361
PAPERS OF 1\IIRABEAU BuoNAPARTE LAMAR
as the banks increased in number, the par circulation of their bills diminished in distance; and the difficultes of commercial exchanges became the more vexations and burdensome. The utmost capabilities of private incorporated banks were ascertained to be defective and utterly incompetent to supply the wants of the country. For the great desideratum in domestic· finances, in a sound and uniform currency. which Rhall pervade the whole body politic, even as in pysics, vital blood pervades the human system. These practical developments, conspiring with the many radical, imposing, and popular objections to all private banking incorporations in that country turned the attention of her ablest statesmen to a national institution, as the cnly effectual means of attaining safety, uniformity, and free circulation throughout the Republic-the legiti- mate ends of a representative paper currency. Accordingly, at· the commencement of the last war between the United States and Great Britain, a :t\ational bank was established; and its powerful efficac:v was soon manifested in the restoration of a sound and redeemable paper currency, and the revival of general confidence. The difficul- ties rhat had involved the whole commercial population, and those dependent upon it, in frequent and distressing bankruptcy. were rapidly dissipated and forgotten; and the country was blessed to an extraordinary extent, with a safe and convcnien~ medium of exchange between the remotest parts of its territory, and even between them and the leading commercial nations of the world. New hopes, and activity were infused into eyery department of business.-The farmer. the mechanic, the merchant, and those of the learned professions, all experienced its renovating and salutary influence. And the govern- ment itself, not only participated in these aggregate benefits. but found in the bank a fiscal agent, adequate to all its financial ex- igencies. The minor and local banks were brought under a wholesome restraint, and compelled to confine their issues within their appro- priate spheres. Such of them as were insolvent from adversity ot· 1nismana2'ement, withdrew from the hopeless competition; and those which had originated in fraud and corrupt speculation, were detected, exposed, and in most cases arrested in their course of iniquity and imposture. The temporary cmbarassmcnts which resulted from th~ contraction, the withdrawal, or the insolvent dissolution of the local banks were speedily repaired; and the partial derangements in busi- ness were restored and succeeded by a wholesome and universal cir- culation of uniform, sound, and easily convertible currency, which was nassed and received with unhesitating con'fidence. ·with the recent overthrow of the Bank of the United States, we as a distinct people, have nothing to do, and should forbear to pass any stricture upon it. Our political organization is essentially different from theirs, and exempts us from many abstruse ~nd harrassing ques- tions of internal policy, which have ,;eriously vexed, and too sensibly attenuated the bands of +hat illustrious union. Our government is one. and integral; and admits of no exciting- conflicts of state rights and federal powers. It acts upon and controls the domestic and minute internal policy, as well as the general and foreign relations of the conntry, and can never be riithtfull contravened or annulled in the exercise of its functions except as it ma:v impair, abuse, or neglect
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