Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1839-10-03
From the New York Commercial Adj
THE CURRENCY.

II
In the present very alarming derange-
mont of the currency, it is natural that
men Of business laboring under severe
and distressing embarassmcnts, resulting
from this cause, should be disposed to
cast censure in some quarter Accord
ingly many do censure the banks; 10
said that The banks ought to discount,
and that if they were disposed to libcr-
ality much of the actual inconvenience
now experienced in the business COM
munity would be obviated. Now we do
not pretend to know 10 whit extent this
asse rtion is entitled to credit, or whether
any credit at all is due to il. One thing
is very certain, however-thnt the COM
munity will never justify the banks in
another suspension Of specie payments !;
and therefore they must, in obedience
to the primary law Of their constitution,
take cnre that they are at all times in
a situation to redeem their oblig cations,
in that which is the legal currency Of
The country--sPEcIE. We are ready to
admit ihat if there could be perfectly
good understanding between all the
principal banking institutions Ofthe cOun-
try, there would be less embarrassment,
because there would be more confidence.
If, too, there could at all times be per-
fectly good understanding between all
the states Of this Union, acting as inde-
pendent and distinct sovereignties, so that
the separate action Of each would be
regul.ted by due regard for the whole,
there would be no necessity Of u nation
government. But because experience
has demonstrated that the states respec-
lively, acting separately, will not act
with regard TO the good Of the whole, a
general government is useful, and indeed
indispe nsable.
So also experience has proved that
the numerous banking institutions Of this
country, organized by and acting under
diheren, state authorities, cannot act in
concert, without being under some con-
trolling national institution. The Wings
have NEVER contended, and We desire
this fact 10 be remembered, that state
banks, without national institution,
could furnish convenient and safe cur
rency for the country. The leading
members Of the Wing party have tve'
and over again urged, that one Of the
main objects of the constitution wns to
give authority TO the national govern
ment to regulate and control the actual
currency of the country, so as TO give j,
uniformity in every part Of our widely
tendcd territory. The way in which
the general government has heretofore
exercised this control, has been through
the. medium Of a national bank but il
any other mode can be devised there
can be no objection to give it "A fair trial.
Still the great Wing principle contcndcd
for is, that the control Of the currency is
a subject of national concern. In oppo.
siiion to this principle General Jackson's
administration was arrayed, and MIR.
Van Buren's is now arrayed, and the
consequences are severely felt by us all; /;
and we again say, as we have said
thousand times before, that we shall new
er get right-our country will never re.
turn to its wonted prosperity, unless we
seek out and pursue the old paths un-
less we submit to the guidance Of princi
pies, whose correctness has been demon
strnted by experience.
In confederation Of these views W,
quote the following remarks of MIR. Web.
ster, delivered in the Senate, in Jan.
1884.
at is not to be doubted, sir, that the con
stitution intended that Congress should cx
ercisc the regulating power, power both
necessary and salutary, over that which should
constitute the actual money Of the country.
whether that money were coin or the repre-
sentative Of coin. So It always has beei
considered SO MIR. Madison considered il,
as may be seen in his message, December,
1916 lie there snys:
"'Upon this general view Of the subject, il
is obvious that there is only wanting to the
fiscal prosperity Of the government the resto.
ration Of uniform medium of exchange
The resources and the faith Of The nation
displayed in the system which Congress has
established, insure respect and confidence
both at home and abroad. The local accu
mutations Of the revenue have already ena
blcd the treasury to meet the public engage
meDts in the local currency Of most Of the
states; and it is expected that the game
cause will produce the same effect through.
out the Union. Blu. for the interests OF the
community at large, as well as for the pur
poses OF the treasury, II is essential that the
nnion should possess n currency Of equa
value, credi: and use wherever it may crcu
late. The constitution has entrusted Con
gress exclusively with the power Of creating
and regulating currency Of that descriptions;
aud the measures which were taken during
the last session, in execution Of the power,
give every promise Of SUCCESS. The Bauk
OF the United States has been organized un
der auspices the most favorable, and canno,
fail to bc an important auxiliary to those
measures"
"rhe state banks pnt forth paper as repre-.
seDtlng coin. As such ropresen entative, il
obtains circulation; it becomes The money
of the country; but its amount depends on
the will Of four hundred different state banks,
each acting on his own discretion; and in
the absence Of every thing preventive or cor.
rective, on the part Of the United States, what
security is there against excessive issues
and, consequently against depreciation p
The public feels that there is no security
against these evils it has learned this from
experience and this very feeling. this dis
trust OF the paper Of state banks, is the very
evil which they themselves have to cncolin.
ter; and It is very serious evil. They
know that confidence in them il far greater
when there exists power elsewhere To pre-.
veht excess aud depreciation. Such a pow.