Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1837-07-20
The Times.

he result Of his reflections on the appro.
pirate remedy for the evils Of the deran-
yea state OF the currency. The writer,
ays the same paper, has been closely
.ogaged in occupations which have rem.
aered him familiar with the subjects on
which he now addresses his fellow citi.
sens. The plan proposed appears, in
our humble Judgment, well worthy the
respectful consideration Of those to whom
IS committed the responsible charge of
providing for the general welfare.
In the. examination Of his subject, Mr..
Saith assumes, as preliminary to the
proposed plan, several positions, which
he severaliy sustains by arguments of
great weight. He first attempts to show,
that the establishments ola sound curren-
cy is exclusively national object. 2dly.
That il is utterly impracticable. in the
U. States, TO make the precious metals
the sole currency. 3dly. That whatever
other currency is devised. must be based
on the precious metals. and be exchange
able for them. 4thly. That, to give eff
feet to the most important provisions of
the Constitution, it is Indispensable that
shere should be a uniform legislation re-
speeding the currency that shall pervade
the whole Union, which Congress can
nlene exercise, to the exclusion of all in
terfsring State legislation: and that, in
the words Of the Constitution, Congress
has power Ito make oil laws W hich Shall
be necessary and proper" for carrying
these provisions into effect.
He appeals to history and facts to
prove, that the expediant resorted to on
two former occasions, for the accomplish
ment Of sound currency, in the estab.
lishment of U. S. Bank, has been sue.
cessful in attaining the object Of its crea
ton, but thinks that honest prejudice
and constitutional scrupies with regard
TO the Institution, form an insurmounta-
bic barrier to Its re-estabiishmeut. I'm
der this view Of the subject, he proposes
plan which he couceives will answer
all tho ends Of bank. and whose consti-
4utionality cannot be impugned by the
opponents OF such an Institution.
This is that loan be opened by the
United States for $50, DOC, 900, payable
Ia specie. The existing solvent Banks,
in the ratio of their capitals, TO have the
preference fsubscr:bing, and in case of
the amount not being made up, individ-
uals bs authorised TO make up the def.
cheney. Each subscribing Bank shall re-
ceive from the Government promissory
obligations payable on demand, in sums
VI 'oriAua denominations suited TO cur
rency TO On amount equal to i,s subscrip-
ton, aud to an additional amount equal
to lou per cent. on such subscription :;
for which last, it shall agree to pay two
per cent. annually. Alter the plan goes
into operation, the Banks are required to
abstain from the issue of any notes of
their own, including those already issued,
and to render to Governments monthly
statement of their affairs. The specie
lent as above, shall be placed in the Gus.
tody of, and under the direction Of,
commission olive individuals, SO select.
ed as to insure the highest integrity. and
so protected from sinister influence as 10
secure the greatest attainable indepen-
dence. The promisssry obligations OF
ahe United States to be received in pay
ment of all dues, and be given in dis
charge of all debts.
The specie being thus subscribed to
the amount Of fifty millions, promissory
notes Of the United States payable to
bearer on demand, will be delivered TO
the subscribing banks, who will hence.
forth commence the payment Of their |
notes in those of the United States. AS
the notes Of the banks shall come in, |
they will be cancelled, and the banks be
entitled. In the ratio OF their cancellation,
10 further amount Of notes OF the Unit
ed States, not exceeding one hundred
and htty per centum on the specie paid
by them, on which an annual interest of
two per cent will be payable.
There will then be an emission bv the
United States of notes 10 the amount of
one hundred and twenty-five millions
OF which seventy five millions will have
been given by the banks in exchange for
their notes, and fifty millions be retain
ca oy them TO meet demands upon them,
The nUtcS vi the baIrhs stiii ieusining
or may be from twenty-five to thirty
i've millions, which will be- in state of
gradual reduction by the reduction Of
bank loans.
Finally, at no remote period. the bank
notes will cease TO exist, and the only
paper currency will consist of notes OIL
the United States, Of which seventy FIVE
millions will be absorbed In the circula-
hon. and fifty millions be kept by the
banks to meet demands against them.
objections 60 this scheme are antici.
patsd aod answered, plsusibly at least.
ioe danger Of increasing the power oil
the General Government, especially the
patronage Of the Executive, is the mos,
prominent one. This may be met by
provision adopted by Congress, insurine
the strictest accountability, and forbid.
ding all Instructions to the cornrn;..;,r