The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-30
From the Richmond Enquirer
LETTER FROM WASHINGTON,
Dated l5h Aagua.

remark, that Congress was solemnly bound,
under the mandates Of the Constitution, to
provide for the people Of the United States
sound and uniform currency, and that this OBJ
ject could now only be effected under all the
circumstances Of the country, by making pa
per equivalent 10 specic.-That the exclusive
control, which il was evidently the intention
of the trainers Of the Constitution, that Con-
gress should have over the subject of the cur
rency, was entirely defeated by the legislation
Of the States in chartering banks. ! have
also endeavored to show, that we are now
compelled to take things as they are, and not
as we rould haze them that as long as there
are banks we shall have paper money, and
that as long as we have State Governments,
we will haze banks.
There is nothing demonstrated in Euclid
made more evident TO my mind, than this pro-
position. The habits and experience OF 30
years have fixed the paper system upon us,
And the whole question now is, how IS It to
be regulated SO as to make il sound and uni
form throughout the United States7 In other
words, III ehoW are IRE to make paper eqn'ua-
tent TO specie? If we were not convinced be-
fore of the universal laws which regulate cur
rcncy, does not the experience OF the last few
months convince us--do not the facts and
transactions that are hourly occurring lmme-
datcly before our faces convince us, that pa
per and specie cannot circulate together; the
moment the latter becomes more raiudbie than
the (ormeri The moment that paper is not
convertible into coin at the pleasure OF the :
holder, it becomes the eTcluSiuc circulation.
Where now is our small change? l.harc
scarcely seen an eighteen pence IN a month.
Shin paslers have taken its place nearly uni
versally II then the Government dishonors
bank paper, by refusing TO receive II III pay
lnent of the public dues, will it be driven from
circulation No-The unqucstionabc law
OF currency will make it more universal Spc-
Gle becomes tie better currency, and Of course
mW disappcar--will it not, sir Is not this
the law Of currency taught to us by all the
writer's upon the subject, and demonstrated
now every hour by our own observation Why
has SHIN plasters" (cxcuse the vulgar phrase.
it has become one OF common parlance.) taken
the place Of 25 cent pieces and hall dollars,
and has absolutely driven the latter entirely
out Of circulation because specie Is the
better currency, and every man Is disposed to
hoard il and pass off his shin plasters.
F" DO not these simple facts, occurring every
hour, speak volumes to us Ought they not
TO speak in voice Of thunder to the ears Of
vernment from all bank pap,r, the only crcu-
latng medium we have at this time, and |
will adds the only one ire eucr shall hare, if this
system goes into effect. II fres dcpreciated
paper money on us forerer and rH dr1pc spccie
entirely out Of cnculotion. 1t will make specie
the better currency, and OF course it must cease
to circulate. 1t will be boarded as subject
Of traffic, and paper will take its place in the
general circulation. Can there possibly be
any error III this view of the subject ! ap-
peal 10 you, sir--to the common sense Of
every man When the Government dishonors
bank paper will it not depreciatc Will it
not be less valuable than specie9 Will it
not make specie the better currency And,
if it does, will it not drive it out of circulation
If it is driven out of circulation, will not pa
per, deprecated paper, supply its place Can
human reason bring us to a result more mani
fest to the mind VIII the Government, then,
adopt a system that leads to such a result
Is il not its duty to do every thing in It's power
TO guard and protect the community against it 7
Surely it is.
'Ihe first great step should be, to adopt
some measure that will II Jac,litate the re-
sumption II specie payments by the banks. This
cannot be done, as have shown, by disho-
noring their paper, and making specie the bet
ter currency You then drive it out of circil-
laton, to be boarded for traffic, and ci'ectua-
ly defeat the great object you have in view.
The moment the banks resume specie pay
mcnts, bank notes become equivalent to spc-
Gle, and they will then circulate together.
Specie then will cease to be a subject of lral-
tc and there will be no nduccment to make
runs upon the banks. Then, all such sauarv
measures can be gradually adopted, as may be
calculated to secure the country against over
issues of paper--and all the other evils that
follow in its train.
But so long as specie is made the cXclu-
sivc medium of the Government, in which the
public dues can alone be paid, it must COM
mand a premium in my opinion. Why are
protested Treasury drafts commanding a pre-
MUM at this time! Because they are rccciv-
able in payment Of the public dues. If specie
alone is ts be received, then the consequences
predicted, will think, certainly follow. The
banks will be run upon for the specie the mo
ment their vaults arc opened Docs not the
system then clearly tend to prevent the re-
sumption OF specie payments
:" But for the sake of argument, let us sup
pose that the Sub-Trcasury system will not
have these effects. Suppose il will not make
specie the better currency, and consequently
not drive it out Of circulation, what benefit is
the community to derive from it If bank
notes are equivalcn, to specie, why will not
the Government take them as readily as spc-
cic' Why saddle the community with the
expense Of scores Of federal officers to keep
and disbursc the public money, when the
banks arc willing to do it for noihing. unless
there is some great National benefit to arise
from it The system will either secure to
the Government better currency TO collect