The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-03-02

w hoeFei Can contemplate tuesS S'i"NHSNS -
the unhappy influence of such banking system
on our society and our public institutions, and
not desire its removal is Ito say the least an
unit subject for reason and argument. lie
would not be persuaded, though one should
come to him from the dead.n We have endea-
vored to point out system OF measures ny
! which the suspended banks may be revived, and
the irredeemabe paper now afoat in the coun-
try may be converted into cash.
II is trite, but indisputable truth, that one
solid, well established fact, bearing upon any
particular matter. will countervail a long train
of arguments Historical references will support
us in the assertion. In July, 1917, six months
after the late Bank of the United States went
into operation, the public deposites lodged with
the bank amounted to $24,746,64l rs. This
immense amount of money was the accumula-
ton of revenue previously collected and dis
tributed throughout to the credit of State Banks,
varlously deprecated. BY this single operation
twenty -four millions of dollars were thus con-
verted (even by that corrupt concern,) OF
aduterated local currency into specie, or what
was tanamount TO specie, of universal circula-
ton and receivability. So far as history affords
us light, it leads us to this point, that in times
of difficulty and CONFUSION in monetary affairs,
when the whole machinery is thrown into dis
order and confusion, the existence of moneyed
power controlling in its action and operating CO.
extensively withthe boundaries OF the confedera-
Cyl and possessing universal credit, and sup
ported by national faith, is absolutely necessary
to impart soundness and uniformity to crcu-
lating medium.
We now come 10 the second division of the
subject. We will not stop TO inquire into the
advantages, merely pecuniary in their character,
derivable from the adoption of this new fiscal
agent. We will not dwell on the spur that
must necessarily be given to our navigation,
or on the additional employment to manufacur-
ing labor, or ON the general confidence that will
ensue. These are the considerations that will
of course occupy the attention of our statesmen.
But there are other advantages to result from
the establishment of the Exchequer that will be
felt by every class of the community, and will
operate alike on our wealth. and our national
strength and prosperity
| One of the prominent evils that will attend
the operation Of the Exchequer, if inhibited
from receiving into its Golfers the notes OF spe-
Gle paying banks, will be the reduction OF the
currency. This curtailment Of the currency
must be attended with ruinous consequences to
all classes Of society. Labor, property, and all
marketable commodities, must necessarily be
reduced in value. Money is not merely the
| Ia, cn,nn,riSnn with mhich the rela
| tive value of commodities is ascertaIned at any
given period, but it is also the equivalent by the
| delivery Of a fixed amount, of which the stipu-
laons, in almost all contracts and agreements,
may be discharged 1t is plain, therefore, that
no variation can take place in its value, without
essentially affecting all these supulatons. The
mischief occasioned by the sudden reduction Of
the paper currency, and the consequent rapid
augmentation of its value, will be still greater
than what has been previously caused by its de-
precaon. This increase of value constrans
the debtor to pay an increased price for property
which he purchased, when the currency was
swollen and cheap, and the creditor receives an
augmented sum, because il is worth more al that
time than il was at the period he sold the pro
4 pcrty. 1t is thus that contraction OF the cur
rency dcranges all values, and produces dcrange-
ments in the stipulations for the payment otmo-
ney between debtor and creditors thus it is plain
and obvious to the most obtuse mind that the opc-
ration Of reduction necessary to ciiectthe restora-
ton to cash payments, itunaded and unsupporl
ed by onaGoyernment, must be accompa-
MED with great restraint and inconvenience TO
every branch of industry in the country The
/ injury, we contend, would be intolerable. The
reduction of paper would produce all those ef-
tects which arise from the reduction IN the
amount of money in any country.
Now, according to the proposed plan, as sub
mtted by the Committee, the Exchcquer will
not only aid the State banks to resume, by using
its credit to very limited extent, but introduce
into circulation valuable and general currency,
receivable in every portion of the Union, to the
amount of ten millions Of dollars, thus adding &c
the circulation currency of sound and uniform
value, instead Of performing the harsh operation
of a contraction.
We therefore contend, that there will be little
: if any, difficulty in carrying the Exchequcr in
to effect that it will not unnecessarily oramp
circulation; that it will not impede the ordinary
measures of the mercantile community, bu
that, on the contrary, it will restore order ant
: harmony to our monetary system, and give tc
r the country, what all parties who wish its
welfare desire, a safe and efficient metallic
standard of value; variable, it is true, in GER
tain degree, but less variable than any standard
which any country has ever yet established.
POLITICAL DISCUSSION.