11

a free and self-reliant people, and must therefore be ascribed to a
monetary condition, in almost servile dependence upon them.

All this has been strikingly exemplified in the entire acquies-
cence with which the suspension of the banks in September last
was received by the people. For my own part, I have been una-
ble to satisfy my mind, that this act of suspension was not need-
less, as it was arbitrary and unjust.

1 am aware that the reason assigned—rather as an excuse than
a justification—was the fear that the vaults of our banks would
be drained of their specie by New York. I cannot in this plea
recognize any special virtue. The specie, however small in
amount, thus locked up, against the demands of New York credi-
tors, was at the same time, has been, and is to this day, locked up
with equal stringency, against the citizens of Maryland. And if
they requite any unusual amount, they are compelled to purchase
it at a premium. I do not. understand, that in a state of suspen-
sion the banks are any stronger with specie as a form of assets in
their vaults, than they would be, with the specie all paid out, for
the redemption of so much paper, and their remaining assets in
another form. While I can readily conceive that in the latter
case, they would have acquitted themselves honorably of their
obligations, to the extent of their ability, and so have acquired a
better title to public confidence in the future

1 am induced upon a review of the conduct and condition of
the banking institutions of the State, exhibited in reference to the
monetary exigency of the times, to commend to your considera-
tion the duty of further legislation for the protection of the public
interests and the promotion of the common welfare.

It is absolutely indispensable to a healthy financial condition,
that the specie basis of all banks of issue, within the State should
be greatly enlarged. And in accepting this as a first proposition,
towards a radical reform, it will suggest the propriety of revision
and reconstruction of our banking system. I think it. will be
found entirely consistent with the necessities of the times, and the
experience of the people, that banks of issue should have an in-
dependent existence, under the most rigid legislation, and the
constant scrutiny of official authority. And that other depart-
ments of the business of banking should be conducted under gene-
ral laws, conferring no privilege of issue. I merely make the
suggestion; the subject is one, which demands patient and in-
telligent consideration, and addresses itself to the stern patriotism
of the representatives of the people.

In appropriate connection with this subject, I beg leave to ex-
press my cordial approval of the suggestion contained in the recent
report of the present Secretary of the Treasury of the United States,
that each of the States inaugurate a policy in conformity with that
of the United States, for the collection of its entire revenue in coin.
The advantages which would certainly flow from such a practice,