Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1837-09-21


any large amount Of specie is required fol
public payments. OF the seventy or eighty
millions now estimated to be in the country
ten millions would be abundantly sufficient
for that purpose, provided an accumulation OF
large amount of revenue, beyond the ncces-
sary wants of the Government, be hereafter
prevented. If to these considerations be adj
ded the facilities which will arise from cnab
ling the Treasury to satisfy the public credi-
tors, by it's drafts or notes received in pay
ment OF the public dues it may be safely as
sumed that no motives of convenience to the
citizen requires the redemption ot, bark pa
per.
TO say that the refusal Of paper money by
the Government, introduces an unjust dis
crmination between the currency received by
it, and that used by individuals in their ordi-
nary affairs, is, in my judgment, to view it in
very erroneous light. The Constitution
prohibits the States from making any thing
but gold and silver tender in the payne mt
of debts, and thus secures TO every citizen
right to demand payment in the legal cu-ren-
cy.
10 provide by law that the Government
will only receive its dues in gold and sllver.is
not to confer on any particular privilege, but
tizcn, by reserving to it a right secured 10
him by the Constitution. 1t is doubtless for
this reason that the principle has been sane
toned by successive laws, from the time of
the first Congress under the Constitution
down to the last. Such prccedcnts, never
objected to and proceeding from such sour
ces, afford decisive answer to the imputa-
ton OF inequality or injustice.
RIt i'm M 10 10 nf
ton, not offavor. TO forbid the public agent
to receive in payment any other than GER
tain kind of money, is to refuse him discre-
ton possessed by every citizen. 1t may be
left to these who have the management Of
their own transactions, to make their own
terms; but no such discretion should be CIV.
en- to him who acts merely as an agent ofthe
people who is to collect what the law requires,
and to pay the appropriations it Makes
When bank notes are redeemed on demand,
there is then no discrimination in reality, for
the individual who receives them may, ut his
option, substitute the specie for them he,
takes them from convenience or choice
When they are not 50 redcemed,i it will scarce
ly be contended that their receipt aid pay
ment, by public officcr, should be permitted,
though none deny that right to an individual;
fit were, the effect would he 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 inconvs nience
to the community be alleged as an objection
to such a regulation. Its object and motive
are their convenience and welfare.
II, at a moment of simultaneous and unex-
pectcd suspension by the banks,i adds some
thing to the many cmbarrassncnts of that
proceeding yet these are far overbaanced by
its direct tendency to produce wider circu-
lation of gold and silver, to increase the safe
ty of bank paper, to improve the general cur
rency, and thus 20 prevent altogether such
occurrences, and the other and far greater e.
wills thai, attend them.
IT 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 Govern
mcnt would create q demand for it, which
would, to great extent, prevent its exporta-
ton, and by keeping it in circulation, main
tain 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 fairly carry out the provisions of the Fed
eral Constitution in relation to the currency,
as far as relates to tho public revenue. At
The time that instrument was framed, there
were but three or four banks in the United
States and had the extension Of the banking
system, and the evils growing out Of it, been
orseen, they would probably have been spe-
;lally guarded against. The same policy
which led to the prohibition of bills Of credit
~ the States, would, doubtless, in that event,
lavc also interdcted their issue as a curren-
y in any other form.
The Constitution, however, contains no
such prohibition and, since the States have
for nearly half a century the pow
,r to regulate the business Of banking, it is
lot to be expected that it will be abandoned.
The whole matter is now under discussion
,efore the proper tribunal-uIe people Of the
states. Never before has the public mind
'ecn so thoroughly awakened to q proper
ense OF Its Importance; never has the sub
ect, IN all It's bearings, been submitted TO so
earching an inquiry. 1t would be distrust-
ng the intelligence and virtue of the people
U doubt the speedy and efficient adoption of
uch measures Of reform as the public good
All that can rightful!y be done by
he Federal Government, to promote the ac-
ompishment Of that important object, will,
without doubt be performed.
In the mean time, it is our duty to provide
II the remedies against deprecated paper
urrency which the Constitution enables us J
, afford. The Treasury Department, on
cveral former occasions, has suggested the
ropricty and importance Of uniform law
oncernIng bankruptcies Of corporations, and
ther bankers.
Through the instrumentality Of such a law, I
salutary check may doubtless be imposed
n the issues Of paper money, and an effec-