who are among the most estimable members of society. But it requires little knowledge of the world to be satisfied, that the wisdom or policy of the proceedings of public bodies too frequently bears little proportion to the intelligence or goodness of the individuals who compose them. Public bodies, a large proportion of which were wise and intelligent men, have frequently, and I might almost say too generally, displayed as much folly and error, as a set of arrant bedlamites could have done. In proof of this position, look at the deliberative assemblies of France, under their varied nomenclature-at the parliament of England-at the proceedings of congress-at those of the legislatures of the different states, and at the wild course steered by our banks since the peace.

With many directors of banks, the grand and indeed the only object is, what they term " to guard the interests of the institution"" to take care of themselves," i. e. of the bank. To this paramount rule every thing must bend.-Correctly understood, it would be a sound rule. But it is a miserable, mistaken policy, to suppose that the interests of banks are best secured by the rigour and unrelenting severity which some of these gentlemen preach up, and which is so often exercised. Such a system is ruinous to individuals dependent on the banks-and often pernicious, as it ought to be, to the banks themselves. Pity any bank or banker, destitute of compassion or lenity towards persons in difficulty, should not pay the penalty to which want of feeling and humanity has so far a claim.

No. Liberality is nine times out of ten sound policy in banking institutions.--There are numbers of persons throughout the United States, now basking in the sunshine of prosperity, who at some period of their lives have been involved and embarrassed, and in danger of bankruptcy, in consequence of losses or disappointments-and who, had the banks frowned on them at such critical periods, would have been irretrievably ruined. Their spirits sunk-and they were ready to give way. But the indulgence of the banks, and the timely aid of kind friends rescued them. Their spirits rose again. They faced the storm. They braved it. The sun of prosperity once more shone on them. They retrieved their losses-and now look back with delight on their escape from the rocks, and quicksands, 'and vortices, that were ready to swallow them up-and with gratitude on those who were the happy instruments of their preservation. [July 7, 1830. This is a true picture of the case of the writer of these pages.]

There are, on the other hand, now living, many persons ruined, who would be in the enjoyment of prosperity, had they experienced the same indulgence. But it is too rarely exercised. The moment a man meets with a serious misfortune-the moment he is involved through failure of remittances or otherwise the banks too frequently frown on him. The rule of "guarding the institution"-of "taking care of themselves,"regulates their proceedings. And instead of affording further aid, they withdraw what they had formerly accorded. And thus a person who has by unavoidable misfortune been driven to the verge of the precipice, is hurled downwards beyond the power of rescue. There are, as I said, signal exceptions. Pity they are so few.

I could have rendered this pamphlet more interesting-I could have made large additions to the facts it contains-I could have more completely enforced my arguments, had I regarded myself at liberty to use the information my situation as a director of the Bank of Pennsylvania afforded. I believe I might have so done without impropriety. I am not in fact satisfied but that it was a duty. But the board of directors of that institution entertain a different opinion. On mature consideration, therefore, to avoid cavil, I determined not to use a single fact of which I became possessed by being a directorEvery thing in the work is derived from sources open to every man in the community as well as to me.

If the system pursued by the banks have been wise, prudent, politic, and worthy of such powerful institutions-if it have tended to foster trade and commerce-to encourage and patronize industry-to answer the ends proposed by the establishment of banks, no portion of the merit belongs to me. I do not pretend to deck myself with plumes to which I have no just claim. I plead guilty of a failure of my duty as a bank director, to support it. But if it have unduly raised prices at one time, and as unduly lowered them at another-if it have palsied industry-depressed trade and commerce-unhinged the prosperity of our city and its citizens-if it have made the rich richer, and the poor poorer-if it have greatly multiplied the existing financial embarrassments of the nation-then I can fairly wash my hands of the consequences. It has met with my earnest, unequivocal, unceasing reprobation. I have given it all the feeble opposition in the power of an insulated and uninfluential individual. And nothing that has as yet occurred

has had the least tendency to reconcile me to it, or to make me regret the course I have pursued.

I have prefixed my name to this little work-not that I court persecution or seek reputation by it-for persecution is very undesirable, and what reputation can be derived from a mere pamphlet? My reason is, that I am not, at this period of life, disposed to publish any thing I am either afraid or ashamed to avow-and that it is proper the directors of the banks should know the person who is responsible to the public for the truth or falsehood of the allegations advanced.

It too frequently happens that plans extremely plausible, and promising beneficial results, eventuate in injury. The recent arrangement of the banks, whereby they pay interest on the balances due to each other, is of this description. It cannot be denied that it appears fair and honourable. But its operation on the public is highly pernicious. It holds out temptations to distress the community. For whatever bank is harsh and unaccommodating-or presses hard on its debtors-will raise large balances against the other banks, which act on a more liberal scale, and will levy heavy contributions on them for interest. Another consequence of this system is, that a bank whose proceedings are regulated by disregard to public convenience or individual safety, in proportion as it diminishes the amount of its bills discounted, transfers the risque from itself to the more liberal banks; in other words, it becomes the creditor of its sister institutions, for the whole amount of the accommodation it withdraws from trade and commerce, unless the other banks follow the example; which motives of self-interest prompt them to do. And thus the pressure of one bank upon the community, induces the pressure of all the others. It is easy to calculate the pernicious consequences of such a state of things.

ON BANKING.

Philadelphia, April 30, 1816.

"Man, proud man, dress'd in a little brief authority,

Plays such fantastic tricks before high heaven,

As make e'en angels weep."

The banking subject is nearly exhausted. Yet I am tempted once more to travel over the beaten track. It may do good. It

cannot, I hope, do harm.-This will surely justify the undertaking.

The destroying angel is abroad. He has smote the land with calamity through the dire infatuation of a few boards of bank directors. An awful paralysis has seized upon industry, exertion, enterprise, and prosperity. Arts, manufactures, trade, and commerce, are nearly laid prostrate. Bankruptcy with her haggard form, has seized upon many of our traders; and stares many other most useful and estimable citizens in the face. Prospects the most exhilarating and delightful, are blasted. Scenes of happiness, on which heaven must have looked down with complacence, are changed into scenes of gloom and dismay. The fearful desolation has spread to the western extremities of the nation. But although immense mischief has been done, much may still be done, or by proper means prevented. It is true, that those of our merchants and traders, whose means and resources were slender, have been unable to stand the shock. They have either fallen victims already, or else have received such mortal wounds as have stamped the seal of destruction on their foreheads. To these no change of system can afford relief. But there are numbers of our citizens, of rather more robust means and credit, who, though grievously wounded, may yet be restored by kind treatment. To them a

* It is a melancholy fact, that to the wild and fantastic projects of a few men, perhaps not half a dozen, may be fairly ascribed the chief part of the existing calamities. Infatuated by crude and ill-digested schemes for restoring the credit of bank notes, they urged and induced the banks of which they are directors, and in which their influence is transcendently great, to adopt the kill him or cure him system of violent curtailment of discounts. Like all other projectors, they implicitly believed in the efficacy of their scheme, which they pledged themselves would purge off all the feculent humours of the disordered currency, and restore it to perfect sanity. Their views being adopted by some of the banks, the others were coerced into the same course. The miserable project has had a fair trial. It has ended in the utter disappointment of its authors. When their fatal and fatuitous counsels were adopted, western and southern notes were at 2, 3, 4 and 5 per cent. discount. Their plans, they said, were to raise their value. But lo! western are now from eight to eleven-and southern from five to ten per cent. discount. Such has been the wonderful success of this visionary scheme! And city bank notes, measured by specie, which is the standard these gentlemen have adopted, are still "found wanting" in the same degree as formerly. From this wretched system I aver, and it cannot be too often repeated, more mischief has resulted to this city and its inhabitants, in nine months of peace, than from a raging warfare of thirty months.

change of the system pursued by the banks would operate like a heaven-directed pilot to a vessel in a heavy gale, labouring to reach her destined port. Let us then at length arouse ourselves like men. Let us try to turn aside the weapon of destruction. Let us make an effort to cicatrize the deep and festering gashes it has inflicted on an unoffending people.

The torpor and servility that prevail on this subject are most fatuitous and astonishing. The election of a president, a governor, a senator, a member of assembly, or a sheriff, excites all the latent energies of this great community. All is bustle, life, and activity. Numerous meetings and counter meetings are held. Inflammatory resolutions and addresses are widely circulated. And hundreds, nay thousands, appear as feelingly alive on the subject, as if their entire temporal, nay, as if their eternal felicity were at stake on the event. And yet of what consequence is it to the mass of the community whether this man or that man be sheriff, or member of assembly-or whether the estimable and enlightened Biddle, or an equally estimable and enlightened democrat, be elected senator? Not a cent.

But which of us is not deeply and vitally interested in the momentous question, whether the deleterious system pursued by the banks, whereby our prosperity is cutting up by the roots, shall be continued or abandoned? Not a man in the community. A few wealthy capitalists, who prosper by the general distress, are deeply interested that the system shall continue. It affords them a superabundant harvest. They can purchase goods, and store them, till they realize 20, 30, or 40 per cent. in a few months. But all the rest of the community are as deeply interested to change a system which is daily goading them step by step to the brink of destruction.

Whence, then, this stupor, this servility? Is it that our highminded merchants and traders are afraid of the banks? Do they submit to ruin, rather than remonstrate against its infliction? It must be so. ""Tis true, 'tis pity-and pity it is, 'tis true." "I'd rather be a dog, and bay the moon," than endure such an existence.

I beg leave once more to prove the transcendent insanity of the system whose continuance I deprecate. All that I shall state has been already published-but unfortunately, in vain. And till it has produced its effect, it ought to be served up every day, and every hour of the day, to those men, who, as I have already stated, have in their hands the destinies of their