Southern telegraph. (Rodney, Miss.) 1834-1838, 1838-01-16

"ete C(uittdCtCu, HnO u COfDDInattol Oh CIT
rnnstances subsequently, causing suddcr
FAILURE Of the banks to redeem their note:
with specie, and thereby giving to it a vclue
over It's representative which did not previ
,Xusly exist, should be quite sufficient ei,he
III waive the demand for specie, or to Induce
shc utmost forbcaraacc on the part ofcredi
toss. Aa attempt on their part to extort spe
Gle, ind tials secure to themselves the pro
mimi, it comma nds, in addition to the lega
sa.crest, wilca under their contracts is nj
chat was anticipated, would be scarcely les:
excep,ionable Than direct Interference. OF
the part 81 the Legislature. Tnquiet the APP
prchcnsion alluded to, and to spare our c't'
zens TO severe an additonaltr trial, the proprl
ETY. of some timely aid through the action o
yonr body can scarcely be doubted.
Under the impression thatan enlarged &C
Sonmodation was necessary TO meet the cri
sis, when all confidence was destroyed by
a sudden Revision in our pecuniary mat
sers, was induced at the late session o
ihe legislature to recommend, and nn'icipa
ted some relief from rhe Post Note Bill
but the hanks have so far declined ISSUING
such notes. TO what extent they may ye
be disposed to extend their accommodations
rs measure of relief, I cannot pretend to
fern an opinion. The almost unlimited, but
misplaccd confidence, seem to have given
way to an unreasonable distrust, and wide
" extended credit was Suddenly followed
by refusal on the part fthe Banks to eX-
tend any aCcommCd ,tion. On a similar oc-
,casion, and during q severe pressure in Lon
don, when the Bank of England thought i,
not advisable to enlarge its issues to meet
the increased demand, Parliament, by the
loan of exchcquer bills speedily relieved the
distress. mention this circumstance as
demonstrating the fact, that an enlarged &C
rommddtion at such crisis is necessary to
the restoration Of confidence.
For this purpose recommend to your fa-
vnrab!c consideration the issue of five or six
millions of dollars in State Londs drawing
an interest of six per cent. and rodeemabie
in three years. The object of this measure
may be carried into effect by tho establish
ment of loan Office for that purpose; or i,
may lie done by an arrangement with some
Of our banks. FLY loan oftice, the bonds
may be loaned directly to individuals upon
their notes at one and two wears, properly
endorsed, and secured if necessary by a
mortgage on real estate, and at discount
OF eight or nine per cent. That such bonds
will be freely received i'm the payment of
debts due from our citizens need rot be
doubted.
II, however, suitable arrangement can
be made with the Banks, it is probable that
,he restoration of confidence will be more
general, and that this mode will afford in
creased facilities. IT tins latter plan be
adopted, the Bonds may he loaned to the Sc
lectcd banks, upon such terms as may be
agreed upon: requiring of them TO issue
Post-noies, to the amount leaned, drawing
In interest to correspond with that of the
Bends, and payable at six or twelve months,
. NAV be thought most advisable, in New
York, Philadelphia, and Baltimore, in the
scheme imposes no additional responsibility
en- the banks, as presume the Bonds can
le disposed of in the Northern market at
faT, so rs 10 place the banks in funds TO re-
deem their issues before maturity. And as
the circulating currency of the States IN
~hich the contemplated issues are made
payable, will be readily received in dis
charge Of demands against our citizens, spe-
cie need not be exacted by the banks here,
an the disposition Of the bonds, which may
probably facilitate their negotiation. 1t may
be required of the banks to collect and
place to the credit Of the State the proceeds
Of the notes they discount, and that the
Bonds shall not be sold below their par va
lue.
To this measure Of relief, it may possibly
be objected, that the right of the States to
emit bills of credit, is restricted by the Con-
IL IL, &l,~
scheme is impracticable from the idea that
a circulating medium presupposcs and
makes necessary something based upon.
and readily convelted into coin-and tina,
The Inhibition imposed by our Constitution
ia piedging the faith of the State, presents
by its formalities, a barrier to your immedl-
ate action. AS this plan presents to my
xind, the best, and indeed the only imme-
date prospect Of relief, shall give to these
anticipated objections, passing notice
with the view Of presenting the measure in
a more especial manner to your deliberate
determination.
l do not know whether the question may
be considered as finally settled by the Sa
premc Court Of the United States. The
opinion of the Court as delivered in the case
Of Craig Us. the State of Missouri, and the
opinion as to the constitutionali,y Of Tho
Commonwealth Bank of the State of Ken
lucky, SO far as the principle was involved
are variant, and may be considered as neu
iralizing each other.
The Constitution ofthe United States, b,
common consent, seems to have given t.
the General Government the control of ma
tional and joint concerns; but reservins
those of different character to the State:
respectively. 1t seems therefore, to com
port with the rights that appertan to each
and the control to be exercisad hx, The C.ro