The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1842-01-20

y
erpment paper-iha,, and that only. Let
this back get .airly under way. and us bus
tory would be tho history of the Bank Of
the United States over again. The public
treasure would pass into the hands Of spec
uaiors, and the suspended debt" within
one year, would amount to millions. Mr..
B. here quoted from the bill, 10 show Of
what Tie issues Of the Board were to consist,
namely. bills and Treasury notes, signed
by the Treasurer, countersigned by the Sc.
cre,ary Of tue Treasury, payable By the
agencies Of The Board, aud not to exceed
$1,000 10 any one bill. The whole system,
he said, depended on the business of an ex
change bank. Ia illustration, he quoted
The following passage of the Report:
"These notes can get into circulation, and 10
kept in il, only in two ways first, By payment in
such notes of debts and demands on The Trcasu.
ry; and. second, by buying domestic exchange,
And it is the last of these modes which is most
confidently looked to as furnishing an active and
continual circulation Of this paper. When is.
sued in Government payments, at distafft points,
the general tendency Of the notes will be from
those points TO the great Atlantic cities, accord.
ing to the course of trade; thus, leaving the place
Of their first issue without the benefits Of their
circulation. Bat it is evident that if the agen.
eies at those distant points shall be authorized to
purchase bills of exchange, new source for the
issue of sound circulating paper viii be opened
and the exchange thus bought would be renitted
wherever the demands of trade shall call for it,"
Now, these were called Treasury notes
but with what justice or propriety? What
was Treasury mole merely mode OF
borrowing SUN OF money BY the Govern.
meul instead Of funding The public debt
Treasury notes were issued to Government
creditors or IN payment OF Government
loan. But with what justice could these
issues be called Treasury noiesl They
we're payable on demand, but no, doiiar for
dollar IN specie; but for every five dollars
in the vault fifteen dollars worth Of paper
might issue, and they were TO be used to
buy bills of exchange. They constituted
10 every respec, Government paper mo
ney. And what bad The past history of the
world invariably demonstrated to b. the
/ fate Of such money! Was there one couu
try under the sun which ever had tried u
had not been sufferer from the experi,
ment! Everywhere lis value had depteci
ated from day TO day, until az length Il had
sunk 10 nothing. The two most striking
examples of this were to be seen IN the as
signals issued during the French revolution
aud the continental money Of cur own Rev
dictionary DAYS, liz both cases, indeed,
the paper accomplished glorious purpose
1t established and sustained public llber-
IS, and enabled each Of these cations to re.
SIS, and 10 overcome despotic Power: but
as currency, as money, It sank and sank
I'll! Ut length 1t lost all value. And should
we, IN these piping times of peace, when
the People were abundantly able to pay all
the expenses Of Government, resort to au
expedient suited only to the most desperate
emergency, and of so tempting and seduc.
ing character as TO have been abused BY
every Government under the sun that ever
had resorted 10 ~
Then this Bank was to have a circulation
Of fifteen millions, an amount beyond The
average circulation of the old United States
Bank in It's paimiest days. The average
Of her circulation bad been but from eleven
70 Twelve millions; bat here was great
Central Board, With fiiy-two agencies, aud
a circulation OF fifteen millions
But she evil he denounced merely in
prospect actually existed on the face OF this
bill it was a biz 10 borrow fifteen millions.
That was palpable. On five millions ac,u
ally 10 the Treasury the Bank was to issue
fifteen millions. Here was a loan Of ten
millions at once; then, when the Bank
should run down, which Il soon would DO,
Government was to lend it five millions
more, IN certificates Of loan from the Treas
ury Department TO the ExcheqBer Board.
Here we're tea millions OF debt paid al
once, on the oneeto three principle, aud The
five millions more Of the Government make
up, IN fact, loan 10 the Board of fifteen
nill.ons--a loan Of which no man, woman,
or child could have dfeamed, on a mere pc.
rusal Of the bill; yet il was demonstrate
i must be SO. 1t was the issue Of paper
money, without even the preteuce Of spe.
cie basis TO support il.
Mr.. b. said he had never been great
friend to the existing banking system Of the
United States; he believed II was fast 70.
ing to rum It contained the elements oil
lis own destruction within itself. Let il 20
he should give 1t no impulse hc would
leave 1t TO itself 10 that respect he would
DOT say whether this new Government bank
would work good or evil; but certainit was
that It would soon make 40 end Of the State
banks. /. went 10 invade their most pre-
cious prerogaIiYe Il vas empowered 10 s
sue FIVE dollar bills, whereas hilhereio Urea.
sury notes had never been permitted Of
less denomination than fifty dollars bA, in
issuing so low as five dollars, it would come
IN immediate contact with every petty TO-
cal bank 10 the country, and they must 90
down. II would cause sad reirogade
motion 10 another respect. Experience
had shown that lhere never could be sound
specie basis mainiained when bank bills
were allowed TO be issued az low as five
dollars. They had been struggling to get
twenty dollars fixed as tho lowest point. and