Constantine republican. [volume] (Constantine, Mich.) 1836-1838, 1836-12-28
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pr to distribute even a temporary surplus OF
revenue is Of that character, that il was sug-
gested only in connexion with an appeal to
the source of all legal power in the general
the states which have esiab-
lished il.
No such appeal has been taken, and in
my opinion distribution of the surplus re-
venue by congress, either TO the states or
the people, is to be considered as among
the prohibitions of the constitution. AS al
ready intimated, my views have undergone
a change, SO far as to be convinced that no
alteration fthe constitution in This respect
is wise or expedient. The influence Of an
accommodating surplus upon the legislation o!
the general government and the states, lis
effects upon the credit system of the coun-
try, producing dangerous extensions and
ruinous contractions, fluctuations in the
price Of property, rash speculation, idleness,
extravaganza, and deterioration of morals,
have taught us the important lesson, that any
transient mischief which may attend the re-
duction of our revenue to the wants OF cur
government, is to be bono in preference to
an overAowing treasury.
beg leave to call your attention to an
other subject intimately associated with the
preceding one--the currency of the country.
II is apparent, from the whole context OF
the constitution, as well as the history of the
times which gave birth to it, that it was the
purpose of the convention to establish
currency consisting of the precious metals.
These, from their peculiar properties, which
rendered them the standard of value in all
other countries, were adopted in lhls, as
well to establish its commercial standard in
reference to foreign countries by perma-
nent rule, as to exclude the use OF mutable
medium of exchange, such as of certain
agricultural commodities, recognised by the
statutes Of some states as tender for debts,
or the still more perncious expedlent OF
paper currency. The last, from the en-
perience Of the evils Of the issues Of paper
during the revolution, 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 corporations--a pro-
position well understood at the time, as in.
tended to authorize the establishment of a
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
<aJ x>f ha constitution Tho
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 enhanced by the creation of the
bank, that it was well understood that such
would be the case, and that some of the ad.
vocates Of the measure were largely benc-
fitted by it, belong to the history of the
times, and are we'll 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 national bank,
II became the interest of its creditors, that
gold should be superseded by the paper OF
che 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, q
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 by the
various states.
Although it may not be possible, by any
Legislative means within our power, to change
at once the system which has thus been in.
:roduced and has received the acquiescence
of all portions of the country, it is certainly
our duty to do all that is consistent with
our constitutional obligations in preventing
the mschiefs which are threatened by its
undue extension. That the efforts of the
fathers of our Government to guard agains
it by constitutional provision were found
ed on an intimate knowledge of the subject
has been frequently attested by the bitter ex
perience of the country. The same cause:
which led them to refuse their sanction to Q
power authorising the establishment of in.
corporations for banking purposes, now ex.
list in much stronger degree to urge US tc
exert the utmost vigilance in calling into &C.
tion the means necessary to correct the evils
resulting from the unfortunate exercise o.
the power, and it is to be hoped that the op
portunity for effecting this great good, will
be improved before the country witnesses
new scenes Of embarrassment and Distress
Variableness must ever be the charac
teristic Of currency, Of which the precious
metals are not the chief ingredient, OF
which can be expanded or contracted with
out regard to the principles that regulate the
value OF those metals as standard in the
general trade of the world. With us bank
issues constitute such currency, and mus
ever do so until they are made dcpenden
on those just proportions Of gold and silver
as circulating medium, which experience
has proved to be nece ssary, not only il
this, but in all other countries. Where thos'
proportions are not infused into the circula
ton, and do not control it, it is manifest tina
prices must vary according to the tide 0
bank issues, and the value and stability o
property must stand exposed to all the un
certainty which attends the administration
Of institutions which are constantly LA