The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-08-19

age. lis truth has been tested by the most
unerring Of all human guides, experience,
and it is vain 10 argue against the truth OF It's
practical results, exhibited in this and every
other nation where banking has existed II
is an admitted fact, that whenever bank is
sues are beyond an immediate convertibiliiy
into specie, that they arc excessive and pro-
| duce diseased and unsound state Of the cur
rency, the only remedy for which is a con-
traction of the paper circulation. producing IN
its effects depression in the price of labor,
products and property, and deranging the
whole commercial system. II would be de-
sirable so TO control and limit the issues Of
the banks that they should never exceed the
power of Immediate converibility into specie
without loss. In my humble opinion there is
no way in which so desirable an object can
be so successfully accomplished, than by
prohibiting the emanation of notes of small
denomination. II is a truth which suppose
cannot be successfully controveried, that the
larger the specie, the less will he the paper
circulation, and in proportion as notes are
excluded, SO will specie be thrown into circu-
ation The most experienced statesmen IN
| England and the United States agree that
notes and metal Of the same denomination,
say fvcs and tens, will not circulate together,
the paper always excluding the metal, the
I reason is that the note will not answer the
i purpose Of distant trade, bun is local in its
value, and can only have local circulation
whereas the metal will freely circulate al
over the world. Now when there are no
small notes, saw fives, tens, or twentles, then
there is no conflict between them and metal
of the same denomination for preference,
but the metal must circulate; hence larger
amount will be thrown into actual circula-
ton, and reduce the necessity for the same
amount in bank paper. II this doctrine is
not sound. why in most Of the states, would
ask, are all notes under five dollars prohibit
cd The answer is obvious,-thcy would
drive away all specie. The most arduous
and iasldious advocates OF paper circulation
will not venture to assert that there should
he paper circulation, exclusive of specie ba-
sis, why because paper is not money, it
:, has no standard value, and Independent of its
liability to redemption in specie is totally
NORTHEASTERN as far as paper circulates
beyond the power of specie redemption, it is
worthless and fatal in its effects 10 property
and trade The advocates therefore of the
most extended bank circulation, admit by
1 consequence from their own principle, that
that every circulation beyond the power of
immediate redemption is fatal in its effects
4 upon trade and commerce. cannot there
| fore, divine, how better check can be pro-
vided against excessive bank issues, than by
prohibiting small notes; supplying their
places with specie, and thereby diminishing
among the farmers and mechanics the ne
1 cessity for bank paper.
40 10 I, nj Re
ernn'eat from all connection nth banking in
| stttutions.-I am in favor of disconnccting
the government with all banking institutions
so far as to prohibit its holding stock in any
bank, either national or state, and indeed in
any corporation whatevcr-but TO prohibit
the receipt of the notes of sound banks in
payment of the public revenue, | think en-
iirelv impracticable while the states sustain
banking institutions, and under existing cir
cumstances, | think the state banks may, by
fair contract, be safely employed as deposit
tories of the public money The Federal
Government, the state governments, or the
banks themselves v>ior good cause dis
solve or modify the contract, which adds
greatly to the security of the people against
fraud and corruption. yet believe that the
currency which the people and the state gov
ernments are daily receiving, the Federal
Government ought TO receive.
g. sio The 0aaeadmrat If tie Constitution.
If left to pursue my own judgment, shall
vote against any amendment Of The constitu-
ton granting to the Federal Government the
power Of incorporating national bank, be-
lieving as Il do, that it would be unwisc.-
Yet as that is question OF amendment and
not Of constitutions, should feel bound to
obey the wishes of my constituents, and
would vote for the amendment if ma ority
would so desire
The Virgnian" says, :" We wish by the
way the Major would inform us, where he
heard, there was over any design entertained
to introduce an exclusive metallic currency
and by whom" My friends, the editors of
the " Vireinian" have, if do not msremcm-
Der, through the columns of that paper, charg-
cd the late administration with protesting
that design as humbug"-now as that
charge was not made upon the authority Of
my letter, would ask tho Virginian to put
its finger upon tho single expression used by
the late administration ntimating such a de-
sign ] have read attcntively, every public
document cmanating from General Jackson
during his administration, and cannot find 4
single expression warranting the charge. |
may have overlooked it, but do not think |
have Now the editors Of the Virginian have
all the avenues of information open to them
which | have, for never exchanged ono
word with General Jackson in private con-
vcrsation Upon the subject in my life. Tho
charge has not only been made by the Vir-
gilman, but most of the opposition presses,
and not only against the administration but
against the whole party supporting the ad
minisration, recently against some prominent
members of it. How far this charge is true
can with me he only matter Of opinion. as