Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1842-01-20

the Treasury, containing the plan Of an Erchequer
Board, to a Select Committee.
IL SENATE Il. S December %, lSil.
Mr.. RlVES said he had 10 wish to participate in the
present discussion. which seemed TO him both irregular
and premature and certainly should have done So
but Tor the absence Of his honorable friend from New
York MIR. TAILMApct) who had made the motion
which has given to tins unexpected discussion, and
who had been compelled, 10y ndisposton, to withdra"
from the Chamber On lehaf Of that friend, and III
representing him. if he might presume to
50, from the intimate personal relations which had 50
long subssted between them, he felt himself called on
By the unexpected range which the discussion had taken
to make few observations His honorable friend. III
submitting the motion 10 refer the report OF the Seceia
ry Of the Treasury select committee, had expressly
stated that he deemed all remarks the merits OF the
particular plan proposed by the Secretary as at that time
out Of place. the paper to 60 into the hands OF
committee by which its shape might be materially
changed and the scheme bethereby freed from objections
which il was liable Aud yet the honoator Sen
from Pennsylvania (Mr. BucHANAN) has thought
worth his while, in the very inception Of this process
OF inquiry and delboraton, 10 pronounce an elaborate
argument against the plan proposed 10 be referred, III the
very shape IN which 1t now stands, even to It's mnntest
details and in this, he has been followed and sustained
by the Senator from South Carolina, (Mr CALHOUN }
Admlring as | always do. SAID Mr. r.. the display OF
ingenuity and ability which both OF these distinguished
Senators have made this occasion yet cannot but
think that they might have spared themselves good
deal OF trouble. and not little gratultous denunclaton,
if they had been content to await the action OF the
mttee. and in what shape the will then be
presented Tor their consideration Sure am that moth
ing will ever be presented to them with the concurrence
OF my honorable friend from New York, which shall be
justly obnoxious to the denunciaton OF being great
Government Bank. II does seem tome, then, with all
Difference the honorable Senators, that 1t would have
been better in every respect both II eSas economy
Of time, and yet more, that temper Of sobricy and con
cIllaon which necessary to the success of lcglsla
ton under existing circumstances if hey could have
served their remarks until deinye and practical ues
ton shall be presented them by the report Of the
tce to which the plan Of the Secretary is propo-
sed to be REFERRED
Mir RVEs said that although the Senator from South
Carolina (alr CALHoUE) had very warmly expressed
his concurrence in the objections taken by the Senator
from Pennsylvania MI BUCHANAN) TO the plan of the
Secretary OF the Treasury lie could not but be struck
with remarkable ucongruy between the views sever
ally expressed by those two Senators. The Senator
from Pennsylvania, IN denouncing the scheme great
Government Bank, seemed to justify the inputation of
that character TO ii mainly the ground that the pro-
posed Beard Of EXcheqner was, under certain limitations
TO be allowed to issue convertible paper currency to
fixed amount But this power ui issue the Senator from
south Carolina las Just told thing entirely distinct
from the proper function Of banking and congraulatos
himself and the country that this principle first laid down
by him, he seems to intimate, in the discussions of
1857 acknow lodged by the Report of the Secre,a
ry Of the Treasury. The principle is no novelty sir
III 1885 for ii had certainly been announced
and ably developed by Of the most celebrated writers
on Political Economy in England, (Nlr. Rcardo,)
long ago as 1924 in his plan National Bank 1t has
ever since been ructiiyng In the public mind Of thai
country, and has produced new and important views Of
the subject Of currency among her ables theoretical and
practical writers such Mr. Samuel Jones Lloyd, Mr.
rorens, and Mr.. Clay, member Of the British Para.
ment, who has devoted himself with particular zeal and
10 this branch OF financial science During the
mons consisting Of the then Chancellor OF the Exchcqucr
Mr. Francis Barring OF the present prime Minister, Sir
Robert Peel, Of Nj Hume, OF Mr. Goulbourn, of Mr..
Herrics, Mr.. Clay Mr. F.ce and divers other lead
ing members Of Parliament, charged to inquire into the
the effects produced the circulation Of the country by
the banking establishments issuing payable
on demand Ii remarkable fact that, out OF the nine
witnesses examined before that committee, Gall OF them
distinguished bankers practical fnanclors) seven ex
pressed the strongest conviction Of the necessity end
pcdcncy Of eecualy separating in practice, as they
distinct theory the faculty OF issue from the business
Of discount, banking proper. They reason thus: To
issue paper currency TO create money, which is the
rghlful province of the State, public authority while
the appropriate function Of banking distribute
money! when created, in carrying the business OF soce
ty These two functions alleged TO be not only sep
and distinct their nature, but often conflicting
and Incompatible IN practice The interest OF the banker
is to obtain the largest profit he by extending his cir
culaton TO the utmost limits consistent with the probable
combat and resist the solicitations of private gain,
and govern the amount of his issues somly by the
consideration of the public safety, and the preservation
of sound and stable currency Functions, thus distinct
in their character and opposite in their tendencies, II is
insisted should not be united nthe same hands, but should
be kept separate and apart and the arrangement proposed
by almost all the witnesses who were examined before
the committee, for eecng this separation, so To provide
for this Oft convertible paper currency, by public
authority not however, through Executive agents de-
pendent the Crown but by commissioners, acting I'M
der the control OF Parliament.
refer to these proceedings (said Mr.. RVEs) to Illus
and enforce the position OF the Senator from South
Carolina that issue and banking not only separabe,
but ntrnsically distinct, and to show the Senator from
Pennsylvania that the limited power of issuing convert
ble paper currency which is proposed to be exercised
through the Board OF EXchcqucr IN the plan OF the Sec
rotary Of the Treasury, does not OF necessity. make
bank. will not undertake to say that the idea which Is
so rapidly gaining ground in England, from the imper-
fectons and abuses of the banking system at present
organized that it is expcdent to effect complete separa
ton between the power Of issue and the business Of bank
inr is in all respects suited to the condition and clrcum-
stances of this country. it has been carried out with
signal success but under the essential guard of constant
convertbty of the paper issued into specie in Prussia,
the country which, of all others in Europe, enjoys at
this time. the best constituted currency. How far
limited application of the principle modlfcdaccord-
ing to the character of Institutions might be vontured
upon here, is question which, 1t must be admitted, al
ter the Disastrous experience have recently had OF
the dangers and evils of the present system, IS at least
fair subject for enlightened inquiry and consideration
No person (sad Mr. RlvEs) can have greater horror
than have Of Government paper money, properly SO
called resting on no basis but the general credit Of the
Government representing no real value, and issued al