The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-09-12

thirty-on previous years. The prospect OF further
improvement continued without abatement, unti
the moment of the suspension of specie payments
| This policy has now indeed been suddenly check
ed, but is still far from being overthrown. Amidst
all conflicting theories, position Is undenlapie
the precious metal will invariably disappear when
there to DO necessity for their Use as Cir
culating medium.
| 1t was in strict accordance with this TRUTH thai
whilst in the month of May last, they were every
where seen and were for all ordinary purpos-
es disappeared from circulation the moment the
payment Of specie was refused by the banks, ana
the community tactly agreed to dispense win Its
| employment Their place was supplied by n cur
rency exclusively of paper, and, in many cases. OF
the worst description. Already arc the bank notes,
now in circulation greatly Deprecated, and they
auctuate in value between one place and another;-
thus diminishing and making uncertain the worth
of property and the price of labor, and failing to
subserve, except at heavy loss, the purposes or
business. With each succeeding day the metallic
| currency decreases; by some 1t is boarded Ill the
natural fear, that, pan ted with it cannot DO
repased, whilst by others it is diverted rom ITS
more legitimate uses sfor the sake OF gain. Should
Congress sanction this condition OF things by max
ing rredeemaele paper money receivable IN pay
ment of public dues, temporary check to wise
and salutary policy WILL in all probability, be con-
verted into its absolute destruction.
1t is true that bank notes actually convertible
into specie, may be received in payment OF the
revenue, without being liable to all these ob]ec-
tons, and that such course may, to some extent,
promote individual convenience; an object always
principles of our Government, or the general well
fare Of the country. If such notes only were recelv-
ed, and always under circumstances allowing their
early presentation for payment and II, at snort ana
fixed periods they were converted into specie, 10
be kent by the officers of the Treasury some OF the
most serious obstacles to their reception would
perhaps be removed. To retain the notes In the
Treasury would be TO renew, under another form,
the loans Of public money to the banks, ana the
evils consequent thereon.
1t is, however, mistaken impression, that any
large amount of specie is required Tor pubic pay
mcnts OF the seventy eighty millions now es-
tmated to be in the country, ten millions would Dc
abundantly sufficient for that purpose, proVlded an
accumulation of large amount OF revenue, beyond
the necessary wants of tho Government, be mere
after prevented If to these considerations be al a.
ed the facilities which will arise from enabling Inc
Treasury satisfy the public creditors, by Its drafts
notes received in payment of public dues, II may
be safely assumed that motive of convenience To
the citizens requires the reception Of bank paper.
To say that the refusal of paper money by the
Government, introduces an unjust DISCRIMINATION
between the currency received by II, and that useo
by individuals in their ordinary affairs, is, in my
Judgment 10 view it in a very erroneous lighl.
The Constitution prohibits the States from making
any thing but gold and silver 4 tender In the pay
ment of debts, and thus secure TO every citizeh
right to demand payment in the legal currency.
To provide by law that the Government will not
receive its dues in gold and silver is not 10 confer
on it any peculiar privilege but merely TO place
on an equality with the citizens, by reserving to
him right secured to him by the Constitution.
1t is doubtless for this ieason that the principle has
been sanctioned by successive laws, from the time
of tho first Congress under the Constitution down
to the last Suc, precedents, never objected to
and proceeding from such sources, afford decisive
answer to The imputaon of inequality or injustice.
But in fact the measure is one of restriction not
ofIiavor. To forbid the public agent TO receive In
pavmnet any other than certain kind OF money,
is 10 refuse him discretion possessed by every
citizen. 1t may be lett TO those who have the man
agement of their own transactions, to make their
Int cuch should
to him who acts merely as an agent oil the people,
who is to collect what the law requires, and 10 pay
the appropriations it makes When bank notes are
redeemed on demand, there is then no dlscrlmina-
alton in reality, for the individual " no receives
them may, at his option, substitute the specie Tor
them; he takes them for convenience or choice'
When they not SO redeemed, 1t Will scarcely
be contended that their receipt and payment, ny
public officer should be permitted though none de-
ny that right individual; if it were, the effect
would be most injurious TO the public, since their
officer could make none Of those arrangements to
meet or guard against the depreciation, which an
individual is at liberty to do. Nor can inconve-
nience to the community be alleged as an object
to such regulation. Its object and motive are their
convenience and welfare.
If at a moment of simultaneous and unexpected
suspension by the banks, it adds something to the
many cmbarrassmcns ofthat proceeding, yet these
are far overbalanced by its direct tendency to pro-
duce Il wider circulation of gold and silver, to in
the safety of bank pape,t improve the gen
era currency, and thus TO prevent altogether such
occurrences, and the other ana lar greater evils
that attend them
1t may, indeed, be questioned, whether it is not
for the interest of the banks themselves that the
Government should not receive their paper. They
would be conducted with more caution and on
sounder principles. By using specie only in its
transactions, the Government would create a de-
mand for it, which would, to great extent, Prevnt
its expectation, and by keeping 1t in circulation,
maintain broader and safer basis for the paper
currency. That the banks would thus be rendered
more sound, and the community more safe, cannot
admit Of doubt.
The foregoing views, it seems to me, do but fair
ly carry out the provisions of the Federal Constitn-
ton in relation to the currency, as far as relates to
the pubic revenue. AT the time that instrument
was framed there were but three four banks in
the United States; and had the extension OF the
banking system, and the evils growing out of it,
been forcseen, they would probably have been spe-
cally guarded against. The same policy which
led to the prohibition of b Us of credit by the States,
would doubtless, in that event, have also interdlct
ed their issue as a currency in any other form
The Constitution 'howeye cOnta inS such pro-