The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-10
,.s. For THE MADsoNIAH
NATIONAL CURRENCY q STATE BANKS.
THE MARYLAND PLAN.

THE MARYLAND PLAN.
No. v.
Abundant proof Of the necessity of GRAND Frs.
CAL INSTITUTION, for regulating the monetary con.
Germs Of the country having been forced upon us BY
the anomalous condition of the currency; and, hay
ing essayed to demonstrate the eonsitnionahtv and
adequacy of the system submitted in the documents
No. g. of both branches of Congress- the late extra
session. the erpedieney of the above is mex, presented
for examination, And upon that point it may be per-
tinent to repeat, that, the pocket nerve" the
most sensitive of the social system, does disorder
in the circulation of the essential fluid of the body
polite directly tend to exasceIbation in the public
mind and an alienation of that patriotic affection
which is indispensable TO the preservation of com
pact based upon principles of equal Justice and re-
ciprocal benefits. The "ezpcdieacy of the measure,
therefore, inrolres question Of PRIMARY IMPORT AND
CONSIDERATION
The propriety Of improving the productive prin-
cipes in question for the good of the tchole
nation, extensively engaged the public attention i'm
medate preceding the last re-charer ofthe Bank of
England, in 1882. And among the number of vau.
able essays which appeared in the discussion of that
topic, was an article from the pen of an eminent
writer in the Quarterly Review.
In the prosecution Of the subject he spoke Of the
Of land and labor from its tendency to accu
mulae the circulating medium in the cities as con-
tradisnguished to public institution with depart
ments in different sections Of the country follows
g Hence" he says, 1.-THE productive classes, and
more especially the class engaged in Agriculture,
can no longer command that accommodation which
| they have been accustomed TO receive. The opera
lions of productive industry are thus mpeded by the
withdrawal of that capital which used to feed them
To this must also, be ascribed the glut Of mo-
| ney in the city market, which has rendered it
tremey difficult to employ it to advantage, and has
consequently reduced the rate Of interest there while
money is scarce and dear in the country"
| 1t is considered, then, quite evident, that the
owners Of money are as much Interested as the own
ers of land and labor in resisting exclusive prive
ges, which prevent or impede the formation of safe
institutions for the benefit Of the State, such would
nfuse vigor into the industry of the narion-animae
the dropping energies of those engaged in the cult
walton Of the SOIL and open wide field for the pro-
ftable employment of capital in the country. And
| by giving new direction, as well as new impulse
to industry establishments Of that nature would also
prove the means Of augmenting the public income as
increased production would, necessarily, be followed
by an increased consumption of commodities, which
would open source Of revenue to the States and
an increased revenue, thus Obtained, would enable
the Treasury to bring into action the latent resources
of the country and to promote the general prospe-
rity. .@s..& t*
1t would thus appear that there is no class-and,
with the solitary exception Of the holders of Bank
stock, there is no individua-who would not be be.
nefued, either directly indirectly, by the introduc-
ton, and discreet extension of the great principle
herein proposed Such system ofinslitu,ions would
the PROSTATE and oppressed of all classes be
visited by the encouragement of hope-he industri-
Gus and frugal they would present with, at least
opportunity of emancipatng themselves from the
| thraldom into which they have been thrown BY the
vicious principles of the present system, and 10 the
owners of land and labor, they would be found
source Of improved profit
The verify ofthese views and the forebodings
ticipaed, have been sadly realized both sides OF
the Atlantic ocean, and from knowledge, impaired
by woful experience, it appears by the last financial
expose Of the British Chancellor of the Exchequer,
in reference TO the money crisis, that "Me mholc cir
cuaton Of the country ongh not TO be placed under The
control of a joint stock company'-and crcum-
stances have arisen to strengthen an opinion which
has been entertained at the Treasury, for "purchas-
ing the interest of the Bank, in the six years of the
charter yet to come and starting national inslitu
ton upon altogether different plan" In debating
this subject in the House Of Commons Mr.. Clay
said, " he thought that the po,rer Of making paper
ought not TO be intrusted to any man. body of men,
irrespective Of the control of the Government-and
he had hoped thatthe committee joint stock banks
would have been able before the close of the session,
to present some recommendation on the subec-but
doubt his right honorable friend had sufficient rea
for not urging the committee to make their re-
port This session. and he thought himselfthat in refer
| II spapn nj n
legislate well than rapidly. He would, however, call
on the Government during he recess to mature some
measure on the subject" -s..
| Mr. Wallace said, " that the budget, which had
been expected with intense interest, had presented
| nothing-it showed that the Minister had been in
communication with the Directors of the Bank Of
England who had inflicted on the commercial inter-
esis the mschefs to which much alluson had been
made. He had already had motion before the de-
strucon ofthe charter of the Bank and he still kept
that object in view. That corporation had conrived
! to elude the scrutiny OF select committee OF the
House, on jont-stock banks, and il was as much
joint-stock bank any other banking establishment
He believed that the distresses of the country were
entirely ascribable to the powers Of the Bank oil Eng
land, and that it would be the duty of the House, al
the earliest possible period, to institute SPECIFIC IN
quiry into those powers ciM rtsD 10 some ebect'Cf
rcforn,--soMETHING DECISIVE MUST DE DONE"
Thus, il appears, that the situation of things Isl Pc
culiarly analogous in both countries, and that Inc
opinions of statesmen, growing out OF the unio"aru
circumstances of the times are not less soand thiS
brings US the original proposition, and furnishes
conclusive argument in support OF the crped'e"eyo'
NATIONAL CuRRENcY-and that, If banks be nece''
sary for the promotion Of industry, the conveniene.
Of commerce, and the general accommodation Nv
them belong TO he States and let the revenues reSuI
ing from the voluntary contributions OF the boFFoN'