The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-10-30
SCHEME FOR A STATE CURRENCY.
TO THE EDITOR OF THE MADIsoNIAN:


OCTOBER 26th, ls4l.
1t is advisable for the Subsequently, those deep
y IN debt-to take the control of the banking opera
tions when the present charters have expired into
their own hands.
The currency of State should be under the con-
troll Of Its Government instead of being entrusted to
the management of irresponsible individuals OF soul
less corporations. Several States of the Union have
owned and managed their own banks; which have
been conducted with greater ability and safety, though
perhaps with less profit, than those in other States,
which have been ,owned and conducted by individuals
and corporations
The profit of banking establishment, as it comes
out of the public should 90 to the public. II is the
easiest and most uniform mode Of raising revenue
The manner in which the State Bank Of South Ca
rollna has been Conducted shows how important and
polite II is TO have the currency of State under the
control of its civil authorities.
CAPITAL OF STATE BANKS.
Instead of appropriatng the nett proceeds Of the
public lands to internal improvements, it should form
capital for State Banks and as the annual distIibu
lion OF three millions Of dollars will be constantly In
creasng the fund, in few years he debtor States
would have revenue enough to pay the interest on
their foreign debts and in years more with the
annual addition Of three millions beyond their regular
dividends, they would possess the OF entirely
dischargng their debts-a contamination, which
ought devoutly to be wished.
During the present prospects Of probable rupture
with England, though the States will neither be able
nor inclined 10 pay the debts of two hundred millions
due to her subjects, yet we think some should
as possible, be provided for its future quida
ton. An immediate war, however would inevitably
postpone the payment for at least half century, per-
haps wholecentury in which should not
undertake to answer for the debt-paying inclination
OF such remote posterity, nor the ances Of 80
many after coming generations.
II required the whole resources Of the whole
United States for more than half century, to pay
the much smaller debt Of the Revolution, much Of
which at three per cent interest," while this is at
six. What then be expected from few single
solitary States, with the vast and increasing debt of
two hundred millions2
But il must be paid No of the United States
must live and die bankrupt. Nor can UNCLE SAM
constitutionaly pay single dollar oany ofther debts
Females they are they must be liable for their
debts, for they are spinsters-aH Virgin Queens!
They must retrieve their credit too, by reforming
their currency.
1t has been well said, that "A State which has de-
graded its money, and cheated its creditors is unable
to borrow again the same favorable terms as if it
had acted with good faith. We expect to en-
joy the reputation Of honesty, at the time that
we are openly pocketng the booty earned by dupcity
and fraud Those who lend money to knaves al
ways stipulate for proporonabe high rate of inte-
rest They must not only obtain much as may be
obtained from the most Investments, but they
must also obtain an additional rate or premium to
cover the risk they in transacng with those who
have given proofs of bad faith and whose promises
no reliance can be placed The degradation of the
standard of value is therefore, of all Others the most
wretched resource of bankrupt government. 1t will
never indeed, be resored to- except by those who
alike unprincipled and ignorant
PHILO-BAY STATE.