Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1838-04-21

In Eogiand, the Bank of Eaglaod, and in the U.
States, all the banks, expand or contract tho a
mount Of circulation Of course, a. they increase
curtail the general amount Of their own paper.
And tnis makes it necessary that they should be
regulated and controlled. The question is, by
what rule? To this ] answer, by subjecting all
banks to the rules which the most discreet of them
always follow-by compelling them TO maintain
u certain fixed proportion between specie and cir
culation without regarding dcpostes on one hand,
or notes payable on the other.
There will always occur occasional fluctuations
in trade, and demand for specie, by one country
another, will arise. 1t is too much the prac
tice when such occurrences take place, and specie
Is leaving the country, for banks ~ issue more
paper, IN order to prevent a scarcity OF money.
But exactly the opposite course should be adopted
A demand for specie 10 60 abroad, should be re-
contracting circulation. IT. indeed, in such cases,
it could be certainly known that the demand would
be of short duration, the temporary pressure might
be relieved by issue Of paper to gil the place
Of departing specie. But this never can be known.
There is no safety, therefore, but in meeting the
case at the moment, and in conforming to the in
falble index Of the exchanges. Circulation pa
per is thus kept nearer to the character, and to
tho circumstances Of that, Of which il is designed
to be the representatives metallic money. This
subject might be pursued, l think, and clearly IL
Illustrated; but, for the present, only express my
the lights which recent discussions, both in Eu-
rope and America, hold out, national bank might
be established, with more regard to its function
Of regulating currency, than to its function ofdis
count, on principles, and subject to regulations,
such should render its operations extremely
useful: and I should hope that, with an example
before them Of plain and eminent advantage,
State institutions would conform to the same
rules and principles and that in this way, all the
advantages Of convertible paper might be enjoyed,
with just security against its dangers.
l have detained the Senate too long, sir, with
these observations upon the state o: the country,
and its pccuniary system and condition.
And now, when the banks have suspended pay
mcnts, universally; when the internal exchanges
are all deranged, and the business Of the country
most seriously interrupted, tho questions arc
Whether the measure before Us is suitable TO
our condition? and
/ Whether it is Just and proper exercise and
fulfmcnt Of the powers and dIiies Of Congress?
/ What, then, sir, will be the practical operation
and effect Of this measure, if it should become a
law?
Like its predecessor Of the last session, the bill
proposes nothing for tho general currency Of the
country; nothing to restore exchanges; nothing
to bring about speedy resumption Of specie pay
monts BY the banks. Its whole ptofessed object
is the collection and disbursement Of the public
revenue. Some Of its friends, indeed, say. tina,
when il shall go into operation, it will, inciden
by restraining tho issue Of bank paper But 9th
ers press If its effect would be the final over
. throw Of all banks, and the introduction Of an OK
elusive metallic currency for all the uses Of the
country.
Are we to understand, then, that it is intended
by means, Of which this is the first, to rid the
country Of all banks, being but MANY nui
sances, and TO abolish ali paper currency what
ever?
!, Or is it expected, on the contrary, that afte
Il. sb,11 ko oIo nc
eminent, there will still be paper currency IL
tho country for the of the pcoplef
Aud it there shall be paper currency, will tina
}. currency consist Of irredeemable Government pa
per, Of convertible bank notes, such hav'
: circulated heretofore? These questions must b.
. operation Of this bill.
: As to an exclusive metallic currency, sir, tn
: Administration ON this point is regularly Janus
: faced. Out doors, and among the people, it show
+ itself call clisquans, all in gold" There, ever
i thing is TO be hard moncy-no paper rags-n
delusive credits-no bank monoples-no trust il
paper Of any kind. But in the Treasury Depart
I. mcus, and in the House Of Congress, we see an
J. other aspect-a mixed appearance, prrtly gol
:. and partly paper; gold for Government, and pa
II per for the people. The small voice which
heard here allows the absolute necessity Of pape
= Of some sort, and TO some extent But the shout
d in the community demand the destruction Of u
~ banks, and the final determination of all paper
u culation.
y To the people, tho lion roars against per MOI
Of ey in all the louduess and terror Of his natur,
n voice; but to members Of Congress, he is moi
a discreet; lest he should frghten them out Of the
y; wits, he here restrains and modulates, aud roa
g ssas gently any sucking dove, or, as il wer
ar any nightingale" The impract,cability Of an e
or elusive metallic currency, the absurdity Of a
OF tempting any such thing in country like thi
70 are 80 manifest, that nobody here undertakes
support it by any reasoning or argument. A
IL that said in its avo:, is general dcnunciatio
~ Of paper, general outcry against the banks, At
y defamation against existing institutions, full
q, sound aud fury. signifying nothing.
Is The moment any ono considers it, he sees no
nj ri diculous any such attempt would be. An e
&c elusive metallic circulation for the second CONNIE
a cial country earth in the nineteenth centur
co Sir, you might as well propose to abolish CO.
NJ merce altogether.
The currency Of England is estimated At six
m millions sterling; and it - Mr. McCulloch's c.
cula,ion, that if this currency were all gold.
r. lowing only one quarter Of one per cent for we
M OF metals, the annual expense attending such