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


ted, it would be impossible, and if possible,
would aggravate rather than tighten existing
evils, 10 collect the stock of such an institu.
ton. 1t can, however, provide national
paper currency of adequate quantity, and
of better quality, by other means.
1t cannot equaize the exchanges through
out the country, so long as the currency OF
most parts OF it consist Of irredeemable
bank bills in various degrees and stages OF
depreciation, and the business Of buying and
selling is transacted in one part OF the
country by means of specie values, and in
another by paper values. Most of the ex-
isting rate Of exchange between different
parts OF the country is not the difference in
price between legal coin in one place and lie.
gal coin in another, or of the cost Of trans
porting it to settle balances, but the differ.
ence between the price of the coin curren-
cy and OF the paper currency at the same
place. This Congress cannot prevent
But it may provide safe and economical
medium OF exchanges, correspondent to
the true value OF exchange as regulated
by the course of business, according to
supply and demand, in specie medium of
payment.
1t cannot, by any act Of its own what
ever, proceed Immediately to fill the channels
OF commerce with paper currency equal
in rate OF value to gold and silver, neither
by means of a National Bank nor by any
other instrumcntality whatever. For the
same reason that, in the market of depre
ciated paper currency, coin cannot be kept
IN circulation, but becomes at once an arti.
Gle Of merchandise, and is bought up as such
and disappears, just so will it always be
with specie value paper currency alonside
Of deprecated paper currency. Until
State Governments cease to authorize or
sanction the issue Of irredeemable bank pa
per IN given community, that community
cannot have any better currency. But the
federal Government can adopt the means
&c furnish paper currency of par value, to
be ready to take the place of the depreca-
te,r paper currency, so soon as that shall be
driven or withdrawn from circulation by
the direct action Of the State Governments.
or by the indirect action o! the Federal
Government.
What, then, shall Congress do3 Wha'
ought ii do? To reach The answer to these
questions, let Us consider the ajysHi3T--
and the disadvantages of the plaQs iereto
tore used in the fiscal business oil the Trea
sury.
Leaving out Of the case all debatabIe
Institutional questions involved in ii, and
regarding II as a practical matter only, the
4 considerations alleged in favor OF Nation.
al Bank, are
!. Its convenience in the collection,
sate-keeping and disbursement OF the reve-
nue..
2. Its utility TO certain degree) as an
agent of exchange.
8. It's being the means of furnishing pa
per currency to circulate IN all parts OF the
United States.
4. lis fundamentally, by the periodical
settlement OF balances, in regulating the
paper currency Of the States.
S. Its being the means of utilizing the
public deposites, by discounting on them.
On the other hand, the practical object
tons to 1t are, in substance
l. The peril to the public welfare of Ia
king from the Government itself, appointed
by the people and responsible to them, all
this vast power over the public funds and
the currency and exchanges and placing it
for long period of years in the hands of a
private corporation, and of bank directors
, having interests of their own, and irres.
ponsible and inaccessible to the people
themselves.
+ 2. The chances o! Encouragement and
corruption on the part of such corpora.
ton, in the ratio of its power.
8. The possibility tina. it may itself make
excessive issues, or suspend payments 10
specie, and, instead Of aiding to regulate
the currency Of the States, become itsel
the great cause OF arrangement.
A. That it is no part of the proper bust
5 ness Of the Federal Government to carry
on directly or Indirectly the business OF
discounting notes or bills, or otherwise
$ lending money, or to furnish funds to be Sc
lent.
Concerning the adoption of the State
! banks as the fiscal agents and depositorIe:
ot the Federal Government, the main con
: sheraton for it is
r That, if there be no National Bank, il i:
necessary to employ the banks of the States
unless the Government choose to discard al
bank agency.
; And the main considerations against i
are
/ /. That the Federal Government ough
not to be dependent on the legislation o
: the State Governments for the means o
conducting the business of the Treasury
2 2. The perpetual liability of the State
: banks to excess OF issues, and to suspension
}, oI specie payments.
5 3. The difficulty Of giving nationa
5 unity OF action to institutions which arr
: essentially local in their nature and uses
: and in their currency.
4. The liability Of the system to politica
! abuse.