Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1815-12-27


tselgn CONS IN ejaculation, and Gas 3 necessary
rnphcstnn from positive provisons) 30 emit
bills OF credit While il is declared bv the same
instrument, that" no state shall coin money y or
emit bills ofcrcdit." Under this constitutional
authority, the money of The United States has
been established by law, consisting ofcoins made
with gold, silver, and copper All foreign gold
and silver COINS, at specified rates, were placed
II, The hrst instance, upon the same footing with
The CONS Of the United States, but they ceased.
ewith theexception of Spanish mlled dollars, and
parts OF such dollars,) 70 be legal tender Tor
the payment of debts and demands In the year
1909 =
The constitutional authorityto emit bills of
credit, has also been exercised in qualified and
l, mi,ed manner. During the existence of the
Bank or the United States, the bills or notes of
the corporation were declared, by law, to be re-
ceTable IN all payments to the United States /;
and the treasury notes which have been since IS
sued tor the services of the late war, have been
endowed with the same quality. But the con
Srsss has never recognised BY law the notes Of
any other corporation norh has il ever authorised
an issue OF bills or credit to serve as legal cur
rency. The acceptance of the notes OF banks
Nhich are not extinguished blythe federal autlio-
rity, IN Payments to the Uni; ed States, has heen
properly LETT to the Vigilance and discretion of
use executive department; wbiie The circulation
vi the treasury notes employed either to borrow
money or to discharge debts, depends entirely
(as 1t ought 10 depelid) upon the option of the
lenders and creditors TO Feceiys them.
The Constitutional and legal foundation of the
monetary system OF the United States, is thus
uistuictiy seen and the power of the federal 10
aernment 10 institute and regulate it, whether
ine circulating medium CONSISTS Of coin or ofbills
OF credit, must IN its general policy, as well rs
u'e terms OF It's investment, be deemed an exciu-
sNs power. l. is true that a system depending
upon 'ne agency of the precious metals, will be
anected by the various circumstances which di-
nihlsn uleirquantity or deterioraie their quality
We com OF state sometimes van shes under the
influence OF political alarms sometimes in con
sequence OF the explosion Of mercan lie specu-
ia,ion, and sometimes BY the dram of an u,lfavor-
aoie course ottrade. But whenever the emer-
Sency occurs thai, demands change of system, il
| seems necessarily to follow, that the authority
"nicn was alone competent to establish the ma
t'o0" com, IS alone competent 10 create n natl
onai substitute. 1t has happened however, that
tue com OF the United States has ceased 10 be a
circulating medium of exchange: and that no
sups TRUE has hitherto been provided by the ma
'lorai authority. During the last year, the prin-
ciPaii banks established south and west of New
1nglaad, resolved that they would no longer is
sue Com m payment of their notes, or of the
oEaits OF their customers, for money received up-
on ueposlte. In this act, the government of the
Immediate effect of the act was 10 supercede the
ohiy legal currency of the nation. By this act,
@iuiough no state can constltuionally emit bills
o. credit, corporations erected by the several
states, have been enabled to circulate paper
Medium subject to many Of the practical incon
Vemehces ofthe prohibited oils credit
Ii is not intended, upon this occasion, TO con-
Tenn, generally the Suspension of specie pay
nents; tor appearances indicated an approaching
crisis winch would probably have imposed It as a
MEASURE OF necessity, fit had not been adopted
as measure OF precaution. But the danger
which originally induced and perhaps justified
the conduct of the banks, has passed away and
the continuance ofthe Suspension OF specie paw
nehts must be ascribed To new series of causes
the pubic credit and resources are no longer
impaired BY the doubts and agiiatcns excited
during the war by the practices of the enemy:
OF by tie lnToads OF an'illct commerce vet the
resumptonof specie payments is sill prevented
either By he reduced state of The national stock
or the precious metals or by the apprehension
of further reduction tomeet the balances of a
'ois en- trade or by the redundant issues ofbank
paper lie probable direction and duration OF
the latter causes, constitute therefore the exist
subject for elaboration. While they con
nue. TO operate singlyor combined, the authori-
OF the states individually, o.. the agents of the
STATE institutions, cannot afford remedy COM
mensurAte wthihe evil; and recurrence to the
national authorltyis indispensable, for the resto-
ration of national currency
In the selection of the means for the accom-
piishment OF this important object, it may be as
ked-1st Whether j; lie practicable to renew Tie
circulation OF the gold and SILVER CONS 2div
Whe her the state banks can be successfitll,, EN-.
ployed TO furnish an uniform currency'3dI, .Vhe-
iher national bank can be EMPLOYED more adj
vantageously ian the state banks for the same
purpose And 4thly. Whether the government
can itself supply ond maintain paper medium
OF exchange. of permanenJ and uniform yalue.
throughout the U. States
1st. As the United States do not possess mines
Of gold or silver, the supplies Of those metals
must, IN time ofscarcity, be derived from for-
/ eign ceplmerce- II ihe balance of foreign com
mefce be uniavorable, the supply will not be Oh
tanned incidentally, rs in the case of tie returns
for surplus of American exports, but must be
INC object ofa direct purchase The purchase
1t bullion IS, however, common operation of
commerce and depends, ike other Operations.
upon ilIe N iUcennts TO import The article.
The inducements to import bullion arse "a IN
other cases, from It's being cheap abroad. or from
Its beng dear at home notwithstanding the
connexions IN South America, as well as m
Europe, there is no reason 10 believe. that the
quantity Of the precious metals is now more thao
at any former pcflod) ns0fiic ,ent for the demand
throughout tie commei cal and civilized world
The prce may be hgle IN some countr Is than
IN others; aod It may be different IN the same
country at different times bot gererally. the
hurNpean stock Of gold and SILVER has b en- bun.
ian, even duting the protracted war which mas
Hfnlc'ed tie cations Of Europe.