Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1838-05-15

this renders it necessary that they should
be regulated and controlled. The CUES.
ton is, by what rulel To this | answer,
by subiecting all banks to the rule which
the most discreet Of them always follow
by compelling them to maintain certain
| fixed proportion between specie and circu-
lation; without regarding dePosites on one
hand, or notes payable on the other.
There viii always occur occasional
fluctuations in trade, and demand tor
specie, by one country on another, viii a.
rise. 1t istoo much the practice, when
such occurrences take place, and specie is
leaving the country for banks to issue
more paper in order to prevent a scarcity
of money But exactly the opposite
course should be adopted. A demand for
specie to go abroad should be regarded as
conclusive evidence of the necessity of
contracting circulation. If, indeed, in
such cases, it could be certainly known
that the demand would be of short dura-
ton, the temporary pressure might be re-
lieved by an issue Of paper to fill the place
of departing specie.
But this never can be known. There
is no safety, therefore, but in meeting the
case at the moment, and in conforming to
the infaliible index of the exchanges. Cir
culating paper is thus kept always nearer
to the character, and to the circumstances
of that. Of which it is designed to be the
representative-the metallic money. This
subject might be pursued, think, and
clearly illustrated, but for the present, /
only express my belief that, with expert
ence before us, and with the lights which
recent discussions, both in Europe and
America, hold out, a national bank might
be established, with more regard to its
function of regulating currency, than to
its function of discount, on principles, and
subject to regulations, such as should rem
der its operations extremely useful; and
| should hope that, with an example before
them of plain and eminent advantage,
State Institutions would conform to the
same rules and principles and that, in
this way, all the advantages convertible
paper might be enjoyed, with just security
against its dangers.
/ have detained the Senate too long
sir, with these observations upon the state
of the country, and its pecuniary system
and condition.
And now, when the banks have suspen-
ded payments, universally; when the in
ternal exchanges are all deranged, and the
business of the country most seriously in
terrupted, the questions arc
1 VVhafbor tho y7oooc,1yo bofo,o n,
table to our condition? and
Whether it is just and proper exercise
and fnlfllment of the powers and duties OF
Congress +?
What, then, sir, viii be the practical
operation and effect of this measure, if it
should become a law?
Like its predecessor of the last session,
the bill proposes nothing for the general
currency of the country, nothing to re-
store exchanges; nothing to bring about
a speedy resumption of specie payments
by the banks. e F
Its whole professed object is the collec-
ton and disbursement of the public reve-
nue., Some of its friends indeed, say, that
when it shall go into operation, it will, an
cidently, produce favorable effect on the
currency, by restraining the issue of bank
paper. But others press it as its effect
was to be the final overthrow of all banks,
and the introduction of an exclusive me-
tallic currency, for all the uses of the coun-
try. # - T1a
Are we to understand, then, that it is
intended, by means, of which this is the
first, to rid the country of all banks, as
being but so many nuisanees, and to abol-
ish all paper currency whatever?
+ Or is it expected, on the contrary, that
after this system shall be adopted for the
use of Government, there win still be a
paper currency in the country for the use
of the-people!
And if there shall still be a paper cur
rency, will that currency consist of ire
deeHable Government paper, or of con-
vertible bank notes, such rs have circula-
ted heretofore? These questions must be
answered, before we can Judge accurately
Of the operation of this bill.
Asrto an exclusive metallic currency,
sir, the Administration on this point is re.
gularly Janus-faeed. Out. doors, and a.
mong the people, it shows. itself all elia.
quert, allin gold. /" There, everything is
to be hard money--no paper rags--no
delusive cFedits--n no bank nlOnopolies-
no trust in paper of any kind. But in
in the Treasury Department, and in the
i House of Congress, we see another aspect
Ira mixed appearance, partly gold and
partly paper; gold for Government, anC
paper for the people. The small voice
which is heard here, allows the absolute
necessity Of paper of some sort, and t.
some extent. But the shouts IN the com
munity demand the destruction Of al
banks, and the final determination Of al
paper circulation. 81 M ~
To the people, the lion roars agains
paper money in all the loudness and terrol
! Of his natural voice; but to members o
; Congress, be is more discreet lest he
) should fighten them out Of their wits, h
] here resrains and modulates, and roar
''as gently IS any sucking dove. Or as
were, any nightingale The impractlc9
i bility Of an exclusive metallic currency
/ the absurdity q attempting any such thin
] il a. country iks this, are SO manifest, thE
t nobody here etakess 70 support Il D
d any EsaseHingion arglpent.5 AN that
i said q IS favor, Is general denlp eiatiCn
B papers general .qutcTT agsirs he bank
: and ideclamati0 aaainst sting institl
E aans fpll of sound and fury, signii,dl
i uothllg h fssg a1a
It he moment any ono considers 4, !