Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1836-12-15

,ance. and Il deterioration of morals. have
aught us the important lesson, that any tram
'ient mischief which may attend the reduction
81 our revenue TO the wants of our Govern
ment. Is to be borne In preference to an
overlooking Treasury.
L beg leave to call your attention to another
subject intimately associated with the pre-
esd'ng one-the currency Of the country.
1t is apparent, from the whole context Of
the constitution, rs well as the history OF the |
times which gave birth TO it that, il was ihs |
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 in all
other countries, were adopted .imthis, as we'll
ia. essabllsh ITS commercial standard in re.
FERENCE To- foreign counties by permanent
rule. as 10 exclude. the use of mu,able
medium of exchange. such as of certain
agricultural comnlodities,, recognised by the
statutes Of some States as a tender for debts,
or the still more pernicious eXpedient of
paper currency: The last, from the expe-
rlence of the evils, of the issues Of paper
during he.revolution, had become so Justly
obnoxious, as.dlot only to suggest the clause
in the constitution forbiding the emission of
bills Of credit ha the States, but also to pro-
ouee that vote IN the convention which mega
rived the, proposition to grant power to
Congress. to charter corporations-a pro-
: position yell understood at the time as in
tended to,anthorize the establishment of a
-natlo,,ai bank, (which was to issue a curren-
cy OF bank notes. on capital to be created
e, TO some, extent out of Government stock
: Although thfs proposition was refused by a
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 revou-
ton were funded, at prices which formed no
equivalent compared with the nominal a.
mount of stock and under circumstances
which exposed the motives of some Of those
= who participated in tie passage Of. the act to
!: .disirus.
Z The fact that the value of the stock ,wae
= greatly enhanched 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 bene
fitted by ii, 'belong to the history ofthc times
= and are well calculated to diminsh the re.
spect which might otherwise have been due
70 the action Of the Congress WHICH created
the institutions.
On the establishment of national bank
. 1t became the interest of its creditors, tina
( gold should be superseded by the paper OF tn,
bank as a general currency, Avalue wa.
soon attached to the.gold. coins, which mad,
their expectation TO foreign countries, as ;
mercantile commodity, more profitable thar
their retention and use at home as money
1t followed, as matter of course, if moi
designed by those who established the bank
that the bank became in effect substitute
/: for the mint of the United States
: Such WAS the origin of national banl
Nd IL, l. 1
g difficulties which now appear in the excessiv,
issues OF the banks. incorporated by the va
: rlous States.
Although it may not be POSSIBLE by an,
; Legislative. means within our power, tc
= change at once the system which has thu:
been introduced. and has received, the &C
:: quleScence of all portions of the country il Is
certainly OUT duty to do all that is consisted
with our constitutional obligations in prevent.
! Tng the misc biefs which are threatened by
) its undue extension. That the efforts Of the
fathers of. our Government to guard against
: it by a constitutional provision were founded
{ on an intimate knowledge of the subject, has
. been frequently attested by the bitter expiri
e ence of: the country. The same cause:
which led them to refuse their sanction to
.sspower authorizing the establishment of in
corporations for banking purposes, row Elk
=. iot ii-q tutCH SIlOuSeE ueSGee 10 urge us e
exert the utmost vigilance in calling. into ac
ton the means necessary 10, eorFec; the evil:
resulting.from the unfortunate exercise of the
power, and it is to be hoped that the oppor
tunity for otfectine this great good, will be
improved before the country witnesses new
scenes OF embarrassment and distress.
Yaflabsepess must ever be the characteristic
of a currency, of which the precious metal:
r. are not the chief ingredient, or which can bt
expanded or. contracted without regard TO TIT
principles that regulate the value CT GhoS,
,. metals as standard in the general trade O
: the world. With us bank issues constitut,
. such currency, and must ever do so unit
. they are made dependent on those just pro
portions al gold and silver, as a circulating
medium, which experience mas proved to b,
p. necessary not only in this, but in all othe
commercial countries. Where those proper
tons arg not infused into the circulation, anc
:: 30 not control it, ii is manifest that prices mus
vary according to the tide Of bank issues
:: and the value 8n5 Sta billy of property mus
STAND exposed total the uncertainty which
u attends the. admisjstraiion Of institutions tina
are consiaNly @.i;eble to the temptation of ar
interest distinct from that Of the,sammunily
IN which they arg established
The progress OF an expansion or rather
depreciation OF the currency. by excessive