Litchfield enquirer., 1836-12-09

the Convention to establish currency consist ing Of the precious metals. These, from the peculiar properties, which rendered them tn, standard of value in all other countries. were adopted in this, as well to establish it's commer cIal standard in reference to foreign countries b, permanent rule, as to exclude the use of nn euaI medium of exchange. such as of certain az ricuItural commodities, recognized bv the stat utes Of some States as tender for debts, or tho still more pernicious expedent of paper curren cy. ihe last, from the experience of the evils O the issues of pap"r during the revolution, had be come so justly obnoxious, as not only to s,l sges the clause in the Constitution forhitl,ling the emission of bills of credit by the States, but also to produce that vote in the Convention which nesatived the proposition to grant power to Con gress to charter corpuratiOns-a proposition well understood at the time. as intended to authorize the establishment of national bank, which was to issue currency of bank notes, On capital to be created to some extent out of Government stocks. Although this pro position was refused by direct vote of the COnventOn the object was afterwards in effect obtained, by it's ingenious ad vOcates, through strained construction of the Constitution. The debts of the revolution were funded, at prices which formed no equiva lent compared with the nominal amount of the stock and under circumstances which exposed the mo lives of some of those who participated in the passage of the act to distrnst.
 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 advocates of the measure were largely benefited by it. belong to the history of the times land 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 national bank, it became the interest of it's creditors that gold should be perseded by the paper of the bank general cur. | rency. value was attached to the gold coins which made their exportati0n to foreign countries as mercantile commodity, more profitable than their retention and use at home money. It follow ed as matter of course, if not designed by those who established the bank, that the bank became, ir effect, substitute for the mint of the U. States. Such was the orig in of national bank currency and such the eginning of those difficulties whicl now appear in the excessive issues of the banks in corporated by the various States.
 Although it may not be possible by any legislative means within olr power, to change at once the sys tenn which has thus been introduced, and has receiy ed the acquiescence of all portions of the country 1t IS certainly duty to do all that is consistent with our constitutional Obligations in preventing the mis chefs which are threatened by it's undue extension That the efforts of the fathers of our Government tc guard against it by constitutional provision were founded on an intimate knowledge of the subject has been frequently attested by the bitter experience of the country. The same causes which led them
 
 establishment of interpretations for banking purpo- ses, now exist in much stronger degree to urge to exert the utmost vigilance in calling into action the means necessary to correct the evils resulting from the unfortunate exercise of the power and it is to be hoped that the opportunity for effecting this great good will be improved before the country witnesses new scenes of embarrassment and distress.
 Variableness must ever he the characteristic ol currency, of which the precious metals are moi the chief ingredient. or which can be expanded or contracted without regard to the principles that regulate the value of those metals us stand ard in the general trade of the world. With us bank sues constitute such currency, & must ever do so until they are made dependent on those just proportions of gold and silver, as circnlat ing medium, which experience has proved to be necessary, not only in this, but in all other com mereia countries Where those proportions are not infused into tke circulation, and do not con. tro it, it is manifest that prices must vary accord. ing to the tide of bank issues, and that the value and stability of property must stand exposed to all the uncertainty which attends the administra- ton of institutions that are constantly liable to the temp atiOn of an interest distinct from that of the community in which thoy are established
 The progress of an expansion, or rather de precia.ion of the currency, by excessive bank is. sues, is always attended by loss to the laboring classes This portion of the community have neither tune nor Oppornnlty to watch the ebbs and flows of the money market. Engaged from day to day in their useful tpils they do not per ceve that although their wages are no,AilmlIy the came, or even somewhat higher, they are greatly reduced in fact by ,he rapid increase of a spnri oas currency. which, as i, appears to make mon ey ahonud they are at first ncli,ed to cnnsider a blessing It iS not so with the specnator, by whom this operation, is understood. and is made to con'Tsite [" his advantage. l. is not until the prices of the neces.aries of life become SD dear that ihe laborinS classes cannot supply their wants ont of their wages, that the wages liSe and gradually reach their prororonet rae to that of the prndncts of their labor. When thus by the depreciation in consequence of the quantity of paper in circulation, wages as well us prices be- come exorbi;ant, it is soon found that the whole effect of the adulicralion is tariff on our home industry for the beneit of the countries where gold and silver circulate. and maintain nniforni.