The North-Carolina standard., 1837-10-11

necessary supplies. A. medium resting on
this demand, which simply obligates the Go
vernment to receive it in all of its dues, to
the exclusion of every thing else except gold
and silver, and which shall be OPTIONAL with
those who have demands on Government I
to receive or not, would, 1t seems to me,
be as stable in its value as those metals
themselves, and be as little liable to abuse
as the power of coming. 1t would contain |
within itself self regulating power. 1t
could only be issued to these who had claims
on the Government, and to those only with |
their consent, and Of course only at or above
par with gold and silver, which would be
its habitual state; for as far as the Govern
ment was concerned, it would be equal in |
every respect to gold and silver, and supe
rior in many; particularly in regulating the
distant exchanges of the country Should, |
however, demand for gold and silver from
abroad or other accidental causes depress= it |
temporarily, as compared with the precious
metals, it would then return to the treasury,
and as it could not be paid out during such
depression, its gradual diminutidn in the
market would soon restore it to an equality, |
when it would again flow out into the gene
raj circulation. Thus there would be con-
slant alternate fux and refux into and from
the treasury, between it and the precious
d
preston in its value be possible from any
cause, the only effect would be to operate
as reduction of taxes on the community, |
and the only suffere: would be the Govern
ment itself. Against this, its own interest
would be a sufficient guarantee.
| Nothing but experience can determine
what amount and of what denominations
might be safely issued but it may be safely
assumed, that the country would absorb an
amount greatly exceeding its annual income.
Much OF its exchanges, which amount to
vast sum, as well as its banking business,
would revolve about it, and many millions
would thus be kept in circulation, beyond
the demands of the Government. 1t may
throw some light on this subject to state,
| that North Carolina, just after the revo-
luton issued large amount of paper, which
was made receivable in dues to her. 1t was
also made legal tender, but, which OF
course, was not obligatory after the adoption
of the Federal Constitution. large amount,
say between four and five hundred thousand
dollars, remained in circulation after that
period, and continued to circulate for more
than twenty years at par with gold and sill
yer during the whole time, with no other
advantage than being received in the reve-
nue. of the State, which was much less than
$1OO, 900 per annum. I speak on the infor
nation of citizens of that State, on whom
can rely.
But whatever may be the amount, that
can be circulated, l hold it clear, that to
that amount, it would be as stable in value
as gold and silver itself, provided the Co
vernment be bound to receive it exclusively
with those metals in all its dues, and that it
be left perfectly optional with those, who
have claims on the Government, to receive
it, or not 1t will also be a necessary condi-
ton, that notes of too small denomination
should not be issued, so that the Treasury
shall have ample means to meet all demands,
either in gold or silver, or the bills of the
Government at the option of those, who
have claims on it. With these conditions,
no further variation could take place between
it and gold and silver, than that which
would be caused by the action OF commerce.
An unusual demand from abroad for the me-
tails would, of course, raise them little In
| their relative value, and depress relatively
| the Government bills in the same proportion,
which would cause them to flow into the
Treasury, aud gold and silver to flow out
while on the contrary an increased demand
for the bills in the domestic exchange would
have the reverse effect, causing, as l have
stated, an alternate flux and re-hux into the
Treasury, between the two, which would at
or near par.
No one can doubt that the fact Of the Go
vernment receiving and paying away bank
notes in all its fiscal transactions, is one of
the principal sources of their great circula-
tion, and it was mainly on that account that
the notes of the late bank of the United
States, so freely circulated all over the u
Mon. | would ask then, why should the
Government mingle its credit with that of
private corporations No one can doubt, but
that the Government credit is better than
that of any bank more stable and more safe.
Why then should it MKT it up with the less
perfect credit of those institutions Why
not use its own credit to the amount of its
own transactions Why should it not be
safe in its own hands, while it shall be con-
sidered safe in the hands of 800 private in
stitutions scattered all over the country, and
which have no other object, but their own
private profit, to increase which, they al
most constantly extend their business to the
i most dangerous extremes 2 And why should
the community be compelled to give six per
cent discount for the Government credit,
blended with that of the. banks, when the
superior credit Of the Government could be
the mutual advantage of the Government
and the community2 Why, let me ask,
should the Government be exposed to such
difficulties, as the present, by mingling its
credit with the banks, when it could be ex-
empt from all such by using, by itself, its
own safer credit2 1t is time the community,
which has so deep an interest in sound &
cheap currency, and the equality of the laws
between one portion of the citizens and the
country, and another, should reflect serious
) ly on these things; not for the purpose of op-
} pressing any interest, but to correct gradual
| l1 ofa nj har oofo 111hi ioh