Sentinel of the valley. [volume] (Woodstock, Va) 1841-1848, 1844-08-29

| ' 1''s"o "teie0i, Wt0 % J0fetSn c0aT. clear
y the power to issue U. States Bank pape
does not come under this provision. The word
''coln money! obviously do not refer to paper
money Under what provision then does i
come! This IS the onlypower to make mo
ney given to Congress, ass1 bank notes for al
! purposes Of circulation are money. Wher,
then, | ask, do the learned gentlemen on tht
other side find the power? Mr. ketchun
/ here replied-s'Under the decision of the Su
| preme Court" know the Supreme Cour
have decided in two cases that the Bank Of
/ 1916 was Constitutional, and shall presently
refer to those decisions. The power, | believe
Is generally supposed among my friends on the
other side to be incident to the power tc
'bo'qoec money on tie credit Of the u States, .
and to s'regeaate Commerce, pa means ne
! cessary to carry those powers, and some others
to which the argument applies with less force
! into effect.
Isubmit to you, whether, when the Consti-
tuition has provided and defined the power OF
/ Congress with reference to the standard of val
ne in currency, without Initiating that the
use Of any other currency than that standard
was contemplated, Congress are at liberty to
come in and introduce a new element into the
composition of the currency, merely because
in their Judgment it may facilitate the opera
tions of Commerce If the words of the pro-
vision could be answered in no other way there
might be some shadow of argument for the in
| ference; but Commerce may be regulated with
out altering the currency, and the currency
may be altered without regulating commerce.
| Congress might as well embark the Govern
ment in any other speculation that promised a
! favorable regulation of commerce as Nation
al Bank.
The consideration of the other clause under
which my friends on the other side claim this
power will necessarily involve brief historical
statement.
The first Bank of the United States was es-
tablished in 1891. The Government then was
just organized But little time had elapsed
| since it emerged from the stormy sea of the
Revolution. Its currency was low and every
interest In the whole country was distressed
The experience of union under the articles of
confederation was not pleasant and the popular
confidence In the Constitution was not yet firm
ly fixed. At this time General Hamilton pro-
posed Bank bill to expand the currency to
the country and to lend the Government mo
ney. Other reasons We're stated by him but
they were inferior to these Washington de-
Decentralization opposed the proposition
with all his strength. After much hesitation
the Bank bill was signed by the President
with these two reasons imperitively demand
ing its passage. Jefferson, whom | am glad
to see my Wing friends beginning to quote, to
the day of his death adhering to his opinion
In 1916 when the second Bank bill was pass
ed, the country was in similar situation, Just
emerged from ''the second war of independ-
ence'-in debt with the currency low and our
national interests depressed. A United States
Bank bill was again TF Cd and President Mad
the opipi,@s that hat a as'ss 1 ss ;stes.
himself ,G hi .oa chalst, decided that
this Bank bill was q fed9 tional under the
powers that have mgaApn6d. But the cur
rency question was nolfteef entertained.
At the present time Ssl situation with re-
gard to this question is entirely different. We
have not just emerged from bloody war. 1t
is to be hoped that we are now in the first
growth of new prosperity. Wherefore then
the use of such an institution-the necessity of
straining this point of constitutional law to es-
tablish an institution the expediency of which
is not defensible.
will speak now of that expediency. 1t is
assumed that the Bank has the power of ex-
panding and contracting the currency by issn-
ing large amounts of paper money to-day and
calling them in tomorrow. Not only has it
the power, but it has continual incitive tie ex-
ercise it. When trade is brisk and public con-
fidence mistaken, and men are rather endeav-
! ovp 10 Ypalyp mo than IN he
character of that they have in hand, accommo-
datons will be desired, for we have supposed
the Bank bank of discount. These accom-
modatons will be extended-it is assumed
that the stockholders have associated for their
own gain-and this will enable them to make
profitable use of their capital. The curren-
cy of the country will become full, for every
bank in the country goes through the process.
Now suppose al, such time the Bank were to
stop its accommodations and call in its paper
what would be the consequence J.. A SINH
| lar movement on the part of the State Banks.
1 for if they trust afloat more paper than they
have specie to redeem, the National Bank may
| get it, and by run upon them compel them tc
suspend g. An instant stoppage of the great
bulk of the accommodations throughout the
/ the countay-a cessation of trade-commerce
riculture terribly depressed-and all for what
For any purpose it may be desirable to set such
relentless storm in operation. 1t might be
for purposes of coercing recharter as m 1882
or for the purpose of assisting the Government
to trample upon the rights of the people by
the employment of the commercial and manu-
featuring interests, which, as experience abun-
dainty proves, are fearfully dependent on such
! an institution.
Again, it is assumed that the bulk of the
! stockholders are capitalists. We have seer
they have superior advantages to ordinary mer
in the study of currency and the markets.
What if they should embark in speculation
and endeavor to control the whole cotton mar
ket, as did the last Bank Of the United States
which attempted to grasp within the circum
ference Of one mighty speculation the prineipa