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


bills OF credit by the instrumentality OF legal
person called its treasurer" but may by means
Of legal person called its "bank" in other
words, that il cannot, and yet that il can, be the
dervative source OF the issue Of bills Of credit.
Nor does it vary the principle, to enact that
the bank shall consist in part, or in whole, Of
incorporated private stock. This appears by the
practical TACT Of the times. Most OF the banks
| in the United States, south Of New York, have
ceased to pay their bills in cash, a large part OF
| them having failed to make any effective redemp.
| ton for the space Of more than four years.
Their bills are an irredeemable paper currency.
And their continued irredeemabty has been
legalized by State Legislatures, in many instan.
ces, as the means OF procuring to the Use OF the
State Government an issue Of bills Of credit
with which to defray the charges of the State,
instead oil levying taxes on the inhabitants for
that purpose. The State cannot issue bills OF
credit by its treasurer; but it can and does by
IFS banks; which is one great cause Of the exist.
ing disorders in the currency OF the United
States.
Thus, OF the sovereign function to make, ISSUE
and regulate money, (or its substitute) the State
Governments (whether by usurpation or constitu.
tionaly is immateral to the result possess part
in common with the Federal Government.
And this is the radical difficulty in the whole
matter Of the currency. For if the States have
the power so to issue bank bills of credit, then
the Federal Government cannot (by any direct
legislaton) prevent their issue, and Of course
cannot 10y any direct legisatonl apply cure
to the inherent chronic disease OF the paper cir.
| cuiation Of the United States. Whether il may
administer any indirect remedy will be seen
hereafter.
1t is OF the power and duty Of the Federal
hovernmen1= in theft place, to provide for
flssei a sale and suitable fiscal agent to receive.
keep, and disburse the public moneys. This it
does under the tax power and other powers OF
the Constitution.
The Federal Government has, in the second
place, under more than one clause Of the Con.
stuton, certain powers to exert and duties to
discharge concerning the currency Of the United
States.
Ia what way shall Congress exercise these
powers and discharge these duties?
II the duty of the Federal Government con
sisted only in doing what is absolutely necessary
Tor itself in fiscal point Of view, and stopped
there, the question might be more easily an.
swered. But, in the opinion Of the Committee,
the Federal Government should consider not
only what is for the convenience Of itself, but
also Incidentally what is for the conven ente and
i In the first place, then, what cannot and what
can the Federal Government at this time do,
to remedy and relieve the currency difficulties
of the United States?
1t cannot assume and pay that great mass OF
individual Indebtedness Of the people of the
United States, which now weighs them down,
and Is one primary evil of their present condition;
debts contracted when the currency was exces.
sive; for things having a fcti:iously large or
wholly unreal value, and the possession Of which
by the debtor, owing to their present deprecated
value, affords TO him no adequate means OF pay.
ment. What alone Congress can directly do
in this respect it has done, by the passage OF a
bankrupt law, which, whether rghtfu or not
in its provisions, yet enables the insolvent debtor
TO settle these debts with such means of pay
ment as he possesses. For the rest, and so far
as this Indebtedness is a general evil affecting
the whole country, "theren the patient must
minister to himself" The remedy, and the only
remedy, is industry, economy, and prudence,
and return to proper principles of trade-by
means OF which, and with the immense and
various productive resources of the country, and
the productive energy Of its people, with no
extraneous cause Of war or the like to waste and
exhaust them, the speedy return to our accus
toned prosperity is as certain as any thing il
human affairs can be.
D 1t cannot. by any direct legislation, pre-
e vent unwIse extension Of credit in time OF
S amount, overlrading, speculation, the ex
Il cesslve importation and consumption o
foreign Injuries, and the consequent excess
|, of imports and exports, and displacements
It Of coin to pay iorei IN balances. Wha
e alone it can do IN this respect, besides it
" self setting an example of integrity anC
y frugality in its own affairs, is 10 regulate it.
e own system of taxation and finance so a,
It any rate not to in lure the domestic pro
ductlon Of the country, and, if it may, Incl
:, dentaIIy to foster it impartially in all it.
\ forms, and do equal justice to the rights ant
4 interests alike of all parts of the Union.
# 1t cannot assume and pay the debts which
q he individual States have contracted OF
their own account. All that in this rela
is ton it can assume to do it has (whethe
e rightiully or noO done, by ceding to thu
n States the annual nett proceeds of thu
), public lands. For the rest, the People o
o the United States, who are also the People
! Of the States, have the remedy for this ev
h IN their Own hands by the better regulation
l. Of their own finances, and the imposition o
n taxes to pay the interest Of their public
IS debts.
: 1t cannot command and compel the Stat,
: Legislatures to cease to authorize the sus
. pension 81 cash payments by their banks
= nor prev n hose banks from issuing bill
of credit to accommodate the present want
d and postpone the final pay day Of ndividu
S al debtors or of the States. 1t cannot b!
its own direct act, retire from circulation
o their deprecated bills, the currency o