, 1840-04-04

tlldt i SAW an eXtfdCt TOH1 an EnSiSu pdpef,
which stated that whilst this cutlery manuiac.
tured in Germany was equal in quality with
the British, it was so reduced in price that
the latter would have TO abandon the man.
~ufacture altogether.
The senator from Massachusetts, after all
our experience, doubts whether our currency
has been inflated beyond the proper degree
and to prove that it has not been, he says
that the rates of exchange upon England
has often been below par. This fact does
not tend to prove that our paper currency IS
not Inflated AT home. Our foreign exchanges
are regulated by the specie standard Of the
world, not by the amount of our bank issues
at home; and whether they are above or be-
low par, depends upon whether we are the
debtor or the creditor nation. We ought al
ways to be, and would always be. the credl-
tor nation. If it were not for our extravagant
specuIations in foreign merchandise produced
by the redundancy of our paper credits and
circulation. Our immense exports of cot
ton ought always to produce a balance OF
trade in our favor; and yet this is rarely the
case. There is generally a particular peri
cd, however, in the progress of each one Of
our expansions and contractions, when ex-
change is in our favor. Ibis occurs after
our cotton and other exports have paid the
debt previously contracted 10 foreign nations;
and before we have had the time and ability
10 get fairly under way in a new career OF
cvtravag1nt importaiipns. To say that this
circumstance proves that our paper curren-
cy is not inlstel, is an argument which
cannot understand. II proves nothing but
that Providence has provided us a resource
in our vast production Of cotton, which en-
ables us Ia repair the injuries which we suf-
fer from our eXtravagant specu!atIons. 1t
does not touch my argument to show the
pernicious influence which our expanded
currency exerts on our domestic manufac-
lures. If IT were not for this cause, ex-
changes would not only be occasionally. but
always in our favor; and the Bank Of Eng
land could not exercise that controlling in
f~lGence over our banking institutions of
which the senator from kentucky so loudly
complains. This influence is derived solely
from the fact that we are almost always the
debtor nation, rs we must continue 10 be.
until our Wild SpeculatiOns shall be arrested.
In addition to the reason suggested WHY
foreign exchange has sometimes been in our
favor, Notwithstanding cur extravagant I'M
porrations. | might add another which has
operated with vast powerduring the last two
or three years. This is the immense amount
of money which several Of TIE states have
borrowed from England within that period.
This monev constituted u fund on which bills
were drawn TO a large amount, and conse-
quently reduced the tate of exchage. The
payment of the interest on this debt. Par.
t~icuIarly as we shall probably not soon in
crease The principal, will operate hereafter in
Il contrary direction, and will tend 10 raise,
not reduce, the rate OF our foreign ex.
changes.
But the senator from Kentucky. (Mr.
CLArO leaves no stone un,urned. He says
that the friends Of the independent treasury
desire TO establish an exclusive metallic cur
rency as the medium Of all dealings throu, h.
out the union; and also to reduce the wages
Of the poor mans labor so that the rich en-
ployer may be abe TO sell his manufactures
at a lowe" price. Now, sir, | deny the cor
r~ectness Of both these propositions; and, in
the first place, l., for one, am not in favor of
establishing an exclusive metallic currency
for the people Of this country. | desire 10
see the banks greatly reduced in number,
and would, If | could, confine their accom-
modations TO such loans or discounts. for
limited periods, 10 the commercial, manufac-
turing and trading classes Of the community,
as the ordinary course of their business might
rendsr necessary. | never wish To see far
mers and mechanics and professional men
tempted, by the facility OF obtaining bank
loans for long periods. TO abandon their own
proper and useful and respectable spheres,
and rush into wild and ex,ravagant s~pecula-
ton. would, if ] could, radically reform
the present banking system, so as to cen
fine it within such limits asto prevent future
suspensions Of specie payments; and, with
out exception, | would instantly deprive
each and every bank Of its charter which
should again suspend. Establish these or
similar reforms, and give us a real specie ba.
sis for our paper circulation, by increasing
the denomination Of bank notes first TO ten,
and afterwards 10 twenty dollars, and ! shall
then be the friend. not the enemy of banks.
l know that the existence of banks and the
circulation Of bank paper are so identified
with the habits of our people that they cam
not be abolished, even If this were desirable.