Daily National Intelligencer

FOR THE NATIONAL INTELLIGENCER.
PUBLIC CREDIT.

This subject in its importance to the People of the United States, has become secondary to none. Those who have had an opportunity of witnessing the effects resulting from the present state of the monied institutions in the country must already be convinced that it is essentially necessary that Congress shall without delay adopt some measures, which will remedy the general inconvenience and distress that is now pervading the whole country. This embarrassment is produced by the want of a circulating medium, in which there is general confidence. There is no saying what the result may be, if this state of things be continued only a few weeks. It is a fact beyond all question, that the strongest banks in the United States cannot redeem their notes with specie. It is true most of them have assigned plausible reasons why they ought not to pay out their specie, but the truth cannot be longer disguised that their plausible reasons are mere pretexts to lull apprehension and alarm until Congress relieve them. The question is, how shall this relief be afforded? And how shall it be afforded in time to save us from general distrust, and the embarrassments which must follow an explosion of public credit? Perhaps the first question to be put is, what has produced this embarrassment of the banks, and occasioned them to stop payment? The answer to this question will unfold the whole evil, and shew the remedy required.

It is well known that most of the late loans to the government have been effected through the banks'; and whether made by the banks for themselves, or by individuals, they were universally negociated at the banks. The stock of the government then has necessarily found its way into their vaults; for which in the first instance they may have paid their notes. These notes have been distributed in every direction over the country, but have sooner or later travelled back, and have drained the banks of their specie. But it is asked, why do not the banks go into the market with the government stock, and replace their own capital in their vaults? Note the answer. Because the stock of the government is so depreciated that they cannot sell without a loss ruinous to such institutions. So that the state of the case is this: the banks have accommodated the government to such an extent, that they have spent their capital, and the security on which they depended is the government paper, which has depreciated so that they cannot dispose of it without loss. It will readily be seen from this view of the subject, that the credit of all the banks which have been liberal to the government, depends entirely upon the credit of the government. It then becomes essential to the safety, peace, and prosperity of the people at home, as well as to the success of the government in its present arduous struggle with the most gigantic force ever directed against any nation, that Congress shall without delay redeem and secure the public credit. In time of war it is extremely difficult to command the resources of the country.--Indeed, in time of war, the usual and most active resources of a country like our's are suspended. The only resource on which actual reliance can be placed at such a time, is an internal revenue--certain, active, and proportionate to the existing emergency. This is all that is now left for us, on which any sort of reliance can be reposed. But our internal revenue, extended to the greatest limits which the population and wealth of the country will bear, would be far short of the necessary demands of the government in its present difficulties. The most that can be expected from our annual internal revenue, is an amount equal to secure the interest of the public debt. So that it is plain the government must look to its credit, not only to sustain the burthens already incurred, but to be incurred while the war lasts. Then comes the solemn enquiry. How shall the public credit be restored and continued? Let a NATIONAL Bank be instantly chartered--untrammelled---unfettered--unrestricted by any new-fangled provisions--with a capital of one hundred millions--fifty millions to be subscribed and paid in the stock of the United States, the other moiety at convenient and distant instalments, to be paid in specie. In voting the charter, let the simplest and plainest precedent be preferred. Let it be remembered that monied men understand well how to manage their own interests, and are the best guardians of the prosperity of such an institution as a great NATIONAL BANK. Let govt. refrain from all connection with the direction. There is no danger that the bank will not incline to the government.-- The benefit resulting from the government deposites is quite sufficient to command the favor of the bank to any extent compatible with the interest of itself or the government.

The first effects of the establishment of a National Bank would be felt in the advance of the government stock, which is now at a depreciation in market, and this advance would carry it up to par, if not beyond it immediately. This is not all. The establishment of a national bank would most certainly afford to every section of the United States equal benefits and advantages, from the specie remaining in the country. For it would gradually find its way into the vaults of the Bank, and become the security of all its notes, which would spread all over the United States. A citizen of Georgia would enjoy the convenience and benefit of the specie deposited in the Bank by a citizen of Boston. In short, by the establishment of a National Bank, we should have a circulating medium in which all repose equal confidence, extending from one extreme of the Union to the other. Public credit would be again restored--property would be again valuable--labor compensated -and the government would be relieved from the designs and avaricious combinations of brokers and speculators.