Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1844-07-25
EXTRACTS OF
MR.. CLAY'S SPEECH AT RALEIGH.

the question oil encouraging Inc national
industry, is that Of the national currency.
| do not purpose to discuss the point,
whether paper representative OF the pre-
cious metals, in The form of bank notes,
or in other forms, convertible into those
metals, on demand, at the will Of the hol-
der, be or be not desirable and expedient.
believe il could be easily shown, that in
the actual state OF the commercial world,
and considering the amount and distribu-
ton Of the precious metals throughout the
world, such a convertible paper is indis-
pensably necessary. But that is not an
open question. II it were desirable that
no such paper should exist, it is not in the
power of the General Government, under
its present Constitution, TO put il down or
prevent its creation aud circulation.--
Such a convertible paper has existed,
does exist, and probably will always ex-
list, in spite Of the General Government.
The twenty-six States, which composes
the Union, claim the right and exercises
the right, now not TO be coniroverted, to
authorize and pa, forth such convert.
BILE paper, according to their own sense
of their respective interests. Ii even
largo majority Of the States were to re-
solve to discontinue the use of q paper
representative Of specie, the paper would
nevertheless be created and circulated,
unless every State in the Union abandon
ed its use; which nobody believes is ever
likely to happen. Ii some of the States
should con,iaue to employ and circulate
such a paper, it would flow into, and be
current in other States that might have
refused to establish Banks. And, in the
end, the States which had them not, would
fad themselves, in self defence, compelled
to charter them. rccollec;, perhaps my
friend near me, Mr.. B. w. Leigh if he
be old enough, may also recollect--the
introduction of Banks in our native State.
Virginia adopted slowly and reluctantly
the Banking system. recollect, when a
boy, to have been present in 1892 or 1898,
when debate occurred in the Virginia
Legislature on proposition, think it
was, TO renew the charter OF bank in
first that ever was es-
tablshed liz that State, and it was warmly
opposed and carried with some difficulty.
Afterwards, Virginia, fading herself sur
rounded by States that had Banks, and
that she was subject to oil their inconve.
niences, whatever they might be, resolv.
ed to establish banks upon more extern
sive scale, and accordingly did establish
two principal Banks, with branching pow.
ers, TO secure to herself whatever benefits
might arise from such institutions.
The same necessity that prompted, at
that period, the legislation Of Virginia,
would hereafter influence States having no
banks, but adjacent to those which had.
Ii folows, therefore, tina; there are and
probably always will be local BANKS
These local banks are often rivals, not on
ly acting without concert, but in collision
with each other, and having very imper-
feet knowledge of the general condition
of the whole circulation Of the United
States, or the state of our monetary rela.
tons with foreign Powers. The inevita-
BILE consequence must be, irregularity in
their movements, disorder and unsound-
ness in the currency, and frequent explo-
sions. The existence Of local banks, I'M
der the authority and control Of the res
Pectve States, hegets a necessity for
United States Bank, under the authority
and control OF tho General Government.
The whole power Of government is dis
trbuted in the United States between the
States and the federal Government. All
that is genera. and national, appertaus to
the federal government; all that is limited
and local to the State governments. The
States cannot perform the duties oil the
general government, nor ought tina, to at
perform. nor cen It so we'll exc
cute, the trusts confded 10 the State gov
ernmenis. We want a National Army,
a National Navy, National Post Office
establishment, National Laws regulating
our foreign commerce and our coas,ing
trade, above all, perhaps, we want Ma
tional Currency. The duty Of supplying
these National means Of safety, convent.
ence and prosperity must be executed by
the general government, or II will remain
neglected and aniui6Iled. The several
States can 40 more supply national cur
rency than they caH provide armies aud
navies for the national defence.-The ne.
cesstty for a national institution does not
result merely from the existence local
bat IT rises also out OF the
fact that all the great commercial nations
Of the world have their banks. Eng land,
France, Austria, Russia, Holland, and all
the great powers of Europe have their
national banks. 1t is said that money is
power, and that to embody and coDcen.
trate 1t in bank, is 10 create great and
dangerous power. But we may search
tho records of history. and we shall find
no instance, since the first introduction OF
banking institutions, of any one OF them
having sought TO subvert the Liberties of
country or to create confusion and disor-
der. Their we'll being depends upon the
stability of laws and legitimate and regu-
lar administration Of government. If it
were true that the creation OF bank is |
10 embody a monied power, is not such
power in the hands Of the general govern
nent necessary TO protect tho people |
,gainst the monied power in the form Of
,anki.g institutions in the several States. |
md in the hands of Foreign Governments!
Without it how can the commerce Of the
United States cope and compete with the
of foreign Powers having ma.