Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-11-30
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Arguments which We think entirely fallaci6us
Without following our correspondent through all
The errors into which the advocacy Of q false
system has led him, We viii merely present Gem
ersl JAoKsoHs mature snd deliberate opinions on
Banks, the result Of his lifetime experience and
study. The concurrent judgement Of she various
Governors and Bank Presidents who have recon-
mendsd the gradual Liquidation Of the Bank Of
Tennessee, is an evidence that our correspondent is
mistaken In his suppOsitOn that the people Of the
State have rspudiated the views Of General JACK
SOC.
The price Of Exchange, to which our correspond
ent refers an argument in favor Of State Banks,
is regulated by the laws Of commerce rather than the
condition Of the Banks. When the balance Of trade
and Indebtedness between Tennessee and New York
IS In our favor exchange is also in favor When
the Indebtedness is equal, ard no disturbing causes
are operating upon commerce, exchange is at par
ss It row is for the first time in many months. The
amount Of cur exports always increases when Che
Bank circulation is reduced, and 10 this cause the
present favorable rate Of exchange is attributable
The fact to which our correspondent refers is one Of
the strongest arguments against the system Of State
Banking which he defends When We relieve the
State entirely from its spurious and inflated ourren-
cy the exports will increase still more we shall sell
more than we buy, and exchange win be constantly
in our favor. As evidence that the par value of
exchange is not due to the existence Of State Banks
Is our correspondent would seem to argue we need
only reour to the New York discount table, where
we find that Tennessee money is from one to one
and quarter per centum below par. It is well
known fact that during the greatest imitation Of
our Bank circulation exchange was constantly
against US.
We close with few extracts from General
JAoKsoE's writings which We think viii satisfy
every unprejudieed mind that he neither approved
nor tolerated the system of Banking which our
correspondent advocates.
The following is from his farewell address:
"The severe lessons Of experiences viii. doubt
not be sufficient to prevent Congress from again
chartering such a monopoly, %. S. BRnk) even If
the Constitution did not present an insuperabe OBJ
lection to it. But you must remember, my fellow
citizens, that eternal vii by the people is the
price Of liberty; and that you must pay the price
you wish to secure The blessing. It behooves you,
therefore, to be Wstchful in your States as well as
In the federal government The power which the
moneyed interest can exercise, when concentrated
under single head and with our present system of
currency, sufficiently demonstrated in the strug
kle mhue Dy Lue DauA OF the UulbeQ states. De-
tested in the general government the class Of
intriguers and politicians will now resort to the
States and endeavO- TO obtain there the ergau
izaion, which they failed perpetuate in the Unions
and with gpeeious and deeetful plans Of public adj
vantages, and State interests, and State pride they
will endesyor to establish in the different Sta es one
moneyed institution with overgroWn capital and
exclusive privileges sufficient to enable it to control
the operations Of the other banks Such an insttu-
ton wiz be pregnant with the same evils produced
by the Bank Of the United States, although its
sphere Of soton is more confined; and in the State
in which it is chartered, the money power will be
able to embOdy its whole strength, and move togeth-
er with undivided force TO accomplish any object il
may wish to attain. You have already had abuud-
ant evidence Of its power to nfet injury upon the
agricultural, mechanical and lsboring classes Of
ceiy; and those whose engagements in trade or
speculation render them dependent on bank faci-
ties, the dominion of the State monopoly will be ab
solute and their obedience unlimited. With such
bank, and paper currency, the money power would
in few wears govern the State and control its meas
ures; and if suffcien. number Of States can be
Influenced to create such establishments, the time
will soon come when it will again take the field
against the United States and succeed in perfectng
and perpetuatiRg its organization by charter from
Congress.
So much for the policy of these State institutions.
Now let us see what General JACKSON thought of the
power TO charter them.
"HERMITAGE, Nov. "a, 1912,
'MY DEAR SR: Your letter of the 18th inst,
has Just been received in which you ask permission
TO publish my letter, extracts from it. to which
you refer. have no copy Of that letter, and when
written had no idea Of its being published and as |
wrote it in haste there may be errors both in grams
mar and spelling, which may need correction; still
you say it may be useful for information to the pub
lie. Having the greatest confidence in your judg
ment, the permission you ask is freely given 70 you
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tured opinions.
Gas to the illusions made to my message to Con-
gress, had strength, would give you the full out
lines Of that project if Congress had made the call
on me. But while the call was not made upon me,
Congress was we'll aware Of my opinion of the cons
stitutional power of Congress in their legislation for
the District, and Of the States with regard to char
tering banks. l will give you a concise and hasty
view Of that opinion. That power Congress over
the District equal to that of the States over
their respective limits, and that neither had the
constitutional power TO charter Banks Of issues
that the only power in this respect to charter
banks based upon o specie basis and Of deposite
and exchange. The States having resigned to the
General Government the sovereign power to coin
money regulate the value thereof &csnd prohibited
themselves from issuing bills Of credit, or to make
anything a tender in payment Of debts but gold
and silver coin-bence the reserved rights Of the
States contained no power 10 charter banks with
power TO Issue bills of credit / ask what is 8 bank
bill but bill Of credit The charter allows them
to issue three dollars in paper for Of spece three
FIVE dollar bills ssued-I 20 TO the bank with !
one Of them-I draw out FIVE dollars in specie-I
ask what the other two fVes represent They an
swer Nothing but credit. These were we'll known
by Congress to be my opinions therefore, my project
was not called for Many committees representing !
banks called upon me whilst in the Executive chair,
to know if / would not approve charter upon other
terms than based upon a specie basis: my answer
always was, that would approve Of other char
ter; therefore none other was presented to me.
81 am, and ever have heen, opposed to all kinds
Of Government paper currency, let it be derived |
from exchequer or otherwise. If the paper is the
real representative Of specie, why pay the debts
in specie and let the specie circulate in the hands
of the laboring and producing elasses2 Then the |
dealings between the merchant and lRborer, will be
in specie, cpd the merchant, by mskiness deposit /
can get bill on any part Of the Union. Where, then,
is the use Of a paper currency Neither the mer> |
chant nor laborer wants IL The merchant wants
bill-not a bank or sxehequer bill-but upon |
banker where he buys his goods-as in Germany
g is one of the greatest humbugs ever attempted
to be imposed upon people, that there IS not specie
enough in the world 50 answer all the necessary /
wants Of the community Look at Cuba there is /
no paper there Shut cut from circulation all paper,
and specie will flow in upon the tide, but will
never flow to any country that has paper currency
which will always depreciate. national paper |
currency is a great curse to any people, and par
tieuar curse to the labOrer Of the country for its
depreciation always falls upon the labOrer But
with these hints / must close being exhausted. am
greatly debilitated, and remain your friend,
oANDREW JACKSON