The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-03

business Of the country is carried oni Il
consists entirely from one end Of the con-
federacy to the other, of irredeemable bank
paper-eyery payment that is made, every
debt that is collected, every transaction Of
every kind, whetherlarge or small, into which
money enters, is carried on and effected by
paper that has been issued by the State banks.
and which they no longer redeem with gold
or silver. These metals have passed entirely
out OF circulation they form no longer any
portion OF the money of the community treat
ing money as that only which, for the time
being, serves as the symbol Of exchange, Of
things having merchantable value.
This condition Of the currency Is the true
and great evil Of the times; il affects the peo-
pie in their business, precisely and in the
same manner, as il affects the government In
the conduct OF its affairs; and there can be
no remedy, at all adequate 10 relieve the CO.
vernment from its embaTassmcnis. which
shall not, at the same time. and 10 the same
extent, relieve the people from theirs.
In considering this subject as propose 90
do, 1t is unnecessary to 90 al large into an
examination Of the causes which have ops-
rated to bring about this state Of things.
do not know that am, nor do al all profess
to be, equal To this duty. Aud yet were ] 10
attempt il, should certainly differ very wide.
ly from those who trace these causes no
farther than to redundant issue of bank
paper. That each issue has been TO great en-
tent auxiliary to the present embansssments.
there can be no doubt But il has been anxiiia-
ry only; and freely admit, that in my very
humble judgment, well founded objection 10
our banking system lies in this very thing. that
banks of discount, organized as our Amcricaa
banks are, yield the facilities Of credit TOO
readily and amply to the demands Of trade.
without power Of discrimination between
such as arise from the extension, or actidehi-
al yigor Of healthful commerce, and such ~
have their origin in wild and ambling spirit
Of speculation.
Commerce requires credit. From the day
that men passed in their dealings beyond the
first simple stages Of barter. credit, In some
form, entered into the affairs Of trade. Ia
agency soon came 10 be understood, and tho
winds are not more active in circulating the
common air, than credit now Is, all over the
world, in circulating through every land, the
productions OF every soil.
Trade and commerce then becoming drunk
with prosperity, have drawn too lasishly upon
the credit offered them through the banks--or
if you will have il otherwise expressed, the
expansible character Of bank credit has offer
ed too great temptations TO commercial enter
prise, and we are now suffering under the eon-
sequences Of over action. as well on the part
of those who used this credit, as Of those who
gave it.
In this reasoning, am borne ou' BY The
message of the Prcsidenf--IIe says "thai
L.
table to over action in all the departments o.
business; an over action deriving, pcrhaps.Iss
first impulses from antecedeui causcs, but s,i-
INFLATED to its destructive consequences by en-
cessive issues Of bank paper, and by other r..
cilities for the acquisition and enlargcmeai ~
credit"
have entered into the subject thusfa omly
that may invite you 10 more enlarged view
of the difficulties to be met, than are prescnicd
when our inquiry is confined simply 10 con-
slderaiion Of the safest custody thar We can
provide for that portion Of the peoples monsy
which is to pass into the public Golfers
My great objections 10 the measures pro.
posed in this bill are, that they are nj ~ 81
commensurate with the cxigencies a. the
times. They do not meet the real difhcullf
The bill simply ordains that the Gosernmsnt.
after limited time, will receive nothing bni
gold and silver in payment Of public dnes, nmA
will entrust its keeping 10 It's o~n oflsnsrs
alone. Now. if there were q creative Eowerln
our law; fly this simple enactment ihe hamk
paper could be driven out Of circulation, bach
whence it came, and the precious metals SUBJ
stituted in sufficient quantities 10 most the
wants Of society, as well as the demands a
the revenue, the chief ground Of my cpp"sa.
ton would be at once removed. can wfh
see, from the experience we have had, 81 the
evil tendencies OF the banks 10 excessive 10
sues, (and such, at present, are my dccidea
impressions,) that whenever the currency y
placed in condition 10 bear the tribute, tho
true policy Of government may be found W be
to exact its dues altogether in coin and 70
withhold its revenue while resting between iss
collection and its disbursement, from the uss
of the banks, as n fund TO increase their diss
counts My reasons for this ! will give here.
after, when treating Of the proper pcsision
which the Government may ultimately assume
toward the State Banks.
The bill is to operate upon the currency a.
IL no,o is, for we have not only no guaranlee
that il will be found in an improved coBdilsan
at the end oftwelye months tihe limited timsL
but il is susceptible almost of demonstrates.
that one necessary consequence from the vso-
posed law, viii be to continue the currency n
its present debased condition,
The precious metals. all viii agree, arr roo
banished from eircuiai,oa. They are ~ shs
country, grant You. and IN suslirisns qmsaas.
ties, perhaps, TO answer their accustomed ~.
" Of circulating in those channels, bslew ths
reach Of bank paper. Bul they no luaEss pasa
from hand TO hand as medium II ssel3agR
Their former cxchangeahle sslss hss he~n
converted by the cesrss n freds ~ shafA !
have alluded IN n yalue ,rrl. s.ssf. maarkNtmkAe