The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-19

ed upon sufficient metallic capital, as would
supply all the purposes Of transfer and COM
mercial intercourse, and that only; the me-
tallic should be sufficiently large 10 secure the
convertibility of the paper into specie on de-
mand, and that WITHOUT loss. The credit sys-
TEN is beneficial to the mercantile, hut always
prejudicia to the agricultural and mechanical
interests, independent Of their connection
with the mercantile, the intimate connection
between the mercantile and agricultural inter-
ests derives 10 the agricultural and mechan-
ical interests all the benefits OF the credit sys-
tenn indirectly when it is confined in It's direct
operation to the mercantile alone, and avoids
the evls-credit directly infused into the ag-
rcutural and mechanical interests have never
been source of prosperity but always Of adj
versity to them. But the present system is
upon us, it is interviewer into our habits and
intercourse, and has become almost second
nature and we must act upon the condition OF
things as they are, and not as we uouid haze
them. know and feel the calamitous effects
which would result to the country from the
sudden overthrow Of the present banking sys-
TEN, and that il would be madness in the ex-
IRENE TO attempt it; with these views favor
that policy which seeks to correct the abuses,
and gradually to reform the errors which have
crept into the system, so that in the lapse OF
time, without violence to any rights or deri-
ment to any interest. wisdom, aided by expe-
rience, may secure sound and salutary sys-
| tenn This must be work of time, and re-
quires great harmony and unanimity OF action
on the part of the State Governments 10 elect
it, So far as relates to the action Of the fc-
deral government, desire that il shall act in
harmony with the views of the states instead
Of hostility, and that it should aid, by safe
and judicious employment Oh its revenues in
cnecting this great and desirable end. To
this object will my poor and feeble, but untir-
ing exertions be directed An monied inadi-
tutions have dangerous tendencies, and among
many other reasons prefer state to national
banks, because there is not the same concen-
tration of power and influence, and because
they are watched by twenty six scntinels, in
terested in checking national encroacE ITS
and preserving state ights-sen,inels coming
from the people every year, instead Of every
two, of whose acts the people take n more
strict cognizancc, and institute more rigid
scrutiny. If in these views my friend Of the
Virginian" thinks am upon tho horns Of
dilemma, he may toss me upon either at his
pleasure, and | promise him will not depre-
cate the torture which il will innict or feel it
necessary TO invoke his aid in getting me out
of the unpleasant prcdicamest" III which
am placed. IF the rclormations and correc-
| tons i'll the State banks which experience has
pointed out, be made, do not hesitate to be-
lieve that in shorttinre none wall be found
| whose minds arc not warped by interest or
perverted by prejudice, that will not acknow-
ledge that there is no necessity for national
| bank
3. Are the States prohibttcd by the consti-
tntion .trom Incorporating Banks In my
letter to YOU, said that this power was un-
doubted-the " Nlrgnian" says that in this
am wrong, and asserts as It's opinion that the
constitution does restrict the States from in
cooperating banks. In using that expression,
| did not intend TO be understood as asserting
that every individual in the community admit
ted the power, for this could not safely have
done, not having the necessary information
but asserted the opinion from the fact, that
every State in the Union have incorporated
Banks, and that this exercise Of power had
been generally acquiesccd in. The "Virgin-
ian" seems to think that the exercise of this
power is a giari"g cquirocafion on the part of
the States, and that the article in the constitu-
ton which declares "Congress shaH not emit
bHis Of credit is clear and direct prohibition
upon the power of the States differ wide
" with the " Virginian" in IFS construction of
this clause of the constitution | cannot per-
ceive with what propriety bank note which
none are compelled TO receive, can be termed
in its true Specification bill Of credit. But
without entering into any argument upon this
point quote from letter Of Mr., Madison to
Mr. Ingersol. dated February I'd, 1881, the
following passage, directly upon this question,
he says: "rhc evil which produced the pro
hibitory clause in the constitution was the
practice of the States in making bills of Gre
|. dit, and in some instances, appraised property,
"a egal tender" If the notes Of State banks,
therefore, whether chartered, or umchartercd,
be made legal tender, are prohibited; if not
made legal tender, they do not fall within
the prohibitory clauae. The number of the
Fedcralist referred to, was written with that
view Of the subject; and this, with probably
other contemporary exposi;ions, and the unin-
terruptcd practice of the States in creating
and permitting banks, without making their
notes legal tender, would seem TO be bar
to the question. "if it were not ncxpedicnt
now 10 agltate IL. we all KNOW the aCtNc
and laborous part which Mr. Madison bore in
framing the constitution, and his intimate ac-
qlaintance with the causes which led to the
adoption of every article in it, and consequent
" from his powerful aud discriminating mind
the respect due 10 his opinions.
4. As To the enlargement NJ the specie circn-
latioa By tie prohibiiion Of small Notes.-The
Nirginian" thinks this new temperament"
Of quach doctots, only less odious, because it
is necessarily less mischievous, than the idea
of an exclusive metallic currency" This
may be, yet trust | commit no offence in
saying that think differently. "Quack