The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1838-05-16
ncBATE IN TIE SENATE.
Mr. websier's I'd speech,
On the sab-Treasury BIli.
March d. 1858.
icantinucdl

lcantinusd.l
Before leaving. altogether. this subject
If AN excessive circulation. Mr.. President,
Isill say Few words upon topic uhieh,
il time would permit. / should be glad
to consider at mnTe length. l mean. sir,
the proper guards and securities Tor a
paper circulation. / have occasionally
addressed the Senate ON this suhieel
h'fre, especially in The debate IN the
sp-rir e'rculsr. in December. $40: but
wish H. rrcnr la IL again. because I hold
it 10 he "f the utmost importance To
prove. II IL can BE- proved. 10 the salislar-
Iian Of the Country. that a convertible
paper CURRENCY may be So guarded as To he
secure against probable dangers. say,
sir. convertible paper currency: for | lay
il down as M unqnesIionable truth. that
no paper can be made equal, and kept
equal tn gold and SILVER, but such as is
Convertible into gold and silver. on de-
manj. But. ] have gone farther. aud
still g. farther Than this: and I contend
that even conyerubliiIy, though itself
Indispensable. is not certain. and unfali-
ing ground nf reliance. There is liabi.
lay to excessive issues Of paper. even
while paper Is convertible AZ will. or
this. there can BE- no doubt. Where, then,
shall regulator be found, What prlnci-
pie Of prevention may we rely nnl
Nav | think, sir. IL Is io0 common
with hanks. Judging al their condition. 81
sc. of all their liabilities against all their
resnurcrs. They lOak tn the quantity Of
specie ia their vaults. and l0 The notes aud
bills bec"ning payable, as means or as
sets. and. with these. they expecI 10 be
able 10 meet their returning noles. and To
answer the claims Of deposisnrs. So far
as The bank is to be regarded as a mere
bank Of discount. all this is very well.
But banks Of circulation exercise another
Junction. BY the very ACT ofissuing their
own paper. they affect the amnGnl Of
currency. Ia England. The Bank Of Eng
lanl, and IN the United States, all the
banks, expand or contract the amount Of
circulation. Of course, as they increase or
cgtialI the general amount OF their own
paper. And this renders il necessary
that they should be regulated and con-
troied. The question is, by what rule.
To Ibis ! answer. by subjecung all banks
n the rule which the most discreet Of
Them always follow-by compelling them
to maintain = certain fixed proportion
between specie and circulation; without
regarding dep"sites on one hand. or notes
payable on the other.
There will always occur occasional
anciualians in trade, aud a demand for
specie, by me country on another. will
arise. Ills too much the practice, when
such occurrences take place. and specie
is leaving the country. for banks 10 issue
more paper. in order to prevent search
" of money. But exactly the opposite
course should be adopted. A demand for
specie TO go abroad should be regarded
as conclusive evidence OF the necessity
OF contracting circulation. II, indeed.
IN such cases, il could be certainly known
tia. the demand would be of short durs.
lion, the temporary pressure might be
relieved BY an issue Of paper TO fill the
place Of departing specie. But this ne
yer can be known. There is no safety,
therefore. but in meeting the case al the
moment. aud in conforming to The lniaI-
IIble index OF The exchanges. CIrculs-
'ng paper is kept always nearer 10 the
character, and To The circumstances Of that
Of which it is designed to be the represen-
lailve-the metallic money. This sub
Iec' might be pursued. l think. and clear.
ly illustrated: but. for the present. on
Iy express my belief that, with expert.
ence before Us. and with The lights which
rc:m discussions, both in Europe aud
America, hold ont, a national bank might
be established. with more regard TO lis
Junction Of regulating currency. than TO It's
Junction OF discount, on principles, aud
subject Ia regulations, such as should rem
der its operations extremely useful, and
should hope that, with an example befure
them Of PLAIN and eminent advantage.
State institutions would conform To the
same rules and principles, aud that, in this
way. all the advantages nl convertible pa.
permi!ht be enjoyed. with just security
against lis dangers.
| have detained The Senate too long,
SIR, with these observations upon the
State Of the country, and its Pecuniary
system aud condition.
Aud NOW, when the banks have sus'
pended payments, universally; when the
internal exchanges are all derangrd. and
the business Of the country most serious
y Interrupted. the questions are
Whether the measure before US lie sui
table To our condition! AID,
Whether it is jus. and proper excr
r'se aud Iulfiment Of The powers aud du
ties "l Congress!
What. then. sir, will he the pracIIca
operation and effect Of this measuse, IL !