Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1842-03-12

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dlViduals and of governments. This is APP
parent in regard to all paper currency, of
whatever description, and wheresocver it
originates, which does not undertake to be
redeemable in coin.
And the position is not less true in principle OF
that other form OF paper currency, which processes
to be redeemable in coin on presentation, which
is intended so 10 be- but for which the coin is not
actually kept on hand, in the confidence that a
certain quantity of the paper will be held suspen.
dcd in circulation by the wants oil the community,
50 in the case OF the bills what are commonly
called specie paying banks. The persons issuing
this may err in judgment as to the capacity Of the
market 10 hold il in circulation, temporary and
unnatural capacity Of the market, in this respect,
may bs suddenly followed by construction OF it
which they could not foresee in season; or they
may in the pursuit Of gain, extend their Crcula
ton by artificial means 10 the certain prejudice Of
the community The tue and efficient check to
this excess OF issues, whether the excess be will
full or accidental, is the rigorous enforcement Of
payment Of the bills in coin, at all hazards, aud
by the full power of the Government.
Without this, the evils Of paper currency are
greater than its benefits For one Of the advan-
tages Of metallic money is its comparative stabil-
ly and value it having natural price, measured
by the cost Of production. But paper currency
has no intrinsic value: il is susceptible Of iIiml
table augmentation in quantity: and the amount
Of it, which may be held in circulation at given
moment, depends in part, on the hopes and e1
pectations OF man, and the extent oil business
which they may thus be prompted to undertake.
Hence the injurious fluctuations, TO which pa
per currency is subject Perpetual redeemablll
~ in coia is at the check to, and the part'al
remedy for, this disease Of paper circulation.
| For be it still remembered that in the opinion
/ Of the best and most experienced writers, the IS
sue Of paper currency is not the creation Of
money; and it is most perfect when no more than
an equal in amount in given country TO what
the currency OF that country would be il it con.
sisted only of gold and silver.
| Governments have generally seen that the ia.
Guilty OF issuing paper to circulate as money,
should not be conceded to persons engaged in
the business Of trade; for if it were, issuing bills
at discretion, they might engross directly an
indefinite amount of the property Of the com.
munity Accordingly, the privilege has usually
been granted only to persons or companies en-
gagged in the business Of lending money. But
the persons constituting the company, or controll
ing its affairs, may themselves be borrowers: and
then the restriction becomes nugatory one: Tor
IN that case they create a currency to use 1t III
trade themselves which is not the least frequent
cause Of excessive bank issues. and has led 10
the opinion, entertained now by many, that mas
much as the business Of trading and issuing
paper currency should be separated, Tor the same
reason that OF lending money, and oil issuing
paper currency ought not to be intrusted TO the
same hands.
In case, however, the Government itself be a
borrower, and does not choose to issue paper
Of its own to circulate as money, it may, and
often does, attain the same end by the establish
ment Of bank Of issues, for the very purpose
OF arranging its debts or anticipating its revenues.
Hence, the origin, in many cases, Of the direct
association between governments and banks.
So that in all communities, and in every form
IN which currency exists whether as coined mo-
ney or as paper representative Of it, and whether
this be issued by banks or by public authority
directly, the question Of the currency oil the
county and that Of its fiscal affairs are lnsepara
BILE facts
And next to taxation itself, the question OF the
material in which taxes shall be levied, whether
in kind an equivalent, and il so, whether in
coin or not, is The most important OF all. The
question of the place and agent OF deposte or
transmission, is one Of convenience, security, or
use that OF the standard and material Of pay.
ment is one Of the substance OF the thing.
These general results applicable " all sys
TENS OF finance, are derived from the common
experience Of Europe and America. In the
} United States the application Of them depends
on the peculiar form and organization Of oul
Government.
, Our political institutions are the work Of com
pact and consent. To the Federal Government
belongs all such legislative and administrative
power, aud such only, as the Constitution de
hnes all functions OF Government not thereby
granted to the Union, remaining to the separate
States or to the People thereof, and the States
themselves possessing many OF the substantive
powers of political sovereignty.
Among the substantive powers OF political
sovereignty exercised whether ight(ully or not
:, by each Of the STATES, is that Of authorizing anC
regulating, by means Of chartered instruments o
their own, the issue Of bank paper to circulate at
= currency.
The faculty OF issuing paper to circulate al
currency is no more necessary incident OF the
. faculty to receive money in deposite, and to loar
g it in the discount Of notes and purchase Of bills
Than it is necessary incident Of the faculty Il
buy AID sell merchandise. A bank having au
thor,y to issGe bills, after purchasing bills will
Chat is, loanng oGO the whole Of its capital
; proceeds to purchase oy!.,er bills with its owl
promises to pay. Thus it does more business
than it could if rgdly confined to its capital
and makes an interest on its own credit or l,roml
SEES, as we'll as on its capital The real opera
ton would be the same il a merchant had the
same authority. Yet, by the practice in the
, United States, (not so generally in other coun
tres) the two faculties Of loaning money and
Of issuing currency are conjoined in the bank;
{ Of the States.
1t may well be doubted whether the bills sc
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