into the justice of its origin. Ay sir(said Mr. C.,) such corporations are aristocracies of the worst kind. If we must have an aristocracy he prefered one of noble blood—even though their Ancient but ignoble blood Corporations (said Mr. C.) are of several kinds :—1st, those for civil purposes, such as incorporating cities and boroughs. Against this kind there can be no objections: they are necessary for the civil polity of the goverment. 2d. "Had crept through scoundrels ever since the flood." those for religious, charitable, and liteOr a nobility whose warlike ancestors rary purposes; these are also necessary, carved out their titles with their swords. in order to hold and manage funds for He wished to shun all aristocracies, but, the specific objects of the Institutions. above all, the cent per cent Shylock 3d. incorporations for public improvearistocracy, which would always take ments; such as Turnpikes, Bridges, the pound of flesh if they could get Rail Roads and Canals,-justifiable, it. when the objects are beyond the reach Another objection he had to such of individual enterprise, and because corporations was their tendency to mul- they are part of the highways that gov tiply drones in society. Mr. Chairman, erument is bound to provide for its citi(said he,) if you have ever kept bees, zens. The corporations he had menyou must have observed, that young tioned were a convenient distribution hives have no drones, but old hives, of the minor powers of goverment to which have many drones, cease to be which no well founded objection could productive of much good; for, judging perhaps be made.except that the officers from the size of the drones, it is proba- of such corporations sometimes use ble they consume twice as much honey their "little brief authority" in a manas the same number of working bees. ner vexatious to the citizens. Sir, (said If a hundred men be associated togeth. Mr. C.) corporations for money making er, and all divide the labor equally purposes are detestable. Their tendency among them, a moderate quantity of is to create dependents; and thus make labor would sustain them, but if twenty slaves of the laborers, and tyrants of of the hundred contrive to live by their the managers of such corporations. wits, and consume or destroy twice as They serve to extinguish the spirit of much as the same number of laborers freemen, and render all who are in it must be evident that the remaining their power subservient to their will. eighty producers must labor one-third Is this doubted! Let those acquainted more than if all were to do their pro- with our Iron works answer. He knew portion. This with me, sir, is an in- that many of our Iron-masters were superable objection against all corpora- among the most worthy citizens of the tions for money making purposes. It state; he had, however, sometimes witis a fallacy to say that corporations cre- nessed, and often heard of the hands emate wealth. Labor, and labor alone, is ployed at Iron works having been takın the source of all wealth. It is a mis- by the manager to the polls, and there statement of terms to say that corpora- used as mere automatons to put in their tions give the laborer employment. La- votes. He wished to see the bounds bor, which produces all, gives to cor- of freedom enlarged, so that every man porations their profits. Labor provides could feel that he was a freeman. He our food, procures us clothing, builds asked if it was denied that the hard our houses, and gives to us all the com- fisted labourer was thrown out of emforts and benefits which we receive ployment in order to make him vote as from man. Industry not only creates the bankers wished Lim. Much has the wealth and adds to the happiness of been said about English wealth and society, but it also conduces to health the splendor of English manufactures, and good morals. but look, sir, at the operatives under the English factory system, who are ever who suffers? Let me mention one or on the verge of pauperism. Such sys. two examples. Some twenty years ago tems cannot produce freemen. They before the turnpike roads were complemay produce and concentrate wealth; ted over the mountains, when mushbut wealth acquired in that way has room banks sprung up like Jonah's been there, and will be here, often used gourd in a night, the laborious wagoner for corrupt purposes. But a yet more toiled through the mud and delivered iniquitous feature in such corporations goods in Pittsburg for seven dollars a was a legal exemption of the stock- hundred, receiving his reward in rags holders from liability for the debts of the that would not pay his toll fifty miles company. Such exemption violates a east of Pittsburg. At that time a few fundamental principle of our nature: merchants took it into their heads that for profit and responsibility were the the wagoners were charging too much Original condition of our being. It is for hauling: they therefore formed a said in Divine Writ, "In the sweat of thy transportation company, and obtained face shalt thou eat bread." Bread is from the legislature an act of incorporathe profit, and sweat the responsibility. tion. This company, sir, for some time It is wrong, therefore, for legislators to went on swimmingly. They injured `attempt to separate them. This exemp. the honest wagoners for the time being, tion, sir, is a bull of indulgence to author- but at the end of eight or nine months ise lying and the commission of fraud failed, eaving their creditors to suffer a with impunity. It is a passport to en- loss, (as I have been informed) of about able men of sinister designs to prey a hundred thousand dollars. upon the fruits of labor,—to make the Some fifteen years since a few farrich richer, and the poor poorer. It is mers in Chester County, without ada legal cloak to cover the speculator verting to the law of demand and supfrom the consequences of his own im- ply, took i into their heads that the prudence. Cloaks, sir, have been worn brewers of this city did not give them for many purposes:― "And for a mantle large and broad 4 enough for their barley: they, therefore, established a brewery of their own, and obtained from the legislature an act of This corporate exemption is a mantle to incorporation. A few years were sufcover political deceivers. We have, Mr. ficient to wind up this concern, also, Chairman, companies incorporated for but, it is believed, without much loss to all purposes; for digging coal; for ma- the public. A similar catastrophe hapking coke; for building a tavern, here in this city; and even a blacksmith shop, Westmoreland county, who established pened to a company of farmers in in Chambersburg obtained the honor of a joint stock store. These last, howan act of incorporation; and if they are permitted to proceed without restriction, therefore liable for what debts they ever, were unincorporated, and were they will in time monopolize all the pro- might contract. These cases have been fitable business of society. Yes sir, mentioned to show the impropriety of they are our masters already—they granting acts of incorporation for any judge our judges; they govern our. thing within the reach of individual engovernors; and through their borterprise. ers they dictate law to our legislature. Nothing on earth can save 1 am now going (said Mr. C.) to the productive classes from becoming take a nearer view of the question, and mere hewers of wood and drawers of to examine the subject of Banks and water to the monopolists but the Banking. Banking, sir, modern bankawakened energies of a free people. ing, I hold to be a device of Satan. It But, sir, these corporate bodies some- contains within it all the evils inherent times fail, and when they fail, I ask you in other corporations for money making purposes, and also the gambling and to be a few merchants in our cities wh swindling principles of lotteries. These have overtraded. This community, sir, may be harsh terms, but is it not noto- reminds me of the observation that rious that modern banking promotes "Boston is Massachusetts, and Massagambling in stocks; in goods; in western chusetts is the United States." But how wild lands; in town lots; and in cities was the community to be ruined? on paper, to the detriment of lawful in- Why, a gentleman from the city, on dustry Banking also swindles socicty my right, (Mr. Biddle) says, if the banks by producing fluctuations in the value of Pennsylvania had not stopped payof the currency, and the refusal of the ment, they would have been stripped of banks, last May, to pay their debts, has their specie; and permit me to ask of the character of swindling. Bankers what use has that specie been to the could increase or diminish the currency at public since the 10th of May? Strip pleasure: was it too much to believe that pel of specie, indeed! As well might they did so to promote their own in- the specie, for all the benefit the public terests? There were two things for have received, have remained in the directors to consider.-1. To make mo- mines. The wholesome maxims of ney for the stockholders. 2. To make private life can never be violated with it for themselves The last was evi- impunity. If it be morally wrong for dently the greater object, and would be an individual to refuse to pay his debts, first attended to. Modern Banking, while he has specie in his possession, it sir, is not exactly the philosopher's is also wrong for incorporated bankers stone, but it enables the bankers to to refuse to pay theirs. It may be ob transmute the sweat of labor into oil jected that by paying it out, the specie and wine, and milk, and honey, for their would have left the country. This I own benefit. Our president has asked deny. Had it not been for the "Shinwhat the banks gained by this suspen- plasters," first issued by this city and sion? I answer they have gained what followed by this city's imitators throughall dishonest or insolvent men desire, out the country, necessity would have they have gained time. But, sir, they ap- kèpt the specie in the country and in pear to have gained more than time, for I circulation. I can here give you the observe that since the suspension they example of the village in which I reside, have been making large dividends of 4 and the neighboring country. The to 6 per cent on their nominal capi- citizens of Blairsville determined at a tal for the last six months. Now, public meeting, early in the season, that sir, if any other than a banker should they would neither issue “Shinplasters" loan his money at more than 6 per cent nor give them currency. What, then, was per annum he would be punished un- the consequence? Why, that we al der your laws for usury; but your ban ways had specie change, a little scarce kers, sir, are allowed to divide 8, 10, and at first while the panic lasted, but, lat12 per cent, and that too at the time terly, nearly enough for all the purposes they refuse to pay their debts in the of life. It is demonstrated that the speconstitutional currency of the country. cie could not have left the country, be Our president says the community cause the value of specie, as of every would have been ruined if the banks thing else, increases with its scarcity, had not suspended. What community, and when the scarcity enhances the pray? Not the farmer, nor the me- value to the point of exchange it must chanic, nor the laborer; no sir, none of cease to flow out of the country. The these: for in the part of the state where banks ought to have paid as long as I reside panics and pressures have been they were able, and then we should have known only through the medium of had plenty of specie in circulation. I newspapers. The "community," I take object, sir, to banking because it en In courages the violation of the moral ducted by honorable men. Honorable law. One injunction of the Apostle Paul men! What, Mr. Chairman, is the is "Owe no man any thing." But standard of honor? I have heard of the banking, in opposition to that precept, honor of duellists, and the honor of encourages the contraction of debts. A gamblers, and I have even heard of direction of the wise man, is, "Be honor among thieves; and Sir John thou not one of them that strike hands Falstaff has given us his definition of or of them that are sureties for debts," honor:-yet I am at a loss to know but it is a principle in banking to re- that standard of honor by which bank. quire surety. How many thousands ers regulate their conduct in refusing to have been ruined by indorsing notes for pay their debts. It has been said that discount in bank! Even our mo- "shame is as a man takes it;" the same dern novelists and dramatists when perhaps may be said of men's notions they wish a hero reduced from wealth of honor. But, said the president, they to poverty usually represent him as cannot have been guilty of conspiracy bailing a friend.—And why, sir, are so because they are honorable men. many ruined by bailing? Because, sir, Mark Anthony's well known harangue it is a moral evil: a special curse seems it is said that those who slew Cesar to follow the transaction. Another ob- were 66 all honorable men" and yet those jection (said Mr. C.) which I have to honorable men were conspirators. The the system is that your bankers are Bankers were said to be honorable wholly irresponsible; the individual men. I, sir, judge of men's honour by stockholders cannot be sued for the their actions. I cannot call it ho debts of the concern, and what in- norable for men to league together dividual, let me ask, can contend with to shun payment of their just debts. the bank itself? Those who are near Our president professes to disbelieve to it are deterred by the dread of its the statement of the gentleman from influence, and those who are far Susquehanna (Mr. Read) respecting off cannot leave their homes to prose- the Susquehanna Bank violating the law cute it for its broken "promises to pay." of its creation in depositing its first inBanks, sir, are lawless. Witness their stalment in a broken bank: and why defiance of law since last spring. And, does he doubt it? Because a dear bank strange to say, they have found sup- has been detected in the very act porters and defenders in that party who of violating the law; and, he, as are great sticklers for the "supremacy a lawyer, knew that the best point of the laws and the constitution,”—that in the law, under such circumparty who shed oceans of crocodile stances, was, to deny the fact. tears over the fate of the poor Indians, But as they are both lawyers I and many of whom with equal sincerity will leave that matter between them. wail over the manacles of the negroes, Let us now inquire what are alleged -a party who are horrified at all ap- to be the benefits arising from banks. pearance of Lynch law, but who can I suppose the friends of banks will look on with complacency, and even say banks lend money, and defend the lawlessness of the banks. keep the money of others safe I am, sir, against all violation of law, deposit; and, also, that they fa whether by Judge Lynch or by the gen- cilitate exchanges between one district tlemen bankers. Our president has and another. They are, I believe, also deprecated in strong terms the remark held to be useful as reservoirs of credit. of the gentleman from Susquehanna,(Mr. These, sir, are the principal uses claimed Read) in calling the bankers conspir for banks. Let us examine these ators, and said that the banks were con- things, a little, in detail; and first,-[ B also OL suppose it will be admitted that none to keep it for them. If, however, banks of deposite are necessary, they should be on the principle of the old bank of Amsterdam, the amount of specie deposited being equal to the paper issued. The third use claimed for banks is to facilitate exchanges. What is the nature of exchanges? Is it not the exchange of the product of labor in one district for the product of labor in another district? Exchanges are therefore mercantile transactions, and by the laws of trade, must maintain nearly a common level. It is only when one district of country purchases more than it can pay for that the rate of exchange wili be against it; and, here sir, banks utterly fail, as pretty pictures on silk paper will not ultimately pay the debt, however they may postpone the day of payment. There is one apparent exception to this rule, and that is, the rate of exchange will always be against the country that produces the precious metals. The precious metals increase in value, from the mines of Mexico and South America until they are worked into plate and worn out in Asia: therefore there will be a small exchange against Mexico and in favor of New Orleans; against New Orleans in favor of New York; and against New York in favor of London. This is like the fall in a stream; and is equal to the cost and risk of transmitting the bullion from its place of production to where it is required. The transmission is a commercial transaction and ought to be left to the merchant to regulate in his own way, just as our own foreign exchanges are now done, unconnected with any interference of government, or any char. tered privilege. The second alleged benefit of banks, is, keeping deposites. Now, sir, I believe that most men can keep all the money they handle. If, however, in cities and large towns it is inconvenient or insecure for merchants and others to retain money in their own possession it would be easy for them jointly to employ persons for a small compensation I now, sir, come to the last thing I shall notice on this branch of the subject, that of the alleged use of banks as reservoirs of credit. I know, sir, that credit is necessary in a civilized and free country; but, sir, a wholesome credit is that confidence which man puts in his fellow man from his known integrity and ability to fulfil engage |