The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1842-03-01

that we absain from offering any decisive opinion upon
the subject.
But we will remark, that when the banks under
take pay their notes in cash. and general restora
ton of confidence takes place, preference for com
will be shown, until the foreign exchanges cause
demand for the purpose of expectation 1t is true,
temporary depression Of the exchange on the exporta
ton of the precious metals and temporary want OF
confidence in paper currency lead to the consequences
of run on the banks for redemption of their clrcu-
lationbut with prosperous trade, confidence gene
rally diffused and resting firm basis and public
credit high these disastrous results cannot reasonably
be anticipated.
1t appears that the Governments Of Europe are
now occupied in substituting metallic, for large
portion of the paper currency These efforts on the
part of those countries to restore to par with the pre-
cous metals the value Of their respective currencies,
will greatly add to the difficulties of resumption by
boarding these metals and thus coun'eracting their
| expectation.
We will remark, however, that when the
metallic standard of value has been re-establshed,
the great impeachment to return to system will
be overcome and it will be in the power of the banks,
by taking advantage of the favorable state of eX-
change, to augment the supply of the precious metals
to any extent to which they are likely to be re-
quired.
In advocating the adoption of the Exchequer, with
the feature of receiving the notes of spece-paypg
banks on deposite, must protest against the in
ferences which have been drawn by our opponents,
that we are the supporters Of irredeemable paper
currency That the Exchequer has many advantages,
no ms I yn
it has its fundamental principless foundation, upon
which the edifce is built-whereby the fitness un-
fitness of its multlfarious parts are to be tested 1t
must appear manifest to all, that one of these
fundamental principles is specie, held in connexion
with the expense of production and the univer-
| rsal estimation which is given to it. If its
quantity is diminished or increased, it retains a
relative estimation by its relative and proportional
circulation, by which means has become standard
for the valuation of every species of propertyfxing
relative proportion throughout the world. Although
the currences of the State banks for private conve
nences may prevail in certain sections Of the coun-
try with certain advantages, this circumstance
not initiate against the principle advanced for SC
established and incorporated the precious metals
in the determnate estimation of mankind that every
paper creditfrom the most visionary, to those form
ed upon principles Of comparative pertection--is
seen paying homage to its acknowledged superiority,
in referring to it as the common measure of value.
If to have sought the removal of the evils of dis
ordered currency, as ga contamination devoutly to
be wshed"--if to have labored with the most UNI
firing zeal to demonstrate the practcability of effect
| ing it-and if, in fine, to have sought by the most
potent and constitutional means the attainment OF
such results, be evidences of the exercise of nu-
ence to fasten upon the country irredecmabe pa
per money system, the Executive must plead guilty to
the charge, and rest for its justification the pru
dence with which the operations of the Exchequel
will be conducted, and on The intimate connexon OF
the object with the best interests of the country with
the nobest feelings of patriotism, and with the purest
principles of the Constitution.