The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1836-12-14

tion Of the Congress which created. the
institution.
Ofthc establishment ofa national hank
it hecomes The interest of lis creditors.
that gold shonld he superceded by the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 a mercantile com
modify, more profitable than their retei,-
tion and use at home as money. II fol-
loved, as n matter of course, if not des-
igDed by those who established the bank,
that the bank became, IN effect, "a substi-
for the mint Of the United States.
Such was the origin of u natonnl bank
currency, and such the beginning of
those difficulties. which now appear in
the excessive issues of the banks incor-
pora,ed by the various Suites.
Although it may not be possible, by any
Legislative means witdin our power, Ia
change at once The system which h,is thus
been Introduced, aud has received the ac-
quiescence of all parts of the country, it
Is certainly our duty TO do all that
is consistent with onr constitutional
obligations in preventing the mischiefs
which are threatened by its undue ex,en-
sim. Tha: 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
experience of the country. The same
causes which led them to refuse their
sanction to power authorizing the estab-
lishment of banking purposes, now exist
in much stronger degree to urge us to
exert the utmost vigilance in calling into
action the means necessary to correct the
evils resulting from the unfortunate ex-
ercise of the power and it is to be hoped
that The opportunity for effecting this
great good, will be improved bef6re the
country witnesses new scenes of embarass-
ment aud distress.
Variableness must ever be the charac-
teriSiic- of II currency, of which the pre-
cious metals are not the chief ingredient,
or winch can be expanded or contracted
without regard to the principles that reg
ulate the value Of those metals as STAN
dsrd in the general trade of the world.
With us, bank issues constitute such tt
currency, and must ever do so until they
are made dependent on those just propor-
tions of gold aud silver, as a circulating
medium, which experience has proved to
be necessary, not only in this, but IN all
other commercial countries Where
those proportions are not infused into the
circulation, aud do not control it, it is
manifest lla prices must vary according
TO the tide of hank issues, and the value
and stability of property m, st stand ex-
posed tO all the uncertainty which attends
the administration or institutions that are
constantly liable to the temptation of an
interest distinct from that of the coinmu-
, nifty in which they are established.
The progress of an expansion, or rath-
er depreciation of the currency, by ex-
cessive bank issues is always attended by
Il loss 10 the laborIng classes. This por-
tion "f tn, community have neither time
nor opportunity to watch the ebbs and
flows of the money market. Engaged
from Gay to day in their useful tolls, they
do not perceive that although their wages
are uomina!ly the same, or even some-
what higher, they are greatly reduced III
fact by the rapid increase of a spurious
currency which, rs it appears make mon
ey abound, they are ut first inclined to
consider Il blessing. IL is not so with the
speculator, by whom this operation IS
better understood, and is made to con-
tribute to his advantage. |; is not until
The prices ofthe necessaries of life become
so dear that the laboring classes cannot
supply their wants out of their wages,
that the wages rise, and gradually reach
a Justly proportoned rate to that of the
products of their labor. When thus by
The depreciation in consequence of the
quantity of paper in circulation, wages,
as well as prices become exhorbitant, it
is soon found that the whole effect of the
adulteration is n tariff Oh our hnme in-
dus.ry for the benefit of the countries
where gold and silver circulate, and main
tain uniformity aud moderation in prices.
II is then perceived that The enhancement
of the price of land and labor produces a
corresponding increase in the price of
products, until these products do not sus-
tttu u COiDpttillut WIN siUiiiui OitS III
other countries and thus both manufac-
tured and agricultural productions cease
to bear expectation from the country of
spurious currency, because they cannot
he sold for cost. This is the process BY
which specie is banished by the paper of
the banks. Their vaults are soon ex-
haustcd to pay for foreign commodities
the next step is stoppage of specie pay
ment total degradation Of paper as a
currency; unusual depressl"ns of prices /;
the ruin of debtors, aud the accumulation
of property in the hands of creditors and
cautious capitalists.
Il was in view Of these evils, together
with their dangerous power welded by the
Bank of the United States, and its repu G.
nance to our constitution, that was in
duced tn exert the power conferred upon
L., al.