Liberty advocate. [volume] (Liberty, Miss.) 1835-1866, 1838-01-20

ing an interest Of six per cent. and redeem
able in three years. The object Of thi:
measure may be carried into effect by the
establishment of loan Office for that pur
pose; or it may be done by an arrange.
ment with some Of our ba4s. If by q
loan Office, the bonds may &c. loaned d.
rectly to individuals upon th6E notes al
one and two years, properly endorsed, and
secured if necessary by mortgage on
Aeal estate, and at discount Of eight or
inc per cent. That such bonds will be
freely received in the payment Of debts
due from our citizens need not doubted
If, however, suitable arrangement can
be made with the Banks, it is probable
that the restoration Of confidence will be
more general, and that this mode will af-
ford increased facilities. If this latter
plan be adopted, the bonds may be loaned
to the selected banks, upon such terms as
may be agreed upon: requiring of them to
issue post-notes. to the amount loaned,
drawing an interest to correspond with
that of the Bonds, aud payable at six or
twelve months, as may be thought most
advisable, in New York, Philadelphia, and
Baltimore, in the current bank bills of
these cities. This scheme imposes no adj
ditional responsibility on the banks, as
presume the bonds can be disposed Of in
the Northern market at par, so as to
place the banks in funds to redeem their
issues before maturity. And as the circu-
lating currency ofthe States in which the
contemplated issues are made payable,
will be readily received in discharge of
demands against our citizens; specie need
not be exacted by the banks here, in the
disposition ofthe Bonds, which may prob
ably 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 val
ue.
TIC this measure of relief, it may posi-
bly, be objected, that The right Of the States
to emit bills Of credit, is restricted by the
Constitution ofthe United Statcs-that the
scheme is impracticable from the idea that
a circulating medium pre-supposes and
makes necessary something based upon,
and readily converted into coin--and that
the inhibition inpo~ed Dy our Von7tit"ai~-.
in pedgne the Glith of the State, presents
by its rormalties, barrierto your lmme-
Hate a. ion. As this plan presents to my
mind, the best, and indeed the only immo-
Hate prospect Of relief, | shall give TO
hese anticipated objections, passing no.
ice, with a view presenting the meas
ire in more especial manner to your de-
iberate determination.
do not know whether the question
nay be considered as finally settled by
he Supreme Court of the United States.
The opinion Of the Court as delivered in
he case of Craig 0s. the State Of Missou-
ii, and the opinion as to the constitutional
ty of the Commonwealth Bank, of the
State OF Kentucky, so far as the principle
vas involved, are variant and may be con-
'idered as nentraIizlng each other.
The Constitution of the United States,
ny common consent, seems to have given
o the General Government the control OF
rational and Joint concerns; but reservlng
hose of different character to the States
1t seems therefore, to COM
,ort with the rights that appertaln to each,
md the control TO be exercised by the
General and State Governments, that
Congress should create and regulate a.
National credit currency, leaving that oil
he States to be managed by State author
ties: and that from its local character,
lot involving the credit or liability of the
General Government, the restriction does
lot bear on the contemplated issues. 1t
has been the long established practice OF
he States by their action to emit biitS Of
redH so called, in the form Of bank notes,
through their Institutions; and whether II
)e strictly constitutional or not, the States
still claim and exercise the privilege, I'M
Ter at least prescriptive right, that will
not be seriously questioned.
The second objection is not applicable;
nasmuch as the proposed issues will not
constitute the circulating medium OF the
State, They are intended for a special
md limited purpose, to meet a present eX-
gency. But fit did, the Inconvenience
OF, is countcracted by the facts,
hat IN ordinary times there will exist no
difficulty in converting he Bonds into spe-
,ie--that the perfect security for their
Ultimate redemption, together with the
circumstance of their drawing interest,
will supercede to a great extent, the de-
sire or necessity of their conversion
The idea is sustained by the fact, that
State Bonds drawing an interest OF SIX
per cent. have been readily converted IN
% coin, at handsome premium; anu this
circumstance offers a sufficient guarantee
% their general roceivability, equalling at
east, and | should suppose, surprising that
Of our present bank issues.
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