Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1837-05-30


ing the necessary means of carrying on the opera
IioRs of the government. To pervert this power
from the object thus intended by the constitution, 20
that of REFRESHING the circulation Of bank notes. would
be TO convert II from revenue into penal power
power in It's nature and object essentially uiiierehl
from that intended TO be granted IN the CONSTITUTION
and power, which in its full extension II once al
med would be Sufficient OF itself 10 give an enlire
control 10 this government over the property ana tAt
pursuits of the community and thus concentrate and
consolidate the entire power Of the system in this
government.
Rejecting, then, the taxing power there remains
two obvious and direct means in possession of the
Government which may be brought into action 10
effect the object intended but neither of which, either
separately or Jointly are Of sufficient efficacy how
ever indispensable they may be as part of an eff
Gent system of measures TO correct the present or
repress the growing disorders of the currency-l
mean that provision IN the Constitution walch en-
powers Congress to coin money regulate the value
thereof and foreign cin and the power OF prohibit
ing any thing but the legal currency to be received
either in whole or in part in the dues of the Govern
ment The mere power of coming and regulating the
value OF CONS OF itse and unsustaned by any other
measure, can exercise but limited control over the
actual currency Of the country, and Is inadequate 10
check excess correct disorder, is demonstrated
by the present diseased state of the currency COR
gress has had, from the beginning, laws upon the
statute books TO regulate the value OF the coln ana al
an early period of the Government the mint was
erected and has been in active operation ever since;
and yet, of the immense amount when mas Deen
coined, a small residue only remains IN the country;
the great body having been expelled under the opera
ton of the banking system. To give efficacy to this
power then, some other must be combined with it.
The most immediate and obvious is that which has
been suggested of excluding all but specie in the re-
ceipts of the Government-This measure would be
Sfecual to certain extent; but with declining IN
come which must take place under the operation OF
the act of the last session, to adast the tariff and
which must greatly reduce the revenue, Ia point
OF the utmost importance to the reformation and re-
generation of our nstituton the efficacy OF the mea-
sure must be correspondngly diminished From the
nature Of things II cannot greatly exceed the average
OF the Government deposltes, which hope Will be-
fore many years be reduced the smallest possible
amount so as TO prevent the possibility OF the recur
of the shameful and dangerous state of things
which now exists and which has been caused by the
vast amount Of the surplus But there Is in
my opinion strong if not an nsuperabe objection
against resortlAg TO this measure resulting from the
fact that an exclusive receipt OF specie In the Ireas
ry would, give il efficacy and to prevent extensive
speculation and fraud require entire discennecnon
on the part of the Government with the banking sys-
TEN in all Its forms, and resort to the strong box as
the means of preserving and guarding Its funds-a
means, if practicable at ALL in the present state Of
things liable the objection Of being far less safe,
economical and efficient than the present
What then, Mr.. c. inquired, what other meansdo
we possess Insufficient efficacy, in combination with
those TO which have referred, to arrest the farther
progress and correct the ds0rdered state OF the cur
rency This is the deeply important question: and
here some division OF opinion must be expected now
ever united we may be, as trust we are thus far, on
all other points intend TO meet this question eX-
plicy and directly without reservation or conceal
ment.
After full survey of the whole subject, sec none,
can conjecture no means OF extrcatlng the country
from its present danger and arrest It's farther IN
crease but bank-lte agency of lhich, in some
form, under authority Is indispensable. The
country has been brought into the present diseased
state efhe currency by banks and must be ertrica,
ted by hsir agency. We must in word, use BANK
10 unbdnk the banks, 10 the extent that may be ne
cessary to safe and stable currency-just as
We apply to frozen limb in order 10 restore VI
tality and circulation, hold up burn TO the flame
to extract the inflammation. All must see that II IS
impossible TO suppress the banking system at once.
1t must continue for time Its greatest enemies and
the advocates of an exclusive specie cl-cuall0n must
make part Of their system to tolerate the banks
for longer or shorter perot To suppress them at
once, would IL il were possible work greater revo
lutlona greater change in the relative condition OF
the various classes of the community, than would the
conquest ofthe country by savage enemy. What,
then, must be done I? l answer, new and safe sys-
tenn must gradually grow up under and replace the
od-imitating, in this respect the beautiful process
which we sometimes see, of wounded or diseased
part in living organic body gradually superseded by
the healing process OF nature.
How is this to be effected? How is bank TO be
used as means of correcting the of the bank
ing SYSTEM And what bank IS 10 be selected as the
agent of etiecnng this salutary change? know SAID
Mr.. c. that diversity of opinion will be foundto cx-
Isl as to the agent TO be selected among those who
agree every other point, and who, III particular,
agree on the necessity of using some bank as the
means of effectng the object intended; preferrng
a simple recharter of the existing bank-anoher the
charter ola new bank Of the United Statcs-a third
new bank engraftedupon the old, and fourth the use
Of the State banks as the agent. l wish, said MIR
c. TO leave all these open questions, to be carefully
surveyed and compared with each other; calmly and
dspassIorately without prejudice toparty feelings and
that TO be see:rei which, onthe whole shall appear TO
be best-thc most sae and the least liable 10 constl-
tuena objection II would, however, be wanting IN
candor my part to declare that my impression
IS, that neto bank Of the United States, eagrcfted
apon the ola tciH be- found under all the circumstan-
ces Of The case TO combine the greatest advantages
and 10 be liable 10 The forest objections; but Tins i'm
preston is not firmly fixed as to be inconsistent,
with calm review of the whole ground or 10 pre-
vent my yielding to the conviction Of reason, should
the result Of such revewpreve that any other is pre-
ferabe. Among It's peculiar recommendations may
be ranked the consideration, that while IT would afford
the means of prompt and eflectua application for
mitigating and finally removing the existing distress,
Il would at the same time open to the whole commit
nifty fair opportunity ofparticpatlon IN the advan-
tages Of the institution, be they what they may.
Let Va then suppose, lin order to illustrate and not
10 indicate preference that the present bank be Sc
ected as the agent TO effect the intended object What
provisions will be necessary will suggest those
ihat have occurred 10 me, mainly however with view
OF exciting the reflection Of those much more familiar
with banking operations than myself, and who of
course, are more competent TO form correct Iudg-