The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1856-12-05
The Currency Question.

Mr.. Guthrie, in his excellent Report on the III
nances, observes that 81 pure metallic currency
may be set down as impracticable under our con-
stitution and our laws, to cay nothing Of the
sentiment of our people," The reason is that
the States cannot be expected to surrender to
Congress the power Of" chartering banks, and
further, that the existing 1898 chartered banks
could not, during the tendency Of their charters
be deprived of The right of issuing small notes.
We apprehend that what Mr. Guthrie here calls
an imposslbility viii, when examined, prove to
be only measure of ordinary difficulty. There
is no doubt whatever that it was the intention of
the constitution to inhbit as well the chartering
Of banks OF circulation by the States as the is
suing of State bills the trainers Of the constitu-
ton certainly did not intend TO allow the States
to delegate to others a power which was denied
to themselves This is equally shown by the Ian
guage Of the constitution and by the obvious
motive Of the restriction. Much Of the financial
distresses which had accompanied the revolution
ary struggle, was due 10 the i'll regulated and
various issues of State notes il was TO pre-
rent a recurrence OF such mischiefs aud
to secure to trade the benefit Of a uniform aud
secure currency that the paragraphs in question
were drauehted and embodied in the constitution.
This aim was subsequently frustrated by the
usurpations Of the States which, from an early
period in the history Of the confederacy asserted
the right of charteriDg banks Of issue and no
effort being made by the general government or
Congress 10 repres the encroachment, the abuse
became fortified by time, and is now an outward
ly unquesiioned institution.
Such being the facts, should we say with Mr..
Guthrie-"We know it is wrong, bat ii is too late
10 mend i..r
This is quite the way of the defenders Of
abuses in Europe. u exists, therefore IL is good,
or a. leas. not bad enough TO alter it's their
stereoypcd argument in defence Of all the
absurdties Of The Cireumlocutiou Office. Me-.
Guthrie is hardly true to himself when he ASST
initiates himself to such fossil conservatives.
II the currency system be wrong, MS we apprc-
bend there can De no question II IL; II the States
usurped without color Of authority the right of
cbarteriDg banks; and If these banks are not in
reality the use they ought to be, but, on the
contrary, do mischief from time TO time, injure
Nauc, LllnG ulrCItulS Oh the HHhUclal Cfeut OF
the country, afford sharpcrs an opportunity of
defrauding the public, and complica'e very ma
terially our domestic exchanges, Why not toy TO
mend the case?
II is natural to expect that tie States would
resist an attempt to strip them Of their usurped
prerogative; and Il is certain that the banks
would fight hard for their issues But why
should these dangers frighten US? When the
case is fairly pu. before the mercantile commu-
nifty, and they are called upon TO decide between
a currency issued on sound general principles
under uniform charters from the general govern
ment on the one eide, and our present hctero-
geneous medley Of banks under different char
tors and different systems, with notes of all
Minds and all values on the other, they would
hardly persist for any length Of time in pre-
f,rrDg the latter. Security is the first thing the
merchant requires of his bank that will never
be secured so thoroughly as with a bank char
tered by Congress and inhibited from peddng
small notes II might take time to fight the
battle; but II could be won; the length Of the
contest ought not TO deter us from engaging in
H. If il had no other advantage, IL would
afford politicians safe subject 70 divide upon