Litchfield enquirer., 1840-05-14

currency. ] am persuaded that it is q mis-
take 10 charge chiefly upon our currency
the revulsion in trade. In the language of u
distinguished writer, " revulsons are Incl
dent to the fluctuations of prices, and until
these can be steadied, which is impossible,
they will occur. Associated wealth may
aggravate them, or it may mitigate their OBJ
erations, as private credit may, but it does
not produce them. There is certain por-
ton of the commerce Of the world that must
be fuctuating. Banks are necessary to car
ry on that portion most perfectly" These
fluctuations may not be found in hard mon-
ey countries, in Spain, Italy, or Germany ::
tor i'll these countries there is but little COM
merce. Banking countries have outstripped
them, by means of u mixed currency, and
credit, tits natural consequence which
gives circulation to notes of hand and bills
of exchange, and inspires the active and in
dustrious with confidence.
The course Of trade causes more fuctua-
lions and more failures than banks. A sud-
den expansion or contraction of bank paper
does sometimes affect prices, but the cause
otthis is really in the course Of trade, which
causes expansion and contraction, When
prices rise, the farmer adds to his farm, the
merchant to his stock, the mechanic and
manufacturer TO his works; if now, from the
state OF the season, the market, or the affairs
| VI ShO NOuHHCIShlI WOIIUs prices IaII, T6VuIs
sion is inevitable. AT such times banks Of
ten make the change less calamitous, by sus-
tanning such persons as are entitled to cred
it; and not few Of those who denounce
! banks have literally received assistance,
and been saved from bankruptcy. Ii there
were no monied corporations there would be
revulsions in trade; private credit would
fail equally with banks, and then there would
be no general resort for persons suddenly
overtaken. If we cannot have a national
bank, to carry on exchanges, we must have
accredited state banks as inadequate AS
they are. If they fall, the states in this un-
ion are sundered in their relations, and inte-
rests, and finally their affections appeal
to the manufacturers of New England, who
have hitherto found market i'm the south
and west, If they can maintain any connec-
| ton with those regions and if those mar
kets are not, at this time, for all commercial
purposes, as remote from us as the states of
South America? If the government contin-
| ues to persevere in its present policy, our
courage Will, ere long, wholly fail, and our
strength and means diminish, until revolu-
ton, OF some kind, terminates present meas
ures. ! will only remark further, that
banks, with all their disadvantages, and
| they have them, exist in every country of
any considerable activity and con1mercial
credit. BY long experience they have been
found convenient and necessary, and thew
are, at this day, cooperating with other
means, in promoting liberal sentiments, free
institutions, and the intellectual and moral
! elevation of mankind. Let comparison of
nations decide this question.
have said, banks have disadvantages
Their bills may be countcrfcited; they NAV
be unwisely and dishonesty conducted ::
they may be established on false PRINCIPLES
as has been done by some of these States, i'm
defiance of experience they may prompt TO
excessive enterprise, and foster spirit of
speculation they may be multiplied too
| rapidly they may, at times, change the
amount of capital in use and produce f1uctu-
atoms in trade; these are acknowledged
evils, but some Of them are not peculiar to ;s
mixed currency; and all are imputable, in.
no small degree, to causes extraneous to
banks. You must ertiaguish the indepen-
dent, active spirit of our countrymen, the
very spirit which brought our fathers to
America, which is now tostered by our fee
Institutions, and IN turn sustains them i'm
their vigor, before you can make all men
moderate and prudent. This spirit would
break over salutary restraints, with any cur.
rency, whenever high prices prevailed, or
prospects Of sudden wealth opened. Never
theless, we would not suppress it in the boz
! SONS of our fellow citizens, any more than
we would discontinue the use of steam, be-
cause, it sometimes becomes destructive; or
/ fire, because, when uncontrolled, it is DANCE
i rous; or knowledge, or talents, or religion
| itself, because they are sometimes turned to
bad account. have no doubt of the con-
stitutionality Of State banks, and Of q bank of
| the United States, nor can there be doubt
of the obligation of Congress to provide a
general currency.
The right to do it is implied in its power to-
coin money; to regulate commerce between
the States, as it does by promoting naviga-
ton, under the latter power by laws res
pecting vessels, their national character
their papers, crews, medicines, and the ex-
animation of steamboats,. 1t is emphatical-
ly implied in the power of Congress to COL
lect and pay out its revenue Of some $50,
100000, in all these states, in times of war
and peace. Congress ought to sec that there
is currency convenient and of uniform VAL
ne throughout the Union, and, as far as con-
stitutional power is involved, it is a differ
eEce in name only, whether the agen: be a
| bank, n mint, a custom house. or a receiver
general. There is difference in the char.
acter OF the agents, but none in the nature Of
| the power.
Ii said Inn, Congress is about exercise its cen.
stilu0Ha power, aud to create general currency nv
| the independent treasury hill, (su calledl and that
sinca the Government has determined TO repudialo
hank paper, and provided vaults mud ag n,s ia own
| We may snoO expect, should the House si Repreeen-
iativos, IN Congress, concar with the Senate n Cur.
rency adequate necessities. The bill provides
that the revenue 0flhe United States shall be- coec,
ed by receiversgenera. locked up their possessiou
unit, drawD for by the General Goyernm-n t and that
after l84S, nothing shall be received hnt gold silver
This operation, we are assured will 6ll the chan
Reis Of trade will, money and place prosperity on
power Of accomplishing much good Could [
view il in this light, would most cheerluily embrace