The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-09
Extract Of Gov. Buffers Message TO The Legislature
-. =. Of SOUL CatOkiRa


-. Of South Carolina.
So far as to the Federal Government belongs the
constitutional right Of regulating and controlling the
currency, may indulge the hope that her wise and
deliberate councils may devise to extricate
the country from its present embarrassed and deporabe
condition. But have confidence any remedy for
the existing evil except in the enterprise Of our people,
and the abundant natural resources at their command
The important object for consideration at present is to
give healthfu action to the Banks and get them oPe
ration again by redeeming their with specie Eve
ry nducemen and encouragement should be afforded TO
the Banks to resume spcciepayment by discriminating
between the notes OF Banks which pay specie and those
that do not. Whatever may be the evils occasionally
resulting from currency principally composed OF Gre
dit in the form Of convertible Bank paper it is too
late to speculate upon the possible advantages Of return
ing to currency exclusively composed of the precious
metals In the existing state Of the currency OF the
commercial world, and particularly Of the United States,
1t utterly mpraccable and would be absolutely rum
GUS If it possible to effect 1t. In point OF act
four-ifths Of the actual currency Of the country
siss Of Bank paper which is received as money, not
because it is the representative OF specie or such cer
tanly it is noD but because the public have confidence
in the solvency OF the Banks, and Of their ability to
deem in specie such portion of the bills the state Of
the exchange, foreign and domestic, may to- be
presented for payment The interest Of the Banks not
less than their duty, prompts them to be prepared to re-
deem their bills in specie. In such state of things,
and unless they have been tempted by extraordinary
their obligations But no Bank system Of Banks that
ever existed could meet the demands produced by
general loss of the public confidence. The existing
currency therefore, is neither specie the representa-
tive of specie, but credit regulated to be OF equal
value specie, for all the purposes Of trade Such be-
ing the actual condition Of currency, to withdraw
suddenly from circulation all that portion Of it which
consists Of credit would be to reduce all the property of
the country one-fourh of its present value and TO
compel all persons who in debt to pay four times as
much they contracted to pay.
Credit is the reward of honesty and integrity, and to
attempt to destroy currency founded upon it, in this
advanced of civilized society," would be contendng
against the lights Of experience and civilization. Our
country has advanced to her present high and prosper
condition by the Of banking establishments
The wants Of the commercial world in its mutual deal
ings and transactions far beyond what the existing
amount Of the precious metals possibly supply, and
paper money absolutely necessary the representa-
tive OF the credit which mercantile people repose in each
other. Commercial credit is based on the assumption
that it is the interest well the duty Of every man
to be honest man. 10 perform punclualy his promises
| and contracts. ......
BY means Of this system Of mutual credit, we
bark confidently in enterprises and undertakings which
procurable Of gold and silver could be obtain
ed to supply, and which in the actual enterprises Of mo-
dern days would not be a tenth Of the required.
To cherish credit, public and private is to cherish
honor aud honesty, as the actual basis Of human deal
lngs, BY doing exalt the national character, by
expecting ana enforcing the naDit OF puhctaay between
individuals and each man, under the protection OF pub
lie opinion, well Of the law is enabled by means
of mutual confidence, to embark in projects useful to
himself and the public, which gold and silver do not
exist to stimulate: Public credit may then be regard
cd in the present day the parent Of all useful enter
prizes as the great Of mutual honor and homes
ty, and Of mutual respect in society People risk their
property with feelings of perfect safety under its protec
ton, and by means Of it. the modern character of civil
zed society adorned and cnnobled far beyond tho
standard of ancient times though pictured as the gold
and silver page Butt public confidence be established
as the preat moving power Of modern cnterprze 1t is
absolutely necessary that written memorandum
should be taken at the time OF the extent to which It
reposed By making these memorandum negotiable,
driven into system OF paper money! TO render
this safe to the holder, be convertible into the
common currency adopted in part throughout the world,
into metallic coin. The more perfect the system of
public caedIt and mutual confidence the less is the
amonnt Of gold and silver necessary to sustain it
Tint evils may arise from the defective construction Of
this part Of orr commercial machnery--that strcter
regulations may he necessary to repress dishonest or
imprndent speculaon and afford additional safeguard
to the creditors, may well be allowed; for experience
has shown this to bc No revolution recorded in
history, has produced great change OF property, as
such change in the currency would produce, If sud
denly brought about and even If effected by very
slow process though the intensity Of the suffering would