Vermont telegraph. [volume] (Brandon [Vt.]) 1828-1843, 1836-12-14
Vol. IX....No. H..

ties which rendered them the standard Of
value in all other countries, were adopted
in this, as we'll to establish its commercial
standard in reference to foreign countries
by permanent rule, as 10 exclude the use
of mutable medium of exchange, such as
of certain agricultural commodities, Ieccg-
nized by the statutes of some states as a
tender for debts, or the still more PERM
cious expedient of a paper currency. The
last, from the experience of the evils Of
the issues of paper during the revolution,
had become so Justly obnoxious, as not on.
" 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 corporations-a proposition well
understood at the time, as intended to au'
thorize the establishment of a national
bank, which was to issue currency OF
bank notes, on a capital to be created to
some extent out Of Government stocks.
Although this proposition was refused by
direct vote of the convention, the object
was afterwards in effect obtained, by its
ingenious advocates, through strained
construction Of the constitution. The
debts of the revolution were funded, at
prices which formed no equivalent COM
pared with the nominal amount of the
stock, and under circumstances which ex-
posed the motives of some of those who
participated in the passage of the act to
distrust.
The facts that the value of the stocks
was greatly enhanced by the creation of
the bank, that it was we'll understood that
such would be the case, and that some of
the advocates Of the measure were largely
benefited by it, belong to the history Of
the times, and are we'll calculated to di.
minlsh the respect which might other
wise have been due to the action of the
Congress which created the institution.
On the establishment of a national bank,
it became the interest Of its creditors, that
gold should be superseded by the paper
of the hank, as a general currency. A
value was soon attached to the gold
coins, which made their expectation to
foreign countries. as a mercantile COM
modify, more profitable than their reten-
ton and use at home as money. Il fol-
lowed, as matter Of course, if not de-
I" signed by those who established the bank,
that he bank became, in effect, substi-
tute for the mind ofthe UnifS States.
Such was the origin of a natiena
bank currency and such the beginning
: Of those difficulties which now appear
in the excessive issues of the banks in
= corpeated by the various States.
} Although it may not be possible, by
! any Legislative means within our power
t to change at once the system which has
thus been introduced, and has received
5 the acquiescence of all portions of the
: country. it is certsinly our duty to do all
that is consistent with our constitutional
4 obligations in preventing the mischief
. which are threatened by its undue exen-
e sion. That the efforts of the fathers Of
. our Government to guard against it by a
n constitutional provision were founded on
# an intimate knowledge Of the subject, ha.
i been frequently attested by the bitter ex
: perience the country. The same eau
# ses which led them to refuse their sane.
e ton to power authorizing the establish
IS ment OF interpretations for banking pur.
it poses, now exist in much stronger de-
1t gree to urge US to exert the utmost vigi.
n lance IN calling into action the means me-
l. cessary to correct the evils resulting from
t the unfortunate exercise of the bower,
IF and 1t is to be hoped that the opportunity
J. tor ettecting this great good, will be i'm
r proved before the country witnesses new
e scenes of embarrassment and distress.
If VarlabIeness must ever be the charac
l. ter'stlc OF currency, of which the pre-
'r cIous metals are not the chief ineredien
J. or which can be expanded or CONTRACTED
d without regard to the principles that reg
h. ulate the value of those metals as stan.
in dard in the general trade of the world
e. With us bank issues constitute such a cur
10 rencY' and must ever do so until they art
S, made dependant on those Just proportions
p OF gold and silver, as circulating me
K dun, which expert ance has proved to
d. necessary, not only in this, but in a
~ other commercial countries Where thos
a proportions are not Infused into the circu
I'd lat'on' and DO not control it, it is manifes
n that prices must vary according 10 III
a t'de OF bank issues, and the value and s;a
r. b,lhy OF property must stand exposed t
IN all the uncertainty which attends the I'D
al mln'stratIon of institutions that are con
he stantly liable to the temptatioc of an inter
en- est distinct from that of the community il
on which they are established.
~ The progress of an expansion, or rath
ne er depreciation of the currency, b. ex
he cesslVe tank issues, is always attended /
al loss to the laboring classes. This por
er- ton OF the community, have neither tim
ed nor opportunity to watch the GIBBS an
his flows of the money market. Engage