The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-13

who represent those States here inure the credit of
those banks by refusing 10 receive their paper in pay
ment OF the public dues!
/ l esteem this enterprise worthy OF the age we live
in, and sincerely hope it will rebound to the honor OF
the master spirits engaged in it. and enrich the States
through which il passes ] complain Of Senator for
his course here !; but when i honorable members
who share large portion Of the nations confidence
wagiDg in inermlnabe against all banks aud credit
in breath, and in the urging their States
charter banking companies TO carry public improve
ments which deemed Of too great magnitude for in
dyidual enterprise confess that cannot understand
them, Should Congress determine that hereafter moth
ing but gold and silver shall be used currency by
the General Government you will drive bank paper out
Of crculation increase the value Of the precious metals
five times their present value, diminish almost in
calcuable ratio, the of carrying those works,
and dcpress the price Of property TO the same extent
No one acquainted with political economy will deny that
dminution Of the currency OF the State vol check i'm
prosemens, and derange the business Of society This
was the case in 1919, and will follow now, should We
drye bank paper from circulation, and leave other
currency than the small amount Of precious metals
in the country. A reduction rapid and extensive
cannot fail TO produce general distress. BY driving
bank paper out OF ccuation every interest in society
will be seriously affected property Of every kind will
decrease in value the relation between debtor and
creditor will be entirely changed and the change will
be ruin to the debtor The amount Of property
say discharge his debts under this new state Of things
will greatly exceed that which he received from his
creditor Enterprise Of every kind will sustain shock,
and misery and distress pervade all classes Of the
munity.
Property or labor which is now worth five dollars will
not then command dollar Dare eighty
percent oil the value OF the property OF consu
ents cannot assume so fearful responsibility. /
know gentlemen will tell US they have idea Of in
Junng the banks; very far from it ; they just wish to
separate the Government from the banks in its fiscal
operations that the government may 90 on aud use
hard I'D drafts dram bv AMI arl
that the banks get along very well on their
sources. Sir, you may well tell me that good
physician draw the last drop Of blood from the hui
man system, and still continue life and animation as
that bank paper will circulate currency for all other
purposes when It rejected by the government pay
ment of public dues II bank notes refused pay
ment for public lands in the west those who wish to
buy lands will take the notes. draw the specie from the
banks and pay into the land offices twill pass into
the United States Treasury and thence into the pockets
OF the office holders, to be sold out BY them premium
to the purchasers Of the public lands In commercial
cities, where duty bonds are to be paid, hard money
must be had to pay them, no matter what 1t may cost
and the cost falls on the consumer for neither the inn
porting merchant nor the government will bear the loss
have stated that, by increasing the demand for SPECIE
you depress heprice Of properly and abor and sir by
paying the office hoders their salaries in gold and sill
YER YOU increase them to double what they were, and
the lrle Dear the additional burden The Shylock
Who has boarded few hard dollars, and debts
vi,
chase the best property in cities, or the most yaua
Bile farms the country for oneenth of their cost TO
the present owners thereby doubling his thousands at
the expense Of the unfortunate debtor All writers on
political economy agree that the demand for currency is
greater than the precious metals supply, without de-
pressing the price Of all the products of human labor
We should not forget that production IS regulated by
demand, and that both affected by the amount OF
currency compared with the number of articles to be
exchanged through its agency 1t will readily be per-
ceived that increase OF the currency OF State by
the substitution Of paper, even when convertible into
coin, gives vigo productive industry and will increase
the quantity Of cxchangeahe commodities beyond what
would otherwise have existed Under these circum-
stances the sudden rejection OF paper currency as pro-
posed by the bTreasury BILL cannot fail to derangc
all the business of the country, by diminishing the guam
tity of currency, whilst the articles to be exchanged
through will suffer no diminutlon. ....'
The currency of this country has been greatly in
creased within the last years. by the employment of
paper, founded, it is true, originally on metallic basis
Within the last year this paper has ceased to be con-
vertbc into specie, and in many instances sys
temac effort was at first made to prevent excessive
issues paper soon lecame redundant and consequently
decreased in value. Notwithstanding the present de-
ptecation there be doubt that public works have
been commenced by States, and that the prudent and
industrious par, OF the community have been aided by
the increase OF the currency far beyond what would
have taken place had been confined to hard money
currency alone ,~.
Efforts are now being made by the banks TO resume
specie payments They are rapidly diminishing the
amount Of paper in circulation 1t will be forescen that
the relative value of money will increase, and Of course
that all other articles must decrease. This increase IN
the value of money will be followed by fall in the price
OF all articles that cannot be exported TO places where
money is abundant And, in the progress OF these
operations the price Of exporabe articles will also be
affected by the reduction of the currency and the guam
ty OF exchangeahe articles will also be diminished
While currency is evidently increasing in value the
manufacturer will not hazard his capital in producing
articles, the price Of which declining manufactured
goods Of various kinds will have TO be imported from
abroad prices demanded there, where money is
plenty, and which, Of course cannot be afforded cheap
if manufactured at home The merchant dare not
purchase his usual supply Of fresh goods while exchan
ges high, and the danger OF being compelled to part
with them at reduced prices staring him in the face
Under these circumstances all the money in the
try will be required TO pay debts already contracted No
win embark in enterprises OF any kind until this
rency question is settled To effect this desirable OBJ
ect the Joint action of the General and State Govern
nens is requisite The States doing their part, by
correcting the that have crept into the manage
of their banking institutions, and preparing to pay
specie for their paper If the General Government will
honor the paper Of the pccepayng banks OF the States
by receiving 1t III payment OF public dues, confidence
viii be restored, and business revived In currency,
like all the business Of lfe matter what possess,
the possession affords but little enjoyment without con
fdencc. ...,. ..'@,
am opposed to any farther experimenting on the
currency and wish to restore things to what they were
few years ago The paper system, as gentlemen call
it. is not new to US has existed, in form, from
the foundation Of the Government. The value Of pro-
perty Of labor Of provisions, Of every commodity in all
the business Of life has relation to the paper credit sys
TEN, and how to get clear OF II at this late day
Our roads, our canals, all our public works,
strnced on credit Why should it create surprise if
we sustain the credit system! We know that it is
sometimes liable to abuse but hoping to profit by expe
Renee, and to correct the evils complained Of we can
not give up. The Legislatures of many Of the States