The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1856-02-01
SMALL NOTE CIRCULATION.

lhe report OF lion. James Guthrle, Secre-
tary Of the Treasury, Is an able document,
and argues the difficult questions relating to
our currency, in cogent and foreibe man.
ner. We commend to the careful attention
of our readers the following arguments on
the evils resulting from the multitude of
small bank notes now in circulation. We
are not prepared to unite with tho Secretary
in recommending the interference of Con-
gress in this matter, but we entirely concur
with him as to the necessity of providing
soine security against the increase of this
mischevous currency:
The notes of the banks chartered by the
States continue to circulate in some sections
of the country, to the exclusion of gold and
silver except ia government transactions; and
more particularly where the banks circulate
notes under the denomination Of five dollars.
These small notes are mostly circulated by
banks Of doubtful solvcncy, at a distance frorr
the place. nption. They constitute n
depreciatee which no one is willing
tohold, andl 49, lads to hasty expenditures,
in order thatth loss may fall on others -
The evils of deprecated currency are at
tneted ty the experience Of all countries where
eh currency has been tried, md in none
more certainly than in the States of the Con.
Moderation.
The legislature of the several States and
the Congress of the confederation, all issued
bills Of credit during the revolutionary war,
and all felt and acknowledged the evil and
the ruinous consequences. The constitution
Of the United States was framed by the men
who had felt all the evils thereof; and when
provision was inserted in that instrument,
that no State should emit bills of credit, nor
make anything but gold and silver n tender
in payment of debts, and the coming Of mo-
ney was given to the general governmcntth they
believed they had provided for a hard money
currency, and against the evils of u depreeia'
ted one; but these provisions were nulitied
when the courts held that the States had
power to charter banks, with authority to is.
sue and11irculate notes as money. 1t is now
too la1 he courts to retrace their steps,
and Dader construction to the prohi-
bitohQ be federal constitution, whilst ii
hopeless to expect the States TO refrain from
granting bank charters, with authority to issue
these small notes; or that the States will con.
cur in enlarging constitutional prohibition in
respect to bills ofcredit, 80 as to prohibit this
power to banks.
The same local and individual interest that
induced the granting of bank charters with
this privilege, would induce the legislatures
Of the States to refuse Congress the power
of prohibiting the use and circulation ol
bank notes. The thirteen hundred bank.
now in existence under State charters, and
the circulation of over $200,00O,O0O of bank
notes, as money in constant competition will
the constitutional currency, attest the mag
nitude Of the evil, and justify the worst up
prehensions for the future. The gradual in
crease of banks, banking capital, and banl
note circulation, calls for repressive actor
under appropriate State legislation.
! When these. thirteen hundred banks sl,al
be increased to some two, three, four or fiv,
thousand, it may b. feared their aggregated
power will not be easily overcome, until
suspension Of specie payments and universa
bankruptcy shall call for suppression of thu
evil and q restoration of the constitutions
currency. II the States shall continue tn,
charter and multiplication of banks, with au
thoriiy to issue and circulate notes MS money
and fail to apply any adequate remedy to TIN
increasing evil, and also fail to invest Con
gress with the necessary power to prohibi
the same, Congress may be justified in tn
exercise of the power to levy IN excise upol
them, and thus render the authority to issu
| and circulate them yulueless.