The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-11-06


instruction may be CLEANED from rerospection OF
past views having ieerehce to facts, and circumstan
ces somewhat analogous at the present day, beg to
present the subjoned extract from the Itinerary
American traveller"
LONDON, Sept. 10, 1893.
at has been my intention to extend
remarks upon the continued suspension Of the specie
payments by the Bank, and the existing state Of mo-
ney matters in this country, whereby the anomaly OF
an inconv ertbe paper currency has been found suf
cent for the common purposes of commerce and cir
cuation within the country and to sustain the ma
ton in the most terrible conflict of modern warfare
"The Bank of England, by permission Of the Gov
ernment discontinued its coin payments in 1871
Although the Bank is merely private corporation as
regards its capital stock yet as depository and dis
buising agent Of the National revenue and manager
of the public debt, interest subslsts with the Gov
ernment to which it is bound by statutory restrictions
and by which direct influence may be exercised and
controlling power interposed in any important emer-
pency amounting almost to absolute authority
Experience has proved that the notes Of the Bank
of England regulated in value the fluctuations OF
foreign exchanges; and Notwithstanding this incon-
troverbilily, they now at par, and gold may be
had for bank paper without premium, in sums suti-
cient for ordinary DEALINGS and silver sixpences shil-
lngs and freely paid in small transactions,
as the issues of the Bank not for less than one
pound.
MY banker has met my checks with gold, when
ever requested by simple indication to that effect
and a gentleman with whom but slightly
quainted being about ~ with to the United
States and having two thousand guineas without
occasion for them here, offered them TO for my bill
on Philadephia, which accepted and the
mutation effected although the exchange then
against Philadelphia"
!" In considering the novel condition of the circu-
latng medium, the expedency and justice of confer
ring upon private corporation of the most
tia of sovereign rights substantially the privilege of
coming money, may well be questioned The power
of such an institution Is enormous. And appealing
does to the cupidy of its possessors in the para
mount principle Of all human action, to-wit sslfin-
terest- that power will be exercised to the ut
most limitation which policy interest may dictate
or authorize. And its proprietors or their agents.
may even transcend the limits of prudence from
lance upon the protective interposon of the Minis
ter, as was proved in the existing instance. Would
it not therefore, be wise Jas it certainly would
he jus to retain the control of the currency in
partment Of the Government under adequate restric
tons and regulations TO the country against the
mischies and mseries of inordinate expansions and
sudden contractions of the measure Of value N
"On this subject the antagonist statesmen Hami
ton and Jefferson, who were lately the official adv-
sers Of Washington, substantially agreed although
opposite as the antipodes other points Of policy
at is understood however, that the British sys-
tem meaning their codicai protection of industry with
in the realm and particularly with reference
ufactures, which sustains their external commerce
and navigation, and is the principal constituent and
foundation of this 'stupendous fabric, is mainly in
debed to the vast amount of their public securities in
their daily neutrality-suspicious. constituting large
proportion of the actual currency, and afording efec
tive capital for every useful enteprise-as large trans
actions are generally settled in consols, or funded
or floating, public debt of some Sort which imparts
momentum and constant action to their circulation
and tends to nourish and invgorae the great body of
the nation. have been recently informed by in
teligent merchant, with whom am in familiar habits,
that on receiving money to the amount of thousand
pounds, without known demand for it within three
days, it has been his practice TO invest it in exchequer
bills or some security which could be negotiated in
payments, or converted into cash when wanted -
whereby 1.-THE purchase and transfer being effected by
himself in person the intermediate interest would be
realised, and in aid of current domestic expen
dtures."
These annotations were made by the writer in the
early annals of his manhood more than forty years
ago, as will appear from the date under which they
writtenand he might refer to recorded evidences
at intermediate dates, to prove the undertaking
sistency of his views and opinions the topics in
question And not "acts and circumstances"
exposed and mooted so long ago, which have since
been woully realized and verified, Of value as
beacon lights to avoid the of past disasters
and miseries 2 The inquiry is pregnant with perma-
nent interests.
The improvement Of national currency, under the
direction of public financial institution independent
of the Executive authority, contemplated by the
late economist David Ricardo, who was ns WELL an
M. p and director of the Bank of England, as may
be in tho Plan of National Bank" published
by his executors in 1924 wherein the justice and ex-
Pcdency of the proposition is clearly demonstra
ted But, although just and proper in acountry where
ai power is concentrated in one Government might
not be SO suitable and appropriate to the political sys
tenn OF TINS C"ntederacy in which the prerogatives of
the Federal Government are confined to objects of
general or external character whilst "tbe mowers mt
Note in lS29.-ln proof of the view above pre.
sened reference may be had the vibration. Of spe
Gle during the era of suspension At times the Span
ish dollar, worth but four shilngs and three pence in
gold merely stamped and thereby made Bank token
would pass for six shiIlings; and the guinea for TWEEN
tw.eght, being appreciation paper of thirty
three and one third per centum AT other times bills