Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1858-01-14


vas 10 introduce into the State a mass Of
foreign bank paper which expelled from
circulation not only nearly al the coin, but
also nearly all the notes Of our own banks
aud exposed the community 10 great 10.
convenience and los. / suggest the expe.
diency Of 50 modifying the act Of Februa.
" 24tb, 1913. relating 10 the circulation
Of authorized bank paper, as TO prevent ef.
iectually this mischief. Additional pro
lection to the business community, as well
as substantial benefits 10 the sound and
strong banks themselves, would result from
The establishment Of a Clearing House in
Cincinnati for the banks Of Ohio, Kentucky
aud Indiana, either through the voluntary
action Of the institutions concerned, or by
the concurrent legislation the States.
In former communication to the Cen
cral Assembly, while admitting the conye-
Dience Of mixed currency Of coin and.
convertible notes, aud the improbability
thst currency entirely Of coin will be
soon adopted in the country, / expressed
my own opinion in favor Of a currency Of
coin for ordinary transactions, and Of large
notes for the convenience Of commerce,
aud at the same timo urged the necessity
Of the most stringent legislative guards
against suspension Of specie payments, and
against a mere paper money system.
Subsequent reflection and observation
have confirmed me in these views.
a leading oljsc. IN all regulations Of
currency should be to secure the interests
Of the masses Of the people, by such pro-
visions as will insure to labor Just compen.
sation in actual value. This caunot be ef-
iecled while the laborer is paid in paper,
sloisct to continual fu9tualion, and expo
sed to all the hazards Of financial disorder.
Whatever can be constitutionalv ef-
tected by state legislation, toward the ex.
elusion of the smaller denominations Of
notes for circulation, and the substitution
Of coin in their place, should be earnestly
attempted, The quantity Of coin in the
country is now SO great, and so steadily
increasing, that no Inconvenience could
arise to any interest from judicious legisIa
tiOu for this object. On the contrary, il
seems to me certain that the increased cir
cualiou Of coin which will thus be seeu.
red, cannot fail to result in most substan.
tial benefits to all Interests, by additional
securities against fiuctualion and reyuIsion.
These benefits seem to me so obvious that
| should hope for the assent Of the banks
themselves to the legislation necessary to
secure them.
+ The existence Of the decision, already
referred to, the uncertainty of obtaining
the assent OF the banks to tbe necessary
legislation, the fact that we are surrounded
by States States whose Banks issue such
notes, and the practical difficulty of excIu.
ding the notes of these Banks from circu-
ation in Ohio, created the apprehension l
| have heretofore expressed, that compare
lively can be accomplished in the direction
of the proposed reform by State legislation.
These apprehensionS yet remain. The ef-
tectual remedy is with the Federal Gov
eminent. Looking at the manifest intent
of the Constitution to protect the people !
from the evils of paper currency, as well
as to the specific powers granted to Con-
gress. | cannot doubt the power Of the
National Legislature 10 prohibit the circu.
lation as money of any substitute for coin.
Nor can | doubt that tue exercise of that
power by the gradual prohibition of notes
of the smaller denominations, under twen-
ty dollars would be wise and salutary.-l
The denial of this power virtually submits
the regulation Of commerce in its most i'm.
portant instrumentaty to the variable and /
conflicting politics of thirty-one States, and
defeats one of the main purposes of the
Constitution.
Entertaining these views, I have obser-
we'd with regret the recent declarations of
the Chief Magistrate Of the United States,
that "the Federal Government cannot do
much to provide against the recurrence of /
existing evils, and that eve must mainly |
rely on the patriotism and wisdom Of the
States for their prevention and redress
Such declarations, especially when accom-
panied with a recommendation of the issue
be the General Government of large al.
dition TO the mass Of paper currency in the
in the form of treasury nete', are cacuIa
to Illustrate the hopes of reform which
might be otherwise reasonably entertained.
While | do not doubt that the General
Assembly will do whatever may be within
its constitutional power towards the object
proposed. l respectfully submit that its
whole duty will not he performed until
this matter be commended to our Senators
and Representatives in Congress BY ap-
resolutions. Il
An act to incorporate new Banks hav. t
ing been twice submitted to the people in !
different forms, and havirg twice failed to t
receive the popular sanction, it may now ,
be properly considered as settled that the i
majority of the electors DO not desire the {
further creation of institutions of the char {
aeter proposed. see no reason, indeed, {
if small notes be once excluded {
from circulation, why the business of bank
ing may not be safely left as open aud free
to all who desire to engage in ii, as any
other kind of business care being taken {
that ample securities be given in bonds of
the State or the United States, and by the
provision of an adequate specie fund, for
the prompt redemption of all notes in coin.
Bank notes circulating as money are debts ,
due to the community at large, payable on
demand, and it is the duty of the State,
representing the community, to see that
these debts are perfectly secured. Such
ora indisnaDsshIe. and I rasnant-