The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1840-04-01

As some OF the slsetoneeriug tricks. Of the
opposition are, te charge on the administration a
desigu TO introduce a metallic currency, 10 de-
stroy credit. and crush the banks, We give the
following sentiments of Mr.. Grundy of Tennes-
see. a leading administration Senator. as the
best refutation Of the falsehood. Other Sena-
tors, Of the same party, have advanced similar
opinions.
METALLIC CURRENCY.
~ come TO the discussion OF n subject upon
which, of all others, the Republican party has
been most misunderstood and most misreprs-
sented. We are charged with being in favor
Of an exclusive metallic currency. This is not
SO. so far as understand the sentiments Of the
party. The President Of the United States. in
his letter TO the Honorable Sherrod Williams.
distinctly negatives this idea, far as relates 10
his own opinions. In his late message TO Con-
gress nothing of the kind is minated SO far
from IL. he declares that in a country com
mercial as this, banks will always exist. Re-
form. and not destruction, is the policy in re.
gard TO hanks. which he recommends. know.
full well. what course ha. been pursued upon
this subject throughout the country. IL is TO
charge rs with holding sentiments which we do
not entertain. and sraveiy urging on the people
the danger Of such opinions. will now state
what my own opinions are, and ichat belierc
10 be he sentiments Of the party Of plici am a
member am not in favor OF an exclusive me-
,alic currency; do not believe that a sufficient
amount of gold aud silver can be procured and
retained in the country 10 supply an adequste
circulating medium for the commerce. the
wants, and enterprise, Of the community; but
am anx ious 10 see the circulation Of small notes
suppressed by those who possess the power TO
do so. We possess no such pewer; that be
longs alone to the States. lfsmall notes were
banished from circulation, gold and silver would
ill up the vacuum thus produced, aud in this
way specie would be introduced and used in or
dinary daily transactions while bank notes or
other paper would be used in larger dealings.
Were this done. the benefit, arising from IL
would at once be apparent: all the laboring
classes Of the community would receive gold
and silver for their labor; nor would they DO
liable to the frauds and iippositions incident to
bank paper. II gold and silver were in circu-
ia,ioo, and pressure made upon the banks.
this circulation would bo called to their relief.
TO a certain extent. Further, ! wish to see
banks regulated through the agency Of the State
Legislatures, so as to compel them to be hon
est. In other words. would place them under
the empire Of the laws. and whenever they
ceased TO answer tho purposes for which ;hey
were created. they should cease 10 exist. What
I &c desire is TO see safe banking that is, that
the banks shall be so conducted and managed
that the holder Of hank note shall be sure of
his money when he wants or demands it,
CREDIT SYSTEM.
"Ne'her is the Republican party against the
credit system We do not wish to see the
banks issuing fifteen or twenty dollars in paper
for one which they may have in their vaults in
specie; nor do wish to see men subscribe
for bank stock. and pay il in. and then take il
all out on their stock notes, as has been fire.
quentiy done nor should banks, in our view.
be engaged in cotton or mercantile spsculations
Of any kind all such adventures endanger their
note holders. and render their creditors inse-
cure. If they would confns themselves to
their legitimate business. that is Iossing On bills
Of exchange. their profits would be ample. al
though their disc cunts should be confined with
in proper and safe limits. Men skilled in bank
ing say that, generally. a bank may safely loan
two or three dollars for one Of specie in its
vaults. Is not this profit enough! Fer every
hundred dollars specie in bank, twelve or eigh-
teen per cent. may be received by the ciTcula-
ton Of its bills that is. il loan hundred dol
lars to my neighbor, six per cent. is all that ]
can receive according to tho laws Of mos, OF
the States, hut if. Instead Of this, ! vest it 10
bank stock, will receive. so far Is specie gives
circ culatoD, twelve. fifteen, or eighteen per cent.
| When such privileges are granted. surely hon
esty and punetuality should be enforced"
| In the same speech which was in defence OF
the report Of tho ASSUMPTION OF STATE DEBTS
Mr.. G. said -
The Senator from Kentucky, Mr.. Critten-
den. IN his com msniaries on the report, asserts
thar we are for an exclusive metallic currency
and that we are making war upon tho banks
J | have already endeavored to show that in both
these particulars, such accusations are unfoun-
ded. IL is but the power TO do so rests only
with the States; they have created them, and
they alone can regulate and control them. The
same Senator asks what difference there is be-
tween borrowing money from the lords Of En-
gland. and borrowing il from our own citizens |!
dollar is dollar. no matter where il comes
from !! To my mind the difference is very pal
psple. " money be borrowed from our own
citizens, the annual interest remains in this
country; IL is still among US, and constitutes .
part Of the nations wealth but If il be borrow
ed in Europe. and the interest be annually sent
to the foreien capitalists ~ho loaned IL, then
the wealth Of this country is diminished to that
amount. If two hundred millions Of State
bonds he held by foreign capitalists. it will take
ten millions Of dollars annually. II fee per cent.
to pay the interest. And this drain is constant.
ly made, year by year. from tho productive iu-
dustry of this country in short IL is q tax up
on the labor Of the people Of the United States,
amounting to ope-ten,h Of al their surplus pro-
ductiops. This view 10 very serious evil.
and one that ough, not TO be encouraged or
promoted
DEMOCRACY.