The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-11-28


Senate of the United States Sept. 2Slh, 1887.
Concluded from our last.1
Sir, mine is not the ruthless hand that shall
strike at the State Banks, nor mine the tongue
that shall carelessy upbraid them with reuch-
cry or perfdy. | admit their lawful existence :
! admit their utility in the circle to which thew
properly belong. | only say they cannot per-
form national part in the operations of com.
merce. A general and universal accredited cur
rency, therefore, is an instrument of commerce,
which is necessary to the enjoyment of its inst
advantages, or, in other words, which is essential
to its beneficial regulations. Congress has power
to establish if, and no other power can establish
it; and therefore Congress is bound TO exercise
lis own power. 1t is an absurdity, on the very
face OF the proposition, to allege that Congress-
shall regulate commerce, but shall, nevertheless
abandon TO others the duty OF maintaining and
regulating its essential means and Instruments
we have III actual uses mixed currency; the
coin circulating under the authority Of Congress-
the paper under the authority Of the States. But
tins paper, though it fills SO great portion of all
the channels of circulation is not of general and
universal credit it is made up of various local
currencles, none of which have the same credit
or the same value, in all parts of the country ;
and therefore these local currencics answer bur
very loosely and defcicntly the purposes of gen
eralscurrency, and of remittance. Now, is it to
be contcndcd that there is no remedy for this 2
its care, circumspcctlon, and wisdom, has, new
erheess, left this great interest unprovided for
Is our commercial system so lame and impotcnt
Are our constitutional provisions and our polili.
cal institutions so radically defective? / think
not, sir. They do not deserve this reproach ;
and think it may now be easily shown that
under all administrations; from General Wash
ington's time down to the third OF March last, the
Government has felt and acknowledged its obi
CATION in regard to the currency, TO the full eX-
tent in which have stated it, and has constant
ly endeavored to fulfill that Obligation. Allow
me to go back to the beginning, and trace this
matter down to our times little i'll detail
In his first speech 10 Congress, in 1850, having
Just then assumed his new office, General Wash
imgton recommended no particular subjects TO
the consideration of Congress; but in his speech
at the opening of the second session, ne suggest.
ed the importance of n uniform currency without
distinguishing coinage from paper and this body,
in its answer assured him that it was Il subject
that should receive its attention. Recollcct, sir
at that time there were State Banks having notes
in circulation, though they Were few. The first
Bank of the United States was established at the
third session OF the Congress, in 1871. The bill
for its creation originated in the Scnatc the de
bates in which at lhat time are not public. We
have, hOWCveE, the debates in the House, we have
the reports of the Secretaries, and we nave the
law itself Let us endeavor TO learn, from these
sources, for ,Ohat objects this institution tcGS ere
UtCGj iCNttNGf currency
those objects.
Ccrtnnly, sir it must ho admitted that curren-
Cy was not the only object in Incorporating the
bank of 1871. The Government was now, its
fiscal affairs were not well arranged, it WAS great
~ in debit and the political state o things at the
Time rendered it highly probable that sudden oc,
casions for making loans would arise. That it
might assist the operations of the Treasury there !
fore, and shat it might make those oans TO Gov !
eminent, if pressing occasions should arise, were
two Of the purposes had in view in establishing
the bank. But it is equally clear that there was
a third purpose. and that respected commerce
and currency. To .fioniSh q currency for general
and 10 AID crchdngc aUdS, demonStraJEy
clea. distinct, and aroa0ed object an the creation
Of the first bank
On the 18th Of December 1890, the Secretary
OF the Treasury made report to the House OF
recommending a national bank
In this report, lie set forth the advantages ofsuch
m institution; one Of these advantages he says
consists Gin increasing the quantity of circulating
medium, and quickening the circulation" And
ne then proceeds to observe " This last may re-
luire some illustration. When payments are to
De made between different places, having an in
ecoursc of business with each other, if there
happen 10 be no private bills at market, and there
are no bank notes which have Il currency in both,
me consequence is, that coin must be RENTED.
Tins Is attended with trouble, delay, expense,
an" FISK. IT, on the contrary, there are bank
W III oOlll DldCeS inc transmission OIL
'hese, by the post, or any other speedy or con
VenIent conveyance, answers the purpose and
hese again, in the alterations of demand, are
frequently returned, very AFTER TO the place
whence they were first sent; whence the trans
)oration and re-transportation of the metals are
)bviated, and n more convenient and more ex-
oeditious medium of payment is substituted"
Is not this clenr proof, that one object, in es-
abllshing the bank, in the opinion Of the Secre-
airy, was the creation ola currency which should
nave general credit throughout the country, and,
~ means of such credit, Fshould become Il con-
,enient and expeditions medium of exchange?
Currency, sir, currency and exchange were then,
beyond all doubt, important objects, III the opn
on the proposer of the measure. to be accom-
,lished by the institution. The debates which
ook place in the House of Representatives con-
irm the same idea. Mr. Madison, who objected
o the bill on constitutional grounds, admitted
nevertheless, that one of the advantages of
'ank consists sin facilitating occasional remit ;
ances, from different places where notes happen