The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1837-11-10

ourselves from the commercial world and
throw ourselves bach Cor centuries. II re
restrict our business % he exclusive use
Of specie.
IL objected against convertible pa
per system. Ihsl Il is liable 20 expansions
and e0nlraciions; and ghsl ihe c0nse-
quence . the rise and fall Of prices. and
sudden fortunes or sudden ruin. But u
is The importation or expectation Of spe-
eie which forms The basis Of paper. thai
occasions these hBciHalions. II specie
alone were the medium Differentiation. The
same importation or exploration Of u
would make il plenty or scarce, and az
, feet prices in he same manner. The no.
minal Or apparent prices might vary IN
| figures. but The sensation upon The COM
muniiy would bs - great in the one case
a. in The other. These alterations do moi
result therefore. fTem tie nature Of The
mediuIa. whether that be paper exclu-
sively, or paper convertible into specie,
bu. from the operations Of conlmrce.--
II is commerce, al last, that Is ehsrgeable
with expansions and coniractions; and
| against commerce, and not is instrument,
should opposition be directed.
4 have heard IL urged By the Senstor
from South Carolina, lAr. Calhoun,
with no hule surprise, in the course Of
this debate. that convertible paper me-
dun would not answer foI currency;
but thai the true standard Of value was TO
be found in paper medium not CONVEX
IIble into the precious metals. IL there
be-. in regard 10 currency, one truth
. which the united experience Of the whole
! Commercial world. had established, l had
, supposed il TO be, that emissions Of pure
paper money constituted the very worst
Of all conceivable species Of currency.
! The objections to il are. first, that II is
impraciicsble 10 ascertain. q priori. what
! amount can be issued without deprecia-
I lion. and, secondly, that there is no sde-
quale security, and, in the nature Of
things, none can exist against excessive
issues. The paper money of North Ca
+, rolins. To which the Senator referred. ac-
I eording 10 the information which have
received, did depreciaIe. Il was called
Proc. an sbreVlstion Of the suIhorIy IN
der which il was put forth: and IL took
one and half and sometimes two dol
lars Of Proc. 10 purchase one in specie.
But If sny one desires 10 understand per-
Gecily the operation Of q purely paper
currency, let him study the history Of the.
Bank of the Commonwealth of keRluc-,
Ky. II was established Is or 10 years
ago, with the consent Of majority Of the
people Of that state. II IS winding up
aud closing its career. with the almost
unanimous appreciation Of the whole peo-
pie. II had an authority to issue, aud
! did issue, notes 10 the amount oil about
Two millions OF dollars. These notes,
! upon their face. purporIed an obligation
Of the bank To pay the holder, on demand,
the amount in specie. Bot il was we'll
known thai they would not be 81 paid.
As security for their ultimate pas meui,
there were. lsl, the notes nf individuals.
supposed 10 be we'll secured. every note
put ou, BY The bank being represented by
an individual note discounted. %. the
=, funds Of the state in a priur state bank,
/ amounting to about halt million of dol
lars. 81, the proceeds Of a large hoJy
of waste lands belonging to the state.
And 9TH. the annual revenue Of The state
and public dues, al Of which were paya.
bic in the notes Of the Commonwealth
Bank.
Notwithstanding this apparently solid
| provision for the redemption of the notes Of
the bank, they began 10 deprecIa,e shortly
after il commenced operation, and in the
course ofa few months they sunk as loo
as fifty per cent-iwo dollars for one spe-
Gle dollar. They continued to depreciale
for long time. uutiI after large amounts
of them were called in and burnt. They
/, then rose in value, and now, when there
is only some fiity or hundred la.msand
dollars out. they have risen to about par.
This is owing to the demand for them.
/ created by the wants Of the remaining
F.! debtors 10 the bank, aud their receivable
! " 10 payment oi taxes. Tile result nf
/, the experiment -. that, although il is
!, possible 70 sustain al about par purely
paper medium 10 some amount, If the
Legislative authority which creates i, will
also create a demmd for il. IL is inn
practicable 10 adjust the proportions of
j supply and demand SD as Ia keep IL al
par, and that the tendency is always 10
an excess Of issue. The result. snh the
people Of Kentucky. has been general
conviction Of The mischief nf all issues Of
an irredeemable paper medium. ..t
Il IL practicable for the Federal Co..
yernment ~ put down the .3,ste hanks,
and to introduce an exclusive metallic
currency! 10 the operations of this Co
vernnent. we should ever bear in mind
tina; political power is distributed between
! it and tie states. aud thai. whilst our d.