Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-01-18


10 adopt, and under the same circumstances; ana
frighfu is lis amount, that only one branch-one
part of the fruitof the n;quitous and neiarions ss
TEN. Other parts remain TO be stated, and the hrs ina
name is that large part Of this enormous debt Il
wholly false and fastidous McCuoch siales two
fths TO be fictitious other writers say more but M:
authority is the highest and prefer to go ny u. Ii
his commercial dictionary, now on my table, under te
word "fands," he shows the means by which stocs
for fl0O would be granted when only EGO or 40 were
paid for il, and goes on TO say
SIN consequence of tbs practice, the principal Of IN
debt e1is,tag amounts tonearty teohs more maf
the amour, actually ndcaneedby the tendr.
So that the English people are bound Tor two-i!h'
more of capital and pay twofiths more OF annual III
terest on of their debt than they ever received
Two.fths Of 900 900 is 360,OOO0Oo; and two.tth
Of 30000,000 is 100000 so that here IS FICTITIOUS
debt to the amount of 81 600 100000 of our money
drawing $50 900 900 Of interest for which the people
Of England never received cent and into winch they
were ugged and cheated by the frauds and viianies
the exchequer and funding systems those systems
which we are now unanimously invited by our Al
,oinistratiou TO adopt The fruit of this system
is that of the kind Of money, il called, when
was considered lent; and which goes to make up Inc
ehs of the debt admitted to have been receiveo
about the onehalf Of 1t was received IN cepreca'eo
paper during the long bank suspension which took place
from 1897 to 1928 and during which time the dePfeci-
alton sunk as low 80 per centum Here, them IS
another deduction OF nearly one-shird 10 De taken Oh
the half of the threehs which counted as ma
bitter drop found in this cup Of Indebtedness, that
the lenders mostly obbers and gamblers in stocks
without q shilling OF their own to go upon, ana VINO,
by the tricks Of the system became the creditors OF the
Government for millions. These gentry would pun
III. stocks which they had recered-sel them at some
adyance-and then lend the Government part OF It's
own money These the lenders-t these The rece'V-
ers Of thirty millions sterling OF taxes-ihese the SCRIP
nobility who cast The hereditary MOBILES IN the shaoe'
and who hold tributary 10 themselves all the properly
and all the productive industry OF the BRUSH empire
And this is the state Of things winch our Admihs'fa-
ton now proposes for our imitation.
This is the way the excheiuer and funding system
have worked in England; acd let say they will
not work in the same manner in country
The system is the in all countries, anu VIII "oIk
alike every where. Go into IT. ana we shall nave every
fruit of the system which the English people now have
and of this most of young States and OF our cities
and corporations which have gone INTO The borrowing
business upon their bonds, are now living exampes-
Their bonds were their exchequer bills. They used
them profusey, extravagnntly, macly, as all paper
credit used Their bonds were sold uncer par thoush
the discount was usually hid by trick pay was often
received in deprecated paper sharPers frequently
made the purchase, who had nothing to pay but part
of the proceeds Of the same bonds when sold: AND
thus the States and cities bound Tor debts winch are
IN great degree fictitious, and are bound 10 lenders
who had nothing to lend; and such are the frauds OF
the system which presented TO US, and must be our
fate if we 60 into the exchequer system
have shown the effect of an Excheqner OF issues IN
Us substitute for loans and taxes have shown that
his system adopted by Sir Robert Walpole upon the
failure Of corporation credit hos been the means OF
smuggling n mountain load OF debt upon the British
people twoffths Of which is fraudulent and fictitious;
thai il has made tue great body OF the people tribu-
taries 10 handful offundholders most Of whom, with
out owning shilling, were enabled by the frauds OF
The paper SYSTEM to lend millions TO The government
have shown that this system, thus ruinous IN Eng
land was the resort Of crafty minister 10 substitute
- yaIt no 8
yeyed corporations, and the exploded bubbles and
have shown that the Exchequer plan presented to
us by our Administration, is faithful copy oil the Eng
l,sh original. have shown above all this and now the
question is shall we adopt this copy This is the
question and the consideration OF 1t implies the hui
,nating conclusion that we have forgot that we nave
u Constitution and we have gone back to the worst
era of English hstoryto times oil the South sea DUO
BILE 10 take lessons the science OF political economy
Sir, we have Constitution and if there was any
thing better established than another, at the time OF
its adoption, it was that the new Government was
hard money Government, made by hard money men,
who had seen and felt the evils of Government paper,
and who Intended forever TO cut off the new Govern
ment from the use Of that dangerous expedient The
question was made in the Convention TOR there was
small paper money party in that body and soleinniy
decided that the Government should not 5enlt paper
money bills of credit paper currency of any kind
Il appears from the history OF the Convention that the
first draft of the Constitution contained paper clause
and that stood in connection with the power 10 raise
money thus "To borroac money Gna em, Gus, on Me
credit of the United States When this clause came up
for considerations Mr. Gouverneur Morris moved 10
strike on. the words sand emit bills; and was second
Cd bv MIR Pierce Butler ssMr Madison thought II sut-
ticent 10 prevent them from being made tender.
uNlr Ellsworth thou gh this favorable moment to shut
and bar the door against paper money. The mischief
of the various experiments which had been made were
now fresh in the public mlnd and had excited he es-
gust Of all the respectable part OF America by WITH
holding the power from the new Government, more
ha mod n Il.
most any thing else. Paper money eau IN no case be
necessary Give the Government credit and other re-
sources will offer. The power may do harm, never
oood Mr. Wilson said alt will have u most saiua-
~ Influence on the credit Of the u. S. 10 remove the
possibility of paper money This expedent can never
succeed while its mschiefs are remembered; and rs
long as il can be resored to- it will be bar to other re-
souIces" "Mr Butler remarked that paper was le-
pal tender in no country IN Europe. lie was urgent
Sor disarmng the Government OF such power. =
ur Read thought the words, if not struck out, would
he AZ alarming as the mark Of the beast in Revelations
uMr. Langdon had rather reject the whole plan IMAM
retain the three words, sand emit bills lew hehi-
bera smoke in favor of refining the clause oul on TAX
ino the vote the sense OF the convention was almost
unanimously against it, Nine States voted Tor striking
out: two for retaining. They were: New hampshire
massachusetts, Connecticut Pennsylvania, Delaware
yronia North Carolina, South Carolina, Georgia. or
striking out The two States Of Maryland and New
Jersey alone voted for the retention OF The clause
This is the history Of the case from Mr. manson re
port; and to this he has added this note
"'rhe vote in the affirmative BY Virginia was occa
Ooned by the acquescence OF Mr. Madison, VINO De
came satisfied that striking out the words would not dis
able the Government from the Of public notes, as
fur as they could be safe and proper; and would on,
Gu, oil the pre,ext for paper currency, and Particn
ary for making the bills tender either Tor pubic oil
private debts.
The Senator from Virginia (Mr. Rives) referred tt
this note days ago, if it qualified or explained
AWAY the decision of the Convention but no such thing
The vote Of the Convention was nearly unanimous
without MIR. Madison HIS joining the majority d,d
alter the decision; there enough hard money mer
without him; and his note 10 the debate shows that he
was opposed 10 paper money currency. The mote
shows that he considered the lection Of the clause
had cut off the pretext for currency; and therefore
claim the benefit of his authority in behalf Of the Con
s,itution aud against this plan OF exchequer issue which
The Administration has sent down TO us.