The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-04-05

AR ~ operations extremely useful: and should hope
that with example before them Of PLAIN aud eminent
advantage, State institutions would conform TO The same
rules and principles aud that in this way all the adj
ysntages Of convertible paper might be enjoyed, with
| lust security against It's dangers.
| have detained the Senate too long, sir with these
observations upon the state Of the country, and It's pecu-
mary system and condition,
And now when the banks have suspended payments,
universally; when the internal exchanges are all de-
ranged, aud the business OF the country most seriously
interrupted the questions are
Whether the before us is suitable TO
diion and
Whether it is Just and proper exercise and fulfil
meu Of the powers and duties Of Congress
What, then, sir will be the practical operation and
efiec, Of this measure il it should become a law
Like its predecessor Of the last session. the bill pro-
poses nothing for the general currency Of the country
nothing TO restore exchanges nothing 10 bring about
speedy resumption Of specie payments by The banks
Its whole proessed object the collection aud dIsburse
lnen Of the public revenue. Some Of rs friends, in
deed, say, that when shall 20 operation, it WILL
incidentally, produce favorable effect the currency
by restraining the issue Of bank paper. But others
press it as if its effect would be the final overthrow Of all
banks, and the introduction Of exclusive metallic
currency for all the uses OF the country.
Are We TO understand, them that It is intended, by
means, Of which this is the FIRST rid the country Of
\ oil banks as being but many nusances and to abo
\ sh all paper currency whacyerl
/ Or IS It expected on the contrary, that after this
system shall be adopted for the use Of Government
there will still be paper currency III the country for
the use Of the people
And there shall still be paper currency, will that
currency consist OF lTedeemabe Government paper.
of convertible bank notes, such have circulated here
toore These questions must be answered, before we
| can Judge accurately of the operation Of this bill.
! As TO exclusive metallic currency, sir, the Admi-
nistration on this point is regularly janus Out
doors, and among the people, It shows itself "all
clHquani, all IN gold" There, every thing is to be
hard money--no paper rags--no delusye credils--uo
bank monoplies-no trust in paper Of any kind But
IN the Treasury Department and IN the Houses Of Con-
gress, we see another aspect-a mixed appearance,
partly gold and partly paper gold for Government and
paper for the people The small voice which is heard
here, allows the absolute necessity OF paper Of
sort, and to some extent But the shouts in the
munty demand the destruction of all banks, and the
final determination OF all paper circulation.
TO the people, the hon against paper money In
all the loudness and Of his natural voice but 10
members OF Congress, he Is more discreet; lest he
should rghen them Of their wits he here resrains
and moduates, and Toars F." as gently any sucking
dove, or as 1t were, any nightingale" The impracti-
cablty OF an exclusive metallic currency the absurdy
OF attempting any such thing IN country like this,
manifest that nobody here undertakes 10 support it
by any reasoning or argument All that is said IN its
favor Is general denunciaon of paper, general cutlery
against the banks, and defamation against existing
situations, iull OF sound and fury, sgnying nothing
I The moment any one considers 1t, he how redl-
culous any such attempt would be An exclusive metal
lie circulation for the second commercial country on
earth, in the nineteenth century Sir you might as
well propose to abolish commerce altogether.
The currency OF England is estimated at sixty nil
lions sterling and it is Mr. McCullochs calculation,
that if this currency all gold, allowing only
quarter OF one per cent for of metals, the annual
expense attending such currency, would be three mil
lions and quarter 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 Of interest and besides all this the
cost OF transportation, which, IN country extensive
ours would be vast, and not easily calculated We
should also require, proportonay specie than is
requisite IN England because system Of exchange,
by means of bills OF exchange. is at present and would
be, under such system is proposed much less per-
feet and convenient than that OF England Besides the
English metallic circulation mostly gold, gold being
IN England the standard metal With us, silver and
gold both made standards at fixed relation and if
We should succeed to keep this relation true to
preserve both OF the precious metals among which,
indeed Is not very probabe) our circulation would be
sti more expensive and cnmbrous from the quantity of
silver which 1t would contain The silver in the world
is estimated TO be fifty times that Of gold amount,
and consequently something than three times in
value If both should circulate, therefore, equally in
proportion value the currency would three parts
silver, and one gold,
Now, sir, the annual expense Of such crcula-
ton, upon the basis Of Mr. McCulloch's estimate,
would exceed the whole annual expenditure made
for our army and our navy. Consider, sir, the
try. II is difficult to estimate it, and quite impossi-
bic to ascertain it, with any accuracy. But we can
form some notion of it, by The daily amount of pay
ments in the banks in some OF the cities In times
OF prosperous business and commerce, the daily
amount of payments in the banks of New York alone
has been equal TO eight millions. neither we call
this ZENITH twentieth, or fitch part OF all pay
ments and receipts made daily in the country,
see to what an aggregate result the whole would
rise. And how is ii possible that such amount of
receipt and payment could be performed by an ac-
tual passing of gold and silver from hand to hand
Such notions sir, hardly require serious refua-
ton.
/ MIR President, an entire metallic currency would
necessarily create banks Immediately. Where would
the money be kept, or how could il be remitted =
Banks Of depose must and would be instantly pro-
vided for H. Would the merchants Of the cities be
seen, in their daily walks of business, with servants
| behind them with bags of gold and kegs Of silver
| on their whee-barrows What folly is great
enough TO imagine this If there were not
bank mole, 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
created at places of depoSite and persons hav
ing money in such repositories would draw checks
for it, and pass these checks money and from
hand they would pass TO another; or the depostary
himself would issue certificates OF depoSile and these
would pass as currency. And all this would do no
more than Just to carry as back two or three hun
dred years, 10 the infancy of banks. We should
then have done nothing butreect the experience of
the most civilized nations, for some centuries, as
well as all our own experience, and have returned
TO the rude conceptions of former times. These
ticates of deposi'e would soon be found to be often
issued without any solid capital or actual deposite
Abuses arising from this source would call for egis-
latiye interference and the Legislature would ind
necessary TO restrain the issue of paper intended
for circulation, by enactng that snch issues should
! only be made on the strength of competent capital
actually provided and assigned placed under proper
| regulation and managed by persons responsible to
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