The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1838-04-24


some extent. Bur the shouts in the community de-
mand the destruction of all the banks and tho final
extermnation of all paper circulation.
To the people, the lion roars against paper money
in all the loudness and terror of his natural voice
but to members of Congresshe is more discreet lest
he should frigben them ont of their wits, he here
restrains and moduates, and oars Gas gently as any
sucking dove, or, as it were, any nightingale" The
mpracticability of an exclusive metallic currency,
the absurdity of attempting any such thing in a
country like this manifest, that nobody here
undertakes 10 support it by any reasoning or argu-
ment. All that IS said in its favor is general de-
nunciaon of paper, general ontcry against the
banks, and defamation against existing institutions,
full of sound and fury, signifying nothing.
The moment any one considers it, he sees how
ridiculous any such attempt wOnld be. An exclu-
sVe metallic circulation for the second commercial
county earth, in the nineteenth century Sir,
you might well propose to abolish commerce al
! together
| The currency of England is estimated at sixty
millions sterling; and it is Mr. McCuoch's calcutta
ton, that if this currency were all gold, allowing
only one quarter OF one per cent for Of metals,
the annual expense attending such a currency,
would be three millions and quarter year, or
nearly five per cent. upon the whole. With us,
tins charge would be much greater. The loss Of
capital would be more, owing to the higher of
interest and besides all this is the cost of trans
portaton, which, in country so extensive as ours
would be- vast and not easily calculated. We should
also require proportonally, specie than is re-
quisite in England, because system Of exchange
b., means of bills of exchange, is at present, and
would be, under such system as is proposed, much
less perfect and convenient than that of England.
Besides, the English metallic circulation is mostly
gold, gold being in England the standard metal
With us, silver and gold both are made standards
nj fixed relation and it we SHOULD succeed TO keep
this relation true TO both Of the pre-
cious metals among (Which is not very probable)
our circulation would be still more expensive and
cumbrous from the quantity Of silver which it would
contain. The silver in the world is estimated To be
fifty times that Of gold in amount and consequently
something more than three times in value. If both
should circulate, therefore, equally in proportion to
value, the currency would be us much as three
parts silver, aud gold
Now, sir the annual expense Of such circulation
upon The basis of Mr. McCuoch's estimate would
exceed the whole annual expenditure made for our
army aud our navy. Consider, sir, the amount of
actual daily payments made in the country Il is
difficult 10 estimate ii, and quite possible to ascer.
tain it, with any accuracy. But we can form some
notion OF 1t, by the daily of payments in the
banks in Of our cities. In times of prosperous
business and commerce, the daily amount of pay
ments in the banks of New York alone has been
equal to eight millions. Whether we call this a
tenth, twentieth, or fneth part of all payments
and receipts made daily in the country wo sec to
what an aggregate result the whole would rise
And how is il pussible that such amount of recent
and payment could he performed by an actual pass
ing of gold and silver from hand to hand
Such notions, sir, hardly require serious refuaton
Mr. President an entire metallic currency would
necessarily create banks Immediately. Where would
the money be kept, or how could il be remilted .
Banks of deposite must and would be instantly pro.
vided for IT, Would the merchants of the cities be
in their daily walks of business with servants
behind them, with bags Of gold md kegs of silver
on their wheel .harrows What folly is great enouoh
to imagine this ? If there were not now n bank
note nor bank in The country, and if there should
be an exclusive specie currency tomorrow morning
at nine o'clock, there would be fifty banks before
sunset. From necessity, there would be crea ed at
once, places of deposite and persons having money
in such repositories would draw checks for H. and
pass these checks as money, and from hand
they would pass 10 another or the drposary hun.
self would issue certificates of deposite, and these
would pass currency. And all this would do no
more than just carry hack two or three hundred
years to the infancy of banks We should then
have done nothing but reject the experience of the
most civilized nations, for some centuries las we'll as
al our own experience, aud have returned to the
ude conceptions of former times. These cortf. !
,ates of deposte would soon be found to be often
ssued without any solid capital actual deposite I
Abuses arising from this would call for
legislative interference and the Legislature would
ind 1t necessary to restrain the issue of paper in
ended for circulation, by enacting that such issues
hould only be made on the strength of competent L
ap'tal, actually provided and assi gned, placed
Ter proper regulation, and managed by persons re- e
ponsible to ;he laws. And this would bring us a
gain exactly to the state of things in which we
low are; that Is to say to the of the paper of
anks, established, regulated and controlled by law. q
n the time, before this process could be car
led through, half of the community would be made b
ankrupt by the ruin of their business, and by the
iolent and revolutionary changes of property which
he PROCESS would create, The whole class oil h
ebors, all that live more by industry than cap
al, would be overwhelmed with undsiingushed d
W
There will them sir, be no such thing as an ex- A
lusive paper currency. The country will not be II
Utility of the folly Of attempting it. b,
should have felt that had occupied too much III
me with such senseess and prepos,erous sugges- til
on were it not the manifest object of partzans
ress such notions upon the attention Of the people, az
aid of the war against the banks. t3- so
We shall then, sir, have paper Of some sort, form or
e part of our currency. What will that paper I"
> The honorable gentleman from South CARROLL ny
n, admitting that paper is necessary part of ne
e currency circulaton has commended that that si
iper ought to be Government paper-not CONVEX aN
Bile redeemable, only so far as by being re. 1t
vable for debts and dues to government. My an
eague has endeavored to satisfy the Senate that op
e aim of the whole system, of which he regards on
is bill as but part is TO establish a circulation of LIZ
overnmeHt Paper and Government Bank. Other tn