The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-02-25

"ei"kbNh VI the Dfitlhn Government 10 mann
'nn oy authority alone nconveribs paper
dium at similar efforts ia the Colonial history of this
county al the fate OF continental "a nry ami
a. many other instances Of the kind 10 be found ia
history Look at our own banking system and OBJ
serve the instantaneous effects of suspension II is
because OF The Independence and supremacy Of this
power The sun is moi more steady and powerful in
It's march, and as well might reptile rise in remon-
STRANGE against the rush Of a mountain avalanche
as Tor Legislation and Government to contend against
ms law II behoves all such authorities therefore, 10
observe this power TO consult its claims and to con
form 10 lis mandates
TINS a aep doctrine Of political economy.
we mean only as to form and palpabihiy 1t is
only within quarter Of a century since this power
began to be more distinctly visible Statesmen have
been forced to recognize it, and respect the princi
pie, though none Of them have ever yet defined it, Il
u not old enough to have found its way into any Of
the systems Of political science in form be appre-
caied and yet II is the uightiest power that rules
over human affairs. The most fatal errors Of legsla-
''on have been and may yet be committed, by dis
corning, or by disregarding it, How large share of
the evils we have suffered in this country by bank ex-
plosions and other catostrophes connected with our
banking system, is to be ascrbed TO this cause il
might be difficult say, since Government in con-
fiic with It's own policy, in the shape of banking
system created by itself but afterwards seeking to
undermine and overthrow it, must necessarily embar-
rass The system, and bring disaster upon the country
This doctrine destined 10 be the pole star ofgisation
| on the subjee: Of banking.
Il must be SO, because ofthe independence and su-
i Dremacy of this / NIT bon Iaay ~
perrades without control ndlance all national ju
rsdctions, carrying its own scales and APPLYING its
own test to every thing that pretends 10 be money
u makes It's demands instantly the setting up Of
this pretenson, and constantly and forever
II stands continually al the counter Of every banker
SEXES upon State bonds and national bills of credit to
see what they are WORTH constitutes brokers' into
court and swears in all dealels in money as Jury
II is impossible, that any currency whatever, any
bonds, bills Of exchange, letters of credit or notes
Of hand thrown into the market should escare its
scrutiny or It's sentence. Tyran,s may defraud their
subjects by enforcing upon them aduera,ed coins and
worthless paper They have done it, But they can
not cheat this power can they repe IT, Faithless
governments may defraud their creditors but this
power will visit upon them tenold vengeance by lis
brand of infamy. Itself cannot be hunted down by
armies but is competento chase and worry refractory
kings who refuse submission to lis sway.
And will any government dare to set at naught such
agency in the erection of system of banking Ii
would be great political hardhood and madness.
Ho@ the credit system Of banking satisfies the demands
ofhis poper
All il asks is eonrerhbiiity on demand. The me-
dium through which this power looks upon system
of banking, any particular bank is the COM
bned, concentrated and vigant sagacity of the
commercial world, sharpened by all its experience and
observation. The soundness or unsoundness Of bank
ing institutions, therefore, any degrees of either
can never escape the coseness and severity of this
scrutiny, That credit which it pronounces sound is
trusted by itself, and trusted by all and such is the
credit of sound banking system
Two things are known to all the world first that
such system is abundantly solvent next that il
could not, in the condition Of its ordinary liabilities,
redeem them all at sudden rush and this power
never demands it, 1t is satisfied even with Temporal
ry suspension, wien good reasons apparent; not
however, without imposing small penalty of depre-
citation, graduated by the prospects of resumption
determined by itself. The brokers' counter will al
ways declare this judgment.
II ne sum OF htts doctrine.
The sum of the doctrine advanced in the FOREGOING
axoms, beginning with the first is his:-First that
there exists power, originating in the Provisions of
nature and organized by the operations of the com
mercia ord from time immemorial, which is indie
pendent of and supreme all legislation and gov
eminent and that is the iao Of International crren-
cy, based on the intrinsic raae The precious metals
gold and siirer, measured by HE scales and the APP
propridte tests Of purity, Next that national cur
rency is the creation Of legislation part and parcel Of
political fabric, based The principle Of credit en-
tirely distinct from and under The absolute control Of
The iaw Of International curreney Thirdly, it follows,
that all legislation, in the creation and care Of ma
tional Gu rency and Of banking system if that be
added theIeunto in order to be safe and salutuary
must have respect to this con rolling power, and be
prepared tomeet and satisfy its claims,
JUNIUS.