The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-10

he management.
Itappears that the highly beneficial princi-
pie Of assuming the sovereign right of bank
ing, has been adopted and improved in several
Of the states, and with the progressive deve-
lopments Of its benefits, the more has il gain
ed upon the public favor its most potent en-
envy is that which has grown out Of an s1cess
Of grants 10 private corporations for such pur-
poses. But if the regulation of the currency
is TO be regarded as PUBLIC RIGHT; II the
good of the whole is TO be preferred TO the
special interests Of a fauored feW; and if there
be enough Of intelligence among the people
to understand the proposition, and to apprecl-
ate its merits, (which cannot be doubted.) we
may well anticipate the eventual establishment
of national currency, under the agency OF
connected system o. institutions belonging SOLE
w to The states.
The doctrine Of the great father of demo-
cracy is peculiarly opposite and interesting at
the present crisis, as it presents practicable
succedaneum, through the medium of mea-
sure Of value, which, by +" its sohdity, uniper-
salty Of circulation, and receipabihty IN all
public payments, would make its way, and
suppant the paper of private banks or corpo-
rations of individuals" These are the views
of JEFFERSON ; and although the Congress
may not be authorized to establish a paper
currency as an absolute tender in private con-
tracts, yet the influence they may exercise in
securing its soundness, through the collections
Of the revenue, has been admitted by the
purest patriots and most enlightened states
men Of this republic, in various departments
of the Government.
In the early annals of the constitution, the
power was affirmed by Gen. Hamilton, in his
public character, "to designate or appoint the
money or thing in which the taxes are to be
paid" as being "not only proper, but ne
ccssary exercise of the power OF collecting
them" accordingly, Congress, in the law
concerning the collection Of the duties on i'm
posts and tonnage, have provided that they
shall be payable in silver or gold. But while
it was an indispensable part Of the work to
say in what they should be paid, the choice
Of the specific thing was a mere matter OF
discretion. The payment might have been
required in the commodities themselves tax
es in kind are not without precedent, even in
the United States or they might have been
in the paper money OF the several states, or of
the bills Of the Banks Of North America, N.
York, or Massachusetts, all or each Of them
or it might have been in bills ISSUED under the
AUTHORITY OF THE UNITED STATES. No part
of this, it is presumed, can be disputed. The
appointment of the money or thing in which
the taxes are to be paid, is an incident TO the
power of collection and, among the expedi-
ents which may be adopted, is that of bills
issued under the authority of the United
States" These are the views Of HAMILTON
and this contemporaneous commentary has
received the sanction of succeeding sages, in
the practical employment Of the Treasury
notes as medium of exchange and circula-
ton. t"
II therefore appears that a paper currency
is not inhibited by the constitution; and that
such currency may be created by the Gene
raj Government, and distributed among the
states, under proper guards and regulations to
insure its credit and convertibility into gold or
silver, and to promote, incidentally, the COM
mon welfare, is equally evident; as the pro-
ductve principles Of high and valuable pre-
rogative would thereby be diI'used, by its OPP
erations, to the whole people, and not confined
to the benefit or profit Of special few. The
plan, indeed, is esteemed sufficient for all the
beneficial purposes in contemplation, without
the evils OF soulless combination of corpo-
rators it is, in effect, National Bank of
exchange and deposite, without the privileges
of issuing notes or loaning money as regards
the General Government, in connection with
an equitable and secure system for the receipt
and distribution of the federal revenue-com-
mensurate, in fact with the wealth and credit
of the several states, embracing the entire
property and population of the whole Union.
To each and every Of the states it would i'm
part rich resource in public income, and diff
fuse the means of propelling industry and en-
terprise, and, by accelerating improvements
throughout the country, promote the amelio-
ration Of every interest and class of society
and while such system would essentially
enlarge the specie basis, and adopt the local
circulation to the common uses and demands
of ordinary business, the national currency
would supply the facilities of interchanges in
large transactions, on terms convenient and
economical.
In reference to the pending question, the
great object of desire is medium OF uniform
and equal value throughout the Union to ac-
complish which, il is proposed that curren-
cy shall be created by the United States upon
the faith and credit Of the whole nation, guar
amtied by the states, receivable everywhere
in all public payments, and convertible into
silver or gold on presentation at each and ev-
cry of the institutions Of The states. If a bet
ter medium can be devised, it remains to be
demonstrated.
For the more ample illustration and better
understanding of the matter, some additional
views in relation to the expediency and JUS
tice of the proposition, and in support Of the
practical effects anticipated to flow from the
operations Of the interesting measures in con-
temptation, will be submitted.
BY the federal compact, the entire revenue
from duties on imports is ceded to the General
.Cnyornrnant ayclusiyely and tho stataS