Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1837-11-23
POLIEaGAL.

lthe banks, the msteadiness} producedin the
currency by the action of GOVERNMENTS
lie says
alt follows as Il necessary consequence.
that to the extent ofihis iulltcncc the issues
OF the banks expand and contract with the
expansion and contraction of The fiscal ac-
ton Of the Govsinnent; switfltie Increase,
Of its duties, axes,incoln and expenditure;
with the depositos in its vaults, acting MS
additional capital, aud the amount OF bank
notes. Withdrawn IN consequence, fronhcir-t
culation; all of which must directly affect
the amount Of their business and issues,
and hank currency must OF course, partakc |
OF all those vibrations To which the fiscal
action Oh the Government is necessarily
exposed, and when great aud sudden, must
expose the system to catastrcphcs such as
we now witness. In fact a more suitable |
Instance cannot he.seiccicd to illustrate tile
truth of what | assert than the present, rs |
shall procccdt to show
Nov il this be true, whcu the Govern
mcnt is operating upon banks trading en- Il |
sf~cio .:iSis, aud cautious Of their Gwn in
tercsf, how much more rue Is il when tho
Government Invested of all sncll cdnnec.
lion, and having full c]ontuuui OF TIC c,,rvcn-
cy, will expand or contract it, according to
It's necessities, wiiInns, or party purposes.
NV l'pt ~ ~ mat ttlC
banks are to be di,voulinnet-hcc aus their
paper p~ar,aies of the vibrations to wliicl,
the fiscal action of the Government is OK
posed. l:ui it is ohviuus that Government
paper,tha1 is, n-currcncy created by the fiscal
action Gi tho will be still mere
immediately and intimately affected by the
vibrations OF thai fiscal action than bank
paper. The banks arc some check upon
these fluctuations. which without that check
will necessarily he greater. | can easily
conceive, that if this Government under
takes to decide on The quantity Of money,
or TO regulate its isslicS by law, nothing can
he more uncertain than It's quantity, and
therefore value, from year to year. If it,
be regulated on 4 ratio with The revenue of
the Government, we may estimate The fuc-
tuatlons by the receipts Of 1856, compared
TO those OF 1897 Or if it lie submitted en-
tirely TO the discretion of this Governipcnt,
let the various opinions of the present mo.
mcnt,fi in regard both to the quantity of
money III circulation, and to tile quantity
which is necessary Tor circulation, teach us
a lesson of caution. The administration
party at this moment suppose that the coun-
try labors under Il redundant circulation,
ana II 1t c0n!r0Ulrd the currency, would i'm
medlaicly curtail it: while perhaps tho
better opinion is. that the money in ci-cu-
lation is hardly equal to the wants of the
country.
81 cannot hut think. Mr.. President, that
my colleague naiitualiy overates the in
fluencc OF the fiscal action Of the Govern
ment upon the currency, iii regard to the
expansion or contraction of il, aud cSpecial-
ly, if he he ,correc, in ."r,usins that the ~.
como of Ills Government Is now reduced
10 an economical standard. and that the
Executive will sustain itself, only by wise,
patriotic and moderate measures. He SUM-
poses that the government has power TO
make an inconvcriiblc paper money circu-
late, winch l cOnvrivc to be beyond the
power oil any government, and, this idea
seems in part TO T. suit from what consider
a misconccpiion he has fallen into as TO Tie
credit which sustains bank notes. lie sru-
poses that this credit is conferred 10 great
extent by The Government making them re-
c~eivable in public dues. which he illustrates
by stating thai it the Governments would
say that it would take in payment of its
dues, the nntes of any beggar in the streets,
such notes would lie current. j do nor think
they would he current, Unless the t!ies Of
the Government we're unlimited, OF the
notes of the hcggar limited. If as | have
endeavorcd TO show. a government cannot
make its own notes circulate nj par, il can
=" ~ t-"' hS SuSI u u .ljC bCG-
gar womld TO analogous to that Of the banks.
if the Government said that it would take
his notes rs long as he continued to paw
specie, which is the Of Inc. rosoIu-
ton OF fSlG 10 the banks. Tie endorse
men' of the Government on the bank aotcs
was not receivable in public dues bu, 'src-
c%clvahlc IN pubic dues, rs long rs specie
can be got for it, The efficacy Of such an
endorsement to confer credit, is not very
%percepiihle. The convertiIlili,y Of the notc
makes it good without the endorsement. nor
does the Withdraw al Of The endorsement in
jnrc its credit. The pet hanks were not in
better credit than The rest oi-tIc banks. nor
did The withdrawal of the Government from,
all hank paper whatsoever, strike down its
credit. When the banks suspended, tliej
Government withdrew It's cuunicnancc,a and |
yet the notes maintained and still maintain
their credit. and this too. when the Govern
mcEt has not only Withdrawn its credit, Lu.
is waginS Il war OF determination against
the banks. The community believes in the
ultimate convcrtibiiity of tic hank notes,
aud therefore trust 10 them, and believing,
moreover, that the prospect Of that CONVEX
1ibility was improved by the act which made
the government Withdraw its credit from
them, the general credit was enhanced by |
it. Sir. let those who conceive that there |
IS magic in the Government touch, to con
fer or to take away credit. look to the re-
cent history of the u. 5. Bank, whose bills
have been every whore at home while
the Government has been wnging .war a
Gainst them; all over the world, amidst all
the ruin which that war has occasioned.
amidst the prostration of so much wealth,
aud the loss Of 50 mnchrcrcdit, with a dis
rresscd people and a bankrupt Government,
the credit Of that bank is yet un,aintcd, and
its successor. under the wise aud honest
management Of .N!r. Bidd!c, is by general