Wheeling times and advertiser. [volume] (Wheeling, Va. [W. Va.]) 1839-1849, 1842-02-24

cd that indivtdualsOu ought not 10 ad-lterate the coin
or hlsiiy as observation-disclosures which reason - placed
under the ~sIiegusnd Of The pablic authority. The
reason IS greater Tor subjsc,ing Tho issues of TSpsr
currency TO public authority because the extent OF
the nossiblc evil u greater. and the nature Of the ei-
feet oa private right and interests IL IA both cases
subsianiially the same.
In ADDITION q which. of all these diverse klrm, ~
paper currency MT r~edeemable in :. scie on demand
the inherent and TO far as yet showu) The iueurible
vice - a tendency To access. OF ISSUES. a fatal ficili-
" in the creations Of what T. called and received a.
m mey.Nhich seems 10 adJrl all bat irresistible lem
tahon 10 the cupidity of indiyidaals and OF govern
meni.. This is apparent in regard tn all paper cur
rvt.cy OF whatever description. and Nhsre,over IL
originates. which does not undertake to b. redeem.
able in coin.
And The position Is no, less true in principle OF
that other Iotm OF paper Currency. which profes.e-
10 be rodeeuable IN the coia on a presentation.
which - intended 50 O., be. but er which the coin
- tot actually kept nn hand in The confidence that
a certain quantity of the paper Will he held suspcn-
del IN circulation by The wants Of Inc community
~ in the cave at bills Of what are cOmmouly called
specie paying baaks. Tbs persons issuing this may
err en- judgment, as q the cap Getty OF the m ,rket 10
hold Il ~ ctrculationi a temporary AMI pn,tUnl CO.
paciy Of The market in this respect may he spldetr
y iouowej by a construction OF II which they coald
~, ioresee in season; sr. they may IN the pursuit OF
~ain. sIlenl their circulation by artificial rasans TO
iha Carinal l4fIh ~ "a - NHshHheAAhV. the
AMI eff lent ehcvs 10 ihi, e-aess Of issues whether
the excess BE- Niliul or aeeiSSntrL. !, 'hs rig 'rou,
Enforcement Of payment Of tho bills IA com, at ell
haz Irds and by the full power OF the @ " srnm snt.
Without this. the evils OF = paper currency are
greater than its bsnc6ts. For one ofthe advaniag. =
of metallic currency Is is comparative stability in
value Il having n natural price measured ~ Tho
cost Of pridustion. Bat paper currency Ia. no az.
friHsie value; II is susceptible ct illinmifablO aug.
msntition in qI1ntiy; and Inc amount uf II. which
may DO held in circulation a; u given moment. 10
Ponds IN plri o. the hopes and rSpeeta;ioas OF mon
ani the extent Of business which they my Ihas he
prompted to uniert,ke, Hence The injurious 4 &C.
tS1iisHs IN which a papsr currency IL always sub
ject Perpetual redcemabiliiy ia coin is n once
the check to, ami the partial remedy for, this do.
ease Of paper cnrreney.
EJ-. he Il still run nAored. that in the opinion
nfihe best and most experienced writers. the issue
Ola paper currency n not The creation Of money
and Il . most perfect when no more than equal in
am iuut m a gtyoa cpuIiry 1, what The currency
Of that country would be if 1t consisted only Of gold
and silver,
Govsrnmcnis have generally seen that the f.cul.
u Of issuing a paper In circulate rs money rhoald
not DO conceded 10 persons engaged IN The has,nes
ut trade; for IL IL were. issuing bills at discretion.
they might ergross directly an indefinite amount OF
the properly nf The community. Accordingly. tho
privilege has usually been granted only Ia persons
" NAhHAtAAN Nhh y W " HiA ~ lllN
money. Bat The persons continuing the company
or controlling ia afairs may themselves be borrow
srs; and then the restriction becomes a nugaiory one
fI IN that case they creNte n currency 10 uso il in
trade themselves; which 10 not the least frequent
cause OF excessive bank issues. and has led In IN,
opinion, = entertained now by many. that inasmucI
as the business OF trading aud OF issuing a paper
currency should be separated. for the same rsasoo
that Of lending money and Of issuing a paper cur
rency ought 10 be entrusted To the same haads.
In e'sv. however. the G ,vemmcn itself should
be a borrower. and dses not cho $50 TO issue n paper
OF its own tn circulate a.. money. II NAV, aud offer
does. attain The samo end by the esiabli ihmenI u
a hank Of issues Cor the very purpose OF arranging
u. debts or anticipating iis revenues. Hence the %
rigin inminy rrscs fthS direct association between
government mud banks
So that ia all communities, and 1 every form 10
which currency EXITS. whether as coined money ri
~ a paper representative "f il. and whether this be
isoIsI by banks or by Puhlis authority directly. thu
question IL The currency ofthe country aud that sl
It's tscal aSsnt are ins.p trable facts.
Aud next L taxation itself tthe question Of the
mrIsnal in which taxes shall he levied. NEeiher ia
kinI or an equivalent. aud if 40. whether ia enin
or not. il the INST Important Of all. The question
OF tho place AMI agent Of depoSite ar iranSIn sIipn i,
one Of convenience. security or use. that OF Tho snr
darl and material Of fragment is one OF Tho substance
OF the Thing.
These general results. applicable 10 all SYSTEM
Of finance, arc derived irom the common experience
Of Europe md America. In the United States the
application ofthem depends on the peculiar form
and Organization of our Government.
Or political institutions are the work Of compact
and consent. To the Federal Government bOlnng'
! all such legislative and administrative power, and
such only. as The constitution defines; all functiou
OF Govern;pent not thereby granted to the Union
remaining 10 the separate States or 10 the People
thereof. and the States themselves possessing ma
ny Of The substantive powers Of political sovereign
~.
Among the substantive powers Of political sover
eigaty exercised. (Shelhcr nghIfnllV or noi) by
each Of The States, is that Of auth irising and regu
lating, by tbs mans Of chartered insIrumsuis Of
their own, the issue Of bonk paper 10 circulate Al
currency.
The faculty OF issuing pa1er to circulate NJ cur
rency is M more n necessary incident Of the ficul
~ to receive money III dcposite and To loan it IL
The discount Of notes AMI The purchase Of hills. thar
it is necessary Incident of The faculty to buy anC
sail merchandise. A bank having authority TO issu,
bills after purchasing bills with (that is loanin;
ou) tho whole of It's capital. proceeds to purchase
other bills with lis own pTomi5rs 10 pay. Tins !
does more business Than ifrisidly confined To il
car.5al IL could. and makes an iuierea: ON its owi
.rsdit or promises. ns well n on lis capital. TIL
real operation would he The same ia merchant ha'
the SANE authority. Yet. by the practice in The u
o AtANA 1NHNN~ " A"A ~ ANANNA@NAN ~ NhANA hNA'fAAA
the two faculties Of lolning rn,ncy and also Of is
suing a currency are conjoined in the Banks Of thI
States.
"a my we'll b.. doubted whether the bills % is
sued by the banks Of thr Slales aud coHsiil uiing
I ca Toncy, are not bills Of credit within the msanin
Of The Prohibition Of the Constitution.
Historically. 1t is domonslrable that Tie express
sion bills Of credit applied IN all the period anier
ior 10 Inc adoption OF the Constitution, 10 these bill
Of banks. There wero Two forms OF bills OF credit
recognised in legislation speech. and writing. na m'
~. government bulls Of credit aud bank bills
r. credit
e seems difficult u conceive hpv those tvo ~,
cies of the same generic thing came TO be consids
ell ~ far different as hat one should be eouslit
iional and the other not. To he a legal tender
not Ofthe essence ef either; that j.. each had bee
issned extensively without being declared a logI
tender and IN oil other respects they are ~ sds'
! md mischief the same; tending IN the same way
excess, alise ~usurping The place Of money. pnodu
: ing the same disorders in the currency. and haVinl
n. .wu. I.1af-ro,.sa suns-r-r ,-.. Ia. r.I.fr... q