The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-21

y, paper convertible into specie, bot from the ope-
ratons Of commerce. IL Is commerce., at last that -
chargcable with expansions and contrsciions; and
against commerce, and not its instrument should oPpo-
sition be directed.
have heard il urged by the Senator from South Caro-
lima (Air Calhoun with no lutte surprise in the
Of this debate that convertible paper would not
s~er for currency, but that the true standard Of value
was TO be found IN paper medium not convertible INTO
the precious metals Ii there be- IN regard to cnTrcn-
cy, truth which the united experience Of the whole
commercial world had established, had supposed
il TO be that emissions Of pure paper money const-
tuted the very worst Of oil conceivable species Of
rency.
The objections to il First that il is imprsctcabe
TO ASCERTAIN, prior what amount can be issued with
depreciation and, secondly, that there is ade-
quate secuiiiy, and in the nature OF things
exist, against excessive issues. The paper money Of
North Carolina, to which the Senator referred accord
ing TO the information which have received, did depIe
ciae. Il called Proc, abbreyiaon OF the autho
nty under which it put forth, aud il took and
half and sometimes two dollars OF proc TO purchase
in specie. But If any one desires 10 understand per-
ecty tho operation OF purely paper currency, let him
study the history of the Bank OF the Commonwealth Of
Kentucky. Il established about fifteen or sixteen
years ago. wi the consent Of the majority OF The people
Of that State II is winding up and closing its career
with the almost unanimous appreciation OF the whole
people IL had authority 10 issue, aud did issue,
notes to the amount OF about two millions OF dollars
These notes. upon their lace, puported an Obligation OF
the bank pay the holder, demand, the amount in
specie but il well known that they would not
be paid As security for their ultimate payment there
were LIST The Of individuals supposed to be well
secured every put out by the bank being repre-
scented by an individual note discounted I'd. The funds
of the State in prior State Bank, amounting TO shout
half a million of dollars Sd The proceeds Of large
body Of waste lands belonging to the State. And 4th.
The annual Of the State and public dues, all Of
which were payable in the of the Commonwealth
Bank.
Notwithstanding this apparently solid provision for the
redemption OF the Of the bank they began de-
precste shortly after commenced operation and in the
course Of few months they sunk low fifty per
cent-two dollars for specie dollar. They continued
deprecated for long tme until after large Of
them called in and burnt They then in value,
and now, when there is only fifty hundred
thousand dollars out they have risen TO about par This
is owing to the demand for Them created by the wants
Of the remaining debtors the bank, and their receiva
bty in payment Of The result Of the experiment
is that although is possible TO sustain at about par
purely paper medium amount, if the legislative
authority which it will also create demand for
it, mpracticabe to adjust the proportions of supply
and demand TO keep at par and that the tenden-
cy is always TO Of issue. The result, with
the people of Kentucky has been general conviction
Of the Inschiels Of all issues rrdeemaCle paper
medium.
To be e0Rcluded