Cheraw gazette. [volume] (Cheraw, S.C.) 1835-1838, 1837-07-19
REMEDY FOR THE PRESENT DERASGEMEST
OF THE CURRENCY,

REMEDY FOX TIE PRESENT DERAEGEIETT
OF THE CURRENCY.
Mr.. Samuel Smith, for many years com.
missioner Of the Treasury has published in
the National In cliscncer an article on this
subject which fills eight columns in small
type of that paper.
! He undertakes TO shew:
, l. That the establishment Of sound
currency is exclusively a national object.
2. That it is utterly impracticable, in tie
| United States, TO make the precious metals
| the sole currency.
! 3. That whatever other currency is de-
vised must be based on the precious metals,
and be exchangeable for them.
4. That, to give effect to the most i'm.
por;ant provisions of the Constitution, it is
indispensable that there should be uniform
legislation respecting the currency that shall
pervade the whole Union, which Congress
can alone exercise, to the exclusion of all
interfering State legislation; and that, in the
words Of the Constitution, Congress have
power "to make all laws which shall be
necessary and proper for carrying these
provisions into effect.
5. That the establishment Of Bank of
the United States is tried expcdient for
the accomplishment ofthis object; but that,
as insurmountabe difficulties may arise in
creating such an institution.
| 6. A plan is there propounded, answer.
ing most, if mot all, the ends Of a bank.
who's; consltutionaity cannot be impugned
by the opponents of bank.
The following is the plan.
| l. A loan. to be opened by the United
States, for fifty millions Of dollars, payable
in specie, at one prescribed time.
2. The existing solvent banks, in the ra.
ito oftheir capitals paid in. to have in the
first instance the preference Of subscribing,
and, in case such subscriptions do not
amount to fifty millions, any of the banks
having the ability to be authorized to make
further subscriptions.
8. lfthls amount shall not be made up
BY the subscriptions Of the banks, citizens
| Of the United States to be authorized to
make up the deficiency, and any deficiency
then remaining to be supplied by the sub!
scrip,ions Of foreigners.
4. Each bank so subscribing to receive
from the Government promssory ob!iga-
tons payable on demand in specie to bear
or, in sums of various denominations suited
to a currency, to an amount equal TO Its
subscription, and to an additional amount
equal 10 one hundred and fifty per centum
on such subscription, for which additional
subscription it shall stipulatc to pay two
Der cen um annually.
5. The terms of such subscriptions by
the banks shall be as follows:
That they shall pay their notes and de-
posites in specie or Government oblga: ons,
in the manner and ii tho tines that may be
prescribed.
That at the expiration Of their charters.
or on winding up their atE,"s, Ih;y SHALL
! make restitution of their additional subs crir-
tons in the Government Dromls:ory noes,
orin specie.
That they shall abstain, af.er the plan
goes into operation, or after prescribed
time from the issue Of any notes of their
own, including those already issued, that
they may receive on dcpoSl.e, or in pay
mcnt Of their debts.
That they shall render TO the Govern.
ment monthly statement of their affairs.
| 6. That the like provisions shall be ap-
Piled 20 all banks that may be hereafter Ill.
corporated, and the loan Of specie be aug
mcntcJ under prescribed notifications and
| limitations.
7. Tha: al! bank notes issued, or in ex-
istencc, atier prescribed time, be sutjcc:
TO s:amp duly Of fifty per ccn:uln on !hcir
nominal amounts.
9. That in case Of subscriptions made
By individuals, specie shall be laid to the
Government, either to the same amount as
the prorssory notes given in exchange for
it, or ut moderate premium or, what may
be better, that the loan be taken Of those
who after sufficient public notice, shall offer
the bcs! terms.
9. Thal the specie loaned as above shall
be placed in the custody, OF, and under the
direction ola commission Of five ndividu.
ais, who shall receive adequate compensa.
ton, and shall be so selected as to insure
the highest responsibility and integrity, and
! be so protected from Governmental or other
! sinister influence as to secure the greatest
attainable independence.
They shall also be charged with the fab.
rication, distribution, redemption, aud reis.
sues of the above promssory obligations Of
the United States.
10. The promissory obligation OF the
United States shall be paid in specie on de.
mand; and they shall'be received in pay.
ment of all taxes other public dues, and be
gwen in discharge Of ell debts due by the
! 4,