Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1838-03-24

'sSucJ az Washington by the Treasury Depart
ncc'. upon the dcDosisarics. .; that amount.
some ten or fifteen millions would remain the drst
year. III c,rcuia,ion: the end Of another year,
similar amount would continue in circulation: and
or. from year year, until at the end ofascries
If some five six there would be in circua-
ton 10 supply the indispensable wants Of CON-
,ncrc> AMI of a general medium At uniform value.
no, less than some sixty or eighty m'.oas Of drafts
issued nv the Government. These dfaiis would
be generally upon ,Sc receivers general at Now
York; because, en hat point, they would be pre-
ferrcd. and they would command a premium, o.
he at par throughout the whole extent Of the Uni
ted Stn,cs; aad we have seen that the Secretary
Of the Treasury is Invested with ample authority
to concentrate at thu, poin. the whole revenue OF
Inc United States.
All experience has demonstrated that IN BANK
operations much Larger amount "f paper can DO
kent out in circulation than the spccio when u -
necessary to retain in the vaults to meet II when
presented for payment. The proportions whie"
the same experience has ascertained to 10 ens'rc-
" safe nrc ono Of specie 10 three OF paper.
therefore, tho Executive Government had ssx'v
millions oftollars accumulated at the port OF new
York. in the hands OF tho receiver general, repre-
sen,ed by sixty millions OF Government drafts IN
circulation, it would be known that twenty mil
lions would be sufficient TO retain to meet any a.
noun, OF drafts which, in ordinary times would be
presented for payment. There would then remain
forty millions in tho vaults idle and unPrOductse,
and OF which no practical use could be maze
VOL, a great election is at hand in the State q
New York the result Of which will scni the tato q
an existing administration. IL tho applications q
ten millions of that dormant capital could save, ~
some future dav, corrupt Executive from over-
throw, can it be doubted that the ten m,i'ioos
would be applied to preserve II IN poworf again.
let US suppose some great cyigency to arise, sea
son of war creating severe financial pressure ami
embarrassment. Would not an issue OF paper
founded upon md exceeding the specie IN INC
vaults, in some such proportions as experience mao
might be safely emitted, be author
iscd? Finally, the whole amount OF specie m'gns
he exhausted, and ihcu, as it is easier to engraso
and issue bank notes than perform tho unpopular
Office imposing taxes and burdens, the discovery
would be made that tho credit Of tho Govcfnmcns
was a sufficient basis whercuPon to mako cmi'-
81 ms Of paper money, to DO redeemed when peace
and prosperity returned. Then NC should navo
that Government paper medium which the soma
tor from South Carolina Mr.. Calhoun CONSIDERS
the most perfect Of all currency.
Meantime, and during the progress OF this vass
Government machine, tho State Banks would Do
Frustrated. Working well, as IT may, IL hones"y
admins tcrod in the first period Of its cxistence,N
will be utterly impossible for them 70 MAINTAIN
the unequal competition. They could not ma.e-
tain il, even If the government were actuased by
no unfriendIy feelings towards them. But when
we know tho spirit which animates the present
Executive towards them, who can doubt that they
must "a L in the unequal contesef Their iseues
will he discredited asI disceuniennnced, and that
system Of bankruptcy which the President would
even now put into operation against them will, in
Inc sequel be passed and enforced without df6cuf-
".
Assuming tho downfall Of the local banks, tho
inevitable consequence OF tho operations OF this
great Government bank; assuming, as | havo
shown would be the cnse, that the Government
would nsonop0'ize tbs paper issues ofthe county,
md obtain the possession Of great portion Of the
.pccic Of tho country NO should then behold COM
,ined and concentrated money power equal 20
hat of all the existing banks oft United Statesr
With that Of the tate bank Of the U. States, supes
,ddcd. This tremendous power would be welded
" the Secretary Of the Treasury acting under tho
immediate command Of the President Of tho Uni
ed States. Here would be perfect union oet60
PURSE and sword here would be no imaginary. but
IN actual, visible tangible, conso:idatsoa Of tho
none we'd power Who or what could withsta nd IL!
The States themselves would become suppiants
Il the feet Of the Executive for portion Of those
,apcr ennis son., Of the power 70 issue which they
lad been stripped, and which he now exclusively
possessed
Mr.. President, my observation: and experience
ave satisfied mo that the safety Of liberty and
consists the division q power, wheth-
e political or PC cuniarv. Ia O,ir fcderativc sys-
en, our security is to be found in that happy dis
ributiou Of pow er which exists between the Fed
raj Governments and the State Governments.
IA our monetary system, a. il lately existed, its
xcclencc resulted from that beautiful arrange
nent by which the States had their institutions
y local purposes, and the General Government
Is Institution for the general purposes Of tse
vhole Cnion.-Thcrc existed ths greatest con
eniality between all the paris Of this adnaeaslo
ystem All was homogeneous. There vas 10
eparation Of the Federal Government ffom tho
states from the people. There was NJ AZ
empI to execute practically that absusdity o. sus-
aiming, among the same people, two different
urrenc;cs Of unequal value. And how admirs-
Nv did the whole system, during the forty years
E its existence, move and work! And on tho
wo unfortunate occasions Of iis ccasing 10 exist,
ovv q,ickiv dii the business anil transactions OF
he country run into Wild disorder and utter eoH-
lsion!
Hitherto. have considered this new project 40
is, according 10 its true nature and chafactefs
nd what il must incv itab!y become. have not
xamined it as it is not, bat iss friends would ree-
esent IL to be. They hold cut the idea thatnn
simple continuance 10 collect, to keep. and to d.s
1rse, the public revenue. Ia that view Of ss'
very consideration Of safety and security recon-
ncnds the agency irresponsible corporations, ram
r than the employment Of particular 'nd's'doa.s.
no