Article Text
COLUMBIA COUNTY, PA. SATURDAY, JULY 22, 1837.
The ar
ern banks at a still country, under our short-sighted and im- have increased, so have the consequences in Penns
eastern part of the provident legislation. That system com- just enumerated, increased in the same pro- was elect
of the different ex- mencing on a small scale, shortly after the portion. We might have spread the sta- now exis
pread union, almost establishment of our government, amidst tistical facts before you, but we do not wish Fifty-eig
rin commercial in- the wants and fluctuations of the times to swell this address, to a greater length under the
aliens in their own when our boundless extent of territory than is necessary and if any doubt, let
currency, the very and our mineral and agricultural sources them consult the records that are accessible friends, i
in this active enter of wealth, opened fruitful fields for enter- to all. about Fo
Lion is so deeply di- prise and speculation, and when capital, or The truth of this view of the subject, is than two
eneral paralysis has something that would answer as the repre- further illustrated by the mad tenacity, with sity can b
rity, & although our sentative of capital, was alone wanting to which President Jackson's attempts at re- of this ru
free, and fostering develope them fully, and elevate our coun- form were resisted on the part of the banks found on
If some corrective try to a condition independent of the capi- and their friends. The rottenness of the wild spir
ep it, with the besom talists of Europe, has been steadily and system is proved by the tremor and agita- always
general view of the constantly extending itself, under various tion, with which the first exposure of its credit sys
y be added, this 'of pretexts, until it has finally, become so firm- deleterious operation was received. The ed, the m
that every man who ly interwoven with all the business con- Bank of the United States, the great self- tion, dur
st representative of cerns of the country, as to hold them abso- styled "balance wheel" of the system-put culated
et, in the shape of a lutely in its embrace, and to crush them in forth its most utmost energies, and was tension o
Hously mistaken, for its fall to the dust. Whether the origin of joined by its strippling co-adjutors, to pros- tion, had
Hon of bank notes, it this system was right or wrong, it is need- trate President Jackson and to grasp the most da
Le more than three less now to inquire. It is sufficient, that at sceptre of supreme power. speculati
man who has in his its very commencement there were not Instead of co-operating with the govern- The bar
pelled to take paper wanting men of profound sagacity, and dis- ment, to remove some, at least, of the most & front
denominations, has interested patriotism who predicted the very obvious defects of the system, they clung connecte
Stration of the injüs- result, that has been realized in our age, with inflexible resolution to them all, and of Engla
me system. This is and who urged against its adoption what at the very time when the issues of paper premacy
re, fellow citizens, was then prophecy, but is now fact, that money ought to have been gradually and been suff
are before us, and any system based on such erroneous prin- prudently contracted, they were expanded have bee
- The description ciples as the banking system, would in this to an inordinate degree, & many additional that all-p
re-echoed from city free republic, tend to the establishment of banks were chartered by the several state in the pr
Hop and valley, in all favored classes distinctions between the legislatures, under the influence of threats, it would
rich and poor-a fluctuating currency and panics and pressures, created for that pur- salutary
a spirit of fostering mad and ruinous pose. To counteract the wide spreading extraord
schemes of speculations, which would even- evil, under a wise recommendation of the Ritner an
tually overturn the most stable government,
and reduce to poverty and wretchedness
the most active and industrious people on
the face of the globe..
rnational prosperity
thrown. The na-
vigorous, the holds
weak, the energy of
Ise of patriotism are
re than a temporary
1. Let us be on the
on the inborn spirit
e, ascertain the cau-
these evils, and the
micable, and we will
trung nerves for the
wisdom to provide
frence, obtained in
ecious school of ex-
pression has done its
in
of general and indi-
opere measure years,
measures, not
at has been lost, but
For every evil, in the
hat will be imparted
to the existing con-
it next becomes ne-
vide a remedy, that
irs
Those meas-
in the currency, and
for their final cure,
We submit to your candid judgment, fel-
low citizens, whether such has not been its
tendency.
We know it is sometimes said, that the
evils have been brought on by "overtrading
and speculation" and strong instances are
given to prove the truth of this statement.
That these causes have contributed to the
general result, will not be denied but not
as primary causes. To a certain extent,
they are effects, and not causes. They are
all powerful, when nourished and sustained
by an uncontrolled banking system like
ours-but without it, they would be harm-
less if not laudable manifestations of enter-
prise. No man will engage in speculation,
or in overtrading, unless he has capital, or
credit, which for all practical purposes is
the same thing. Credit is the greatest in-
centive to both, and credit is the corner-
stone of our system of banking. The fun-
damental defect is, that according to the
principles on which our banks have all been
incorporated, they may be established, and
go into operation on credit, or a "fictitious
capital" alone. Their very existence is
idenl. They are mere phantoms that in-
habit their own vaults. The officers and
stockholders, when acting in their official
capacity, are vested with artificial intangi-
bility and hence in their dealings with
men, they are governed by different con-
siderations from what they would be, if
each acted for himself, and was directly and
personally responsible for his conduct.
From these peculiarities of the banking sys-
tem, it follows, that its existence in a coun-
try, supplies a vast amount of false capital,
and holds out a lure to the speculator, and
trader, to engage as deeply as he can, for he
is still safe, while he is able to obtain cred-
it, no matter, what may be his debts, and
his obligations. Thus a false impulse is
given to all kinds of business and projects
the most futile and absurd; find promoters,
and abundance of money to advance them.
Thus also it happens in the prosecution
of these operations, men become indebted
to foreigners, to each other at home, and to
the batiks and the banks contract the same
kinds of debts-and when payment is de-
manded, it can only be made by enlarged
credits-by incorporating additional banks
and increased issues of paper money.
When individuals or banks become involved
in debt, they resort to the same means for
extrication. They play a bold game (for a
game it is,) stretch their credit to the utmost
limit, and in common phrase, "make or
break;" by the adventure.
In the case of individuals, when credit
fails, the benefit of the insolvent law is
their remedy--and in the case of banks,
a suspension of specie payments. And
the effect upon their creditors and the pub-
lic, are in both cases the same.
This is the process, and this the course
that has led to the existing state of things.
We appeal to the history of the country for
its confirmation. Let any man examine
the amount of nominal banking capital, at
different periods and also the spirit of
speculation and overtrading as indicated by
the imports of the country--the sales of
public lands--the price of labor and of the
national executive, a large amount of gold was abou
and silver had been forced into circulation, with tha
but the increase of banks, and the expansion that ever
of the paper circulation were so great, that disciple
this specie has been swallowed up already, piring in
and is now expelled or withdrawn from cir- tion, and
culation, by small notes, or is hoarded up istence,
by the banks and private individuals, and an increa
exported to Europe, scarce a vestige of it, state, an
comparatively speaking, remaining in cir- delphia,
culation. That banking system, which ad- be justif
mits of such results, is radically wrong, and an actual
opposed to the best interests of the people. Dollars
In England, similar results have followed would n
similar causes, and the experience of the attending
banking system there, affords powerful and United
conclusive proof, that the positions which of mone
we have endeavored to maintain, in regard vania to
to our own banking system, are undeniably true. Indeed, so intimate are the commer- ment and
cial relations of England and the United nation in
States, and so blended together are the institutio
transactions of the bank of England, and Governo
the bank of the U. States, that nothing can would be
materially affect the one, without affecting dest in th
the other. The bank of England having to be re
agreed to export so much of the gold and ruin, and
silver of that country, as to render it incon- on this b
venient to command, at all times, enough vable as
to redeem its own notes, and to meet its But ho
other specie engagements, had thought prop- cheering
er to require from the banks of this coun- true. T
try, its debtors, to return the necessary in the a
sum for that purpose. This was either an struck ag
excellent real or pretended cause for the vania.
bank of the United States of Pennsylvania, national
to suspend specie payments, and to compel country
all the other banks to follow suit, and like- years, as
wise to enable their friends to put forth a tion, was
copious supply of small notes, to take the the wants
place of the specie, and to bolster up the to throw
immaculate credit system, just tottering to fusion, an
its fall. Such is the true secret of two of heads.
the most important events, the "suspension This ca
of specie payments," and the "issue of tened by
small notes,' "that characterize the present of Gov. E
times. And such also is the universality to all the
and identity of effects, flowing from this ment. T
credit system throughout the old and the and false
new world. It is one and the same thing, until pub
wherever it reaches, and has a kindred in- is worked
terest in all parts of the commercial world. ment, sin
But as this Convention has been assem- breeze, as
bled to consider the state of affairs, more that sway
particularly in Pennsylvania, we will turn to destroy
our attention to this state alone, for a few credit, wi
moments, although what has been already that both
remarked of the condition of things, at large, our merch
has included our own in general sense. The are believ
extent of our territory the fertility of our solvency.-
soil the inexhaustible resources of our vine Just
mineral wealth-the industry, enterprize, very mer
and number of our citizens, have all desti- ings mos
ned Pennsylvania to be the Keystone of calumnies
the Union, and one of the first in business ment, whi
and importance, among the sister states is now up
That we should find here, as much banking who is to
capital as any other state, is therefore natu- III. The
ral, and perfectly conformable to the gener- easily cars
al order of things in other states. But that It is evide
we should possess nearly treble the amount in checkin
of banking capital of any other state of the causes tha
union, is a most surprising fact, and one that If a credi
demands some explanation. Did our busi- system, b
ness operations bear the same relative pro- itself, the
portion to those of New York, and other the entire
large states, that our banking capital does to to correct
theirs, we might have supposed, that it the wisdo
the ocean could pro-
wing waves, that toss
The causes lie deeper
hin the constitution
legislative and ex-
the general govern-
Opt.
hibited before Gen.
the presidency at
ring his administra-
ere before at work
ve been accelerated
we them, and thus
bly that they were
e sought to amend,
to affect it. This
-f such clear demon-
man can doubt it.
n, against which all
at Jackson's power-
ant popularity aided
tion of the people,
ventful years, with
tary reforms that
