Rutland herald. [volume] (Rutland, Vt.) 1823-1847, 1838-04-17

sllr h.su. -Ns prndacs usny n,.scln-is augment
the necessity 81 lefeirn pars contract hosiness'
discourage encrrtise, sseksn the activity ct capital
ard restfsn the eomnrrcial sp ~ Of ihr country s
,srt important 10 be remembered sf that IN ouf inier
course with other nations. at acting on principle
81 equality that % 10 k4y, We DO not protect our own
shipping Rrrest Ny peculiar privileges Ne ask orsi
r.. a. aud svek fsvof Yet the insi'ra's Tor Ship'
buairg ATE hie with as and tie wcgcs Of ship build
and .esurn are high also. We have TO conirnd a.
cans these anfavofsbie circumstances and a, 20 al
dtleu these 90 suhrf further Boy unnecessary
frsiTa'nis on eurIency, and ny Uamred ofedt VINO
can tell bat ma, lc The effect Money Is abundant
IN Euriand. vcry abundan tie ra'c 81 interest. there
tore low, snd capital viii BE- seeking ITS Investment
wherever can hope to End It, u "e eeraugr our own
cuffcnrv, compuisysiy curtsi circulation, and btcnk
~ credit how toe commerce and nav CATION Of the
United states 10 maintain themselves against inrcign
compeut"n
Before .cayur nliol c.Acf n subject ol an
circulation Mr President. viii say few words upon
topic which I'D tine would permit should be glao To-
consider ~ more hng'h mean SIR tn proper guards
aud secauucs tor paper circulation. have oecislon'
ally addosscd HE Scnae or this subject before .sPr'
rialy m The debate the specie circulation, ~ Dee
cmhcr r3t but ! wish 10 recur 20 1t again, because
bold 20 be ct due utmost irpcrince to prove Il 1t can
seIuuir p'p-r currency may b. guarded 10 Ge Sc
Curr -autt probable dtnU,rs. say, convert bic
paper currency, i,t Jay II down an uuqursiiou0br
truth. that no paper be- made equal aud kept equal
10 gold and silver but such al, rtblr into gold
AID SILVER on ceman Bot have gone further, nd
still 60 farther than this aud contend that
vcribly though itself Indispensable is not certain
and uniling ground Of reliance. T,rr is ha billy
to excessive issues of paper, while paper
vetublr at viii or TINS there can bc no doubt. Where
then sha. regulator be found Whct principle OF pre-
VrGucn mly We rcly on;
Now ihink sir IL is too common with banks in
lpdErg 81 their condition, to set of all their liabilities
against all their sources the v lock tnthe quantity Of
specie IN their vaults and 10 the and bills
Ing payable az means assets and With these they
eRpec, to be able to meet their returning notes
answer the claims OF dcpnsors SO far the bank is
to be regarded ms mere bank of discount all tins
~ well. Bot banks Of circulation exercise another
function BY the very act oil issuing their own PIPER
:hry effect the amount ofcuucncy. In England, the
Bank OF England aud in the United States, all the
Banks, "xprnd or contract the amuunt Of their own pa
per And this renders It necessary thitth should Sc
regulated dhd controlled h" quest is by what rule
To tins answer, by subl-ctiGg all the banks to the
rule which the most discreet ol them always follow
by compelling them 10 mlntaina certain fixed proper
ton between specie and circulation without regarding
dePnsies on one hand, or notes payabl" the olher
There will always occur occasional fluctuations in
trades aud demand Tor specie. by country on II.
o'hrr Will arise. II is too much tie practice when
such occurrences take place and Specie IS having the
county tor banks 10 issue pager in order 10 pre
vent scarcity oi money. But -xnctly the Opposite
curse should be adopted. demand tor specie to go
broad should be regarded MS conclusive evidence the
necessity oi contracting circulation IT, indeed in such
cases, II could be certainly known that the demand
would he OF short duration, the temporary pressure
might he fcryrd by issue Of paper To Eli the place
of departing sHeclc But this n yer can be known
There is no safety therefore, but in meeting the cas-. al
the moment, and IN confirming the nIilihr indr
at the exchanges Circulating paper is thus kept al.
Ws nearer To The charactrr and to the circumstances
Il" mat "' wHcl 1t Is designed To- be the representative
S 3 eary s,fate s ;' Ct IT,. wi I b be g9Ts1eG
'y express my belief that, with experience bror. us
ana with the lights which recent discussions both IN
Lufope ana America hod out, naiiont bnnk might
bc established with more regard to lis function of ran
'uus currency than 10 It's function of discount on
phrlpes, and subject TO regulations such AS should
render ITS operations extremely useful and should
A IA, l.
eminent advantage state institutions would confor t,
.e same rules aud prime pies and that in this way all
'n ADVANTAGES OF convertible paper might be enjoyed
WIN just security against its dangers
! have detained the Senate tnb iouo sir with ,es.
observations upon the state Of the country and lis pc.
cunlary system aud condition
/ ana nov, when the banks have susooudrd paynants
th'lers"iIy when III" internal exchanges are all de.
ranged, ana the business Of the country most seriously
interrupted, The questions are
whether the measure before is suitable to con-
dition aud
Whether II is just and proper exercise and fulfil
mem OF ih' powers and duties Of Congress
, what then, s'r' will be the practical operation and
thect OF tins measure IT II should Income a law.
Like ITS predecessor OF last session this hill proposes
olh'ng "r tie general currency of The country uolh-
ing L, restore exchanges nothing 20 bring about a
speedy resumption OF specie payments by the banks -
lis whole proessed Object is the collection and
men OF the public Some ofits friends indeed
say that when It shall 90 into operation, IT will Incl
denially produce favorable effect on the currency by
restraining the issue of bank paper But Others press
II if lis fleets 70 be the final overthrow Of the
banks, aud the Introduction Of exclusive metallic cur
rency for all the uses Of the country
Are we to understand then, that it is Intended By
mcans Of which this Is rbe first rid the country Of
oil banks, rs being bit 50 many nuslnces aud 10 abol
Ish all paper currency whatever
Or o. expected, on the contrary that after this sys
ten shall be adopted iur the Of the government
there will still! be paper currency in the couary for
I The use Of the people
And there shall still be paper currency III that
currency at rredermabr goyrrnne N paper or Of con-
yeth'e bank note, such haze ccuiaied brr+toC,,s
These questions musi be answered bere we can ind,e
accurately IT the operations Of N Z ill.,
- 10 an exclusive ur~talc currency SIR the dr,i,
is'Ta''n on tins point is regularly Janus faced On,
o"oi- ana among the people, shows Itself call elm
1"'"' o" D" gold. There, every thrr i. 10 be hard
money -" paper rags--no drlusiye cfedirs-no hmm
'p'N' no Trust m paper OF any Kind Bot in Tho
treasury Impairment, and 10 the Houses Of Copg,as
SIC an'''rr aspeei-a mixed appearance u1rily aold
.1 fI''y paper gold for government and ,,,., g.
~. P."Pe lie small voice which is heard here AL
''' aos'.Iie necessity Of paper Of some sort and
rAi'L' hui the shouts IN the community de-
'-"u 'e 't'irnei"G "i an banks and The FINAL r,,,-
mutation Of aii paper circulation "''
10 'Hr p pie, .' hon fosrs against papcr money in
.- ."' "rss ana terror Of hrs laiursi vince bal T.,
n ~ N9nAf-ssi he Is more dseferf. l-si no
.1l4 Ht-ntn them If t.-tt ,y. d. I..