Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-09-29

it has been found so very applicable to her, Of
the largest commercial nations in the known world,
then think it is beyond the reach of refutation,
that it will be found equally applicable when applied
to the purposes and uses in the United States
of America.
This mixed currency has its difficulties, at least
it requires some ability in the comb ming specie
with paper. know that is true with respect to the
great commercial countries of Europe, as well as
here in the United States Of America. l believe
that there is Danger in contractons well in ex-
pan ions Of such currency; and yet believe that
where specie is used exclusively, in Cuba and in
the smaller states of Europe, there very great
revulsions in the price of commodities and still more
in the rates of labor. There also more mercan-
tile failures than in that country where well regu-
lated paper currency exists.
In the next place, gentlemen the regulation of the
currency of the country, both metallic and paper,
belongs TO the government A just and safe super
vision over the money Of the country, and that
which performs the Office ofmoney, necessarily and
properly appertains to government. The regulation
Of money is one ofthe indispensable prcrogatives Of
government.
Gentlemen every Bank, as it now exists, per-
forms tw distinct Offices or functions. In the first
place, discounts notes and bills, and thus lends
money. This office may be performed by individuals
or banks without circulation.
In the next place, they discount Notes or other
securities and pay ont their own bills thus making
much addition 10 the amount o! the circulating
medium of the country. Hence, it comes to be
true, in the absence of all government control
and supervision, to be for the wisdom and dis.
erection which regulates the amount Of money at
any time existing t. the community, is but the ag-
Nd milf Of the -icdO nd n
ton of ali the ban zach acting without concert
but for its int !, and not under the control Of
any individual circ stance whatever.
Such regulator yhich shall be made for the
gu!aticn of the currency of the country, from time
to time is unsac, and untrustworihy institution,
which say, we never can have confidence in, or
can we guard against the evils of it.
Hence, then, arises the duty as a duty Of govern
ment to take care by the proper exercise Of onsi-
tutional means to control the issues Of local instu
tons, and to gaurd the community against the evils
OF excessive circulation. And am Of opinion that
the government may exercise a control and supervi-
sion, which control and supervision can az com pish
lis purposes in two ways and restrain the excess of
issues by the local banks. need not dlate OF this
point. We all know that Institution Of general
credit in the country, if it have competent capital
i do not say an enormous capita!-if it act fs-
cal agent Of the government to collect the Of
that government-wc all know that such an nstitu
on properly regulated, is calculated to control all
kinds OF local excess, and is beneficial to the com.
mani'y, and answers all the purposes required OF
(Cheers.)
Such an institution acts very bcnefciay too, by
creating currency that is Of general credit and of
uniform value in every part Of the country. Now,
Gentlemen, this is the very point of the great
test. What we need aud what we must have, before
we can have general prosperity, is sound currency,
some how devised, and some how sanctioned that
shall be acceptable upon the borders Of tho Misss-
siPPi river npon the shores of the Atlantic Ocean,
and every town aud village within these vast lines
(Cheers) The question is, how TO get this Well,
now, it seems TO me that this question is answered
by plan IN reference To- the condition Of the coun
try, TO the form OF the governments established in
the country, and to the institutions formed under
that government. Why is it that state banks that
the paper Of no state banks, however well secured
under the State Institutions, however well known,
however rich, however'llrge their capital give gen
eral satisfaction
All our experience shows US {! at no security will
give IL the general confidence OF one Of national
character. Why, it appears TO me that the case is
obvious. We are made W in the first place-we ex.
list as government which makes us people, aad
especially in regard to commerce.
But then we are the citizens of twenty.six diffe-
rent States stretched over country which is larg.
than most OF the other empires Of the world
Every man in tins country knows, and is bound TO
know two governments. First, a State government
existing Immediately over him; and he knows its
constitution, he is acquainted with it, laws, ard he
IL familiar also with its institutions. If the State
t.V.a hal l.uE ,n.
eiples they are formed lie kAovs the laws that reg
ulae them, whether they safe, aud whether they
are under wise laws. The banks SO regu-
lated, and I am tc,ter acquainted with the
banks Of the North than Of those Of the South
Wes;-have the confidence Of tho people in the re-
spcctive States II is true the issues Of the State
Banks generally well received here they are is.
sued and in ofthe States surrounding those in
which they are issued; and the reason Is, because
the to whom they offered, know the govern
ment Of those States, and the security Of those
banks. They are bound TO know the Constitutions
OF their own States, and they equally bound TO
know the securities provided for those institutions
which Of a general character. He has confidence
in them because he regards them as institu-
items over which he has some control, and be.
cause they cmanste from a government in which
he takssa share, by the exercise Of the elective
franchise when the time comes round, and he has
confidence in them, because he has this power: and
because with such power, he is called upon to cor
rect what is amss, and he has thus also confidence
in national in state government; but the is
far different when he is called upon TO take the paper
of distant State with which he has no connection.
The government Of that distant State is carried
on without his vote; with the constitution, and
laws, and institutions Of iueh State, he is not
bound TO b. acquainted---he has no knowledge
Of them, and therefore he is unable TO say whether
the bank issues which are proposed to him TO be
taken. are safe and secrre-whcther those institu-