The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-01-08
From the Norfolk Beacon,
PARLIAMENTARY INQUIRY RESPECTING
.,~t CURRENCY

We referred in the month of Nav last, to the Re-
port made by Committee of the British House of
Commons which was appointed TO inquire into the
effects produced on the of that country by
the paper circulation of Banks of issue generally
which committee comprehended among its members
statesmen, political economists, bank directors and
private bankers of great experience and of opposite
political opinions On the list of members nav be
seen the names of Sir Robert Peel, MIR. Hume Mr.
Coulbum, the Chancellor of the Exchequer Mr.
OConnell, Sir James Graham, Mr.. Claw Mr. Ellice
and Sergeant Jackson. The committee sat thirty
seven days and examined nine witnesses who were
subjected to very rigid examination by those whose
object it to maintain subvert various doctrines
advocated by contendng and conflicting interests in
the committee, connected with the members of it
but the conclusion to which they came was that their
present system is scientifically and practically wrong
that it is indispensable to have paper money and that
is necessary to separate, etecuay and forever the
power of issuing from every other branch of banking
business.
The plan proposed for regulating paper issues and
designed to contain the checks and securities which
have been wanting heretofore is that paper money
ought to be of ascertaned security, and that there
should be power of regulating il from time to time
periodically, by the legislature That in the regu-
lation of its issue through banks individuals it
necessary to prevent monopoly-but at the time
to guard also against issues a very small Scale
and that the whole operation of the system should be
conformabe to fixed rules and under the administra-
ton of responsible officers, having pccuniary inte-
rest in the results These commissioners acting on
prescribed rules it thought would be preferable
to board of directors, they having often interests of
their own, to mlslead their judgments and it was
recommended that they should be appointed bu Pariia-
ment and be responsible to Government This re-
port was, observe, alluded to in the Senate of the
United States, on the 29th ultimo, by Mr. Rives in
the DEBATE on the proposed board of Exchequer.
If one hundred millions be required as circuat-
ing medium for the United States and by the use of
tuFp ty-tiy mi of aha 10
required to sustain that paper you thereby dispense
with S75,O00,O0O, which may be applied to other
purposes, and the interest together with the expense
of procuring II, would be equivalent to SIS 900 coo
per Indeed, Ricardo the great political eco
nomst, maintains that currency is in its most per-
feet state, when il consists wholly of paper money of
equal value with the coin il represents The use OF
paper instead of gold silver substituting the cheap
est in the place of the most expensive medium. and
thereby enabling the country, without individual loss
TO exchange all the gold and silver which il before
used for purposes of currency for raw materials food
and utensils, by the use of which wealth and the en-
joyments which il purchases, are increased But
paper currency, II not valuable in itself and deemed
by the community an equiv aent for that which it is
designed Ia pay or satisfy will not circulate AT all or
will circulate at corresponding depreciation Mr.
Jefferson, during the late war with Great Britain re-
commended the issue by the Federal Government of
two hundred millions Of Exchcqucr notes to carry
on the war, and is well known that Great Britain
w i'''s ipu" N''i'"tl hoic icHei lIpl sucn issues
The laws OF rade are fixed, uniform, unhending
and those who are delegated 10 administer the a1airs
Of Government, should be deeply ,ersed in regard to
the natural and irresistible operation of these laws
The regulation Of currency rs one of the most delicate
and difficult duties Of Government, and requ ring
the highest exercise of political wisdom; ana Il is
highly mpor ant that the scsl action of the Govern
ment should not tend TO promote excessive issues
while, far rs IL can be constiiu,ionally and safely
done, It should bc directed as have equal ten
dency TO check them ia all parts Of our extended con
frdefsey How important, then, is IT, that the repre-
sentaves Of TIE people should approach the nvesti
CATION OF subject OF such magnitude in spirit Of