Phenix gazette. [volume] (Alexandria [D.C.]) 1825-1833, 1830-04-12
NATIONAL CURRENCY.

The Committee on Finance, TO which 'cas re-
ferrea resolution ofthe 50th December, 1929,
directingthe COmmiHeeto iaquireiato me erpe,
,iiency of ESTABLISHING az uniform National
C,trrsncY for the United States, and 20 report
thereon to the Senate, report:
That nothing short of the imperative order
or the Senate could induce the committee to en-
Ter on a subject so surrounded with dltilculty.-
they undertake it with dillidence and distrust
of their capacity TO eucidate subject that has
engaged many nations. and the pens OF the a6lest
writers. without, as vet, coming to any dehnte
conclusion. 1t still remains 20 be determined,
What is the soundest & most uniform currency!
One nation assumes one system, another oil
(erent plan. In one nation plan is devised, and
succeeds for time by prudent and restrictive
emissions Elated with success, larger and
more extensive emissions are risqued; rapid
nominal rise of all property takes place; the peo-
ME are not aware that such nominal rise IS the
effect of depreciation; the bubble bursts, and ru-
IN TO the unsuspectlng, is the consequence. All
history shows such result in several nations,
and particularly that of the United States. The
Committee, engaged on a variety OF subjects,
cannot devote SO much time on the resolution as
the mover must believe would be necessary to
develOpe fully the question before them, to wit:
4 sound and uniform National Currency. Pre-
suming. from the tenor OF the resolution, that the
uniform National Currency proposed, must be
prepared by the National Government, circulat-
ed under its authority, and maintained by ITS
credit the committee have complied with the in
struction Of the Senate, by endeavorng to devise
some plan. through which the agency OF the Gov
eminent. in such measure, could be safe or
useful: but, after giving to 1t all the consldera-
ton they could bestow, their reflections have re-
suited in belief that any such measure must re-
solve itself, at last, into mere system OF paper
money, issued by the Government. The resort
to the issue of paper money has been often the
desperate expedient of the wants Of nation. 1t
has then found its justification only in the neces
s;ty which created it: vet such are its inevitable
evils, that every prudent Government has, the
moment its pressing exigencies permitted, re-
turned to the only safe basis of circulating me-
dunn, the precious metals, and the private credits
attached to the use of them. Such were the eX-
Incidents of the Government of the United States
during its two wars; such its immediate abandon
ment of them at the return of peace. But, in the
present condition of the Treasury of the United
States, with revenue far beyond its wants, with
debt almost nominal, and fastening to its en-
tire extinguishment, such measure is not need
ed by the interests of the Government, nor Is
there the slightest indication of its being demand
ed by the wants Of the country. OF such an
issue of paper money. the Executive at Washing
ton would be the natural fountain. The agents
of the Executive. the natural channels. The In
diyiduals, corporations and states who borrowed
it, must become debtors to the Government
and the inevitable consequence would be, the
creation of a monied engine of direct dependence
on the officers Of Government, at variance with
the whole scheme of our institutions. The hm
to which this currency should be issued, the per
sons to whom it would he lent, the securitie:
taken for Its repayment, the places where i
should be redeemed, involve great complication
and great hazard, regarding it merely In tinan
cial point of view. while, on more enlarged con
siderations, ofpolitical expediency the objections
to it are, in the opinion of the committee, nsu
perable and fatal.
Relieving sucha scheme to be impractcab!e
the committee were consoled with the reflection
that il is unnecessary. as they are satisfied tina
the country is in the enjoyment of an uniform ma
tional currency, not only sound and uniform IL
itself. and perfectly adapted to all the purpose
of the Government and the community, but more
sound and uniform than that possessed by an,
other country. The Importance of this truth vii
Justify the committee in stating some details t.
establish it.
The currency of the United States, the oni,,
legal currency, is gold and silver. All debts tt
the Government, and all debts to individuals
being received in that medium, and In no other
AS, however the amount of coin requisite To-
these purposes would be unmanageable and In
convenient, the United States like other CONNER
cial countries, have adopted the system of max
ing credit supply many of the uses of coin; an'
numerous banking companies have been estab
lished. issuing notes, promising to pay on de
maud. gold and silver. The Government of thu
limited States has established one Of similar
character; and for the convenience of the com
mun;ty. the public revenue is collected in golt
and silver. the notes of the Bank of the United
States and the notes of such solvent States banks
as the Bank of the United States and its branch
es will receive as cash.
The currency, therefore, of the United States
in its relation to the Government of the United
States. consists Of gold and silver, and of note
equivalent to gold and silver. And the INQUIRY