The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1840-03-14

safe banking. Next. suppose
abroad turns against us, to the
amount of Sl0,000,0O0. Is il not clear,
hat instead Of reducing the. circulation BY
hat amount, that is, to S9O,OOO,OOO,
which it would do if it consisted only of
specie, it would be reduced three times
The amount; that is, to S70,O00,O0O Let
US now suppose the exchange to turn the;
other way, from this point Of depression,
and to be Kept flowing in that direction till
it came to be Sl0,0OO,000 i'll our favor, in
stead Of that amount against US. The re-
suit would be, under the operation Of the
same law, not to increase our circulation
to sl10,000,O00 only, which would be the
case if consisting of specie, but to $780,
000, 900; making difference between the
extreme points of depression and eleva-
ton of $50. 60.000,000-more than equal to
one.half of the usual amount of circulation
by supposition, with corresponding in
crease of prices-instead of S20,000,O 600,
equal only to. fifth, and with but pro-
portional effect on prices. A change the
other way, from the extreme point of ele-
vaton to that of extreme Depression,
would cause the reverse effect. l hold it
certain that no honest industry, pursued
with the view to moderate and steady pro-
fit, can be- safe in the midst of such sud-
den and violent Observation-Disclosures
as If from summer to winter, and from
winter to summer, without the interven-
Ition of fall or spring. Such great and
sudden changes in the standard of value
must be particularly fatal with us, with
our moderately accumulated capital, COM
pared to the effect on the greater accumu
iation abroad, in older countries. In stat
ing the case supposed. l have assumed
numbers at random, without pretending
to accuracy as applied to our country,
simply to illustrate the principle. The
actual vibration may be greater or less
than that supposed, but in every country
where bank circulation prevails, it must
be greater and greater, just in proportion
to the extent of its prevalence
For this diseased state Of your curron-
cy, there is but one certain remedy-to
return to the currency OF the Constitution.
Read that instrument, and hear what it
says. "Congress shall coin money and
regulate the value thereof; no State shall
emit bills Of credit, or make any thing
but gold and silver legal tender" Here
are positive and negative provisions; a
grant Of power to Congress, and limiIa-
ton on the power Of the States, in refer
ence to the currency. Can you doubt that
the object was to give to Congress the
control Of the currency! What else is tho
meaning "to regulate" the value thereof!
Can you doubt that the currency was in
tended to be specie! What else is the mean
ing "to coin money" Can you doubt,
on the other hand, that it was the inten-
ton that the States should not supcrcede
the currency which Congress was author:
lied to establish? What else is the mcan-
ing of the provisions that they shall not
issue bills OF credit or make any thing
but gold and silver legal tender! Can we
doubt, finally, that the country is not in!
the condition that the Constitution intend
ed, as far as the currency is concerned!
Does Congress, in point of fact, regulate
the currency? No. Does it supply coin
circulation! No. Do the States, in fact,
regulate ii! Yes. Does it consist OF pa
per, issued by the authority of the States!
Yes; Is this paper, in effect, legal ten.
der? Yes, it has expelled the currency of
the Constitution, and we arc compelled to
take it or nothing. Well, then, as the
currency is in an unconstitutional condl-
ton, the conclusion, is irresistible that
the Constitution has failed 10 effect what
it intended, as far as the currency is con-
cerned; but whether it has failed by mis-
or the want of adequate
provisions, is not yet decided. Thus
much, however, is clear; that it is through
the agency of bank paper that it has fail
ed, and the power intended to be confer
red on Congress over the currency has
been superseded. But for that, the power
of Congress over thu currency would have
been this day in full force. and the curren-
cy itself in q constitutional condition.
Nor is it less clear, that the Constitution
cannot be restored, while the cause which
has superseded it remains; and this pre-
sents the great question, how can it be re-
moved! do not intend to discuss it on
this occasion. I shall only say, that the
task is one of great deicacy and difficulty,