The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-05

In support of the Bin introduced 6y him. for de-
signaling The funds receipa6Le IN payment of the
public repenne, and in opposition TO tie Sub Urea
sary Scheme. Delivered in The Senate Of The United
States, 1914 Sept 1887.
(Confinusd)
The measure which now offer to the considera-
ton of the Senate and which received the almost
unanimous sanction of both houses of Congress
at the last session. is the result of these views. Per
init me, for a few moments to inquire what would
be its practical effects on the general condition of
the currency, if the policy it holds out should be
carried into full effect by the cooperation of the
States and the General Government, as think it
would be, il sustained here. 1t contempaies the
gradual suppression after given periods of all bank
notes under ten and twenty dollars respectively
Surprising this last limit attained, how would the
currency OF the country then stand under its opera
tion2 According to calculation submitted last
winter founded on authentic data, it would in that
case be constituted nearly the currency Of Eng
land is-that is nearly one half Of the precious me-
tails, and the residue of convertible paper. Would
not such constitution of the currency this ac-
commodate all the wants of the communityl What
are the real wants of the country in regard to cur
rency2 To have sound, stable, and convenient
medium of circulation, for ordinary and local pur-
poses, and for occasional and more extended use,
medium which in addition to these fundamental
properties, shall be substantially of uniform value
throughout the whole country. Now, for the first
description of uses there could be no better curren
cy than the policy of this bill would give u.s. There
would be an abundance of gold and silver in circu-
ation for the great of daily and ordinary trans
actions WHILE for large payments and remittances
We should enjoy the conveniences of sound con-
vertible paper medium In regard to those distant
uses, which call for general and uniform credit
the occasions of them either travelling or remit
tances But, for travelling, there could be no medi-
UNI of moreuniform and general credit than the
gold COINS which, in the case supposed could al
ways be had without difficulty, while they would
at the same time, be perfectly portable and conve
A ND annitf thotra
made in money of any Sort but are effected through
drafts and bills of exchange and when the local cur
rencies, within their respective spheres shall be
raised 10 par with specie, the rates of exchange
with the advantage of so portable currency as gold
to adjust balances between the States would be next
to nothing-certainly cheap as il has ever been
under the regime Of a National Bank
Among the most important advantages of such
constitution oil The currency is contemplated by
this DILL are the substantial securities il would af-
ford against the peculiar dangers and evils of the
banking system. Those evils are tendency to over
issues OF paper, fluctuations in the quantity of cur
rency, and IN the value of property as affected by
them, and the liability to suspension of specie paw
ments. The Suppression of the small notes would
operate in twoways, to check overissucs In bring
ing larger quantity Of gold and silver into circ,
lation, II would, OF course, diminish in the same
proportion the issues fpaper to form part Of the
circulation. The number of issueys too. would be
diminished, for the small note circulation being n
considerable source OF profit, its suppression would
take away one efficient motive to the multiplication
oil banks. Then as to fluctuations in the amount of
the currency, and the often ruinous fluctuations that
ensue IN the value of properly, this evil is greatly
increased by the fact that in the existing state of he
currency IN this'country whenever an unfayorable
balance of trade creates drain IN tho banLs e.
specie having no means Of recruiting their s,,ppIv
but from abroad, for every dollar OF specie tha Z
drawn from them they are forced 10 draw in their
own circulation to three four times the amount
But when the domestic channels are filled win aoa
and silver as they would be if the small notes Ser
suppressed, the banks being always able to replace
whatever specie is drawn from them by foreign
drain, with an equal quantity obtained in the coun
Try their circulation remains comparatively steady
Ihe same circumstance enabling the banks to meet
any sudden run upon them by prompt reinforce
ment OF their resources, obviateS the danger of a
suspension OF specie payments and renders such a
contingency next TO impossible If all bank notes