Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1837-01-12

country bankers seemed to have other ooec'i"n t''
pc, themselves indebted to the public; ana sue" VIZ" ~.
vror and success Of their etlors to get the P w.
attenuation ba, the amount of il ai1at IN $50 was es
tima;ed TO be near fifty per cent greater 'a' 'i'
Of it aoat in 1923. The consequence o' niS
CANT aud unprncpled conduct is well Known nc c
G9sncv bpcame REDUNDANT exchange began to decline:
and heavy drain fer bullion compelled the BANK {"
England to lessen her ssues This was the sisnai o
The repetition OF the tragedy Of l7!3, but on a nluI"
larger and magnificent scale and with more
structive consequences. Sanre qnt ptm! save h''Se
who can The universal cry and the desruct'o "
country paper sudden and excessive lhal Il. e
than SIX weeks above 20 banking establishments "e
swept. eff Ga,
! This said Mr. p is Mr. McCnnch's account 81 the
three paper system earthquakes which have taken pac'
since li. TINE Of Adam Smith, niaugre all '!'S ''
Phrases about specie paying banks, ana oa''N i's -
vaent to au.d. and convertible iao gold al the VIII %
the holder Three times in twenty-five years has mo
whole blown up 10 say nothing OF me clI's % i:'''
and the small rancs and ndlVduhi
which have Ei,ed up the Intervals between" t!e i5
ones The result is a conviction that Danks OI SUE
must be Suppressed directly indirectly, al over ng-
land The mode propnSrd IL I" require security IRON
them in addition to their individual liability and mat
the persona! security Of men, but the rca! scHy
Of lands nortyaged, or government stock p'''geu'-
! Here is an extract from hlcCuliUc on thlspnInl:
"Whateyer bank notes may be IN law, they are P'"c
icaiiy in fact, legal tender. The great mass u!
the people totally without the power 70 refuse te'
The currency nf !iuay extensive districts CONSISTS Amos
entirely Of country aud such small farmers, tfa's
men, or laLorrrs should refuse to take theii' W""
be obliged u migrate else wIere. There cann"l, t'''
fore Is it appears TO me, be The shadow OF d0unt A
il in which! Government is imPeriousy ca';G i
| upon TO Interfere We have sustained nc"hiPa'a''!
more mischief from the issue OF spurious Patrf ''An
from that of base cun; and IN orGer TO "DVa'e SUI" '
chief in future and To give that security 10 tIe punt
which is essential, we have as was ooscl'eu oeTs'
no alternative but either to suppress country NOES n
gellrr, or TO require security from the lsSuers.
n the case of Bank of England notes, guaranty IS IA
tha
sues and the whole captai of,e bank must Dc "st oe'e
the holders o. the net IS be sufferers why IS h'' H
same principle ltowcd with respect tu country oa:'hs'
VIVA, objection there be against requiring c lli'Se
who take pom tEenis lives the Office ofurn!SE!g the c"u-
try with circulating mrdGnI, 10 drpusile Win Govern
adequate security tor the performances OF '"'i
engagcuen;s: In the Of money every one Is Ira
der those whose habits aud pursuits are little suited 10
eyuore tie mechanism of trade ale obliged 10 make Use
of money, and way qualified to ascertain me So
dity of The d rent banks whose paper Is IN c'rcuia'
lion; according ly lind that men living on ll'eu IN
CONES, woIrn iuborerS and mechanics OF al! GesctlP'
tons are often severe sufferers By the failure Of the
country banks, which have lately become frequent re-
yond all example. Against this mischief the ruHlio
should be protected BY requiring OF every country 3ahH
that is to say, every bank except The Bank ct Eng
land for which the Government is security to The whole
amount Of its cuplall to drPose with Government or
with commissioners appointed for that purpose, iunucd
property, other government security IN some proper
! ton 10 The amount IF their issues. No establishment
for the issue Of notes could then exist unless had hecn
sci foot by individuals possessed oi adequate capta
And adveEtuFers, Specializing ON the funds OF others
and sarprrs, anxious 10 get themselves indebted to lie
Public would find that banking was no longer field on
which they could advanageousIy enter
Mr.. 3. would conouze time and words, aud proceed
The practical application OF these extracts E"n The
present head Of tine paper system school III Enghnu-
IL is SMrtnGr md proposal snPpTesSt0h ~ az '"h"S
Of issue tIc,p: Ike Baah IF Engiand. for whch he Bu
sl orcrnGsmt IS tie security and he responsible backer
This is what the origna! Of our paper system" and iar
safer system than ours, has CONE TO III England Given
w and prescribed bv the scion that iounGed It. aId
that school more seriously engaged now in putting
down their system HAN they were fifty years ago ~
Funding it. And what is the state OF things with Us:
Not only appalling extension TT Tie paper SYSTEM
through the annual bank interpretations oil nearly lhTt
Legislatures State and FerruTia but this at,enpi now
made in the Senate OF the United States 10 compel the
adoption of all the State and Territorial paper systems
existing 10 exist, by the Federal Government
and thus to make of this nrllilarnus a'i"na
paper currency This is the effect; aud, without dis
urbing the States in the Of this paper themselves
! Ar B. confined himsefto the question before te Sc
nate namely the adoption Of the whole OF 1t Tor The cur
rency of the Federal Government To this he had in.
superable and memorable objections, founded rsi upon
the Constitution Of the United States, and ncLi, opel
the unspeakale miscIefs Of the scheme. GA the con
sunnal point he would be BRIEF limiting himself to lhe
words Of The instrument, and to Mr. Madison co;n'en
tary. -
The Cs"s!isgsg sqys GenGFsss F ,h ssTss and Of
foreign COIN and Tx the standard Of weights and
sures.
ITO provide fer Tie punishment Of cnunlerlriling The
securities and current coin of the United States.
mo State shall cnin money; emit bills OF credit make
any Thing but gold and silver coin tender IN payment
Of debts.
Mr.. Madison, in No d of the Federas,, says
"rhe loss which America has sustained sIEce Et
peace from The peSli.enL fleets OF paper money on Tie
necessary confidence between and ma"; "n the ne
cessary confidence in the pubic councils; on the indus
try and morals d: the Peupe, and the character OF
! rppubiICan
against the States chargeabe with thus unadvlssd mca'
sure which must long remain unsaShed or, ra!iier an
accumulation Ut guilt, winch can lie expa'ed no o'ht
wise than by voluntary sacrifice the altar &" Jus'ire
Of the power winch has been The InSi un"nt oil It, In
addition to these persuasive Considerations, II may DE-
observed That the reasons which show the neces
s!ty of denying the States the power OF regulating
cun PROVE with equal force, that they ought not TO br
nj liberty TO substitute paper medium III the place "i
coin The power to make any Thing but
gold and silver tender in payment Of debts IS with,
drawn from the States Tie same principle with that
Of issuing lare. currency
Resting the constitutional objection to This adoption
Of the State paper cu!rrnclrs for the currency OF l
Federal Government where the Constitution and Mr.
Madison had put it, and merely referring To the great re-
Of 1889 and leOO for the correct exposition
Of the CONSTITUTING in limiting the receipts for The Gus
and the lands to eo!d amt S'rtr c0th on j. anG
sD evidences o! The public debt, MIR. y would
state the heads and The beads only, ut the objections
the exprdency Of the measure Promising that wiai
the Government received cash, would have TO be pad
cash. aud That, if local paper was received at all
il would soon be received totally and 10 the exclusion VI
specie and that local paper would thus BECOME the nc.
luxi currency OF the Government and The county, until
relieved from it BY general exposion MIR. B. went on
the practical evils OF such uncon3;tu'
tional currency.
l. Tile Gestrnron of the standard Of ralue
PAPER money neither was, be, stand
ard of value. It's quantity varies nj the will OF man, OF
rather al the will of each Of the thousand Neplunes who
preside the Of pape and not only al their will
br,w vii lnrt tEpIr II
those who direct paper issues, and the thousand causes
which operate upon The expansion and contraction OF
banks The Standard nf value is at this
men, materially altered in the u S. This is seen in the in
creased price OF every article which depends for lis price
upon the ,estc market and 1t proved by the station
airy or reduced price every article which depended for lis