Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1842-03-19


II represents, and to the possession of which
he is entitled at any moment, on presenta-
ton of the note at the agency where issu-
ed. Until that time, the specie remains in
the depository of the Government, is guard
ed by its authority, and the holder Of the
note has the responsibility of the Govern
ment for its safe custody.
These specie notes. issued upon the pub
lie creditor in the disbursements of the Gov
eminent, and upon the depostes of indivd-
uaIs, would form a currency of the most
perfect character--a currency combining
all the convenences of paper with the val
ue of coin. They would everywhere be
preferred to coin. They would be prefer
red by the public creditor, as well as by the
whole community, because every one would
know that the specie was resting in the
Government depository for their redemp-
ton, and, with it, the guaranty of the Gov
ernment fer its safe-keeping.
The issue Of such paper, equal only in
amount TO the specie held for its redemp-
ton, will neither increase nor diminish the
currency. Consequently. there will be no
power on the part of the Government to ex-
pand or contract the currency--a power
which the committee think should never be
possessed or exercised by the Government.
So far, therefore, as its action is concerned,
it cannot cause a scarcity or abundance OF
money, and of course cannot inluriousiy ef-
feet the business of the country. There
will be no initiation of the currency, or any
rise or fall in the prices of commodities,
through its instrumentallty. The receipts
and disbursements of the Government are
; so nearly equal that any expansion or con-
traction will be regulated by the business
from which revenue is derived, and will on
Iy be healthy action of the system.
Neither would the specie notes of low
denomination, be liable to the objection
which is sometimes made to the small note
circulation of the banks, namely, that Of
driving specie out of the country. On the
2233nntrary, tie specie would remain under
the safe custody of the Government for
their redemption; and whilst these notes
would form more active and convenient
: circulating medium for the People than
t the specie they represent, the specie would
remain at rest, and not be exposed TO the
casualties of circulation, by which it is Of
Y ten irrecoverably lost to the world. In
f this view of the matter, the committee see
i no objection to an issue of specie notes OF
l.. denomination corresponding to the small
note circulation of the banks. Being free
from all possible risk, and in no way OBJ
\ noxious to the objections which are made
to those notes, they would be peculiarly
acceptable and beneficial to that most use
full and respectable class, to wit, the small
. dealers and day-laborers throughout the
country. They would feel that whilst
y Government is providing currency OF
, undoubted credit and safety for the larger
business interests of the community, it is
a not unmindfu Of those of small means and
: of more humble occupation.
2 Under the proposed system, there is to
be no power Of discount, in any shape
! whatever That must be left to the loca
institutions. To them it more appropri.
; atey belongs. Those institutions would
feel the salutary influence Of the operation:
=. of the Exchequer, in the frequent settle
, ment of balances, and the consequent re-
e straint upon oyerissues and excessive CIR
culation. Its tendency would be to con
9 fine their discounts to business instead o.
S accommodation paper--the only safe rule
: in fact for banking operations. Under
4 such a rule, there would be no danger &c
i the community from their contractlons anc
e expansions.
h They would be regulated and controlled
by the business of the country, and ex
j pand and contract with it. Their circula
5 ton would be increased at that season o
r the year when the products Of lndustr!
:. are going forward to market, and would
d furnish the means of getting it there; ant
J. it would contract again when those oper
= atoms have been performed, and the bust
# ness has been consummated. This wou
- be sound and healthy action of the bank
d ing system, and would be much promoted
At by the practical operations of the Exche
quer.
n, Would this system furnish GnJOn
j. currency! If by uniform currency it
II meant that the General Government sha
e. undertake to furnish an amount of cul
Of rency adequate TO the wants of the Who'll
v country, the committee answer, no. n
to measure which Congress can adopt, whett
ut er it be in the shape of National Ban
he er otherwise, can supply an hundred mi
is lions or more of currency to meet II
lie existing or increasing wants of the con
munity-wants increasing by the rapid il
at crease of population and the consequel
of augmentation of the products of domest
y; industry. From the adoption of the Coz
IT. stitution to the present time, the Stat
or have furnished by far the greater porto
er of this currency, and they will continue
n furnish it. Their right to do so cannot
mt superseded by any action on the part
this Government. All that Congress ca
Gle do, is to infuSe into the great mass OF Il
ne, circulating medium of the country Gu
nv rency issued under its authority, and