The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-03
COMMUNICATIONS.
Foa THE MADIsoNiAN.
NATIONAL CURRENCY q STATE BANKS
THE MARYLAND PLAN.

No Nv.
Having heretofore submitted general outline of
the of relief and amelioraiion presented in
obedience TO order of the most popular department
Of sovereign state, as contained in documents No
g. Of both branches of the late e1tra session of Con
gress, and indicated by the above caption--having
exhibited In brief the nature and details Of The sys
tenn and endeavored 10 demonstrate its avoidance of
all constitutional objection, will pass onward to the
less important point of practicability with regard
to which il might suffice to refer to the unerring
guide of actual experience whereby the feasibility
of conducting monetary institution with branches
or agencies in the several Safes and Territories
has been most clearly proved and demonstrated
And if such has been thu fact under vicious prin-
ciples and limited means with what greater conf
dence nigh. b, anticipated the success Of system
based upon the tccalh and credit OF the WHOLE NATION
GUARANTEED BY THE STATES, WITH CURRENCY REcEIy-
ABLE IN ALL PUBLIC PAYMENTS, and IMMEDIATELY con-
vERTiBLE INTO COIN
In the discussion of this essential component Of
the proposition, it may be proper to advert to yuan
tam of currency proposed 10 be created, and TO in
quire into its adequacy for the purposes extended.
As a correct test of an adequate supply Of circu-
lating medium, properly proportionate to the de-
mands of industry and commerce in every civilized
society," the opinion expressed in the lucid view Of
the President and Directors of the Bank of the State
of South Carolina is here presented in the follow
ing words:
We may assume it as principle applicable to
all stages Of society," that the active capital Of a
country bears fair and reasonable proportion TO that
which is fixed and permanent whenever real can be
readily sold or converted into acsire property at
fair valuation or whenever money can be easily OBJ
tanned at reasonable rate of interest on secure
mortgages Of real estate. The last may be, proba-
bly,, the best test"
In the hypothetical application of this criterion
an objection may arise TO The apparent pau1ity Of
The proposed supply-in reply to which will present
an illustration in that regard which shews that THE
NATIONAL CURRENCY is not intended for the common
purposes of money but as an auxiliary TO The specie
basis, and mainly for the facilities Of commerce in
arge Transactions, in aid of the issues of the public
institutions Of tie sereral States And although the
aggregate for the entire union may appear small the
294OoOoO authorized be issued is greater than the
greatest circulation of the late Bank Of the United
States. But if that amount should be found insult
cient, the demand might b, supplied by a further
emission for general circulation"
A great conservative and protective principle,
with reference the practical operations of the sys
tenn would exist in the exercise of that "visitorial
and supervisory control over the institutions of the
States and their respective branches departments
so eminently calculated to inspire confidence and
insure compliance with the required conditions and
uniformity Of proceedings throughout the borders
Of great republic of free States.
The interest elected in the proposition as mani
sedby publications in remote sections Of the country,
may testify to lis intrinsic merits and by inducing
inquiry may evenuate in the adoption of system
calculated to tfsctuate the pEsIDERAT. demanded by
CRISIS WHICH THREATENS THE DEMOLITION OF OUR IN
sr1rUTIoNsto restore confidence by giving action to
recuperative energies and TO CEMENT THE UNION by
DIFFUSION OF BENEFITS Equal DEGREE EVERY
TEaEsT AND CLASS OF SOCIETY.
PHILO FISCUS.