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pears desirable and proper, and that is, "when controversy arises in the church which can not be easily adjusted; or when some peculiar difficulty occurs, in the administration of discipline." And finally, on this point, churches are bound to co-operate in promoting, as far as practicable, the general interests of religion, and especially in endeavoring to elevate the standard of piety among themselves, and exciting greater zeal and efficiency in the entire community.

10. The holding of associations. It is customary for Baptist churches to form associations of convenient size, for the purpose of mutual improvement, consultation, and encouragement. The associations are composed of the pastors, and such lay brethren as are delegated by the respective churches to represent them on the occasion. These associations claim no authority to dictate to the churches, what they shall do, or what they shall believe. But still they have a right to express an opinion respecting the character of any church belonging to the body, and even to withdraw fellowship, when their confidence in the purity of such church is destroyed. They think they claim in this particular, only a right common to all voluntary associations, of deciding who shall be admitted to the privileges and confidence of the compact. But they never interfere in cases of discipline, or other matters of individual church concernment in the slightest degree. Indeed, it is held to be incompetent for them to express an opinion of any kind, on the merits of such a question. All such matters are referred to the sovereignty of the respective churches. These associations hold their meetings annually at such place as may have been previously determined; and the several churches of which they are composed, are expected to send up to them, an account of their

changes during the year, together with a statement of their present condition and prospects. These religious convocations are found to be productive of much spiritual benefit to the churches, and greatly to strengthen the bonds of union and fellowship among the respective pastors.

11. The powers, and duties of ecclesiastical councils. It is a settled principle with the Baptists, that ecclesiastical councils have no authoritative, or compulsory power over the churches. These councils derive all their authority from the churches by which they are constituted. And as no church has any authority over a sister church, or power to act for another, it can not communicate to its delegates any such power or authority. Instead therefore of being authoritative, these councils are merely advisory. Their power is neither legislative, nor executive, but strictly and exclusively moral. They proceed upon the principle, that "in the multitude of counselors there is safety." When they have patiently heard and carefully examined any case submitted to their consideration, and communicated to the church at whose instance they are convened, the views which they entertain of the matter in hand, their work is done. They may recommend measures, but they can not enforce them.

It is also worthy of remark, that these councils always originate in the peculiar exigency of the occasion, and disband immediately when the case, on which their advice is sought, is disposed of. There are among Baptists no standing councils or committees, to adjust church difficulties. In the manner of calling these councils there is nothing peculiar. The usual method is for the church, as a body, to unite in requesting several sister churches to meet with it by their pastor and one or two lay brethren, to delibe

rate on the cause of their difficulty or embarrassment. But it sometimes happens that an ex parte council becomes necessary. In that case, the person or persons aggrieved, after having made suitable efforts to induce the church to agree upon the calling of a mutual council, and failed to effect their wishes, may proceed to call an ex parte council, to whom the whole case may be submitted. But even then the church is to be notified of the meeting of the ex parte council, and be requested to represent itself by delegates on the occasion. If the church is thought to have erred, the council so express their belief, and give such advice in the premises as may be deemed necessary. Most generally a settlement of the difficulty here ensues; or at least, a mutual council is agreed upon, whose advice is commonly conclusive.

12. The method of licensing, and ordaining ministers. This whole matter is confided to the respective churches. It is held that no church, or body of churches, has any right to dictate to the individual churches on this subject. With each church is vested the supreme right of choosing its own officers, and calling into exercise its own gifts. Still, while this right is conceded to each church, it is claimed as a ground of greater security against imposition, and as a matter of courtesy, that neighboring ministers and churches should be consulted as to the expediency of licensing, or calling to ordination any one of its members. Little more, however, is expected on this point, than that the candidate be requested to exercise his gifts in the pulpits of several of the sister churches, and their general approbation be obtained, before the full license is granted. Ordinarily, considerable time elapses between the licensing of a candidate to preach, and his induction into the duties of a pastor by ordination;

so that sufficient opportunities of understanding the capacities and qualifications of the candidate, are afforded to the several pastors and brethren who may be called upon to take part in the exercises of his ordination. Although the Baptists have perhaps suffered somewhat from the precipitation of some of their churches on this point, they are tenacious of their system of induction into the office of the ministry. They have such a dread and abhorrence of clerical usurpations, and priestly domination, that they look with suspicion upon the slightest deviation from the principle of church independency, in regard to the election of all church officers.

As to the method of ordination, it is sufficient to say, that, when a church has called a man to this work, and his acceptance has been duly signified, it then proceeds to invite a council, in the usual manner, to. deliberate on the propriety of carrying out its wishes by a public recognition of the candidate with appropriate solemnities. If the council concur in the propriety of proceeding to the ordination, a time is set apart for the public exercises, and persons are chosen of their number to preach a sermon on the occasion, to offer the ordaining prayer and lay on hands, to deliver a solemn charge to the candidate, to extend to him the hand of fellowship, and to address the church and congregation.

13. The method of transacting church business. The pastor is by virtue of his office the moderator of the meeting, and presides during the transaction of all the business of the church, except what may relate to himself.

In such a case, or

in case of his absence, it is proper for the senior deacon present, or some one who may be chosen, pro tempore, to preside. All questions are decided by a major vote of the brethren, except such as relate to the reception of members. Here

the vote is required to be unanimous. The rules commonly adopted by deliberative bodies, govern the churches in their business meetings. The assent of the sisters is expected in the reception of members; but in all ordinary business they usually take no part whatever.

14. Public worship.-Public worship is usually conducted by the

pastor or officiating minister, much in the same manner as in Presbyterian and Congregational churches. Formerly, laymen were called upon, after the sermon, to take part in the exercises, and this practice still continues to some extent. Written discourses are more common than they were in former times.

BANKING.

THE term “bank" is derived from the Italian "banco," a bench. In early ages the Jews of Italy used to assemble in the market-places, and seat themselves on benches for the purpose of loaning money; and whenever any one failed, his bench was broken, hence the term "bankrupt." Thus among the modern Europeans, as well as among the ancients, bankers were originally simple money lenders. The first corporate bank was that of Venice. It originated about the middle of the twelfth century, from the necessity of a forced loan on the part of the duke Michael II.; it was therefore the offspring of tyranny. A similar bank commenced in Genoa in 1607; another in Amsterdam in 1609, and another in Rotterdam, 1635. These, together with the bank of Hamburgh, incorporated 1688, were all essentially banks of deposit and exchange, without the power of expansion; and they appear to have transacted the principal exchanges of Europe with great utility and safety, until the incorporation of the bank of England in 1694, which first ushered a new, and as we believe, a ruinous principle into the world, viz. the principle of expansion—or the principle of giving out more bills than the amount of currency they retained on hand; thus expanding at will the currency of the globe.

With this principle commenced a new career of disaster, before unknown in the history of the world. As its benefits are at first view, specious, plausible, and seemingly almost incalculable, it rapidly spread throughout almost all the commercial nations of the globe. It is needless to trace it in all its endless ramifications, through all its tortuous windings, its frauds, its delusions, and its impostures; its frequent and protracted suspensions in the bank of England, its ruinous profligacy under the guidance of Mr. Law, while engendering the far-famed Mississippi scheme in France, by which a whole nation was rendered bankrupt; and through its subsequent developments in our own country.

In all these cases the principle is substantially the same, though its modes of operation are in general. twofold: first, the bills are emitted and the currency expanded on the bare faith of the government, without any specie in reserve: second, the bills are emitted and the expansion ensues on the basis of a smaller amount of currency held in deposit; varying from three to fifteen dollars emitted to one retained. Law's Mississippi scheme, the old continental scheme, and many others, have proceeded by the first mode; while the majority of existing banks proceed upon the

latter. It is readily admitted, that in many respects there is much choice between these two modes of expansion: while so far as the fact of the expansion is concerned, and all the untold evils that flow from it, it is all one and the same thing; and its results have been as uniform, thus far in the history of the world, as the results of the law of gravitation-though unfortunately not as uniformly good. Law's bank in France, in the short space of four years, swallowed up two thousand two hundred and thirty five millions of livres. The repudiated issues of the continental Congress, recalled at one time, amounted to three hundred and seventy five millions of dollars, to say nothing of other issues and loans, probably amounting in all to thousands of millions. All these losses accrued upon the first mode of expansion, viz. upon the faith of the government. Since 1789, the United States have proceeded upon the other mode, of expanding upon smaller amounts of currency held in deposit, and the direct losses to the nation since that period, aside from all contingent and incidental losses, have been computed only at one thousand one hundred and ninety seven millions of dollars. The incidental losses, though incalculable, would doubt less far exceed this sum; and though the evils of expansion by the first named mode are more rapid and terrific in their development, it may well be doubted whether they are either as deceptive or as fatal in the end, as the expansions on the second mode have thus far proved themselves to be, in this country.

But we design to dwell upon these various modes of banking only sufficiently to indicate a radical defect in most of the treatises and discussions on the subject we have ever had the pleasure of reading, viz. the entire want of this indis pensable discrimination. True, they sometimes barely advert to it; they Vol. II.

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speak of various kinds of banks, as banks of exchange, of deposit, of circulation, &c. ; but it seems not to occur to most writers and speakers, that any bank might perform any one or all of these general functions, either with or without resting its foundations upon this smouldering volcano of expansion. Hence a sort of indiscriminate war on the one hand against all that bears the name of bank, repulsed by puerile eulogies of the same potent and engrossing word by those who have arrayed themselves in the opposite ranks. This is much as though half the nation should declare a war of extermination against all drinks, and the other half turn in to shout their praises, while neither party made any other discrimination in drinks further than to notice that some were red, some white, and some colorless, though all were aware that there was a lurking mischief somewhere about drinks, fraught with the most potent evils. Expansion is the intoxicating alcohol of banks, and no man can intelligently discuss or consider their operation, in past or present times, without at once putting his finger upon this principle, and separating it from all else that pertains to the subject. We must detect the alcohol before we either praise or decry the beverage. There have been then two different kinds of banks in the world, banks of mere ACCOMMODATION, (if we may coin a term,) which have conducted all the bu siness of deposit, circulation, and exchange, either in whole or in part, without the legal power of expanding the currency; and second, banks of EXPANSION, conducting the same operations with the power of legal expansion, more or less indefinite or restricted, and proceeding upon two modes; first, upon the faith of the government; second, upon reserved coin, which latter mode now prevails in the United States. To discuss at length

the relative differences and advantages of these two modes of expansion, or to go into a detailed his tory of the past and present operation of banks of expansion as contrasted with banks of mere accommodation, such as were those earlier banks of Europe and some of a later date, would be foreign from the compass and design of this paper. All that can be done, is to state certain general facts and results which the intelligence of our readers can easily verify or refute, from the history of the past and the present.

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All men in modern times are sufficiently familiar with the meaning of the terms, reaction," "revulsion,' "hard times," &c., in pecuniary interests. All who are to any considerable extent familiar with business, either in theory or practice, are also well apprised that these revulsions in commerce have become a sort of periodical epidemics in our times, whose periods and returns can be safely affirmed by all, while the shrewd financier is tolerably aware of their precise times. High prices in times of plenty and peace, are the constant forerunners of these epidemic revulsions; and at such junctures we hear shrewd practical men remarking, that "these times can not last long," and while all others are eagerly and giddily extending their business and their credits, these sagacious few are as busily contracting and securing their own. To be able to know at what precise moment to do this, constitutes almost the entire art of amassing wealth by large commercial adventures; or it is at least one indispensable item in the business. course of these periodical expansions and consequent convulsions have, to our knowledge, 'never been more truly and graphically described, than by Mr. Biddle, in his let ter to President Adams. They run somewhat in this form: starting at

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the lowest point in the scale, where we now are, (or at least were a short time since,) price begins to rise, business and confidence to increase, at first healthfully and propitiously; but price still goes on rising; profit is piled on profit, bargain on bargain, credit on credit, debt upon debt, and enterprise upon enterprise; and all for most part successful in appearance, until the whole world seems one immense madhouse of traffickers, jobbers, and schemers, all ready to buy, flooded with wealth, and intoxicated with hope. The price of all things, lands, houses, ships, goods, produce, labor, and all else has risen so much, and is still rising so fast, that the silly multitude seem almost to believe, that the very stones are soon to be changed into gold, and that they have little to do but to buy, eat, drink, and enjoy themselves. Hark! there has a bank or a commercial house of great liabilities failed some thousand miles off. "And what of that?" What of that? why, at such times, it rings like a deathknell in the ear of every reflecting man in Christendom-the voice of war, or famine, or plague, could scarcely sound more terrific. He knows what is to come: he anticipates the era of mortgages, writs, suits, failures, sales, sheriffs, bankruptcies, broken fortunes, and broken hearts; sinking or annihilated prices; penniless princes; beggared fathers, weeping mothers, and starving children: he hears already the great wail of the millions, shrieking under the tortures of "a revulsion." He soon learns of another failure, and another, and soon sees all around him, who are engaged in the hazards of commerce, trembling, pale, and palsied with dismay, not knowing whom to trust or what to do. Such is a revulsion: a scourge of Omnipotence for torturing the avarice of the nations, scarcely less terrific than the wars, plagues, and famines, that

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