The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1838-07-10

if metals alone were used the banks must be sup
pressed lfthey were sincere, therefore, the'r
policy necessarily looked TO the overthrow OF tue
state banks; nothing short of this could accom-
plish their views. The war then did reach the
state institutions and their overthrow was med
itated.
But the geographical extent of our country is
great; its trade active: its people distinguished
for commercial enterprise and activity. The
metals are culnbrous; the transportation OF them
is attended with delay and great hazard. The
specie capital, as | shall shew, is inadequate TO
the business.
| The administration, If fit {or the place they oc-
cupy, knew all this, too, and they knew that
sound convertible paper was indispensable, both
to the convenience of business, and to maintain
IL Uniform value in currency. They knew that
a commercial people could never be satisfied
without this facility. | say they knew it, be-
cause | will not dsparagc their financial skill so
much as TO suppose them ignorant of such OBJ
vious truths.
With this knowledge, again inquire, why
did they set up the doctrine of specie circulation
alone? Why did they set up the cry Of all gold,
and no rags? Why were gold and rags always
arrayed against each other? Why always placed
in such juxtaposiIion to he seen together?
Why was one made an object of strong desire,
the other of disgust? Can the design be msta-
ken? No one can doubt it was to break down
and demoliSh state Institutions, and the apparent
object was to put in their place metallic c. r
rency.
But, sir, / repeat that the administration knew
that this could never meet the public necessities.
They knew business could not go OIL, and they
| had IL remedy for all this, when The time should
| arrive. When the state banks We're discredited,
and when necessity was pressing, the pinch was
to be relieved by this leviathan instituton gov
eminent hank.
say they knew paper was Indispensable.
What, sin is the Office of paper? 1t is to dis
charge the balances between places that trade
with each other. The ancient mode OF doing
business to remit the specie, but this was
attended with such delays, hazards, and eX-
pense, as to be very great embarrassment TO
trade. Suppose, for example, that merchant
in Cincinnati owes in Boston five thousand dol
lars. and another person in Boston owes some
one in Cincinnati five thousand dollars without
the aid of paper each of the debtors would be
obliged 10 remit the specie. Now, sir, 1t is the
off ce of paper to pay each OF these debts ny the
money already in eucll of these cities, and thus
save the expense, Inconvenience, and hazard of
transportation. This easy and safe mode oil do
ing business was supposed not only TO save much
to all interested, but to facilitate trade as to
enlarge its action, increase lis amount and send
out in thousand ways its irucutying streams
without disturbing the circulating medium, by
suddenly carrying out of the country large guam
tity of its specie us must otherwise often occur.
| lave, sir, to illustrate my views, given Il single
| example, but you will perceive that IT was not
easy tor debtor in Amsterdam, owing III Lon.
don, To know who in Amsterdam had debts due
| from London, but Il remedy for this was soon
discovered. With the demand for paper, there
| fore, came brokers' offices, where IL was bought
and sold ia whatever form best suited conven-
fence. These places were early known. we
hear of money changers in the Temple. These
Offices almost necessarily became the deposto-
] res of capital put there for speculation ana trade
! in paper, which has always been bought and SOLD
on the most probable terms the brokers can
command. These offices became proverblal for
usury, for hard grinding bargains, and for thrift.
| A Jew broker or banker was the incarnation OF
money. Public banks succeeded to these pr-
vute banks, which, corrupt as they too often were,
| were found more convenient and less burdensome
than an exclusive metallic currency. Aud what
are banks as we see them in the United States?
Institutions created by law, existing upon such
terms, conditions, and under such restraints as
the creating power sees fit to impose. They are
ordinarily open to public revision and inspection;
restrained from taking usury; bound to provide
visible and solid means for the redemption OF
| their liabilities and, in Il word, are regulated
with sole view to render the public secure a
gninst abuses and inposiiions. They are per
United tG issue paper which slibserves the gener-
al purposes, whether in the form of bank bills,
bills of exchange, or checks
This was deemed great improvement, to es-
cape from private irresponsible trading instltu-
tons where every thing is concealed, TO open day,
to institutions created by law, responsible to tSre
quired to provide visible means to pay their debts.
| Now suppose all banks and bank paper should
be annhilatcd, shall we abandon paper? No sir,
we shall necessarily go back to the brokers' cells
TO make the best bargain can. The money
now invested in bank stocks will retreat to these
receptaces, and he who in New Orleans desires
to pay debt in Boston will find he can buy pa
per, though he pays heavy premium for it,
cheaper than he can remit specie. Paper will
be medium after all, but it will cost much more
and be less safe, less satisfactory and less accept
able, to all parties interested, than that which has
been afforded by the bank of the United States
You would, therefore, abandon institutions
wholly under your control, and throw us back
upon usurers. Sir, can any man be so insane
as to prefer the overwhelming monopolizng pow
er of such men as the Rothchilds or Barings to
the banks ofths country, divided as they are in
TO shares of one hundred dollars each, and open
m bndu2 Vnt this G ,be ALTERNATIVES