‘Of our living native artists, Mr. Allston is the one, to whose future productions the country looks, with reason, for the most brilliant exhibitions of talent, and the most valuable accessions to our public and private collections. Few painters have ever possessed, at his age, a higher reputation, or one acquired by nobler means; and from his character and habits, there is room to suppose that his fame will continue to increase, like that of West, to the last period of his labors. Inspired by that exclusive and passionate love for his profession, which is the sure characteristic of a real genius for it, and by a lofty and generous disinterestedness, which has prevented him from consecrating his pencil to its lower and more lucrative departments, he has, under some discouragements, steadily confined himself to historical, scriptural, and poetical subjects, and has formed his manner upon the highest standard of excellence. His conceptions are uniformly happy, and, when the subject requires it, sublime; his taste and skill, in the mechanical details of his art, complete; and he knows how to give his works the secret charm to which we alluded before, and which adds the last finish to every other beauty. If there be any thing to complain of in him, it is that he is not satisfied himself with the degree of merit, which would satisfy every one else, and employs in correcting, maturing, and repainting a single piece, not always, perhaps, with any real accession of effect, the time and labor which would have been sufficient for completing a dozen. This extreme fastidiousness may have been, at an earlier period of life, a virtue, and is probably one of the qualities, which have enabled the artist to realize the high idea of excellence, which originally warmed his young fancy. But, if we might venture to express an opinion on the subject, we should say that the time has now arrived, when he might throw it off with advantage, and allow himself a greater rapidity of execution. His manner is formed. He possesses his talent, whatever it is, and, as we remarked above, when we treated the same question in general terms, the more freely and fearlessly he exercises it, the more natural and spirited, and, on the whole, the better will be the product. We trust that he will not permit another year to pass over, without putting the last hand to the grand heroic composition, upon which he has been employed so many, and that this will be followed by a series of others, of equal merit, and of a rather more rapid growth. By this change in his manner of working, we believe that he would gain in ease and spirit, without sacrificing any real beauty, and would labor, on the whole, with infinitely more satisfaction and profit to himself and the public, than he does now. We offer these remarks, however, with all the deference that is due from mere amateurs to an artist of consummate genius, who is, after all, the only true judge of effect in his art, and of the best means of producing it.’
CHAPTER XVIII.—BANKING SYSTEM[97]
IN new countries, one of the chief difficulties with which a civilized population is obliged to contend, after a sufficiency is obtained of the necessaries of life, is in appropriating a portion of their capital, to serve as a common standard of value in the transactions of commerce. Barter, which is always the first process, soon becomes too burdensome, and the precious metals, which, in older countries furnish a sound and universal currency, are too expensive for new settlements, where all the capital of the inhabitants is wanted in improving the face of the country, and in providing additional comforts, as the community advances in wealth. In the course of time, however, commerce claims a portion of capital, as the medium of exchange; and the struggle commences between the necessity of providing a circulating medium, formed of a material of universal value, and the reluctance to spare for that purpose, capital, which might be exchanged for articles essentially wanted in new countries. Hence it is found, that in new colonies, there is a strong tendency to substitute the credit of public bodies in the place of capital, or in other words, a paper for a metallic currency. The want of capital is so great, and the opportunities of investment so abundant, that the issues soon become excessive; and it is not until the channels of circulation are entirely filled, that the holders begin to look to the fund provided for its redemption; and the first re-action generally results in the depreciation of the currency, and in the universal distress of the community.
In this country, this evil had been so often felt under the colonial governments, and during the revolution, (when the necessity of the public service compelled, if it did not excuse, excessive emissions of bills of credit by the individual states,) that upon forming a government for the United States, after the termination of hostilities, all power over the currency was taken from the state governments; and they were expressly prohibited from coining money, issuing bills of credit, or making any thing but gold and silver a tender in payment of debts.
It was intended to vest in congress the power to establish a uniform currency, instead of the fluctuating medium formerly used; and to place it out of the power of the states, to invalidate or alter the terms of contracts, by tender, relief, or bankrupt laws, or by any tampering with the currency. It was a wise endeavor to elevate the commercial credit of the country, by placing its principles under the guardianship of the national government, and to establish the currency upon an immovable basis, by making it of gold and silver. The effort, though well meant, was, at that period of our history, almost too great for the ability of the country. Acirculating medium composed entirely of the precious metals, could not be furnished, without abstracting too large a share of its capital from active employment.
Certificates of public debt were already too abundant, and the name of continental money was of itself sufficient, to prevent government bills from becoming current. A bank, whose issues should be founded on real capital, convertible at pleasure into gold and silver, would furnish a circulating medium, not so expensive as a metallic currency, and still not liable to the objections made to treasury bills. So long as the credit of the bank should be fully sustained, a large amount of bills would be kept in circulation, and an additional capital provided, on which it might safely discount to a certain extent. The experiment had been already successfully tried, in the bank of North America, chartered in 1781, under the authority of the continental congress. This institution subsequently accepted a charter from the legislature of Pennsylvania, and of course lost its character as a national bank. This step was also unfortunate, as the commencement of state banking, and being speedily followed by the incorporation of the banks of New York and Massachusetts, by the legislatures of those respective states, established the practice of incorporating state banks, upon a footing that could not be overthrown. As these banks were all established on real capital, and were prudently managed, their paper soon formed a large part of the circulating medium; and by the operation of causes more powerful than legislative enactments, a victory was finally obtained over the policy and spirit of the constitution; and a currency, chiefly composed of the notes of incorporated banks, was substituted in the place of a metallic currency. With such a circulating medium, it is clear that the state governments, in exercising the power of incorporating banks, have materially diminished the practical control of congress over the currency of the union. These notes, indeed, are not, and cannot be made a legal tender in payment of debts. The federal constitution has there interposed an effectual prohibition. But although the power, which is secured to each creditor, of enforcing payment of his debt in specie, has served as a check to the excessive issue of bank notes, still a paper currency has existed in the United States, which, by dispensing with and superseding the use of the precious metals, has, in fact, compelled every one to receive such currency, in nearly the same manner as if it had been made a legal tender.
The old United States bank, which was chartered by congress in 1791, shortly after the adoption of the federal constitution, by the salutary control it exercised over the state banks, prevented any great and general injury from growing out of this change in the character of the currency. It carefully guarded against all excessive issues by the local banks, and compelled them to make their paper equivalent to specie. Even this check did not always prove sufficient; and the natural tendency of banking institutions, in new countries to over issues, was occasionally illustrated by the bankruptcy of country banks, to the great detriment of the mercantile community. When this check was withdrawn by the refusal to renew the charter of the United States bank, in 1811, the evil became incomparably greater. Availing themselves of the pecuniary distress of the government, during the war that ensued, the local banks, out of New England, came to a determination to suspend specie payments, and by continuallyincreasing their issues, they finally flooded the country with bank notes, which constituted the sole circulating medium, and which, though nominally convertible into specie upon demand, were in reality at twenty per cent. discount.
Even this currency was received, as if it had been made a legal tender. An outcry had been made against those who enforced the payment of specie, as engaged in a combination to drain the country of the precious metals; and the only alternative presented to the creditor was, a lawsuit in the face of public opinion for his legal rights, or the acceptance of the depreciated paper currency from his debtor.
Protected by this popular prejudice, the banks went on issuing their irredeemable bills, even after the termination of the war; and a circulating medium, altogether without value in other countries, became the currency of the union, with the exception of the eastern states. By the large issues of the banks that had suspended payment, the circulating medium had been so much augmented, that it exceeded the wants of the community, and fell greatly in value,—the whole currency in 1816, being estimated at one hundred and ten million dollars, when forty-five million dollars were all that was needed. This evil was still further aggravated by the different values of this currency in the several states—being in some five, in some ten, in others twenty per cent. below par. A debtor, therefore, in paying a debt contracted before the general depreciation of the currency, would, in that state of affairs, pay less value than he agreed to pay; and a debtor, by moving from the eastern to the southern and western states, would, in effect, diminish the amount of his indebtedness twenty per cent. Nor was this all. By the federal constitution, it was provided that all duties, imposts, and excises, should be uniform throughout the United States. So long, however, as bank notes were received by the revenue officers at Boston, New York, and Baltimore, the importer at Baltimore during this period paid one fifth, and at New York one tenth, less than at Boston, where bank notes were equivalent to specie.