The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1846-05-16
Of credit, or make any thing bu. gold
and silver coin, a tender in payment of

..aor' D~''-', = -sAaSA 49, PAy 'Sht VI
debt" \.
Now, what are bank bills issued by
incorporated state banks? j 1t cannot
be contended that they are money, for
they are only promises to paw money;
and if they are money, then clearly IT
would be as much violation of the
Constitution for a state to make them,
or authorize them to be made, as to
make or authorize others to make gold
or silver coin.
Neither are. they a legal currency in
payment Of debts, because the states
can make nothing a tender in payment
of debts, but gold and silver coin.
A bank bill, then, or any paper prom
ise issued by authority Of a legislature
as a currency, must he a biH Of credit,
which, state is expressly prohibited
from emitting. And it is only the fact
that the states have emitted this species
Of bills Of credit SO long, in violation OF
the Constitution, that can for moment
make it a question.
But itmav be said, that the states do
not emit those bank bills of credit, be-
cause it is done by the corporations the
Legislature creates, and that not on the
credit of the state, but OF The corpora.
tions. rs. X ,.t a.s =
The answer to this is, that such a
course is less honest towards the citi.
zens of state, and others who al obi
ged in trade to take these bills as mon
ey which the state authorises their cor
porations to issue, and then leaves the
holders to suffer the loss if the banks
fail, than it would be ifthe state should
directly issue the bills and redeem them
itself. If a state makes paper money
an equivalent for money, it ought, in
common fair dealing. to make it as good
asmoney in all cases to him who takes
il as money, and parts with his prop
Ell ty or labor for it..
But further answer is, that 1t is an
evasive violation of the spirit of the
Constitution, if not Of its letter, for a
state to undertake to do through these
banking corporations what it has no
power to do itself. Will it be pretend
ed thata state can confer on corpo-
ration-the creature of the state-great-
er powers than the state itself posses
ses? This would truly make the crea-
ture greater than the creator, which is
absurd.
Those, who maintain the doctrine
here denied, in order to evade the Con-
stltution, must contend for this absur-
dity. They admit that state cannot
emit bills of credit, and if it directly is
sued bank bills itself, it would be man
ifest violation of the Constitution. But
a legislature that creates corporation
can, by law, define its powers, duties,
and privileges. Therefore, state. hav-
ing no power to emit single bill of
credit, but desiring to exercise that pow
er, in order to enable her to do so, in
corporates bank, and by its charter
empowers il to emit bills Of credit in
tlo OWu Lutilcs tH gaH Gt al4
Now, if this can be conslitutionally
done. it matters not what practice, or
the decisions OF courts may have been,
the conclusion is plain, that the prohi-
bition referred to in the Constitution,
is become dead letter; and the object
of its ilustrious trainers, who were
"hard money men" is thus evaded and
entirely defeated, and the door is
thrown open to "paper money!" just as
wide as it was when the U. 5. Gov.
ernment was changed from the Con-
federation TO, the Constitution, mainly
to close that door to ruin.
i But, sir, aside from this plain view
OF the constitutional prohibition, | am
opposed to all banking interpretations
OF issue, as being antl-republican / in
their tendency, hostile to equal rights
and privileges, and destructive of the
safe, permanent interests, the happiness
and sound prosperity of our people.
d They never afford substantial relief
to an oppressed or distressed commit
nifty. On the contrary, they are the
most powerless when their aid is most
wanted; and they contribute more by
their fluctuations, their expansions and
contractions, to unsettle the value Of
property, and involve men in debt, and
embarrass and oppress the people, than
they ever have, or ever can do, to con-
fer benefits that are lasting upon them
selves or the community, ssg. /
4 IN prosperity, when money, is least
they make it most plentiful.--
Credit expands beyond means, proper
" rises beyond irsfair value, and every
body2runs in debt at the highest possi-
BILE prIces.s The bubble bursts--a re-
verse comes--debtors who could get
all the credt'they wantedto buy with,
,an get nothing 10 pay with; down goes