The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-10

we take the following article from the Co
,,n,h,a fs CT Telescope chiefly for the valuable
statistical information which 1t communicates.
deny that Congress has any authority TO legslate
for or in favor OF any distinct class ~ me
w. or 10 give preferences and privileges 10 one por
Hon 81 The community TO the exclusion OF the resi-:
When the Constitution was passed, no one suspected
that the commerce Of the country could or would DC
embarrassed for want Of a metallic currency SUM-
cent 10 supply the public wants nor did our anees
TORS foresee the enormous extent OF our domestic
and commercial dealings, which has forced upon The
public the :" credit system" and The paper nego'ia-
lions inevitably springng from IL. The liberal con-
struction OF the word currency, therefore, includes
the actual system which has been forced on the COM
mercial world; and when Congress assumes the
constitutional power OF regulating the currency they
must do so for the benefit OF the whole people, and
not pass laws which must necessarily In the actual
state of things confer unjust and offensive privileges
ON favored few. How this Is TO be done our legis-
laors must devise as well they are able II Is bu-
siness they have undertaken and which they are paid
for doing In the best way the circumstances will al
low. But they are the agents and servants of the
people; convened TO devise remedies for the evils
under which the public labor II is the people that
are suffering for want OF currency sound and uni
form throughout the whole Union. Congress was
not called together divide the currency of the coun-
try into two parts and TO give cash to the officers of
Government, and suspicious paper to the people,
other
The Administration has adopted and urges not
only the possibility but the necessity of combining the
currency TO the precious metals. That many OF the
administration nancers may believe this possible,
am compelled to allow Greatly respecting the prac-
teal business talents Of Mr.. Van Buren,, cannot be-
lieve it of him. Let us review some plain and well
known facts.
For twenty years last past, the civil wars in Mex
leo have diminished four-ffths of the supply of sill
yer from that quarter. Silver was derived in small
quantities from the refners oflead in Europe viz in
England, Germany, Hungary, France But thissu
ply was comparatively very small even adding Sibe
: ria and the Ural mountains. ss3
Gold, came from Africa, from Mexico, from Hun
gary from the Ural mountains, and i'm minute guam
titles latterly from this country supply about TO be
stopped, from the unproduciiveness Of the mines in
point of expense.
For 20 years last past, the demand for gold and sill
yer has increased to a degree that at this moment
nearly absorbs the whole annual supply.
Silver forks and spoons, and dishes and covers
and plates and table furniture and utensils. Mugs.
drinking cups, plateaus, tea equipage. AT a late
dinner, the Duke of Wellington had fifteen hundred
thousand dollars worth of plate on his table; plate
adoTns the dinner table ofalmost every tradesan in
Great Britain.
Silver and gold watches and trnkets Of all kinds.
The gliding Of apartments, looking glasses picture
Plated goods of all kinds, harness, horses bits,
sirrups, spurs, &c drinking vessels candlesticks
&c.
. ne SILVER iOrkS ana spoons alone IN france nave
cost, at reasonable calculation 100 millions of dol
lars.
But far beyond all this, is The increasing demand
OF the commercial world for bullion basis of con-
vertibility support the paper of the credit system
which when inconvertible is worthless
D. England issues in bank paper by the Bank of Eng
land l8 millions sterling permanently. The joint
stock and private banks issue million Tosupport
this rs millions of paper they have this moment
October, 1887 six millions Of metallic coin in the
vaults of the Bank, and no more.
In this country, our bank circulation last year was
lao millions Of dollars. We have at present in the
country, making allowances for the remittances of
the present year, fifty millions Of dollars the ul-
most So that with all the anxious and ncessant en-
beavers OF these two governments, most seduously
employed we cannot ON this or on that side Of the
Atlantic procure more than one dollar in coin for
upward of three in paper. And this proportion must
yearly lessen because @
The demand for bullion far outrmas the supply both
here and there
But the wants of foreign commerce are mere
Bagatelle. Our immense domestic trade rests conf
IDENTITY and almost exclusively on the credit system
We have now in the U. States, Is millions Of peo-
pie OF whom one half are women and children who
do not labor, the rest who with part of their
families labor TO earn the money they spend.
Upon the average of the citizens of the United
States, man must earn $50 dollars per annum to
maintain himself and his wife in clothing food fir
ing and lodging. Multiply "a millions by $50 and
you will have near 1000 millions of dollars as the
circulating currency of our population But that
man in man that each may be trusted. This credit
is settled by paper in some shape or other Danish
Banks and paper currency, and tell me where the
coin is % be found which is to serve as substitute.
Many years ago, the daily payments that took place
in New York alone, We're estimated to amount in
one year, to 1900 millions of dollars At present
1000 millions would be moderate calculation -
Where is the coin to be procured to effect these pay
ments
coLaUHoUs ON CURRENCY
Gin 1910, 46 of II bankers in London united and
exchanged their drafts and orders and paid in the
difference only; which averaged 220,000l day
Probably the IL banks would have required less
than 500OO0. The payments daily to the 46 banks
equalled 4, 700,0O0 lfall the payments to all the
II banks and 10 the Bank of England had been paid
in CON- it would have required SO to 80 millions of
pounds.
Snow, $40 days Of 500 600 is Is OOO, 900 year -
$40 daysof $4,000 600 only is IS, 500 100000 Tothis
add public revenues and loans 100 900, makes
1860, OOO, OOo-all accomplished by 24,O000OOl Of
such is the velocity of paper circulation To
count ), 1000 guineas, al GO minute IL hours
day, would occupy man months Then the in
terest on such an amount of coin, and the loss by
wear, &c. is immense.
In the year 1876 friend of mine had occasion to
transmit 1900 Rupees from Agra to Lorhor in the
East Indies. His Banyan procured bag contain
ing that amount and which had passed unopened
backward and forward for many years, and sent it
BY messenger unaccusomed to those errands-
Would not bill of exchange By regular post have
been more convenient But they were blessed with
Col. Benton's hard money system at that time
The hard money system is much more adven-
turous experiment than Maria Monk or Animal
Magnetism, to ascertain how far public gnliibility
can be carried in this most enlightened Of countries
and Of periods
Congress is called, not to provide sound curren-
ey for The people, but coin currency for the Govern
ment. How ~
BY establishing a@rieso Of TREASURY BANKS.