Virginia Argus. [volume] (Richmond, Va.) 1796-1816, 1816-03-06


they manage it. Gold and silver have disappear.
ed entirely there is no money but paper money,
and that money is beyond the control of Congress-
No one, he said, who referred TO the constitlton.
could doubt that the money of the u. States was
intended to be placed entirely under the control
OF Congress The only object the trainers of the
cons utution could have in view in giving to Con-
Pres, me power " to CON money, regulate the va
iue thereof and of foreign coin, must have been
to give steadiness and fixed value to the cur.
rency OF the United States The state of things
az me time OF the adoption of the constitution.
Afforded Mr.. C. an argument in support of his
construction. There then existed. he said. de-
prec ated paper currency, which could only be
regulated and made uniform b. giving a power
Tor mat purpose to the general government: The
states could not do IL. lie argued, Therefore. fa.
King into view the prohibition axalrst the states
issuing bills OF credit, that there was a strong
presumption tins power was intended to be ey
ciuslVey given to Congress. MIR. c. acknowieae-
ed there was no provision in the constitution By
which states were prohibited from creating the
banks which now exercised this power , but he
saidi' banks were then but little krown--therc
was but one, the Bank of North America with
capital of only 400,o dollars; and the un;ver.
sal opinion WIS, that bank notes represented srold
ana SILVER, and that there could be no necessity
10 prohibit banking institutions under this i'm
presslon, because their notes always represented
gold and silver, and they could not be rnultiDI;ed
beyond the demands OF the country Mr.. G. drew
the distinction between banks ofdeposit g banks
OF discount, the latter of which were then bur
tie understood--and their abuse not conceiyed
until demonstrated by recent experience. No
man, he remarked, IN the Convention, much tai
ent and wisdom as it contained could poss;bIv
have foreseen the course of these institutions
that they would have multiplied from one Ia two
hundred and sixty; from capital of 400 0oo dol.
lars to one of eighty millions from being con-
sistsnt with the provisions of the constitution.
ano the exclusive right of Congress to regulate
the currency, that they would be directly oppoyed
70 1t that so far from their credit Depending M,
Their punctuaiJty in redeening their bills with
specie, they might go on al tlfnituis in violation
oil Their contract, without dollar in their yaults
There had, indeed, Mr.. G. said been an extraor
binary revolution in the currency of the country.
by sort OF under-cuTTeRt, the power os Conpress
to regulate the money of the country had csyed
in, and upon its rum had sprung up those insti.
tutions which now exercised the right OF making
money for and in the United states-for gold ard
silver are not the only money, but whatever y the
medium OF purchase and sale, in which bank ma
per alone was now employ ed, and had therefore.
become he money of the country. A cbanpe
great and wonderful, has taken place, said he
,vitS a.vests ys.s Ct 1eyr risn,s, ana turns YoIi
back to the condition of the revolutionary wa,
IN which every state issued bills of credit, which
were made legal tender, and were OF various
value.
This then, Mr. C. said was the evil. We have
in lieu of gold and silver paper medium, une.
qually but generally deprecated, which affects
the trade and industry ofthe nation; which pa.
rallies the national arm which sulhes the faith
both public and private, of the United State,
paper no longer resting on gold mud silver as
its basis. We have indeed laws regulating the
currency of foreign coin but they are under
present circumstances mockery of legislation
because there is no coin in circulation. The
right of making money, an attribute of sovereign
power, sacred and important right, was exer-
cised by two hundred and sixty banks, scattered
over every part of the United States, not respon-
sible to any power whatever for their issues ofpa-
per- The next and great enquiry was, he said
how this evil as 70 be remedied Restore, sa d
he, these institutions to heir original use cause
them to give up their usuTped power; cause
them to return theirlegitmate Office Of nj, ces
as discount and deposit let them be no ioEpe,
mere paper machines restore the state Of lhHgs
which existed anterior to 1918, which was con-
sistent with the just policy and interests of the
country cause them TO fulfil Their contrac to
respect their broken faith resolve that every
where there shall be an uniform value to the
national currency your constitutional cont oil
viii then Treval.
Now then, he proceeded to examine was this
desirable end to be attained What difficulties
stood in the way The reason why the bans.s
could not now comply with their contract was
that conduct which in private life frequently
produces the same effect It was owing to the
Prodigality Of their engagements without means
10 fulfil them TO their issuing more paper than
they could possibly redeem with specie In the
United States, according to the best estimation
there were not in the vaults Of all the hanks
more than fifteen Millions of specie With q conf;
tai amounting to about eighty two millions of dol
lars Hence the cause OF the depreciation Of bank
notes.-the excess of paper in circulation beyond
that OF specie in their vaults. This excess was
visible 70 the eye, and almost audible to the ear
so familiar was the fact, that this paper was EN-
phaticklly called Trash, or rage. According 10
estimation, also, he said, there we're in cFcula.
ton at the same date, within the United States.
two hundred millions Of dollars of bank notes
credits, and bank paper, in one shape or other
Surprising thirty millions Of these 90 be in Do.
session Of the banks themselves, there were per.
haps one hundred and seventy millions actually
in circulation OF on which the banks draw nsef
est. The proportion between the demand and
supply which regulates the price of every thing
regulates also the value Of this paper. In pro
portion as the issue is excessive, il depreciates
IN value--and no wonder, when, since 1910 Or
1911, The amount Of paper in circulation had in.
creased from 80 or 90 70 200 millions. Mr. &.
here examined the opinion en- ertained by some
gentlemen, that bank paper had not deprecated.
but that gold and silver had appreciated, a posi-.
ton be denied By Arguments founded on tlfe
portability Of gold and silver, VII ch would equa
I've their value IN every part Of the United Stale,
and on the facts that gold and silver coin had IN
creased in quantity instead Of diminishing. aud
that the exchange with Great Britain had been
Get gold aud silver value) for some time pas,