Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-04-30

lance, but because desire to stand where truth aud
justice place me on this great question.
The last argument OF the Senator the question
at issue drawn from the provision OF the
Constitution which gives 10 Congress the right 10
regulate commerce, aud which he says involves the
right aud obligation 10 furnish a sound circulating
medium. The tram OF his reasoning, rs lar rs
could comp chend ii. was that without currency
commerce could not exist, al least 10 any considc
rable extent and of course there would be nothing
10 regulate; aud, therefore, unless Congress fur
nishcd currency, its power OF regulating commerce
would become II mere nullly; and from which he
inferred the ri h and obligation to furnish, not only
currency, but 4 bank currency Whatever may be
said OF the soundncss ol the reasoning, all must ad
init thal his mode OF coustrning the Constitution
Is very bold aud novel TO what would ii lead =
The same clause in that instrument, which gives
Congress the night 10 coin money and regulate the
value thereof gives also the kindred right III fix the
standard OF weights and measures. They are Just
essential 10 the existence OF Congress as the cur
rency itself The yaid aud the bushcl not less
important IN the exchange OF commodities, than the
dollar and the eagle, and the very oi reason
ing which would make II the right aud duty OF the
Government to furnish the one. would make II equal
" To furnish The other Again commerce can
not exist without ships and other of tianspor-
tatlon. Is the Government also bound 10 furnish
them No, without articles, or commodities, 10 be
exchanged, cotton, rice, tobacco, and thu various
products OF agriculture and mannllctuft Is IL
without labor and must that, too. b. Idrnlshedf
II not, ask the Senator 10 make the distinction.
Where will he draw the line, aud on what priDe
pies Does he not see that according to tins mode
OF construction, the higher powers granted in the
Constitution would carry all tho inferior, aud that
tins would become Il Government oi unlimited pow
ers : Take for instance, the power, x apply the
Same mode OF co1srt cton 10 IT, and what power
would there be that Congress could not exercise
nay, be bound 10 exercise J Intelligence, morals,
wealth, numbers, currency, all important cle-
ments OF power, aud may become 50 to the defence
of the Union and safety OF the country aud accord
ing to the Senator'S reasoning, tho Government
would have The light aud wonlJ be IN duty bound
take charge of the schools, the pulps, the industry,
the population. well az the currency oi the
Try and these would comprehend the enre circle
OF legislation, and leave the State Governments
useless appendices oi the system.
Having now, trust, taken down to the ground the
lltle centre building, with its four apartments, moth
ing remains OF the entire structure but the huge por-
too in front, aud on which shall next commence
the work Of demolnion The Senator opened his
DISCOURSE on credits and banks, by asserting tina,
bank credit was, in truth aud reality, much capl-
tai actually added to the community. | waive the
objection, that neither credit, nor the banking sys-
TEN, IS involved IN the question; and that those who
opposed to the UNION OF the political and money
power oppose that UNION with other reasons on the
ground that II is unayofable to full develop cmcnt
OF the credit SYSTEM and dangerous to the banks
themselves, which they believe can only be saved
from Entire destruction by the separation; aud nbl-
lows, OF course that all be SAID III relation 10 them is
either a begging of the question, irrelevant. But,
assuming what he SAID To be applicable, shall show
that it is cithe, unonndod in fact, OF erroneous IN
conclusion.
SO far from agreeing with the Senator, that what
he calls bank credit is much real capital added TO
the country, hold the opposlle-that banks do not
add a Of capital. credit. Regarded strictly,
4 oil pi he hank nod tn iltn
tually pad IN. Tins usually Is the only for
which the stockholders are llabe and wliho II what
Is called banking privileges, they would not have
cent Of credit beyond that amount. But the capital
subscribed aud paid IL not created by the banks. 1t
is drawn out OF the general fund of the country.
Now | ask, what constitutes lis credit beyond Its
capital In the first place, and mainly, II is deri-
we'd from. the fact that both General and State Gov
crumcnls aud treat bank notes cash, and
thereby, TO the extent OF then fiscal action virtually
give them the OF their credit. 1t is an existing
credit, belonging 10 them exclusively aud is nei-
ther created, increased, by permitting the banks
To use 1t. Ia the next place. the deposles with the
banks, both public aud private, add large amount
10 their credit but this again is either the property
or credit of the Government and individuals which
they permitted TO use, and which they neither
create increase. Finally, notes and bonds
other credits discounted by the banks make up
lhcr credit, which neither more less than
the credit of The drawers and cndorsers, on which
tne DdnhS 40 DuSlncsSs IHcy Take IN ule paper or
credit OF others, payable at given day, deduct the
interest in advance, and give out their credit
notes, payable demand, without interest that
IS, the credit OF our own paper rests on The credit OF
the paper discounted, or taken IN exchange, which
credit they neither create nor increase. In word,
all their credit beyond the capital actually pad IN
is bur the credit OF tie Public, or Individuals
which, by what is called banking privileges, they are
permitted to DO business and make profit and 50 Ian
from creating credit or capital they IN tact add not
cent of capital or credit to that which previously
s,ed.
But the Senator next tells us that there is three
hundred millions of banking capital IN tie Union.
and that it is real bona fdc solid capital. Is #uch
as the plantations ofthe South. This rtain-
y news to me. | had supposed that tins vast a
mount was little more than fictitious ''ass OF ere
dit pied credit, in the Of winch but little
specie real capital used and that when new
bank created the wheelbarrow put IN mo
ton roll the specie from the old the Institu-
ton It'll gofully under way,when il was rolled back
again. But It seems that all this is mistake; that
the whole capital is actually paid IN cash and is as
solid terra ilrma itself This certainly bold as
seron, in the face al facts daily occur ny. There
have been, | If mistake not, four OF five recent bank
explosions IN the Senators own town, in which the
whole vanished into thin air, leaving nothing behind
but ruin and deso atom. What has become Of that
portion Of his solid capitall Did the Senator ever
hear OF plantation thus exploding and vanishing
And would be glad TO know how large portion OF
his three hundred millions Of solid capital will finally
escape in the same way, A few years may enable
to answer the question.
The Senator, next, by way OF illustration, under
took 10 draw distinction between bank credit and
Government credit or public stocks IN which he
was not very successful. II would be no difficult