The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-12-09
FoR THE MAplsoSIAN.
(. No. VIII.
THE cURRENcY--sTAT hanks.


been misaid and not pubshed desire to supply its
place with the following from Mr.. Underwoods
speech made during ,heatc called session Of Congress-
| together with few comments on it.
/ EXTRACT
" Bot, Mr.. Chairman, let US suppose the Presidents
Sub.treasures ia complete operation, aud that good
seasons and good crops have enabled the people
tie old debts aud that tranquility and prosperity
again prevailing throughout the land ask you il il
be possible to keep up any thing like uniform national
currency with the paper Of State banks The voice Of
experience and proclaim that il cannot be done
How are the people Of Kentucky for instance to know
The names The number. the creation and character Of
the hundreds OF banks chartered by the other States
How they to know the officers their signatures the
capital and duration OF thousand banking corporations
How is Il possible for them have confidence in the
| solrency of the institutions that they know nothing
| Of whose debtors and course Of business they know
| not And how can you make them give credit where
there is no confidence Why, sir, life devoted to
the study OF banks and banking statistics can hardly
keep with the multitude Of State banks existing
and when our States extend TO the Pacific il will be
terly impossible How then, can the mechanics manu.
acurers and farmers Of the country, know what paper
is good and what good for nothing The people in
our State have no voice or control in forming the banks
IN another Staie," &c. &c.
COMMENTS
| l. No man gain say the truth or conrovert the
proprety Of those positions It strikes me ss being
strange that Mr. Underwood and others entertaining his
opinions do not confess, for the reasons that il
would also be impossible, United States bank in
complete operation, to keep upa uniform currency with
| the paper OF State banks. ..The Presidents Sub
treasures have not been tried (and may they never
be and yet is predicted by friend Of United States
Bank that it will be impossible should they be put in
complete operation. ito keep up uniform currency
with the paper OF State banks !" while the undesirable
fact stares him in the face that the United States Bank
which he would reesahsh, has been repeatedly tried
and has often failed, in this particular Experience
has taught this people that oil the mighty powers which
have hitherto been conferred by their representatives
n1siona banking corporations have proved be in
adequate to the securing Of uniform currency with the
paper Of the State banks II granted that the paper
money put in circulation by the United States Banks
they have had, gave them uniform currency the
tent of the subsistence Of the currency in that paper
money The balance Of the paper par, Of the currency
alike during the existence of the national banks other
times has never been uniform and sound So the Sub
treasury scheme in complete operation, would give the
people uniform currency the Of the subsist
| ence Of the currency in gold and silver which alone
would be received in collecting the under this
scheme in complete operation The balance OF the
currency, consisting Of State bank paper, would
uniformity and be absolutely incapable of being invested
with that valuable attribute, while it continues TO be
issued by the multitude OF State banks existing"
| The paper money put in circulation by the U ned
States Bank bu, small part OF the currency which
requisite meet the demands Of the business Of
the country. So the uniform currency which the
Presidents Sub asuries' would secure, would be
but small part Of the currency requisite to the
demands Of the business OF the country The balance
of the currency consisting of State bank paper, tho
one case, has wanted, and in the other, no doubt,
would want, uniformity Thus, whether United
States Bank, or "the Presidents Sub-treasuries" be
put complete operation, very large proportion Of
4 the currency, furnished by the multitude OF State
banks existing" will want uniformity Of value
every where, with which it is desired by all the whole
currency shall be invested And how
(2.) Is this TO be done! That corrective mea-
sure-what measure, which will dispense with The sup
posed necessity Of United States Bank aud Of the
proposed Sub-reasuries can be resortcd to with the
best prospect Of success What measure that would
be well calculated the evil Of want Of uni
formity in the currency. which evil the existence OF ma
tional banks have faled and "the Presidents Sub
treasures would fall to correct If Mr. Underwood
has truly told why it is impossible j" to keep up uni
i
the corrective measure is manifest and cannot be mis-
taken. He says with the multitude Of State banks
existing" and likely to be larger, it is utterly i'm
possible for the mechanic the manufacturer and far
mer to become acquainted with the names the number,
the creation, and the character or with the officers,
their signatures, the capital and the duration OF
thousand banks He says those men will not, nor will
the merchants who have better opportunities Of acqu
4 49,
institutions with which they unacqunted so many
important particulars, will they give credit and cur
rency their issues iii, be that this OF
pac,y in the State banks keep up uniform national
currency is owing to this invincble Of acquaint
ance with them, while there many of them, the
corrective is perfectly manifest the hum
blest capacity So reduce The number of them, that
The necessary acquaintance pih their issued paper, nay
be ieithin The reach Of epery engaged in trade
and without, the labor of life devoted TO the study Of
banks and banking statistics" And
az BY whom is this corrective measure to be APP
piled With the assistance of the General Govern
ment by amending the Federal Constitution, if neces-
sary, The Stale Legislatures must apply the connective
measure. sense of the necessity Of the measure Of
reducing the number Of the banks, must be dihused
among the people and inculcated by free press
| Tho the people Of State have voice in form
ing the banks Of another the teachings OF experience
and the voice Of will, later, according
to the exer,ons Of the well informed, be enabled to hold
dominion over the councils Of every State.
a. The only remaining proposition now purposcd to
be very briefly examined, is, whether the want OF cspa
city in the State banks TO maintain uniform national
currency, is or not, owing 10 the Of acquaintance
(by trading meu) with their paper issues in the impor
tant particulars enumerated in the foregoing extract
from Mr. us speech. That their want of capacity is