Severed from the Government
as political engines, and not susceptible of dangerous extension and
combination, the State banks will not be tempted, nor will they have the
power, which we have seen exercised, to divert the public funds from the
legitimate purposes of the Government. The collection and custody of
the revenue, being, on the contrary, a source of credit to them, will
increase the security which the States provide for a faithful execution
of their trusts by multiplying the scrutinies to which their operations
and accounts will be subjected. Thus disposed, as well from interest
as the obligations of their charters, it can not be doubted that such
conditions as Congress may see fit to adopt respecting the deposits in
these institutions, with a view to the gradual disuse, of the small
bills will be cheerfully complied with, and that we shall soon gain in
place of the Bank of the United States a practical reform in the whole
paper system of the country. If by this policy we can ultimately witness
the suppression of all bank bills below $20, it is apparent that gold
and silver will take their place and become the principal circulating
medium in the common business of the farmers and mechanics of the
country.
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