A NATIONAL PAPER, PUBLISHED WEDNESDAYS AND SATURDAYS BY JOHN FENNO, No. 69, HIGH-STREET, PHILADELPHIA. [No. 21, of Vol. IV.] FROM THE AM ERIC AX MUSEUM. REFLECTIONS on the STATE of the UNION Concerning the Banks eJiabliJJiedin the United States. THESE valuable institutions were unknown to us before the revolution, being added to the political economy in the latter part of the war. The paper emiflions in the times of the provinces, had yielded some of the advan- tages of bank notes, though with less fafety to those who received them. which they were unavoidably recurred to, in the course of the war, had completely destroyed the utility of paper money in 1781 ot'public credit, and indeed of the public affairs in general, as well as the exigencies of the cul- tivators, merchants, and manufacturers, re- quired an efficient substitute for an inftruinent of negociation and dealing, of so great compass. The scheme of a bank presented itfelf in the manner, which is univerfaily known, as the moll probable mean of accommodating the ge- neral neceilities, political, agricultural, and commercial. The proniifes, which the plan made, were abundantly fulfilled : and at the fame tune a standard of public conduct and ac tion in regard to the rights of property, was linobfervediy eretted, at a moment when the recent couil'e of events had rendered it very deurabie, as well from political as moral confi- de ations. It has been found, accordingly, that the laws which concern property, in the place> where banks have been established, have quickly acquired a (lability, if they were good, and have meliorated, if they were before ex- ceptionable, notwithftandmg any supposed or real errors in the plans or administration of the institutions. In reflecting upon these eftablifnments, one cannot but call to mind a suggestion, which frequently occurs, that too large a portion o1 the capital of the United States, has been appli- Ed to them, Few pecuniary operations are of as much importance. In eitimating the extent to which we might have goi:e with prudence, an examination of the It ate of that bulinefs in a fuccefsful and at the fame time the best known icene of trade in Europe, may be of iome use. In the cis yof London, the bank oi' r.ngland (ex- clufivel v of that of Scotland) has operated witl a capital of more than fifty millions of dollars about forty-lix years. The population of En- gland, on a medium, during tnat term, has been less than double that of the United States at present ; yet the capital of its bank has been above live times the capital of our national bank, and near five times the amount of all the l'ubfcriptions which are yet paid into all the banks in the United States. There are, more over, a great number of private banks in the fame city, probably not less than sixty in num- ber, some of which have more capital ltock,than any bank in this country, except that of the United States. The aggregate amount of their capitak is probably equal to that of the bank of England. Besides these, there are very ma ny considerable private banks flattered through the kingdom. In addition to these, there are t!ie public and the private banks of Scotland. If the banks of England and Scotland, public and private, out of London, be equal to the private banks of London alone, then the capi- tal of those institutions in Great Britain, will be 150,000,000 dollars, or above fourteen times as many dollars as there are persons in that kingdom, though the whole of the flocks of the bank", in the United States, which are paid in, are not equal to three times the number of their inhabitants. Again. If the banks of Great isritain be measured by the exports of that if- \ land, it will be found, that the latter, at their higneft value (ninety millions of dollars) are on ly three fifths of their aggregate bank capital, and that our exports, at 18,250,000 dollars, are above two thirds more than all our bank capi- taJ, which is attuaHy paid in. Taking the Bri tish imports at 80,000,000 of dollars, and those of the United States at 24,000,000, the compa- ri on will be liill more in favour of the discreti on,whichlias been observed in the United States. But a very important measure of these .institu tions yet remains to be applied, by which pru dent men will be dilpofed to test the fubjed.— t'.e quantity of Jpecic. The bank capital of Great Britain being, as above stated, about 150 mil lions of do Jars, and the quantum of specie be ing never estimated at more than 22,000, 0001. sterling, or 97,700,000 dollars, the aggregate bank capitals of the United States, as now paid "in (ten and one half millions of dollars) would be as prudently, aud iblidly founded on a quan tity of specie a little less than lcven millions of dollars. Although it would be impoflible to as certain the precise amount of the lpecie of the United States, eltimates carefully made, appear to warrant a belief, that it is equal to thatfum. But while examinations like these fecm to a bate and even entirely to deftrov the apprehen lion, that we may have pursued the business of banking to the injury of agriculture, manufac tures, and commerce, some circumstances of a prudential nature are not to be overlooked. When forming these establishments, we may commit errors, perhaps, in carrying into one scene too great a proportion of the capital ap propriated te their creation. Hence the found policy of 1 lib trailing from the niafs of the bank of the United State*, to eftablilh branches at New-York, Bolton, Baltimore, Chaiiefton, and (as is intended) hi Virginia, ministering to the convenience, the necelfities, and the interests of government, the planter, the farmer, the merchant, the navigator, the fifherman, the ihipbuilder, the manufacturer and the mecha- liic, in fix ll'veral and variant fcertes, instead of accumulating"in"one greatmafs, a fuperabun-l dant capital—a political magnet attracting, through devious courles, and attaching all things to itss owq vicinitv. But the degree in It is poflible to err, too, in the disposition of banking eflablifhments, by luperadding to thole which already accommodate a particular scene, rather than introducing the new institutions in to places hitherto without them. The United States contain fiye or fix great local I'ubdiviii ons of trade, resulting principally from the im perious dictates of the nature o}' things. 111 most of those great spheres, there is more than one considerable and flourilhing town, though there is in each, one which has an acknowledged pie eminence. When a reasonable portion of bank capital has been introduced into one of these commercial metropoles y the establishment of a new bank would Teem to be most expedient in the trading town of the next degree of confide ration. It is true, that so far as the operation The state is an employment, or application of the proper ty of individuals, it must be left (within the laws) to their own will, but as the ast of in corporation places the fubjedt within the pow er of the legifiatures, and within the sphere of their cares and duties, so it is highly important that these institutions be modified in their ori ginal formation, upon principles of distributive justice, in regard to the reasonable accommoda tion of the marts of commerce within their sphere of legislation, and of all the landed citi zens, who resort to them for the sales 01" their furpins produce, or the purchase of their ftip plies. A precious consequence has resulted from the distribution of banks through different parts of the United States. Like all great objects, these institutions, while operating very betieiti cially in regard to the bnfinefs of a country, are liable to be rendered instrumental to local par ty views. Being committed, as in the United States, to ten several boards of oi re&ors, seleCt ed for the service on account of their property, integrity, talents, and attention and whole primary duties are the legal,difcrect, and beneficial execution of their trust, it is not probable, nor, indeed, is it in their to deviate from their proper walk, into the ground of political combination and intrigue. A circumstance observable in the bank of the United States, will not fail to attract the at tention of cautious men. The portion of pub lic debt, which enters into the composition oi their stock, is the particular contemplated. In this refpeft, the bank of England, and the bank of Ireland (which are among the best accredited of those institutions in Europe) exceed that of the United States in the proportion of one third. It is very favorable to our institution, that the national debt, and ordinary and extraordi nary cxpenfes of both Great-Britain and Ireland are much greater in proportion to wealth and numbers, than those of the United States, and that our government is not lels free from error, nor more likely to bedifturbed than theirs. It cannot, therefore, be more unfafe to confide in our institution, which contains three fourths, than in theirs which is wholly | composed of public debt. It is, moreover,true, I and worthy of observation, that molt of the o ther banks in the United States (and particu larly the three largest) have voluntarily and by their own operations placed considerable porti ons of their stock upon the credit of the United States, by purchafmg largely of the public debt, and by giving at this time extensive credits founded upon its security. The market value of the public debt, which is generally greater in specie than its nominal amount, renders that part of the bank stock, which is composed of it, intrinsically more valuable than that which is in com. Delivered b\ the Ch ie f J ust ice of the United States, to the Grand Jury ojthe Circuit Court oj Veimont, held at Benuington, the 'isth June. Gentlemen of the Grand Jury, TO contemplate offences, and to preteribe pu nishments, are unpleafing but neceffar) talks; being imposed by the nature of civil society, and by those vices which often prompt individuals to violate the rights ot othere. All hough no propofnion is more true, than that the intcreits and the duties of men are infeparablc, yet it is unfortunately and equally tTue, that their condutl dees not always correspond with the eellent principle. Accurate ideas of intercll arc far from being universal; and even of those who know what is right, the number is not inconfi. derablc, whom the delusion or lorce of predomi nant pailions daily fcduce or impel to do wiong. Hence it is that governments or laws which arc calculated only on the virtues of mankind, always terminate in difordcr and difappoiutmcnt, while, on the contrary, those which legard only their v ces are generally marked by opprcflion and un-l j due fcvciity. Both should be considered with I equal attention, or a juil cftimate of their influence Saturday, August ii, i 79 2 * (to be continued.) CHARGE, 81 and operation cannot be formed,nor a proper mean between the two extremes observed. It is pleai- ing to remark, that the national laws appear to have been mindful of both; for while they meet tranfgrcflion with punilhment, their mildnels ma nilcfts much confidence in the reason and virtue of the peoplr. A confidence which the commenda ble ohfervance of these laws has fully juftified. Lei me remind you, gentlemen, that in all lo cieties there will be individuals whose conduit acknowiedges no morality but convenience ; and who can only be restrained from offences by mo tives adapted to their ideas of interest—that is, by penalties and by puniftimertt. Proceed ihen to inquire, whether any or vibat offences against the nauortal laws have been committed, and by whom, within this diiirift: Or on the high seas by per- sons in or belonging to it. All oficnces from trea son to misdemeanors are the objects of your en-, quirv. It is important that none of the laws be l violated with impunity, for being al! made for the good, and by the authority of the people, it is highly intercfting to the prosperity and honor of the nation, that they be refpefted and observed : But as they differ in degrees of importance, it is proper that your attention, although extended to ail, ftiould in a particular mariner be directed to those, whofc objects are of the greaJefl magnitude, and whofc due obfcrvance more immediately con cerns the public prosperity. Of this jefcription are those that refpt ft the re venue—that revenue, which is t« afford funds for the fuppoit of our government, and confcquently of our rights and liberties; and for the payment of those debts which were contrasted for their de fence and establishment— debtj» which we are un- der the highest moral as well as political obliga tions to discharge with ihc utmost punctuality and good faith. Among the laws made fr»r these purposes, there is one, whose name and obj 61 have rendered it li able to misrepresentation, and to imputations ii docs not me?it— I mean the one commonly called the excise aft—firm la r names are apt to excite si- 1 milar ideas and prejudices; but things and not names ought to decide our judgments. Enlight ened citizens wi!l*fee and judge for themfeives, and thereby avoid she rifquc of those impofnions ; by which artifiee usually dupes ignorance and cre dulity. This ast in its provisions bears fcarcejy any refembl2nce to those in Britain, which have rendered their very titles odious. They who will be at the trouble or comparing the ast in question with them, will find that it ornirs and avoids all those improper intruiions on domestic rights, and ♦ii wii;ch have and ever will and ought to excitc the margin^..— free people. The United Stales present to the world an un precedented instance of a nation providing for all their pecuniary exigencies, without having any recourfc to dirctt taxation; or burthening the ldiias, ar any of its pioduflions, with the Icail im post or duty. Should fraud be pra&ifed and permitted to pie vail, the present happy system would cease to at lord adequate fupplics; and neceflny would con (train us to adopt modes of taxation less confiften with our feelings, and in fcvcral refpetts more in -.onvenient. Let it be remembered, that this rc •enue is the people's revenue— that the governmen tisto iupport, is the people's government—tha he debts it is to pay, are the people's debts ; an< onfequently, that they who defraud the revenue lefraud the people. Among the crimes fpecified in what isgenerall ailed the penal statute, there are two so danger us to society, as always to mn it particular atten ion—l mean the crime of perjury, and the crun if forgery. Independent of the abominable insult whio >eijury offers to the Divine Being, there is no crim riore extrvfively pernicious to society. It disco ou r s and poisons the flieams of jultice, and b übftituting falfehood for truth, saps the tounda ion of perlcnal and public rights. Controvcrfie • f various kinds exist at all times, and in all com nunities—to decide them, courts of juflice are in lituted; their decision mnft be regulated by evi ience ; and the greaieft part of evidence will al vays confill of the tellimotiy of witness —thi eflimony is given under those solemn obligation! rvhich an appeal to the God of truth imposes ; f oaths should ccafe to be held sacred, our dcarei md mod valuable rights would become insecure. Forgt-ry involve* and argue> no common degre >f turpitude and guih—although paflions canno egally juftify or excufc crimes, yet their impull orr.ctimes drives nun to commit cu'rages; whic! n their cooler moments, they disapprove and rc > rit of. The public good re quires that they he pu lifhed, but they are neverthelels to be pitied. Hu ie who commits forgery, has no violence of paflioi o prompt, or palliate his con iuft. W'rh a hear ontaminated with guilt, and a mind pollute* vith iniquitous riefties snd defiens, he calmly an< lelihemely piepare!. and begins his work.; an. vith paiiencc and with caution pnrfnes it. II etires as usual to his bee, and from interval to in erval regulaily rcfjnus his task in (llence, in fe recy, and in solitude undidurbed he prepares t* lo injustice to his neighbors and ieliow citizens— vith care and circumfreclion be K lefts those vhofe credulity, ignorance, or unsuspicious confi fence lender them the moll tafy prey; and ex its the utmofl powers of thought and refleftioi o render fraud «md iniquity fuccv Uiul. The foll\ if all bad men is to be irgreticcJ ; but the punifh nent of perfens so deliberately wicked, can merit cry little compaflion. In a country like this, where paper of various .inds has become a medium in all our pecuniary ranfa£tions, forgery should be vigilantly watched, nd ftvercly punilhcd ; ior, whenever theauthci.- [Whole No. 435.] ficity of paper becomes questionable its credit mult dimiuilh, its currency be checked, and it« utility deftioyed. II an injudicious and unjuftifi able tenderneis lor these attiocious offenders Ihould increase their numbers, and encourage their prac tices ; their arts would extend to every objcO, ou -which this species ot fraud could opeiate. Wills and deed> not ot our osvn making, would incum ber, endanger, and m many mitauces, dispose ot our eflatcs ; efpecially-.it perjury ihould give to the works of forgery numerous witnefic* to prove their truth and authenticity. That government may produce the benefits from it, it is highly icquifite that their officers faithfully do the duties of their refpettive stations. I have no realon to fufpeli that any of them have a&ed. otherwise than virtuously and worthily; but it is nevertheless proper that attention be regularly paid Ito their conduit, and that no instance of corrupt or unlawful a els or omiflions pass unnoticed, thac there be r.n exa&ions in public offices, nor any of those reprehensible pra&ices tolerated, which un der various forms and pretexts disgrace both the officers and the government. So tar as the prosperity of the people depenrf# on a due observance of their laws, and so far as a due observance of the laws dependson the detec tion and punishment of tranfprrefiois ; so far, gen tlemen, you ate responsible to the public for the diligence and care with which your duties may be fulfilled. Be vigilant on the one hand ; be temperate on the other. He cautious not to pay too liule, or too great, refpeft to flight circumstances. Offend ers know the value of silence and fccrecy ; and e vidence, apparently trivial, often leads to evidence plain and fatisfa&oiy. First, diligently inquire, and then matuiely whether your evidence be such as to juftify your making prrfentments, or lo juftify your omitting to make them. Let u& ftnkc at the guilty, but be carelul not to wound the innocent. , Your oath fuperadds new and folcmn obligati ons to those which result from the laws of moral ity, ag.-untt your permitting any partialities, oc any paflions to warp or mislead your judgments, you are callcd upon to look to the affairs of the na tion in tnisdiftnci, I presume that you will find them in good order. Governments in manv rc fpe&s must a£l like individuals. When our affairs are out pi order, we (hould 'ook to them to put them in order—and when our affairs are in good order, we Ihould look to them to keep them fp. For these purposes you gentlemen are the eyes of the public in this dii\n£l ; and being perfuacied that you will dire& and keep them lixed on the 3 uty*?a nli I u 11y r , l" i ■ Sulfa Wlßlii'fli w|iich have already been submitted to your conft deration. Extract from the Albany Gazette of Augujl 2 " AN appeal to the people is to be hazarded on very extraordinary occasions only ; perhaps no cafe will juftify it but an elTential ciefcft in the conditution. It is impolUble to forefee or fore tell the dangers of a diiTolulion ot government ; none can know where it will end or what efta bliftiment will be next. The moment that ihe people put mtoexcrcile that sovereign right of re ? fuming their delegated powers, all tornis ot go vernment cease, and theie remains no rule but that ot the pa (lions, which arc as uncontroulable as the winds ; what deltru£lion they may produce, or what dire£lion they may take,is totally uncertain ; and it is an equal chance whether ihey fettle final ly in the extremes of licentiousness or defpoiilm. 41 I know it to be the wishes of many, perhaps they would carry with them the majority of the state, that an opportunity might be afforded to give our condttution more of * democratical cast. It is to be feared, that in attempting to cUface what they call us aristocratic features ihey would vitally wound the excellencies tor which it is now famed ; and those who are moil lorward to urge on the drama, would have reason to rue the day on which they took a part in it. The volunteer toall* ot the mechanics of New-York, one of the most numerous class of citizens, on the late anniversary of independence, is but a spark escaped from the pent up fires of a vulcano ; and will fuggdt, to the mind of one who bu; a tew years ago has fecn what disorders entered the field of politics, as soon as soon as the fences ot government were thrown down, presages of no dcfirable afpett. What other toails may yet be in reserve, may baffle the profoundeft politician** refcarches. On the con- trary, we kuow there are opinions prevailing, that it would promote our peace and welfaie, if the interference of the people, in the appointment of their officers, were more limitted than it is. In New-Jeriey the governor is appointed by the It— giflature, and as we now have a national president and legifLture, they naturally prcfent to us ano ther cafier mode of obtaining such an ofneer thaa the turbulent one on which we have pra&ifed." * May the happy period J'oon arrive when every civil officer fliall be immediately elected by the people. Wm. cleland, BOSTON, Tranfa&s business in the Funds of the United States; BANK STOCK, BILLS of EXCHANGE, See. Q3* Orders from New-York, Philadelphia,-or any other part of t'ae Union, -will be attended to with Diligence and Punctuality. June 1 (epim *4 iazu2m)
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