Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1830-05-04
MIR. McDUFFIE'S REPORT.
CONTINUED.


the comparative uniformity Of the currency, furnish
cd by the bank, and also, to the obligation of the
bank toredeem it's bills indiscriminately at all the
Offices the committee will present few brief extracts
from the speech of statesman, whose opinions have
every title authority these important subjects
Mr.. Lowndes, in discussing the question: how far the
bank had performed the great duty for which it vas
created used the following decided language in 1872
when tho CURRENCY had reached the point of uni
fonity had now attained by half of one per cent.
"fhe great object of the government in chaftering
tho bank, was to provide currency which should
have that degreeof stability and uniformity in its val
Tie which is required by the 'ntereste both OF our
commerce and revenue. A currency, equally valu-
able at every place and every time cannot be pro-
yded by human wisdom. The nearest approach to
this object has been generally supposed to be afforded
of value. The 18th Congress did not aim at ideal
perfection; they wished TO combine with the conye-
niences Of bank circulation an uniformity of value
equal to TINT which was possessed by the precious
metals and the means which they employed to secure
this uniformity simple aud effectuaI, By euioin-
ing under heavy penalty, the payment If all its notes
in coin, upon den. nd. In the report, indeed, the
notes of the national bank said to be 'on the
sane footing with local banks OF the footing on
which local banks stood, he should speak hereafter:
but the price current upon his table informed him.
that The greatest discount braach notes Of the u
STATES was 0-4'hs of ore per This was q val
ire much more uniform than that which coin could be
expected TO have IN extensive a country. He had
y,
which had been published here, with high, end, in
respect to its ccarnsss and precision, with Just COM
mGndation-the work of Mr.. Tracy. He inferred
from one of his chapters that the difference of ex-
change between Marseiles and Paris was often from
tyo 10 three per cent IT. with all the facilities at
tdrded by the internal improvements in which France
is so rich, with currency consisting almost exclu-
sivey of gold and silver the variation the value of
money IS three times greater an Ter territory than on
continent, it be said, thai, in this respect the
bank has hsO objects
fore its establishment the value of bank notes. even in
the commercial states, had vuried 20 per from
each other; 81 none OF them bore fixed proportion
10 the precious metals. any natural standard it
was impossible to assign any limit their deprecia-
tion You have required that the currency furnished
by tine national bank should be every where CONVEX
tble into silver, and it is So You have expected that
IT should be as uniform as coin, and it is He
would not derain the committee by reading paper
which he had prepared with that intention, contain
ing the state of exchange since the establishment OF
the bank. with England, France, and Holland: for he
found himself occupying much more of their time
than he had expected. But he believed that any
member who should turn his attention to the sub
lect, would remark it's s.eadness during that period
lie thought himself justified drawing from this
fact conclusion highly favourable to the bank.
In reference to the great depreciation of the paper
OF the local banks, previous the establishment of
that of the u. States, he said
Did the interests duty of the government Of the
u States permit TINT this currency should be received
by 1t? Some dissatisfaction was expressed because
the branch notes ofthe United States Bank were at
discount of S-4ths of one per cent He read from
price current the state Of the market for bank notes
by ch 1t appeared that notes. which were insisted
10 be in very good credit varied from discount Of
two and a half to Of seven, fifteen, twenty-fiye
and even thirty per cent Was revenue to be- re-
caived in these notes. How were they to be employ
ed? They might be expended in The disrrc. in which
they were issued But was the expenditure of every
district to be exactly limited 10 its revenue. What
haT Af T{v4r0y
thing and not the name Our Unien MIGHT dissolve
In iuibecility as we'll as bo DESTROYED hy violence.
Did not union imply that the resources of ono State
Ifs money ms well as its men, might be employed for
the defence Of another?
sBut it the Government were wiling to bear the
das OF deprecated and unequal currency, it must
neglect the painest principle Of the Constitution in
doing so-equality of taxation. The committee must
1wel remember, that before the establishment OF the
National Bank such was the unequal value of CHI
rency in the different States that the merchants paid
dnties, varying fifteen per cent from each other ON
the same articles "
On the question, whether the bunk was boond to
redeem. indscrimnatey, the bills Of ell its branches
ne said:
"IIe should not argue that the bank was not bound
to pay it's notes, Unfortunately, at ell s Offices. He
believed that nobody now centended that it Yas."-
= Ii was no unfair account of the practical OPP
Grafton of the system of which he was spea king to
say that it gave to the branches where the exchange
unfavorable, the entire disposition of the specie
of those branches where the exchange was favora-
bic. Upwards Of six millions of specie have been
sent to the branch of New York; besides the amount
which has been paid by the subscribers of the bank
there's bat, in issuing notes which the bank of New
York has been obliged to redeem, every hranch
Throughout the country has drawn upon fund, With
whose condition at the time it could be ac9uains-
ed" Such system might be expected
to produce announcement changes in the distribution
of bank capital, extreme facility ofobtanng loans
at time and unexpected contractions Of discount
OF another."% %"Whenever the state ofexahange
is unfavsrahe, whenever the gust principles Of bank
ing require reduction Of discounts, then under this
system of indiscriminate payment Of its notes. the
bank has nothing to fear from draught of specie,
ands encouraged 10 lend to every applicant. lvher,
ever the exchange is favorable, aud the sound prn-
cples of banking, an enlarged accommodation might
be given to the community-there the dow of notes
from every State whose exchange IS nnfayorable,
cuntracts of suspends al the operations Of the bank
Thus, wherever discounts should be enlarged, the
tendency of this system is to reduce them, and 10
enlarge them wherever they should be reduced."
Independently Of the gross injustice Of reqp Dg the