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

TO THE EDITOR OF THE MADIsoNIAN:
OCTOBER 26th, 1S4l.
II is advisable for the Subsequently, those deep
y in debt-to take the control Of the banking opera
tons, 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, or 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 60 to the public. 1t is the
easiest and most uniform mode of raising a revenue.
The manner in which the State Bank of South Ca
rolina has been conducted, shows how important and
polite it is to have the currency of State under the
control of its civil authorities.
CAPITAL OF STATE BANKS.
Instead of approprating the nett proceeds of the
public lands to internal improvements, it should form
capital for State Banks and the annual distribu
ton of three millions of dollars will be constantly in
creasing 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
discharging their debts-a consummaton, which
ought devoutly TO be wished.
During the present prospects of probable rupture
with England, though the States will neither be able
incl naI h. LII. e
due to her subjects, yet think means should
as soon possible be provided for its future quida
ton. An immediate war, however, would inevitably
postpone the payment for at least half century, per-
haps whole century; in which case we should not
undertake to answer for the debt-paying inclination
of such remote posterity, the fancies of
many after coming generations.
1t required the whole resources Of the whole
United States for more than half century, to pay
the much smaller debt of the Revolution, UGH of
which was at three per cent interest," while this at
six. What then can be expected from few single
solitary States, with the vast and increasing debt of
two hundred mions2
But it must be paid No one of the United States
must live and die bankrupt. Nor can UNCLE SAM
constitutionay pay sing dollar ofany of heir debts
Females as they are they must be liable for their
debts, for they are spinsters-au Virgin Queens!
They must retrieue their credit too By reform ing
their currency
1t has been we'll said that CA State which has de-
graded its money, and cheated its creditors is unable
to borrow again on the favorable terms as if il
had acted with good faith. awe cannot expect to en-
joy the reputation of honesty, at the time that
we are openly pocketing the booty earned by duplcy
and fraud Those who lend money to knaves, al
ways stpulate for proporionabe high rate of inte
rest They must not only obtain as much as may be
obtained from the most secure investments but they
must also obtain an additional rate or premium to
the risk they in transacting 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 resorted to- except by those who
alike unprincipled and ignorant.
PHILO-BAY STATE.