The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-26

ucTeu STATE OF the HnanceS-Ol the clTcuiaI-
ing medium, and of consequence, the COM
merce of the country, and the want of public
credit, that first brought together the illustri-
Gus men at the close of the American Revo-
luton, to consult on the proper remedy for
these great and growing evils The Federal
Constitution was the fruit Of their delibera-
tons. And they believed, they had insured
to the people of the United States, a sound
and uniform currency, by giving to Congress
the power OF coming money, and regulating
the value thereof; and by expressly prohibit
ing that power to the States, as well as the
power of emitting bills of credit or making
any thing tender in payment Of debts, but
gold and silver coin.
"They prohibited these powers to the
States, be it observed, and NOT to Congress.
The great object was, that Congress, the le-
gislative power of the nation, should provide
sound and uniform currency for the people
Of the United States. To have this currency
sound and uniform, its regulation was given to
one Government, viz. the National Govern
ment. 1t must be sound, and it must be uni
firm; but it is not essential, in order TO COM
ply with the Constitution, that it should be of
goid and Silper. And the truth is, that it never
has been exclusively of gold and silver.
"A few months after the adoption of the
Federal Constitution, the revenue was remit
ted, by order of the Government, in bank notes
of the old banks that had been established be-
fore its adoption. And it was of course paid
out in bank notes. Yes, even at that pure
period, when American patriots Were just
fresh from the struggle for American liberty,
the revenue was received and disbursed, to a
certain extent, in bank notes.-the Govern
ment thus contributing to make them circu-
lating medium.
"What says the writer in this article, on
the subject of the restoration of specie pay
ments, and the re-establishment of our credit
and prosperity? How are they to be effect
ed Confidence being in some measure re-
stored says he, and money hauing again
begun to circulate in tile Union, every thing miH
gradually resume something like a quiet Stale
and all those indebted to Europe, who have
the power and the inclination TO cancel their
debts, may no doubt procure the means
Confidence must be restored, and money
must begin to c,reuiate.-And pray, how are
those two things to be effected By the Sub
Treasury system, which abandons the com
munity to its fate to struggle through disor-
dcred currency as it can-which proclaims to
the world that no sort Of confidence is to be
placed in the sovency Of the banks-and
which dishonors and discredts the only circu-
lating medium we have at this time, viz, bank
paper, by refusing to receive it in payment of
the public dues, under any circumstances
Is this the way in which confidence is to be
restored in ba:'S paper, and specie gradually
| q
fidence in the banks, by raising premium
upon specie !! Put specie into circulation,
by depreciating bank notes !! Enable the
banks to resume specie payments, by depre-
eating their paper, and inevitably producing
a premium upon specie ~ Is this the way in
which a sound and uniform circulating me-
dunn is TO be restored to this country, that
has at this time 800 banks with charters, ex-
tending 10 90, 30 and 40 years and circu-
lation of bank paper at this time amounting
to more than $50 millions How can the
Government restore to the community sound
and uniform circulating medium, by collect
ing its own debts in specie and paying its own
creditors in specie 1t could no more do it,
than could wealthy merchant in Richmond,
give to the whole State of Virginia specie
circulation, by collecting his debts in specie
and paying his debts in specie. The number
of debtors and creditors to the Government
bears perhaps the same proportion to the num-
bcr of debtors and creditors throughout the
United States. The Government to collect
its debts in specie, and pay its debts in spc
Gle :! How is that operation 10 induce or
compel A, B, and &, who have nothing to do
with the Government, to collect and pay their
debts in bank notes, when it is the only cir
culating medium of the country For, | deny
that specie ever will circulate, so long as it is
more UaluaJie than bank notes, and it always
will be more valuable, so long as the Govern
mcnt SO estimates it and will only receive it
in payment of the public dues If one man
in society demands and pays specie, can his
conduct compel 20 others to do the same, who
have nothing bu, bank notes in their pockets,
and no way of obtaining specie, except by
paying premium
1--WE have now in circulation new kind
of currency to an extent, | believe, never
known before in this country, which is degrad-
ing and disgraceful in the last degree to our
national character 1t has been denominated
BY some wag, shin plasters'-an appropriate
epithet to distinguish the diseased state of our
circulating medium. 1t consists Of paper of
all sorts of private banking. Hotel keepers,
shop keepers, store keepers, BARRIERS, and
every kind of corporation are issuing their pri-
vate bills Of credit, by the way Of making
change. Specie being at a premium, 1t IS
driven out of circulation nearly entirely. Now,
| would ask, if some ten or dozen gentle.
men in one of our cities, should refuse to re-
ceive " Mr.. Shin plaster" in the way of change,
would their refusal drive him out of circula-
ton 1t would not. Nor would the refusal
OF the Government TO receive Bank notes in
payment of the public dues, drive them out Of
circulation, so long as VIC have 500 or 900