Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1836-12-21

of the act regulating tho dcposites of the
public money.
The umcxpende1 balances of appropria.
ton, on the LIST day of January next, are
estimated at Sl4,636,062, exceeding by
$1,000, OG2, the amount which will be left
in the dcposiie banks, subject to the drafts
of the treasurer of the United States, after
the contemplated transfers to the several
states are made. IT, therefore, the future
receipts should not be sufficient to meet
these outstanding and future appropriations,
there may be soon a necessity to use por-
ton Of the funds deposited with the states.
THE CURRENCY.
II Is apparent, from the whole context of
the constitution, us we'll as the history Of the
times which gave birth to it, that it was the
purpose Of the convention to establish a
currency consisting of the precious metals.
These, from their peculiar properties, which
rendered them the standard of value III all
other countries, were adopted in this, as
well TO establish its commercial standard IN
reference to foreign countries by perma-
nent rule, as TO exclude the use OF muablc
medium of exchange, such as OF certain
agricultural commodities, recognised by the
statutes of some states as tender for debts,
or the still more pernicious cxpedient OF a
paper currency. The past, from the ex-
pericncc of the evils Of the issues of paper
during the resolution, had become so Justly
obnoxious, as not only to suggest the clause
in the constitution forbidding the emission
of bills of credit by the states, but also to
produce that vote in the convention which
negatived the proposition TO grant power to
congress TO charter corporatlons--a pro-
position we'll understood ut the time, as in
tended to authorize the establishment of
national bank, which was to issue cur
rency of bank notes, on capital to be
created to some extent out Of government
stocks. Although this proposition was re.
fused by direct vote of the convention,
the object was afterwards in effect obtained,
by its ingenious advocates, through strain
ed construction of the constitution. The
debts of the revolution were funded, at
prices which formed no equivalent compar-
ed with the nominal amount of the stock,
and under circumstances which exposed the
motives of some of those who participated
in the passage of the act to distrust.
The facts that the value of the stock was
greatly enchanted by the creation of the
bank, that it was well understood that such
would be the case, and that some of the adj
vocates of the measure were largely bene-
fitted by it, belong to the history of the
times, and are well calculated to diminish
the respect which might otherwise have been
due to the action of the congress which
created the institution.
On the establishment of a national bank,
it becomes the interest of its creditors, that
gold should be superseded by the paper of
the bank, as general currency. A value
was soon attached to the gold coins, which
made their expectation to foreign countries,
as mercantile commodity, more profitable
| than their retention and use at home as
money. 1t followed, as matter of course,
if not designed by those who established
the bank, that the bank became, in effect, a
substitute for the mint of the United States.
Such was the origin of a national bank
currency, and such the beginning of those
difficulties which now appear in the excess
sive issues of the banks Incorporated ythe
various states.
1 ~ ExcEssfvE BzNRfNe. ~ 'H'
II The progress of an expansion, or rather
\ depreciation Of the currency, by exces-
\ sive' bank issues, is always attended ~ 9
4 loss to the laboring classes. This poruoa
! offhe community have neither timo2horop'
/ b6rtunity to watch the GIBBS and flows o. o.
ia<ney market. Engaged from day - 81
1 ID der usual .oils, they do not perceixe tnn
Ial13ukh their wages are nomine'ly TN
soak 81 even somewhat higher, they falS
1yrcduced in fact by the rapid increesI
an rH6rious currency, which, aelCoc4
psG1s IS make money abound, they erSe4
hr incIined to consider blessing. Avn
with the Speculation, by whom th
h Ion is better understood, aud u nuad'
Y q rcAtribute to his advantage. NJ ~
3he prices of the necessariee 90
1ne so dear that the laborln9
lot supply their wants out of thelf
the wages rise, and gradually re9cn
" proportionsd rate to that of u1oyt10
1oeis of their labor. When thus BY a
seciation in consequence ofthe qnhnu9
baper in circulation, wages as 49,
les become exorbitant, it is soon ~
otthc whole effect of the adulteratid48
"a on our home industry for the bontA
q INC countries where gold and silver ciI
culate, and maintain uniformity and modoff
Ia in prices. 1t is then perceived that th
snchancement Of the price of land and Ia
III produce corresponding increase in th
prjoc of products, until these produces
sustain competition with similar tqc
I1o tther countries and thus both man
Nd and agricultural productions cease
/ - expectation from the country q v
(60s currency, because they carno( ,
s5Il1 fbf cost. This is the process BY wIIlc
\ Ispccie is banished by the paper of the banks
Their vaults are soon exhausted to par =
I I6reign commodities; the next stet =
t6(6ppage of specie payment; tota T.
ftd ationo puper as a currency ~
den1c16Ion OF Prices !; The ruin Of
IA - accumulefion' q ropcrt{ Z
! kd1ds OF credilors and a. BUS g lst
P1BEiCr fHSSsa. 40. 'eohnafA- 7
The effects of an extension of bank ere
dts and over issues Of bank paper, hav
been strikingly illustrated in the sales ofth
public lands. From the returns made b
the various Registers and Receivers in tn
on rlv mart of last summer IL was perceiy