The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-03-02

PoveI, cannot perceive how the Cons. linton Il
soiaIea IN the circulation Of their notes and i, Il
that very circulation which cons,i,nas ~ ann =
| cy. ihat circulation which does No, vials,. ~.
CONSTITUTION must necessarily be consai,niionsI O.
mar me argument ihai, no currency is CONSTITUTIONAL
but gold and silver Is not only unfoundsd nm az
snfd. That this Government has lhe nows, 10 - :.
eeiVe It's dues In other than gold and silver M
dun, needs not be proved by argument The I'M
reunited practice OF The Government from lis yerv
foundation to the present time and the absolute NJ
cessity Of such power proves that i has 4, ISo
ho' deem Il necessary To prove, by argument thar
whlch has been so clearly demonstrated by practice
nat ,his government may receive The notes Of sound
sPesie paying banks IN payment for It's dues.
| = HeiH secure sound currency. The power of This
Government over the currency Of the country Is b..
coming one OF grave and important consideration
nave examined the Constitution with the Creates
uaie aha me utmost deberaion, and cannot any
Mneie nha 'hal power TO regulate the currency
Is impaired TO this Government II has power Il /,
com money and regulate the ralue heyeofD but no
| power 10 prescribe and regulate currency The now.
er 20 com money and regulate its value, was
necessary power; because, If lef 10 the States the
difference OF value placed upon the same coin wond
have produced inexricable confusion and dif6cuItv
In the intercourse of the States But ia relation 10
bank note currency, that difficulty does not exist.
agree win Gen. Jackson entirely, that the Federal
Government has no other constitutional authority
| than simply 10 coin money and regulate the yalue
thereof, and that all else belongs 10 he STATE, and
ne people and must Be regulated By public opinion and
| Hse Hbefeets ~ Hude Il ne operations oil Trade al
ways exhibit its own necessities and points to the
remedy. Here the Constitution has left it, and here
II IS wisely leit. The power and duty Of this Co.
vernment Is well defined by MIR fancy, late Secre-
tary OF the Treasury, in the following extract from
his able report OF the 18th Of February, 1884.
"Under the authority delegated to Congress by
the Constitution Of the United States they have no
power to establish by law paper currency; and The
influence which they may lawfully exercise in Sc
curing lis soundness is altogether incidental In
legislaing within the admitted scope of their au-
thority, they may, without assuming powers not
granted look TO the effect which their laws will pro-
duce upon an interest Of much importance as that
OF the paper circulation floating throughout the
country"
Now sir il is the exercise of this incidental pow
er In favor OF the currency, which the people the
state Legislatures and the interests OF trade, have
brought into existence, whit invoke, and it is the
hostile action of the Government to this currency
that have deprecated and resisted. Why should
not this incidental power be exercised with that
benefcence which will give effect and success TO
this currency? Every consideration Of harmony
union, the success of commerce, and the prosperity
of the country require it. Mr. fancy, in his report
of the 18th Of April, 1884, very truly said that
"No commercial or manufacturing community
could conduct It's business TO any advantage without
liberal system of credit and facility of obtaining
money on loan whenever the exigencies of their
business may require il. This cannot be obtained
without the aid OF paper circulation founded
credit 1t is not therefore, the interest of this coun-
Try to put down the paper currency altogether"
This opinion of Mr.. fancy, is founded upon The
experience of all manufacturing and commercial
countries, and its truth well tested by that expe
rience that argument is unnecessary. That system
of credit TO which he refers, Is The banking system
of the United Stated States, and in that system of
"credir from which this Government cannot, and
ought not TO separate itself
Was II the policy of the late Administration 10
destroy the State Banks? No, sir. have already
proved by its official acts and communications that
so far from seeking to destroy it fostered and pro-
tralion TO destroy them The President, in his
message of December 1887, says: Banks, properly
established and conducted, highly useful TO the
country, and will, doubtless, continue 10 exist in the
States so long as they conform to their laws and
found to be safe and beneficial" And in his last
message, he says:
"Though always opposed TO their creation in the
form of exclusive privileges, and as a State Magis-
trate, aiming BY appropriate legislation, to secure
the community against the consequences Of their
occasional mismanagement, have, yet, ever wished
to see them protected In the exercise Of rights con-
ferred by law and have never doubted their utility
when p, peIy managed, in promoting the Interests
rests Of the community"
Now, sir If these banks are useful ough, TO exist
and will exist why repudate their notes BY the Fe-
deral Government Why not add 10 their credit
and utility by receiving their notes in payment of
the public dues, and give 10 them that credit which
the manifestation of such confidence inspires.
Can any thing be more conclusive, from The expe-
rence OF the past that entire specie circulation
is impracticable, not only from its inconvenience
and cost OF ransPotion, but the inadequacy of lis
supply; the whole amount in the United States is
only about Ss5 100000 and the minis do not increase
the quantity as rapidly as the demands Of trade and
commerce require. But, suppose an adequate sup
ply within our reach; can any man suppose that
from Maine to Florida, and from the Atlantic to the
he businPes oft Lone
mercial, powerful and growing nation, could be con
Quoted in speciel No, sir the idea is preposerous
An exclusive paper circulation, none would think
Of; experience has utterly repudated it. The mos,
commercial nations have fixed upon mixed cur
rency, Of specie and paper, as combining all the
safety OF specie and the convenience and economy OF
paper; specie for the basis-paper for the super
structure, has commanded the appreciation Of all ex-
perenced commercial men-and that is our own
system The quantum of each is matter of specu-
laion, AID must be regulated by the demands Of
trade. am myself in favor Of larger infusion Of
specie into our own currency than at present exists
! favor such reduction Of banks and bank circu,
laion, as will conne banking to the purpose of COM
merce, and restore specie to the ordinary transac
tons Of the people. This can only be effected by
the suppression OF all notes under twenty dollars,
and shall steadily adhere to that policy. lcannot
better illustrate the evils of this exclusive specie
circulation and its effects than by quoting from
speech OF Mr.. Senator Walker, Of Mississippi de-
livered in the Senate of the United States the 2sh
OF January, 1887.
Sir" (sad Mr.. Walker referring to Mr. Benton's
views of exclusive metallic circulation I" if the Sen
ator from Missouri could by his mandate in drec, OPP
position to the views of the President heretofore
pressed sareep from existence all the banks the STATES
and establish his exclusive constitutional currency Of
gold and silver, he would bring upon his country
Of ruin and distress without paralle--an immediate
bankruptcy Of nearly every debtor, and amos, every
creditor, to whom large amounts due, prodgous
depreciation in the price Of all property and all products
and an immediate cessation by states and individuals oil
nearly every work Of private enterprise or public i'm
provement The country would be involved IN one
universal bankruptcy and the grave Of the nations
prosperity, would repose, the scattered fragments oil
and Which hann-