witness the events of the last two years, because they have been "sophisticated and especially the last six months, and or suborned" from their duties? Is it had he spoken of the past, could he have not that the private interests of bank portrayed our actual condition more speculators have taken precedence of lucidly, or with greater accuracy, than the public welfare in our Legislative when he uttered the foregoing prophetic halls? Is it not, that the love of lucre sentences? Had the warning voice of with that class who claim "all the prothe Father of Democracy been duly perty, all the talents and all the refineheeded, we should not now have found ment," has superceded that active pa the barque of our National prosperity, triotism which was wont to influence wrecked in an ocean of worthless rag Hamilton and his coadjutors? But this currency. is not a question between the disciples of Jefferson, and those of Hamilton; for, on this subject, the views of these great political leaders were identical, or nearly so. It is a question between the "aristocracy of wealth," embracing about one-tenth part of the community, and the " democracy of numbers," the re

Alexander Hamilton, than whom no man was more conversant with the spirit of our fundamental code, remarked, "The emitting of paper money is wisely prohibited to the State Governments."―This he said by way of preface to what he was about to say in relation to a National bank, not as a maining nine-tenths of the people. The disputed or disputable proposition, but interests of the former party are identij as a postulate, or common place remark, fied with the banking system, and dia which no one, at that day, would pre- metrically opposed, not only to the insume to question. He adds, "and the terests, but to the constitutional rights spirit of the prohibition ought not to be of the mass of the people—that is to say disregarded by the United States Go- nine-tenths of the people. The line of vernment. Though paper emissions, distinction between these parties is easimade under a general authority, might ly drawn, and may be clearly traced. have some advantages, not applicable, It is a tangible and visible line, and and be free from some disadvantages, proves, at first sight, that the interests of which are applicable, to the like emis- the former are necessarily incompatible sions by the States, separately, yet they with the inherent rights of the latter. are of a nature so liable to abuses- Those of the former, or speculating and, it may be affirmed, so certain of party, live upon, and enrich themselves being abused that the wisdom of go- from the proceeds of the labor of the vernment will be shewn in never trust- latter. Those of the latter, or industriing itself with the use of so seducing ous party, sustain themselves and their and dangerous an expedient. In great families on the fruits of their own inand trying emergencies there is almost dustry, in some necessary and honest a moral certainty of its being mischiev- trade, occupation, or profession. The ous." Here then we have the "words speculating party includes all those of truth and soberness" proceeding from whose private interests are promoted by the great apostle of that political party, the existence of banks, such as bank now contending so stoutly for the contin- officers, stockholders, and speculators uance and perpetuation of all the manifold of every description, who become rich, evils of an inconvertible paper currency. or are prompted to reckless speculation, Why have the disciples of Hamilton by bank facilities. contemned the counsels, and eschewed the wisdom, of their patriarchal head? Why have they refused to listen to the prophetic warnings, and to regard the sound maxims of their patron Saint? Is it not, as Jefferson foretold, that the bank mania has taken "deep root in the gearts of that class, from which our le qislators have been drawn? Is it not

The industrious party includes all operatives, and a vast number, who thoughtlessly advocate the banking system, but who live by honest industry, and whose interests are inconsistent with the existence of banks. They, also, from the same source-active industry-sustain and enrich all the members of the speculating party, without

a murmur, and a portion of them are of happiness, wealth and prosperity ? among the loudest in praises of the The people, sir, look to us to provide banking system. It is because they do for the correction of these abuses; to not see the operation of bank machinery, cauterize the gangrene of a dying paper by which the fruits of their toil and labor currency; to hygeniate the vital fluid of are insensibly and clandestinely drawn the body politic; and to adopt measures into the coffers of the speculator. In for the gradual, somewhat protracted, the same spirit in which monastic asy- but certain and effectual removal, of the lums, orders of nobility, and feudal four score ulcers, which now mar the tenures, were once considered necessary fair face of this once happy Commoadjuncts to organized communities, do wealth, and which, if not removed, in these men, really belonging to one par- due time, will unite their influences, ty, but constantly playing into the hands concentrate their energies, and reduce of their adversaries, look upon banks as nine-tenths of this people to an iron something which always have been, (so yoke of opprossion, more grievous to far as they can recollect) which always be borne than Chinese despotism, or must continue, (so far as they know,) Russian Autocracy. These ulcers as something so intimately interwoven (banks) cannot, without fatal results, with all our habits of acting and think be removed by a single stroke of the ing, that the progress of improvement knife. Caution must be observed, a must cease without their aid, just as the temporizing policy must be pursued Indian supposed that wars must termi- with existing evils, and a period of fif nate, if prisoners were not to be tortur- teen or twenty years must be allowed ed. From the fact that those nearest for their final extinction. As their puallied to banking establishments accu- trescent issues gradually disappear, mulate wealth in undue proportions, and thus create a demand for specie, these men come to the careless and vague the precious metals will flow in, to fill, conclusion, that, in some mysterious or rather to prevent, a vacuum, as namode, all the wealth in the community turally, as certainly, as water flows springs from, or originates in, the exis- from our green hills to old Atlantic's tence of Banks; when, in truth, an ex- reservoir. Gold and silver are not, as amination of the subject would soon the speculators would have us believe, convince them that banks are not the the mere representatives of wealth; they sources, but the reservoirs of wealth, have not a nominal value, greater than clandestine depots, cunningly devised their intrinsic worth. Their intrinsic machines, like the angler, and the snare value, consists in their specific qualities, of the fowler, to decoy the innocent and and their peculiar adaptation to the the careless, and to catch and retain the many purposes of society, for which substance of the unwary. But they will they are sought, and to which they are not recur to the maxims of the fathers applied; and, also, in the quantum of of that party, under whose banners labor requisite to their production or they are arrayed; and with the fore- developement. They are as emphatigoing vague and indefinite notions in cally the fruits of labor, the reward of regard to banking, they continue to honest industry, as are the productions flutter within the orbit of a bank circle, of the farm, or the proceeds of the workunder the same fascination which allures shop. They are in themselves substanthe feathered songster to the fangs of tial wealth. Neither the silver miner, the rattlesnake. Is it not then the im- nor the gold hunter, receives greater perative duty of this Convention to meet profits, than the grower of wheat, or the the crisis, to secure, in future, the indus- manufacturer of carriages. Miners are trious classes from the peculations, the less liberally rewarded than are the legalized robberies, of the aristocracy of growers of wool and cotton, or the wealth; to seek out the causes which manfacturers of leather or iron. Are have destroyed all confidence, prostrat- not then gold and silver as intrinsically ed credit, paralized industry, arrested wealth, per se, as wool, wheat, or iron? improvement, and dried up the sources The contrary doctrine is one of the

syren songs of the speculators, by which lions of which consisted of deposites, they endeavor to mystify the subject of leaving fifteen millions, to be representcurrency, and secure to themselves the ed by bank bills. The amount of bills surplus earnings-aye, sir, and a portion at that time in the hands of the people, of the necessaries of the industrious was sixty-one millions, in round numclasses. For the purpose of enhancing bers. Not more than fifteen millions of the comparative character of paper cur- these bills could be the representatives rency, they affect to under-value, and of the fifteen millions of specie then in they grossly misrepresent, the character the vaults. Pray, sir, tell me of what of the precious metals. The coining of were the other forty-six millions the these metals does not, in any degree, representatives? Will it be answered, increase their value. The government that they were the representatives of the stamp, is a mere certificate of weight farms and personal chattles of the cusand purity, and, as such, is convenient tomers of the banks? Some of them in the transaction of business. Indeed, might have had value, as obiigations ́until recently in the United States, the payable at some indefinite future period; government standard value was in truth whether or not, was unknown to the less than the intrinsic value of gold; and holders; but not one dollar of the forty hence it was, as an article of commerce, six millions was convertible, or the renecessarily exported-its intrinsic value, presentative of money; as currency they in foreign countries, in the form of bars had no value. They were, perhaps, the of bullion, being greater than its nomi- representatives of moonshine, of fog, or of nal value, in this country, in the shape abstract ideas on the subject of banking; of coin. Hence the necessity of passing they were evidently the representativės the late gold bill by Congress, by which of empty vaults, of the covetous cupidity the principal motive for the exportation of bankers, and of the blind folly of that of gold has been taken away--If gold portion of the industrious classes who has no intrinsic value, why is it, that thoughtlessly ministered toa rotten systens of thousands of eagles and half tem. eagles are annually melted down in our Again no particular bill, of the sixty cities, to make guard chains, and other one millions, was convertible, except trinkets, for the bank gentry, who are upon a remote contingency that of thus monopolizing the wealth of the being among the first bills presented for country in exchange for their worthless payment. Bills convertible on a remote rág currency? With all these proofs contingency, or, indeed, on any continto the contrary, staring us in the face, gency, do not represent money; and, can any thinking man be so weak as therefore, it may be truly affirmed, that honestly to believe that gold has no in- no fraction of the sixty-one millions, trinsic value? It is impossible, and, then afloat was the representative of therefore, he who promulgates this doc- wealth. To issue, and characterize it trine is a bank man at heart, and intends as such was a gross fraud upon the to deceive you. With the same sinister people. One peep behind the curtain, intentions the bankers tell you that bank by the bill holders, whose interests were bills are the representatives of money, involved, and a scramble for preference and thus, by a double falsehood, debas- would have ensued; the bubble would ing the one, and exalting the other, they have burst, and the industrious classes pretend to establish an equality of paper would have lost at the least forty-six money and metallic coin. That bank millions, which were then safely depo bills represent money, is not true; at sited in bank coffers. Corporations all events, of American bank paper. It without souls, being destitute of moral will not be contended, I suppose, that accountability, deaf to the calls of justice paper, not convertible at will, represents any thing (but the folly of a community.) In the year 1830, the total amount of money in the United States was 22 millions in round numbers, seven mil

and the cries of humanity, governed solely by interest, seldom pay a debt, whatever may be their claims against customers, after their credit is ruined, and their means of peculation destroyed.

Hence I am justified in saying, if the mate the truth, nearly enough for the truth had been disclosed the loss to the purposes of illustration. In this mode industrious would have been at least we arrive at the conclusion that the forty-six millions. The currency was circulation of these banks was $57,900rotten at the core; it has continued de- 000, and that twenty-five per cent. of caying daily more and more, till the these liabilities was eventually paid by external semblance of the thing has the broken banks. This leaves $43,passed away, has left us prostrate and 515,000 of their bills never redeemed. A humiliated, with an apparent inclination dead loss to the industrious poor. A to bow, submissively, to the mandates clear gain to the wealthy banker. A of a haughty and insatiable monied aris- tax upon, or more correctly speaking a tocracy. We have not had a sound robbery of the industrious classes, of currency since the Bohon Upas of bank almost two millions annually, frauduguardianship spread its broad branches lently abstracted from the pockets of over this widely extended country. the honest, hard-working producer of Without a sound currency, no nation wealth, and embezzled by the magic of can continue to prosper. Sir, it is the a paper system, and its natural conduty of the General Government “to comitants, into the coffers of bank specregulate the currency," but it has not ulators! Suppose a like amount of our been done, because the States have property had been unlawfully seized usurped the powers of that government, upon by a foreign nation, would not in regard to this subject, and, under the country have been in a blaze of present circumstances, it is not in the commotion, from the centre to the expower of that government to relieve us, tremities? Would not every voice have as it is presumed that public opinion is been raised to demand retribution, and not prepared for penal enactments every arm nerved to enforce the deagainst the circulation of state paper. mand? Or suppose one tenth part of Is it not then the duty of this Conven- forty-three and a half millions, thus lost tion to awaken from this fatal lethargy; tothe operatives, had been illegally taken to restrain the Legislature in its ruinous from our merchants, on the highway of policy; to interpose its agency to arouse us to a sense of our abject condition, to renovate our energies, for one united and desperate struggle, to save the commonwealth from the withering influences, and paralizing effects, of a depreciating currency?

From the year 1811 to the year 1835, one hundred and ninety-three banks broke up in irretrievable bankruptcy, viz: In

2

2

And

nations, would not theory for retributive justice have reached the remotest corner of the Republic, and have been echoed, and re-echoed, from every domestic fireside and hamlet in the Union? Would not the whole power of the government have been put forth to redress injury and punish insolence? should we not all have exclaimed, with one voice, “millions for defence, not a cent for tribute?" Why are we thus 2 sensitive in regard to commercial rights, and thus lethargic in relation to the 2 rights of the farmer and mechanic? Are 3 not their rights as sacred, their interests as dear, and their success and prosperity 28 immeasurably more important, than those of the mercantile class, or the 2 speculating coterie? Where, then, in practice, is our boasted equality of rights? If these abuses are not to be corrected, if these legalized robberies are not to terminate, if the vampiré grasp, of bank aristocracy is to remain fastened upon us, then was William Pitt right when he said, "let the Americans

9

47

3

3

2

Precise accuracy, in regard to the amount of bills of these one hundred and ninety-three broken banks, at the times of their respective failures, is not attainable. But analogical deductions from known facts, enable us to approxi

go into their banking system, and their other. Another and perhaps the most boasted independence will be but a common mode of creating capital is as phantom." To the total loss of the fortythree millions, is to be added all the losses, all the sacrifices, all the distress and misery, incalculable in amount, consequent upon the individual bankruptcies caused by the failure of the banks. These banks were chiefs in the money mart, and carried down thousands in their train.

follows: After paying the first instalment of five dollars, being one-twentieth part of a share, the stockholders draw their individual promissory notes, payable to the bank, for the amount of subsequent instalments, and these promissory notes are carefully filed, made up in bundles and stowed away, either in the vault, where the moisture destroys them, or in the attic, where the rats use them up at leisure.

never intended to be paid, and, in fact, never are paid, for the best of all reasons, because it is against the interest both of the drawers and the holders to enforce payment if it could be done. The drawers are the stockholders in their individual capacities, and the holders are the same persons in their corporate capacity. Upon this false capital, the banks issue paper to double, treble, and sometimes quadruple the amount of their nominal capital. For this vile trash do we exchange our substantial wealth, the fruits of our toil and labor.

In the year 1815 there were two hundred and eight banks, in the United States, with a capital of eighty-one mil- Though in form collectable, these lions. In 1816, two hundred and forty- notes are not so in fact, having been exsix banks, capital eighty-nine millions. ecuted in fraud of the law-having oriIn 1820, three hundred and seven banks, ginated in fraud, which vitiates all concapital one hundred and thirty-seven tracts, no suit can be sustained upon millions, and in 1828, four hundred them. The courts of justice will not banks, capital one hundred and seventy give validity to a fraudulent and void six millions, exclusive of the broken instrument.-These stock notes were banks. The capital mentioned was but nominal; probably the real capital vested was from fifteen to twenty millions. It could be estimated only; it could not be known, except to the initiated. The bill holders, most interested in the fact, were, for the benefit of the bankers, kept in the dark. Since 1828, the increase of banks, and nominal capital, has distanced statistics. From the above data, and the recent ratio of increase, it is a safe estimate to put down the present number of banks at six hundred, with a nominal capital of two hundred and sixty-four millions, and a Upon this false foundation, now rests real capital of twenty-six millions. This millions of our property, about to slip estimate of real capital is certainly not from our grasp forever, like the beautitoo low, having reference to the usual ful creations of a midnight dream-not and almost universal practice of creating like the dream to “evaporate into thin what is deceptively termed bank capital air," but, on our returning vision, to reby the banks in this country. The appear as substantial wealth of bank common practice is to pay in the first, speculators, in the form of splendid palaand sometimes the second instalment of ces, and all the countless luxuries of five dollars, on a hundred dollar share. more than European extravagance. The stockholders then pledge their stock They (the bankers and speculators, who to some neighboring bank for bank are partners in this vile traffic,) receive promises, which are put into the new our property, our flour, our gold, our bank, as capital, and immediately divid- wool, and all the varied productions of ed among the bankers or loaned out for active industry, and they give us their their benefit. If two new banks are to bills, which are promises to pay money, be put in operation, about the same which they never expect nor intend to time, they, in the kindest feelings ima- pay, which are mere acknowledgments ginable, exchange unrepresented paper of indebtedness to us, and, therefore, promises, and thus the fraudulent issues ought in justice to pay us interest on of each, constitute the capital of the the amount, so long as we hold their ob