs rurndktl WWrrkh rewards tUnJ' the, than usual abun- ty, or caprice, mayuiduco wose wno coniroiacrea tit Af,.. W,Mn.. rtr-Jomesiir : its'ofUnland to resort to. I mean.not to comment vaitt. hud left our "eranariee and store-house filled "with a su p-ufor. exportation., t i in, the rnidat of this', th'-il an i re leasable arid,d-'pr?cialed, paper cur rency is entailed upon' ihe'pconlebyTa. large ponfon of Ihe lia'tks; -They are jhot driven to It by ihe fextiU. bittiMr of a loss pubfieeoftfident?erbr"-of sudden pressure fruiri tbeir djosUors or oJe-Uoldersbot tbey excuse themselves .by al'c.ripg rtiat. the 'current of business, and exchange with foreign countries, which draws the pirecrous-nietirls" frob their "taulfs, would reaire in o der to meet it, a larger curtailment of their loans a comparatively small portion f the community.; than it wi;I be eonveo ent for them to tear, or perhaps safe for the Banks to; exact; The plea has ceased to be done of necessity. Convenience and poiicy are now deemed sufficient to warrant these iiisrttnrions In disregarding their solemn obligations. Such conduct ia hot merely anj injury to individual creditors, but it is a wrong to the whole' community front whoso liberality they hokl most valuable privue - - - i . . derail sre. and the value of whose pruperty they render unstable and'insccure. . Ir'musl lie evident that this new ground for Bank suspensions, in reference to which their action is not only disconnected with, but wholly independent of, that of the: public, gives a a character la their suspensions more a'arm'ng than any wji ch the exhibited before, and greatly increas es the impropriety of relying-on. the Hanks in the iransactbuis of the Government. ' A large and highly respectable portion of our bank ing institutiotfs are, it aSbrds rae unfeigned pie isure to ! -stalo, exempted from alt blame on account ot tins second delinquency. They have to their great credit, not only coitdnued to meet their engastements, but bare cveti repudiated the ground of suspension now resorted to. It is only by uch a course that the con' New dan cere to the Banks Are also daily dif closed from the extension of that system of extoravagarijjt cre dit, of which they are the pillars. ' Formerly, our foreign commerce was principally founded! on an exchange of commodities, including die precious metals, and leav ing in its transactions but little foreign debt. Such is not now the case. Aided by the facilities afforded by the Banks, mere credit has become too commonly the basis of trade. Many of the Banks themselves j" not content with, largely stimulating this system ; among others have usurped the business, while they impair the stability, of the mercantile community ; they have! become borrowers instead of lenders ; they establish their agencies abroad ; they deal largely in stocks and , merchandize ; they encourage the issue of btate secu- nties, until the foreign market is glutted with them ; and, unsatisfied with, the legitimate use of their own capital, and the exercise of their lawful privileges, they raile, by large loans, additional means for every variety of speculation. The disasters attendant on this devia tion from the former course of business in this country, are! now shared alike by the Banks and individuals, to j an extent of which there is perhaps no previous exam- j pie! in the history of our country. So long as a wil- i lingness of the foreign lender, and a sufficient exploit oi our promotions 10 meet any necessary partial pay- ments, leave the flow ;of credit undisturbed, all appears to be prosperpus ; but as soon as it is checked by any 8X6 appealed to; unwise connections are established hesitation abroad, or by ah inability to make payment i between the Government and vast numbers of. power there in our productions, the, evils of the system are I State insUtutions ; other motive than the public disclosed. The paper currency which might serve for Sood arejjrought to bear both 0 the Executive and domestic pm-poses, is useless to pay the debt due in Eu-' Legislative departments, and selfish combinations, lead rope. Gold and silver are therefore, drawn, in exchange j fn& to special legislation, are formed. It is made the for their notes, ham the Banks To keen m their 1 interest of banking institutions and their stockholders supply of coin, these institutions are obliged to call upon their own debtors, who pay them principally in their own notes, "which are as unavailable to them as ' . r . they are to the merchants to meet the foreign demand, j The calls of the Banks, therefore, in such emergencies, 1 of necessity, exceed that demand, and produce a cor- i responding curtailment of their accommodations and of the currency, at the very moment when the state of trade renders it most inconvenient to be borne. The intensity of this pressure on the community is in pro portion to the previous liberality of credit and conse quent expansion of the currency ; forced; sales of pro- rwrv nri mnda At ttiA timik ixrtuTi tVto m nana tf nn r- . chasing are most reduced, and the worst calamities to j individuals are only at last arrested, by an open viola- 1 tion of their obligations by the Banks, a refusal to pay specie for their notes, and an imposition upon the com munity of a fluctuating and depreciated currency. These circumstances are inherent in the present sys tem. They are not .influenced by the Banks being large or small, created by National or State Govern ments. They are the results of the irresistible laws of trade and credit. In the recent events which have lso strikingly illustrated the certain effects of these laws, we have seen the Bank of the largest capital in the Union, established under a National charter, and lately strengthened, as we were authoritatively informed, by exchanging that for a State charter, with new and un- usual privileges in a condition, too, as it was said, of entire soundness and great prosperity not merely un able to resist these effects, but the flrst to yield to them. Nor is it to be overlooked, that there exists a chain of necessary dependence among these institutions, which obliges them, to a great extent, t follow the course of others, notwithstanding its injustice to theu own immediate creditors, or injury to trie particular community in which, they are placed. This depend- anou ui a uaui, wiucii is m proportion to tne extent of its debts for circulation and deposites, is not merely on others in its own. vicinity, but on all those which connect it with the centre of trade. Distant Banks may fail, without seriously affecting those in o'ur prin cipal commercial cities ; but the failure of the latter" is felt at the extremities of the Union. The suspension at New-York, in 1837, was every where, with very few exceptions, followed, as soon as it was known ; that recently at'Philadelphia immediately affected the Banks of the South and West in a similar manner. This dependance of our whole Banking system on the institutions in a few large cities, is not found in the laws of their organization, but in those of trade and exchange. The Banks at that centre to which cur rency flows, and where it is required in payments for merchandizehold the power of controlling those in re gions whence it comes, while the latter possess no means of restraining them, so that the value of indi vidual property, and the prosperity of trade, through the whole interior of the country, are made to depend on the good or bad management of the Banking insti tutions, in the great seats of trade pn the seaboard. But this chain of dependance does not stop here. It does not terminate at Philadelphia or New-York. It caches across tho ocean, and ends in Londonl the n- ttre of the credit system. The same laws of trade, which give to the banks in our principal cities power over the whole banking system of the United States, subject jthe former, injtheir tup, to the money power in Great Britain. It is not denied that the suspeiisTon of the New York banks in 1837,' which was fohWed in quick succession throughout the Union, "was pro duced by an application of that power ; and it is now alleged in extenuation of the present condition of so large a portion of our banks, that their embarrassments have arisen from the same cause. From this influence they cannot now entirely escape, for it has its origin in the credit currencies of the two countries; it is strengthened by the current of trade and exchange, which centres in London, and is render ed ahMOstirrstihle by the large debts contracted there by our merchants, our banks and our States. It is thus that an introduction of a hew bank into the most distant ofx)ur5vinages7 peaces; the business of that vil lage within the influence of the money jpower in Eng land. It is thus that every inew debt which we con tract fh 'fhat country, seriously affects our own curren cy, and extends over the pursuits of bur citizens its powerful influence. .Wei cannot escape from this by maKinir npur nanvm imut tvr email nh n. m4. l centre of this system paper creo jbu tor every iasunV we have been madeXuuTtS ! argument to thos which illusrate their j irlnreearious situaupn. Endangered in the first place bj mKmanageraent, and again hy the conduct bf every in stitution which connects them with the centre of trade rZ:-" in our own country, they arc yet subjected! 1 beyond all tins, to the effect of whatever measures policy, necessb- i . ' U A' nnon these measures present or. past, and much less to discourage the, prosccuon,of t fair commercial dealing between the two countries, based on reciprocal beneflts; j but it having novr been made mamtest toat the power of inflicting these and similar injuries, is, by the re-ipurpoaes. irosge ana wner puouv sisdera law of a credit currency, and credit trade, equal- collected in coin, without serious ineonvenieftcei even ly capable of extending tlieir consequences through all in States where a depreciated currency has existed tor the ramifications of our hanking system, .and by Aat years, and this, -with the'aid of Treasury notes lor a means indlrecUy obtaining, 'particularly When our pet iottheiime, was done without mterruptipn; during banks are used as depositories' of the public money s, a the suspension of 837. At the present moment, the dangerous political influence In the United States, 1 receipts and disbursements of the Government are made have deemed it my duty to bring the subject to your . in legal currency in the largest portion of ttie Unin notice; and ask for it your serious consideration. ( no one suggests a departure from this rule ; and if it Is an argument required beyond the exposition of can now be successfully carried out, it will bo surely these fcts, to show the impropriety of using our bank- ing institutions as depositories of the public money ! Can we venture not only to encounter the risk of their individual and mutual mismanagement, but, at the same time, to place our foreign and domestic policy entirely under the control of a foreign moneyed inter-! an apprehension that a surplus in thcTreasnry might est 1 To do so is to impair the independence of our J withdraw a large portion of it from circulation, and Government, as the present credit system has already , lock it up unprofitably in the public vaults., ft would impaired the independence of our Banks. It is to sub- .not, in my opinion, be difficult to prevent such an in mit all its important operations, whether of peace or convenience from occurring ; but the authentic state war, to be controlled or thwarted, first by our own ments which I have already Submitted to you in regard Banks, and then by a power abroad greater than them- to the actual amount in the public Treasury at any one selves. I cannot bring myself to depict the humilia- time i during theTeriod embraced in them, and the little tion to which this Government and people might be probability of a different state ot the Treasury for at sooner or later reduced, 'if the means for defending least some years to come, seem to render it unnecessa thcir rights are to be made dependent upon those who Try to dwell upon it. Congress, moreover, as I have may have the most powerful of motives to impair them, before observed, will in every year have an opportunity Nor is it only in reference to the effect of this state to guard against it, should the occurrence of any cir of thing3 on the independence of our Government or of cumstances lead us to apprehend injury from this source our Banks, that the subject presents itself for consider- Viewing the subject in all its aspects, !; qinnot believe ation ; it is to be viewed also in itsrelations to the gen mat any period will be more auspicious than1 the pre eral trade of our country. . The time is not long past sent for the adoption of all measures necessary tomain when a deficiency of foreign crops was thought to af- , tain the sanctity of our own engagements, and to aid ford a profitable market for the surplus of our industry; in securing to the community that abundant supply of but now we await with feverish anxiety the news of the precious metals which adds so much to their pros- the English harvest, not so much from motives of com-. mcndable sympathy, but fearful lest its anticipated failure should narrow the field of credit there. Does this not speak volumes to the patriot 1 Can a system be beneficent, wise or just, which creates greater anxie ty for interests dependent on foreign credit, than for the general prosperity of our own country, and the profitable exportation of the surplus produce, of our labor ? The circumstances to which I have thus adverted, appear to me to afford weighty reasons, developed by late events, ' to be added to those which I Have on for- mer ,red' whsn submitting to your better knowledge and discernment the propriety of separating the custody of the public money from banking institu tions. Nor has any thing occurred to lessen, in my opinion, the force of what has been heretofore urged. The only ground on which that custody can be desir ed by the banks, is the profitable use wjiich they may make of the money. . Such use would be regarded in individuals as4 a breach of trustier a crime of great magnitude, and yet it may be reasonably doubted wlu ther, first and last, it is not attended with more mis chievous consequences, when" permitted to- the former than to the latter. The practice of permitting the pub lic money to be used by its keepers as here, is beheved to be peculiar to this country, and to exist scarcely any wnere e,se- f procure it here, improper influences v . .i it ... . ... uiruuguuut uie umun u use iueir exertions xor ijie in crease of taxation and the accumulation of a surplus revenue ; and, while an excuse is afforded, the means are furnished for those excessive issues which lead to extravagant trading and speculation, and are the 'fore runners of a' vast debt abroad, and a suspension of the banks at home. Impressed, therefore, as I am, with the propriety of the funds of the Government being withdrawn from the private- use of either banks or individuals, and the pub lic money kept by duly appointed special agents : and believing, as I do, that such also is the judgment which discussion, reflection and experience have produced on Public 1 eave the subject with yom It is, at all events, essential to the interests of the. communi ty and the business of the Government, that a decision should be made. Most of the arguments that dissuade us from em ploying banks, in the custody and disbursement of the public money, apply with equal force to the receipt of their, notes tor public dues. The difference is only in form! In one instance, the Government is a creditor for its deposites, and in the other for the note sit holds. They afford the same opportunity for using the pubUc moneys, and equally lead to all the evils attendant upon it, since a bank can as safely extend its discounts on a deposite of its notes in the hands of a public offi- cer 513 Qn one made in its OWT1 vaults. On the other hand, it would give to the Government no greater se curity, for, in case of failure, the claim of the notehol der would be no better than that of a depositor. I am aware that the danger of inconvenience to the public, and unreasonable pressure upon sound banks, have b&go urged as objections to requiring the payment of thevenud jn gold and silver. These objections nave DeeH greatly exaggerated, f rom the best esti- ! j mates we may safely fix the amount of specie in the J country at eurhtv-hve millions of dollars, and the nor. ' tion of that which would be employed at any one time temptation to over-issues; it suffered from, and was to in the receipts and disbursements of the Government, ! tally unable to avert, those inevitable laws of trade, by even if the, proposed change were made at once, would i which it Was itself affected equally with them ; and at not, it is now, after fuller investigation, believed, fcxeeed lour or five millions., If the change were gradual? sev eral years would elapse before that sum would be re quired, with annual opportunities in the mean time to alter the law,should experience prove it to be oppres sive or inconvenient. The portions of the community on whose business the change would immediately ope rateare comparatively smaHhor is it believed that its effect would be in the least injurious to them. In the payment of duties, which constitute by far the greater portion of the revenue, a very barge propor tion is derived from foreign commission houses- and agents of foreign manufacturers, who sell the goods consigned to them, generally, at auction, and after pay ing the duties of the avails, remit the rest abroad in spes cic or its equivalent. That the amount of duties should, in such cases, be also retained in specie, can hardly be made a matter of complaint. Our own importingtner chants, by whom the residue of the duties is paid, are not only peculiarly interested in mam taming-1 a sound currency, which the measure in question, will especial ly promote, but are, from the nature of their dealings, best able to know when specie will be heeded, and to procure it with the least difficulty or sacrifice Resi ding, too, almost universally in places where the reve nue is received, and where the drafts used by the Go vernment for its disbursements must concentrate, they have every opportunity to obtain and use them in place of specie, should it be for their interest or convenience. Of the number of these drafts, and the facilities they may afford, as well as of the rapidity with which the public funds are drawn and .disbursed, an idea mav be formed from the fact that, of nearly twenty millions of dollars paid to collectors and receivers during the pre- . u w 3 i 1 r. . a,cl ,mwuni m men-nanus ai any one r " , turn in uie fifteen millions received by the collector of New York during the. present year, the average amount held by him, subject to draft durine each week, has been less thunkilfn mHimr, . ; 1 ii j w BTenis, uouois in many quarters, ana in some, a wbwhcw rn, - hK! mTm . , t. " t, i 1 Pe1 cred1 d paper currency, without checking tBeir lieatrf'appoairion &ett'&Xtotemfa 4s.--! Kribera, $300 entrance, Spring 3 year okls. , -The ease and safety of the operations of the Treaira- attendant evils and fiue rwl iT JtE'tSaI tv-is f' '.Li : i c.q k Amlrevr.oBt li. J. . . . . -i . ' - . ... . . -. Z . Mf hnderstahdlng ttttbhf. S&tJfe! ofth. namf. W.-ww utezi- :IVJ r:ir1u"n5e ii. uuee jcaiB uuuer uie gTauuaxion proposed. It is moreover a minciplelhan whichtX iTb.,r settled bv evperience. that tho s,mnlv of th, ' r r v- w. t'i. , i iuuB , ; bf V i mfttAU will alwave forind adequate to the uses which they are required. THey aDouiwj in cuuuujc- wneie no etaer currency is wowow - where: small note excluded, gold and Silver supply their place When driven to therr hiding piacea py bank susjnsions a little firmness in the 'community "soon restores mem in a sumciem huouu v attended with even less dimcuity wnen Dana, uomjs ur again redeemed in "specie. - ' Indeed I cannot think that a serious objection would any where be raised to the receipt and pay ment of gold and silver in all public transactions, were it not from penty, and gives such increased stability to all their dealings. In a country so commercial as ours, banks in some form will probably always exist ; but "this serves only to render it the more incumbent on us, notwithstanding the discouragements of the past, to strive in our res pective stations to mitigate the evils they produce : to take from them as rapidly as the obligations of public faith and a careful consideration of the immediate in terests of the community will permit, the unjust char acter of monopolies : to check so far as may be practi cable by prudent legislation, those temptations of in terest and those opportunities for then: dangerous in dulgence, which beset them on every -side, and to codt fine them strictly to the performance of their paramount duty, that of .aiding the operations of commerce, rather than consulting their own exclusive advantage. These and other salutary reforms may, it is believed, be ac complished without the violation of any of the great principles of the social compact, the observance of which ia indisrwiaahle to its existence, or interferinor m any way with the useful ind profitable employment of real capital. Institutions so framed have existed and still exist elsewhere, giving to commercial intercourse all neces sary 'facilities, without inflating or depreciating the cur rency, -or stimulating speculation. Thus accomplisliing their legitimate ends, they have gamed the surest guar antee for their protection and encouragement in the good will of the community. Among a people so just as ours the same results could not fail to attend a sim ilar course. The direct supervision of the banks be longs, frohi the nature of pur Government, to the States I who authorise them. It is to their Legislatures that the people must mainly look for action on that subject. But as the conduct of the Federal Government in the management of its revenue has also a powerful though less immediate influence upon them, it becomes our du ty to see that a proper direction is given to it. While the keeping of the public revenue in a separate and Independent Treasury and of collecting it in gold and silver, will have a salutary influence on the system of paper credit with which all banks are connected, and thus aid those Jhat are sound .and well managed, it will at the same time sensibly check such as are oth erwise, by at once withholding the means of extrava gance afforded by the public funds, and restraining them from excessive issues of notes which they would be constantly called upon to redeem. I am aware it has been urged that this control may be best attained and exerted by means of a National Bank. The constitutional objections which I am well known to entertain, would prevent me in any event from proposing or assenting to that remedy ; but in ad dition to this, I cannot, after past experience, bring myself to think that it can any longer be extensively regarded as effective for such a purpose. The history of the late National Bank through all its mutations shows that it was not so. On tile contrary, it may, after a careful consideration of the subject, be, I think, safely stated, that at every period of' banking excess it took the lead; that in 1817, and 1818, in 1823, in 1 1831, and in 1834, its vast expansions, followed by , distressing contractions, led to those of the State insti- . tutions. It swelled and maddened the tides of the hank ing system, but seldom allayed, or safely directed them. At a few periods only was a salutary control exercised, but an eager desire, on the contrary; exhibited for pro- fit in the first place ; and if, afterwards, its measures were severe towards other institutions, it was because its own safety compelled it to adopt them. It did not differ from them in principle or in farm; its measures emanated from the sAma srnrit tvf train it feXt lVio mo least on one occasion, at an early day, it was saved on ly by extraordinary exertions from the sime' fate that attended the weakest institution it professed to super vise. In 1837 it failed, equally with others, in redeem ing its notes, though the two years allowed by its char ter for that purpose had not expired, a large-amount of which remains to the present tune outstanding. It is true, that having so vast a capital, and . strengthened by the use of all the revenues of the Government, it possessed more power ; but while it was itself, by that circumstance, freed from the control which all banks require, its paramount object and inducement were left the same to make the most for its stockholders, not to regulate the currency of the country . ' Nor has hV as far as we are advised, been'found to be greatly other wise elsewhere. The national character given to the j jw&om. ui iinguuio, iias not prevented excessive, uuctu ac tions in their currency, and it proved unable, to keep off a suspension of specie payments, which lasted for jTtearty quarter 'of a century. And why should we expect it to be otherwise 1 A national institution. . though deriving its charter from a different source than the totate Banks, is yet constituted upon the same principles ; is conducted by men equally exposed to temptation ; and is liable to the same disasters ; with the-additional disadvantage that its magnitude' occa sions an extent of confusion and distress which the mismanagement of smaller institutions could not pro duce. It can scarcely be doubted that the recent sus pension of the United Statesank of PSenniryfrania--i of which the .effects are felt not in that State alone, but over nail the Union had its origin in a course of bu- siness com men whue 'it was a national institution ; and there is no reason for supposing that the same r .7 r r-rrv-. e, consequences would not have followed, , had it still dev nveu 11s powers irom me General Government. It is in vain, when the influences and impulses are the same, to look for a difference m conduct or results. Bv sm creations. m An Hwi-Afm- h.it iwraaaa tK. mM . - r- t , j duu& uwic win.ni" every bank more effectu- . ' - i . 1 . . - -C 7 - SwtSi t " "T y."uwirawt.- WevilstromtheopCTauonsof the State banks, i which cannot nnd nno-ht w n k ' nmxu.irLA u ' Trl . nl " I7!L 7. ' JivT .rT. . aePr5aaiea UJ.LTTT1 . iv lu-ii ii ivna nviiantivr tA a A.t mt V ' vtuvuviv UIU 1101110. ers ej of fiAtioTAM in M'rnih monev and iretrulate tne value foreigV cojriiWidwhen they'Torbade the States " to win money, emit bills of credit, jaake ; any thing but j coin money; imld and silver a tender in paynients of debts " or, "pass Tnnaii4northin1lcrAtlATl ftf ttfittxaC&aJ9 If the Y ! did not gugrd more expficitly against the present state of thing3, irwas hetjattse they could not have abticipa- j ted.that the few bonks then..existing,wereJto swell to I an extent which would expel to so great a degree . the gold and silver, for which" they had provided,fromlthe j channels ot Circulation, ana nil rnem wiui a currency i that defeats the objects they had in sriew The reme- whose legislation it hs sprung. No good that might j accrue in a particular jcasefrom the exercise of powers, : not obviously, conferred on' the General Government, j would authorize its lnterterence, . or jjusury a course : that might, in the slightest degree, increase, at tne ex pepse of the States, the power of the Federal authori tiesnor do t doubt that the States will apply the rem edy. Within the last few years, events have appealed to them too strongly to be disregarded. They have seen that the Constitution though theoretically adher ed to, is subverted in practice ; that while on the sta tute books there is ho legal tender but gold and silver, no law impairing the oWigatiohs of contracts, yet that, in point of fact, the privileges conferred on banking corporations have made: their notes the currency of the country ; that the obligations imposed by these notes are violated under the impulses of interest or conve nience ; and that the number and power of the persons connected with these corporations, or placed under their influence, give them a fearful weight when their interest is in opposition to the spirit of the Constitution and laws. " To the people, it is1 immaterial whether these results are produced by open violationsJof the latter, or by the workings of a system of which the re sult is the same. An inflexible execution even of the existing statutes of most of the States, would redress many evils now endured ; would effectually show the banks the. dangers of mismanagement which impunity encourages them to repeat ; and would teach all cor porations the useful lesson that they are the subjects of the law and the servants- of the people. What is still wanting to effect these objects, must- be sought in ad ditional legislation ; or, if that be inadequate, in such further constitutional grants or restrictions as may bring us back into the path from which we have so widely wandered. ! m . In the meantime, h is the duty of the General Gov ernment to co-operate with the States, by a wise exer cise of its constitutional powers, and the enforcement of its existing laws. The extent to which it may do so by further enactments, t"have already adverted to, -and the wisdom of Congress may yet enlarge them But, above all, it is incumbent upon us to hold erect the principles of morality and law, constantly execu ting our pwh coptracts in accordance with the provi sions of the Constitution, and thus serving as a rally ing point by which our whole country may be brought back to that safe and honored standard. Our people will jot long be insensible to the extent of the burdens entailed upon them by the false system that has been operating on their sanguine, energetic, and industrious character ; nor to tbe means necessary to extricate themselves from' these embarrassments. The weight which presses upon a large portion of the people and the States, is an enormous debt, foreign and domestic. The foreign debt of our States, corpo rations, and men of business, can scarcely be less than two .hundred millions of dollars, requiring more than ten millions of dollars a y to pay the interest. This sum has to be paid out of the exports of the country, and must of necessity eut off imports to that extent, or plunge the country more deeply in debt from year to year. It is 'easy to see that the increase of this foreign debt must augment the annual demand on the' exports to pay the interest, and to the same ex tent diminish the imports ; and in proportion to the enlargement of the foreign -debt, and the consequent increase of interest, must be the decrease, of the import trade. In lieu of the comforts which it now brings us, we might have our gigantic banking institutions, and splendid, but, in many instances, profitless rail roads and canals, absorbing to a great extent, in interest up on the capital borrowed to construct them, the surplus fruits of national industry for years to come, and secu ing to posterity no adequate return for the comforts which the labors of their hands might otherwise have secured. It is not by the increase of this debt that re lief is to be sought, but in its diminution. Upon this point, there is, I am happy to say, hope before us ; not so much in the return of confidence abroad, Which will enable the States to borrow more money, as in a change of public feeling at home; which prompts our people to pause in their career, and think of the means by which debts are to be paid before they are contract ed, if we would escape embarrassment, public and private, we must cease to ruh in debt, except for ob jects of necessity, or such as will yield a certain re turn. Let the faith of the States, corporations, and individuals, already pledged, be kept -with the most punctilious regard It is due to our national charac ter, as well as to justice, that this should on the part of each be a fixed principle of conduct. But it be hooves us to be more chary in pledging it hereaf ter. By ceasing to run m debt, and applying the sur plus of our crops and incomes to the discharge of ex isting obligations, buying less: and selling more, and managing .all affairs, public arid private, with ' strict e- conomy and frugality, we shall see our country soon recover from a Temporary depression, arising not from natural and permanent causes, but 'from those I have enumerated, and advance with renewed vigor in her ca reer of prosperity. Fortunately for us, at this moment, when the balance of trade is. greatly against us, and the difficulty of meet ing U enhanced by the disturbed state of our money af- fairs, the. bounties of Providence have come to relieve us from the consequences of past errors. A faithful application of the immense result of the labors of the last season, will afford partial relief for tile present, and perseverance in the same course will, in due season, ac complish the rest. We have had full experience, in times past, of the extraordinary results ! which can, in this respect, be brought about in a short period, by Jhe united and well directed efforts of a community like ours. ' Our surplus profits, the energy and mdustry of our population, and the; wonderful advantages which Providence has bestowed upon our country, in its cli mate, its various productions indispensable to other na tions, will, in due time, afiord abundant means to per fect the most useful of those objects for which the States j have been plunging themselves of late in embarrass- i. 1 Ji. . ;.t .j. - i mem hik ueui, vmnout imposing on ourserves or. our children such fearful burdens. But let it be indelibly engraven on 'our minds, that relief is not to be found in expedients. Indebtedness cannot be lessened by borrowing more money, or by changing the form of the debt. The balance of trade is not -tor be- turned in 'our favor by creating new de mands upont us abroad, j Our currency cannot be im proved by the creation - of new banks, or more issues from those which now exist. Although these devices sometimes appear to give temporary relief, they almost invariably aggravate the evil in the end. It is only by retrenchment and reform, by curtailing pubiie and pri vate expenditures, by raying our debts, and by reform ing our banking system, that we are to expect effectu- ai reuet, security tor toe ruture, and ah enduring pros perity, : lAshag- the institutions and policy of the : - : . , UenerMenimeift ato promote, aa far as it can. - Wittt ata touted powers, these important ends, you may rely 'on my most cordial co-operation. L TK, fKif -kt:--f-i- .-T.a--i:l-'?-- v?rS T. ,tf" lULW tAUUVl i, OUrilUiSlL IHI Kll VIttTTn . : STW1 It la theft obfecL toeairi for th fewimidaricy verthe'inariT. bv Meaninc .to uiu if .1. - . ' . .i : " . MV. awuvuviT. wt u bumxiEV. urn mpfiHira uiiuuini prrfuceougtiout of Constitution jto prevent when they required Application personally pr by eer. can be made, cBjoynaeBt and-wiAlen. wealtb. which rendaa dinte to anr,iif rrr. r. . r"" a wmamwu : nabita sickly appetite for; emnmduWand - an imitation of that reckless eitravaeance which im. - . ' poverished and enslaved the industrious people of for- cign'landv ami at last to fir upon us, instead of Z equal pohticaT rights, the acquisition of which I like the ibject and'supposed reward of ourRevol ' ary struggle, system of exclusive privileges cnnftl0ri" by partial legislation. To which tintf'thu-OTlilunllv PTnwn nnaA. . prjve them of then deceptive advantages--to test by the light wXdoin and truthto oppose the f which they Mnreiitrate in their supportalt this necessarily the. work of time, even among a peorjL4 enDghtefied and pure as that of the " United Stf " lirmygi omer countries, pcrnaps, it could only be complished through that series of revolutionary m ; 1 any great and radical reform ; but it is flxe crowni! merit of our institutions, that they create ami nonr ' in the .vast majority of our people, a disposition anT power peaceably to remedy anuses which hav-ft no where caused the effusion of rivers of blood, and th sacrifice of thousands of the human race. The rp, i.. r- : ,. .jt .1 i , 't uiuo iu uiusi. uutiurauic tv uiv beu ueniai, the ii ligence, and the patriotism of our citizens ; it iiKt ; mtel. tile confident hope that they ' will" carry through 'i t i : i ,i , ' . . justifies the reionn which uas ueen so weu Degun, ana that the will go still farther than they have yet gone in'illu trating the important truth, that "a' people as free enlightened as ours, will, whenever it becomes neces. sary, show themselves to be indeed capable of self, government by voluntarily adopting appropriate reme dies for every abuse, and submitting to temporary rifices, however great, to insure their permanent wet fare. ' My own exertions, for the furtherance of these (lesrp, able objects have been bestowed throughout my official career with a zeal that is nourished by ardent wishes for the welfare of my country, and by an unlimited re liance on the wisdom that marks its ultimate decision on all great and controverted questions. Impressed with the solemn obligations imposed upon me by the1 Constitution, desirous also of laying before my fellow-' citizens, with whose confidence and support I have f been so highly honored, . such measures as appear to P. nje conducive to their prosperity and anxious to sub. - mit to their fullest consideration the grounds upon ' which my opinions are formed, I have on this, as on preceding occasions, freely offered my views on those points of domestic policy that seem, at the present I time, most prominently to require the action of the f Government. . I know that they will receive from ff Congress that full and able consideration which the ' importance of the subject merit, and can repeat the assurance heretofore made, that I Khali cheerfully and 1 1 readily co-operate with you in every measure that will V tend to promote the welfare of the Union. M. VAN BUREX. Dzcixbeb 2, 1839. In this City, on Sunday last, at 1 o'clock, P. M. in Christ Church, by the Rt Rev. Bishop Ivis, Re. Cameron F. McRae to jMiss Julia Burgwyn, daughter of John "Burgwyn, Esql of Newbern.. In th:s County on the 19th inst. by the Rev. Samuel Wait, Mr. William T. Brook, Tutor f tbe Wake Forest College, formerly of Chatham, to Miss Emily W. Fort, daughter of Foster Fort, Esq,. In Franklin County, on the 18th inst. by th Rev. BvF. Richardson, Mr. Anthony A. Persoa to Mis Caroline Davis. ; In, Washington, by the Rev. ThomasR. Owen, Ben jamin Franklin Havens, Esq. to Miss Mary Eliza Bon ner,, daughter of CoL Richard H. Bonner. Also, by the Rev. George N. Gregory, Mr. William Bond, to Mrs. Elizabeth Caffee. Also, bv the Rev. James Avent. Mr. James Ellis, to FMwb Eleanor 8atterthwaite. WORTHY THE ATTEHTIOIf OF THE PUBLIC Very valuable Pro party in the City of Raleigh and its vicinity, for sale. Fine Blooded Stock, dc The Subscriber, finding it impossible from hi tensive engagements in another State, to dvot that time and attention to his busines here, requisite to lis beine nrotMrlv rnnAiiftttl affirm far nr rent jHiE" EAGLE HOTEL, in the Ctty of Raleigh, at present occupied by him. The Hotel, as every one knows, acquainted with it, isaa desirable property is can be owned, if the. Proprietor c give his personal attention to it .'It is now thoroughly furnwhed, and the purchaser or lessee could take immediate posses sion. Few situations in the United States offer fine a chance for. the profitable investment of money. Also, .a Lot or Gbovkd, containing 6 Acres, with anew Dwelling, Sic ne. Stable and Barn. Also, a PtASTA riow on Crab Tree Creek, within 2$ mi!e of Kalei;b, containing 678 Acrae, and in cluding ell necciry buildings for a comfortable ml dence. yi' . AUo, 60 Acres of Woon Lako, about A miles fron the City, lying csarthe ohl Uillsboro, Road. ; The above Property will b sold on aecommodatin terms. Persons desirous of owning the whole, or any part thereof, are requested to make early application. The Subscriber 8180- offers for rale the whole of his valuable stock of BLOODED HORSES, as follows, viz : . ' v No. I. Maria WiT,dam orWagner and Fanny, foaled in 1827, by Marion, dam Citkcn, w in fo il by imp. Priam. Produce entered in the Trial Stake, Nash ville, Ten n.$ 1 000 entrance, to be run the Jay pre vious to the Peyton Stake; also, in tbe great Produce Stake, near NewOrleans, $5000 entrance, 4 mlic heais. Fall of J843. See Spirit of the Times, after Janu- -ary, for number of Entrances. No: 2 Pollt PexcuAM, by John Richards, Jam imp. Chance, foaled in 1828, now in foal by imp. Priam. Produce entered in Produce Slake, 1843, mile heats, to be run over the State Course near Ra- . ieigh. $1000 entrance ; alo, at New Market, Va. $1000. See Spirit of the Times, after January, fur the" number of the Entrances. No 3. Mart Blodxt, c tn. by Sir Charfes, dam by Alfred, foaled in 1833. No. 4. Labt RoLAiin, a. m- by Tariff, dam Ball' Florizel, now in foal by imp. Priam. No 5. Mart Asm, b. m. by Gohanna, dam by Sir Charles, now in foal by imp. Priam. N. 6. Lam Chestkufiild, s. m. foaled ia 1S30, by Arab, her dam by imp. Knowsby, now in foal by imp. Priam. No 7. Lama, s. ro foaled in 1830, by Sir Charles,, dam imp. Buzzard, now in foal by imp. Priam. No. 8. A Dun Mare, foaled in 1832, by Sir Charles, in foal by Rd Wasp, . No. 9. One half of g. C Fajtst, by Eclipse, out of No. 1,3 years old half owned by Col. Hampton, of South Carolina, and now in his possession. Nov 10. Dollt-Thak. b. f. two years old, by imp Shakspeare, out, of No. 2 won her Sweepstakes over the State Course, near Raleigh, 9 subscribers, $200 each.' : No. 11. Rait Roa, g. e. ? years old, by imp Felt. tlam by Young FrkUy. ! No. 12. Half ot b, f. Fax Disotu, y Chateau Margaux, foaled in 1837, the other bale owned by Thos. Dos well, Hanover county, Va. No. 13. A Bay 'FiHy, foaled in 1838, by-im Priam, out of No. 4 engaged at New Market, Va., 33 ubsctibers, $300 each - a!vai the State Coorse, 11000 entrance. See Spirit of the Times, after Ja uafy, for. number of Entries. Sim. 14. A l)ay Filly, toted in 1838, hy J-yma " , a -J. i' . v., as sub- I w. - - T .VMtw .11 mj -" - . aa weare now ; A1 1"TMseu ,a u,c Srel rrjwu -'their power by $iS&GOuYand is considered one of the most promwfn? permitted to ao. Eatrjein th Suk; ; ' i Bay rtilyfc foaled in, 1839, by imp-ru. w o, 5. ' TbwlmU of the alve Bloodtd Stock of ' UI the uay ot sale, at Kaleisu, vt. Raleigh, Jan.' i: 1840. GO To l copied by the Star, SlandarJ, Richmond Whig,; New Orleans Picayune and New-York Spirit ef the Times. O it ft Xror i (doni Hod ti I tf tion iwi or the mi M cat
The Weekly Raleigh Register (Raleigh, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Jan. 3, 1840, edition 1
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