The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1858-01-15

J, med he provision Of adequate
: gufdsagainst such contingency
0 bypn Increase of the proportion of
8 bohs o circulation, and by pro.
: hiytio, Of the deposit Of any other
= -lbdds than those of tho State or OF
: th United States.
: FtEIGN NOTES s--CLEARING HOUSE RE-
Il COMMENDED.
The experience OF the last few
Vars has demonstrated, however,
tht the greatest financial disasters
, ID Ohio have not been occasioned
b legally authorized banks Of issue.
lost of the calamities which have
= zee rtly fallen upon the business
Community OF this State, have origi.
sll,t,d in the failnre Of private bank
,,sfs, and thu Trust Company, issuing
10 notes for circulation. Many Of
: lhese bankers, and perhaps the Trust
Company also, were borrowers from
batks outside OF the State, Of foreign
noks, at low rates of interest, to he
: circulated in Ohio, and redeemed
whoa returned to the issuing banks,
by tie borrowers. The effect OF these
arrangements was to introduce into
the State a mass of foreign bank pa
per which expelled from circulation
not ,nly nearly oil the coin, but also
nearR all the notes OF our own
bank, and exposed the community
to great Inconvenience and loss. |
sugget the cxpedicncy Of so mod fy.
ing tie Act OF February 24th, 1S4S,
relating to the circulation OF unor.
tlorized bank paper, as to prevent
efhctually this mischief. Additional
projection to the business communi-
ty, as well as substantial benefits to
the sound and strong banks them.
selves, would result from the estab-
lislment OF n Clearing House in Gin
cinnati for the banks of Ohio, Ken.
tucsy and Indiana, either through the
voluntary action Of the Institutions
concerned, or by the concurrent leg
islation OF the States.
In former communication to the
General Assembly, while admitting
the convenience OF a mixed currency
Of coin and convertible notes, and the
improbability that currency entirely
OF coin will be soon adopted in
the country, | expressed my own
opinion in favor Of currency OF
coin for ordinary transactions, and OF
large notes for the convenience OF
commerce, and at the same time
urged the necessity of the most strin-
gent legislative guards against sus.
pension of specie payments, and
against a mere paper money sys.
tenn.
Subsequent reflection and obser
walton have confirmed Inc in these
views.
A leading object to all regulation
of currency shonia "a will ;nsure to
n ,ereats, divisions as VIII ''Suao o.oi ~
labor pIst v,.-"pensation in actual
value. This cannot be affected while
the laborer is paid in paper, subject
to continual tluctuation, and exposed
20 all the hazards of financial disor-
ders.
Whatever can be constitutionally
effected by State legislati On, towards
the exclusion Of the smaller demon.
nations of notes for circulation, and
the substitution of coin in theirplacc.
should be earnestly attempted. The
quantity of coin in the country Is
now 80 great, and so steadily increas'
ing, that no injury and and almos,
no inconvenience could arise to any
interest from iudicious legislation fol
this object. On the contrary itseem'
to me certain that the increased cir
culation Of coin which will thus bt
secured, cannot fail to result in mos
substantial beretits to all interests
by additional securities against fiuc
tuation and revulsion. These bene
fits seem to me 80 obvious that
should hope for the assent OF tn
banks themselves to the Legislation
necessary to secure them.
, ULTRA HARD MONEY DOCTRINES.
The existence OF this decision al
, ready referred to, the uncertainty G
, obtaining the assent Of the banks t
the necessaryiegislation, the fact tina
we are surrounded by States who's
Q banks issue such notes, and tho prae
8 tical difficulty of excluding the note
Q of these banks from circulation j
q Ohio. created the apprehension
= have heretofore exp essed, that com
It paratively little can be accomplishe
}. In the direction OF the proposed re
It form by State legislation. Thes
apprehensions yet remain. The e
fectual remedy is with the FEEDERS
Government. Looking at the maj
: ifest intent OF the Constitution
u protect the people from the evils {
l. q paper currency, as well as to tt
's specific powers grantcdto Congres
- | cannot doubt the power of the N
. tional Legislature to prohibit the CT
y culation as money Of any substitute
I, for coin. Nor can | doubt that Il
y exercise Of that power by the gradu
D. prohibition of notes Of the small
y denominations, under twenty dollar
l. would be wise and salutary. IT
denial of this power virtually su
=. mits the regulation Of commerce
Ct its most important instrumental
20 to the variable and conflicting pc
10 cies Of thirty one States, and detes
% er one Of tho main purposes Of the 90
VI stitntion. q. 90, t..
J" GOVERNOR vs.. PRESIDENT.