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

II
McCulloch's calculation, that if this cur.
rency were all gold, allowing only one
quarter ofone per cent. for wear of metals,
the annual expense, attending such q cur
rency, would be three Millions and quar-
ter year, or nearly FIVE per cent. upon
the whole. With us, this charge would
be much greater. The loss Of capital
would be more, owing to the higher rates
Of interest; and besides allfhis, is the cost
of transportation, which, in a country so
extensive as ours, would be vast, and not
easily calculated. We should also require,
proportionally, more specie than is requi.
site in England, because our system ofex.
change, by means Of bills of exchanges, Is
at present, and would be, under such a
system as is proposed, much less pertect
and convenient than that Of England. Be-
sides, the English metallic circulation is
mostly gold, gold being in England the
standard metal. With us, silver and cold
both are made standards, at fixed Telas
ton; and if we should succeed 10 keep
this relation so true as to preserve both the
precious metals among US, (which, indeed,
IS not very probable our circulation would
be still more extensive and cumbrous, from
the quantity of silver which it would con.
tain. The silver in the world is estimated
to be fifty times that Of gold, and conse,
quently something more than three times
in value. If both should circulate there
fore, equally, in proportion to value, the
currency would be three parts silver and
one gold.
Now, SIT, the annual expense of such a
circulation, upon the. basis of Mr.. McCul.
loeh's estimate would exceed the whole an.
nual expenditure made for our army and
our navy. Consider, sir, the actual daily
payments made in our country. It is dif.
ficul to estimate it, and Quite impossible to
ascertain it with any degree of accuracy.
But we can form some notion Of it by the
daily amount of payments in the banks
in some of the cities. In times of pros
porous business and commerce, the daily
amount of payments in the banks of New
York alone has been equal to eight mil.
ions. Whether we call this a tenth,
twentieth, or fiftieth part Of all payments
and receipts made daily in the country,
we see to what an aggregate result the
whole would rise. And how is it possible
that such amount of receipt and payment
could be performed by an actual passing
of gold and silver from hand to hand?
Such notions, sir, hardly require refutation.
Mr.. President, an entire metallic cur.
rency would necessarily create banks inn.
mediately. Where would the money be
kept, or how could it be RENTED? Banks
Of deposite must and would be instantly
provided for it. Would the merchants Of
the cities be seen, in their daily walks Of
business, with servants behind them, with
bags Of gold and silver on their wheel.
barrows? What folly is great enough TO
imagine this? If there were not now a
bank note in the country, and IL there
should be an exclusive metallic currency
Tomorrow morning at nine o'clock, there
would be fifty banks before sunset. From
necessity there would be created al once.
places of deposite; and persons having
money in such repositories would draw
checks for it, and pass the checks for mon.
ey, and from one hand they would pass to
another; or the depositary himself would
issue certificates of deposite, and these
would pass as currency. And all this
would do no more than carry US back two
or three hundred years, to the infancy of
banks. We should then have done nothing
but reject the experience ofthe most civil.
lied nations, for some centuries. as well as
our own experience, and have returned TO
the rude conception of former tinies.-
These certificates of deposite viii SOON
be found to be often issued. without anv
solid capital, or actual deposite. Abuses
arising from this source would call for leo.
islatiVe interference, and the LEGISLATURE
would find it necessary to restrain the ma.
per intended for circulation by .enactinp
that such issues which should be made on
the strength of competent capital. actually
provided and assigned, placed under prop.
er legislation, and managed by persons
responsible to the laws. And this would
bring US back exactly to the STATE of things
which we now are; that is to say, to the
use of the paper of banks, established.
regulated, and controlled by law. In the
mean time, before this process could be
carried through, half the community
would be made bankrupt by the ruin of
their business and by the violent reyolu-
tionary changes of property which the
process would create. The wRolg class
of debtors, all that live more by Industry
thanon capital, would be overwhelmed by
undistinguished destruction.
There win then, SIR, be no such thing
as an exclusive specie currency. ms
country win not be guilty Of the folly Of
attempting i. ae ese1 - 80
Ishould have felt that / have Occupied
too much time with such senseless and
prepostefois suggestion, were il not for
the manifest object Of partizans d bfess
Isuch notions upon. the attention of TIC
tpeople. IN aid Of the war against tllebaulys.
I We shall then, sir, have paper 81 some
sort forming part Of our currencv.--
What viii that paper bel The honorable
gentleman from South Carolina. "a rliftino
that paper IS necessary as part 81 ne
currency,3 or circulation, has couienFeT
that the paFsr ought to be GoVernnuen
paper not Convertible nor redeenable. On.
" 50 far as being receivable for debt d
/ dues. to government. NY COLLEAGUE I
has endeavored to satisfy tie Senate. ahai
I 1.-THE lainiof the whole system, Of which lis
| REGARDS this BID IS bu. part isto ESTABLISH
|. acirculatlon Of Government paper and I
3 Sover1.nent Bank. Other oentlel1e,
ldase taken t6s same view 81 1. Bot, 3
Z the bill itself does not profess any sue