Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1838-02-20
FEEkUsER Y 20, 1858.

would operate also with severity How then,
the Honorable Senator imagine that the security of the
paper currency, supplied by the banks is 10 be increased
by exposing Them 10 double pressure, from within and
| from without, al So critical moment
In regard 10 the hostile OPERATION of this measure on
the State currencirs aud the credit institutions OF The
States the Honorable Senator has taken up the subject
in far too point Of view. He spoke az if
the whole matter Of complaint. in this respect, con-
sisted in Withholding the depnsites Of the public mo-
ney from The hanks But, Sir, the gist Of the question
does not lie here. This is a malier in which the con-
Venlence aud he safely Of the Government are concern
ed Tar moreahan any interest of the banks generally or
OF The Statssby which they creuicd The real grev
ance is in the stern exclusion BY law Of the sound con-
vertibe curences of The States from all transactions of
The Federal Government, transactions in.rhich they
have been herenfne Invariably admitted from the ORR
gin Of the Government 10 the present day. The Of
hcal dlscredlt and protest. IN advance, thus stamped
upon those currences by the unfriendly action OF
this government giving the signal for general dis.
trust and want of confidence in regard 10 them -
Sir, il will he no difficult matter 10 show that
der the blight Of this legislative denunciaon and in
the progressive working of the system proposed
the State currencies will be ,ally broken down. and
national government paper currency, resting the same
principle. old continental money, be made 20 take
their place. Blu, the Senator from New York tells
TINT the State will enjoy much IA vnr under
the policy, they did under the reg of the U.
s.. Bank-iha that institution very rarely recrved The
notes Of the State Banks in collection of the public
venue, md when it did So il promptly returned them
for conversion into specie. certainly had MT expect.
ed, MIR President that lie Bank Of the u STATES would
be held up from that quarter model for imitation,
in regard lis policy toward The Stale Institutions But
the Senator is mistaken in what h. says OF The course OF
that institution, and will appear tina! its policy
of lar berality Toward the State ins'itu
tons Than that which the honorable Senator hlmse! now
proposes II is officially stated in the irlennla report OF
the President %! that institution to the slockhoIdrrs IN
September, 1881, that the Bank Of the U. States was
in the practice Of "erciring rcry The notes of the Stale
Rail arr Tho Ron anE
brnnchrs and this free reception Gf the notes Of the
State Banks and periodical settlements 81 acconntS with
them. the boasled means which that institution
relied 10 regulate and preserve the soundness of the gene
raj currency Df the country 10 n:thsr shown by lie
Of that officer to CERTAIN nrrIngatores PROFOUND.
ed to him By the Committee Fin"nce, OF this b"dy in
March, ESQ, that though frequent q settlements p ac'
counts were made iy the Bank of the u. 5. with The
State Banks. they rarely forced TO pay specie 10
any considerable amount for their nnlrS but payment
taken in their bills Of exchange balances permit.
ted to lie over, III melted down N the ordinary Course
Of their business and mutual ,ranSaclions This slate
is sustained through SrEirs OF years, by The an
nna returns nf the Bank tn Congress, exhibiting g"e-
rally large balances due 10 it from The Stale Banks
But Sir, even though The Of The U. 5. Bank had
been MS unfriendy toward the State institutions, the
gentleman from New York supposes, the iac 81 The iand,
The legislation of Congress, made attack on them as
is proposed On The contrary, their credit was che.
rsed aud sustained by the law for the JOINT resolution
of 1916 expressly declared that their notes, when con.
vcr,ihe demand into specie, should b. receivable,
equally with specie, in payment OF public dues. his Is
the important consrra"n for in the lac, III the policy
and language of The Gor,ramem. abldes mainly that
principle of condencr which all paper currency rests,
and which is proposed 10 b. rudcly withdrawn from
the currencirs of the States, however unquesonaae
th cir s"undnrss aud value"
But, Mr.. President without dwelling father on these
consde atoms, beg leave To ask gentlemen who are
zeulrusy patrunising thu policy uf this nrasnre, if they
ndduce 10 U.S. from ancient or modern times, IRON
civilized 0r even bar: arous communities. solitary tx
ample Of 4 Government demanding and collecting lis
currency different from The cond'on, actual
currency of the country. If there BE- any SUCH II has
escaped my researches In countries where The public
revenue may have been, or may now be, collected IN
gold and silver it will bs found that gold and silver con-
suc the common. actual currency Of The people. Even
in England and France, where the circulation CONSISTS IN
large proportion of the precious metals the revenue
payments are, by meuns confined to gold and silver
but bank notes freely received in both, in discharge
of the Government dues IL Is, indeed fundamental
ma kim Of TAXATION laid down by all writer's on political
economy and respected in the practice of oil Govern.
mrnls that the mode Of payment II" the public coniribu
tons ought Ia be that most consistent with The e"nrcn
ence of Tie payprs-lhc great body Of the coninunlty-
Is it reserved for lhp Government II" the U s., It's the
orv The most popular earth, and claiming The merit OF
the closest sympathy with the wants and Interests OF Inc
people sci the first example oi departure from this
lust and benpnant rule u pulley and iur what reason
for what purpose: think iiave shown that none of
the great interests % the cnunty 1" he promoted by
it, 1t may, it is true, b. quite agreeable to The otfce
holders and other recipients "t the b"uny OF The G"
yernlnp nj, Obtain their enrunents IN hetpr cur
renew than the common currency of The people; but
surely this will be held no legitimate consideration Tor
legislators and What end, then Is 10 be an
swered What oEjrct 10 he promoted by the 'nrodHc.
ton of this anomaly in the history U Legislation: Is
In carry ont some theoretical dnIEa-sone mere cam
mon mice of pary Is it, in Short to satisfy the notions
couc he'd and popaga-d under The sounding phrase
constitutional cu1rfncy :.
ask, then, what is meant BY this phrase Is it
mean, that no other currcncyi constitutional but gold
and silver If So, deny the proposition Bank nnrs,
as currc.cy, constitutional as gold and silver
The Consut"n it is true dec ares thai n' State shall
make nv hing but gold and silver coin cnder IN pay
mpnt of debts THIS inirnded 10 establish an ul-
innate standard IF raIuc for the dusmen ct contracts
where parties chose to insist on The siricness OF le
gal rights but NJ" tn prevent tue States from authorizing
convertible representatives. ct that value To be used ns
eur,eucv or common mrdum If rchangc ant circulaon
in the ordinary business Of life. On the contrarY those
representatives in The shape of bank notes were known
and used CURRENCY at the time OF The adoption OF Inc
Constitution and uuhng III that instrument prohibits
them-ihe States hive constantly since been IN The habit
Of creating corporations authorized TO issue ana circulate
them-ihe power thus exercised by The STATES mas oren
invariably acqursrcd in and recognised ny Inc Heneta
Goyernnen-a recently IT has been derriI;eo ny inc
Solemn and unanimous Judgment Of the highest judicial
tribunal Of the country I'm the case OF Brscoe rs ne
Commonwealth Bank of Kentucky that the States l'ght
fully and consti,uona!y possess the p"wrr lsay was
unanimously 30 decided by the Supreme Curt rcan-e
although minority Of that court were OF opinion 'hat,
where e State owned the entire stock of the bank the
exercise of the power would be nm infringement o. the
constitutional prohibition the States "lo emit D's VI
credit" vet ali the Judges concurred that The authority
Of the States was unqneslonabI here The stock o" The
banks was owned either by individuals entirely or oy
them in common with The State partial sockho'er.
State Bank notes. then, being issued in q" an
unoues;ionale Constitutional authority, eonStttu.
o1ai currency, as we'll gold and silver 1t is ,rgea
creditor cannot br compelled to accept payme Of ms
debt in bank notes. if he object to doing so' out .hs
does not affect their char'ce as currency as so"moN
mediun of exchange md circulation, or prevent pay
men in bank notes from, being final aud complete dis
charge of the debt, if accepted
But, perhaps by this of repeated phrase IS meant