The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-27
FOR THE MADsoNIAS.
CURRENCY a. STATE BANKS

FOR THE MACEDONIAN
NATIONAL CURRENCY a STATE BANKS.
THE MARYLAND PLAN.
No. Ill
With regard TO the constiuiionality OF the princ
pies proposed in Doc No. 6, of both Houses Of
Congress, heretofore referred to, the doctrine of
The great father of democracy is peculiarly opposite
and interesting at the present crisis as presents
practicable sneeedaHcna through the medium Of a
measure of value which by its solidity aniCersalg
81 ctreuation and receirabiiity in all public pay
nae1ts, would make lis way, and supplant the paper
Of private banks, or corporations Of individuals"
These are the views of JEFFERSON; and he fur
Their says, in substance that, although the Congress
may no! b. authorized TO establish paper currency
as an absolute tender in private contracts, yet the
influence they may exercise in securing its sound
ness through the collections of the revenue has been
admitted by the purest patriots and most enlightened
statesmen of the republic in various departments of
the Government.
In the early annals Of the Constitution the power
was affirmed by General HAMILTON, in his public
character "to designate, or appoint, the money or
thing, in which the taxes are To be paid" as being
not only proper, but necessary exercise Of the
| power of collecting them; accordingly, Congress in
the law concerning the collection of the duties on
imposts and tonnage, have provided that they shall
| be payable in silver or gold. But while il was an
indispensable part of the work TO say in what they
should be paid the choice Of the specific thing was
mere matter of discretion The payment might have
been required in the commodities themselves; taxes
in kind are not without precedent, even in the United
States; or they might have been in the paper money
of the several States of the bills of the Bank of
North America, New York. or Massachusetts, all or
i ~ tla ,t La,,a haa.
under the authority Of the United States. No part Of
this, ii is presumed, can be disputed. The appoint
ment Of the money or thing, in which the taxes are
to be paid is incident to the power of collection
and among the expedienls which may be adopted is
that of bills issusd under the authority Of the United
/ Stotesn These are the views of HAMILTON, and
| this contemporaneous commentary has received the
sanction of succeeding sages in the practical EN-
| poymcnt of Treasury notes, medium of ex-
| change and circulation
1t therefore appears that "a paper currency is not
inhibited BY the Constitution" and that such
currency may BE- created by the General Govern.
ment and distributed among the States, under proper
guards and regulations TO insure its credit and con
vertibliiy into gold and silver and to promote,
intellectually the common welfare, is equally evil
dent" As the productive principle Of high and
| valuable prerogative would thereby be dffu>ed by
its operations to the whole, and not confined to the
benefit Of special few, or privileged order. The
plan indeed il esteemed sufficient for all The beat6
cial purposes in contemplation, without the Of
a soniless continuation Of corporations. 1t is in effect
a NATIONAL BANK OF EXCHANGE AND
DEPOSITE, without the privileges of issuing notes
or oaning money regards the General Govern
ment, in connection with an equitable and secure
system for the receipt and distribution of the federal
ACKNOWLEDGEMENTS, in fact with the wealth
and credit of the several States embracing the pro-
perty and population Of the rhoic Union. To each
and every one of the States it would impart rich
resource in public income and dffuse the means Of
propeing industry and enterprise and by accele-
rating Improvements throughout the country pro-
mote the amelioraion of every interest and class of
society. And while such system would essentially
enlarge the specie basis and adapt the local crcula
ton to the uses and demands of ordinary business,
the national currency would supply the facilities of
interchanges in large transactions, terms convc
nient and economical.
In reference to the pending question, the great
object of desire is MEDIUM OF UNIFORM
AND Equal VALUE THROUGHOUT THE
UNION-to accomplish which it is proposed that
CURRENCY SHALL BE CREATED BY THE
UNITED STATES UPON THE FAITH AND
CREDIT OF THE WHOLE NATION, qua
RANTIED BY THE STATES, RECEIVABLE
EVERY WHERE IN ALL PUBLIC PAY
MENTS, AND CONVERTIBLE INTO SILVER
OR GOLD on presentation at each and every Of
the institutions of the States. If better medium,
can be devised it remains TO be demonstrated
And, with regard to the power of creating instiln-
tons of the character proposed it appears that the
highly beneficial principle of assuming the sovereign
right of banking has been long since adopted, i'm
proved, and exercised in several Of the States" of
the South and West particularly and with the pro-
gressive developments of its benefits and productive
ness, Gin one State il having entirely avoided the
necessity of taxation,) the more has il gained upon
the public favor-its most potent enemy is that which
has grown out Of an excess Of grants TO private
porations for such purposes. But, says the memoir
in question, !" if the regulation of the currency is to
be regarded as PUBLIC RIGHT , if the good Of the
hole is to be preferred to the interests of arored
fe,r and, if there be enough of inteigen among
the people to understand the proposition" set forth
in the Maryland Plan of Currency and DepoSitories
and to appreciate its merits and advantages, (Which
cannot be doub ed, }, we may well anticipate the
eventual establishment of a national currency uRdcr
the agency ofa CONNECTED SYSTEM OF IN
STITUTIONS, BELONGING SOLELY TO
THE STATES"
The notices Of patriotic editors again invoked.
PHILO FISCUS.
rnD pESDnNnHNrE