National Republican., 1878-12-12

w sho Vttooivut out ncNbf ulu Ho thkt IOF
granted" that Il was a question settled Eega.
lively. On tho contrary, careful comparison
Of what he said At different times In tho
progress Of the discussion will show that he
asserted, and proved by irresistible logic, that
Co 'gress has that power.
January 49, 1884, on the removal of tho do.
posits, vol. ., p. 1896, he said:
Whatever the Government receives and treats as
money Is money in effect and II IL be money, then
they have the right under the Constitution, to reg
ulate IL. Nay, they are bound by high obligation
TO adopt the most efficient means according to the
nature OF that which they have recognized
money, 70 give IL the utmost stability and uniform
ity OF value.
to recharter the United States Bank, vol. 2, p.
1868. he said:
do not deem II necessary TO inquire whether in
comforting the power to coin money and to regu.
late the value thereof the Constitution intended TO
ulating It's value or whether II intended to confer
q more general power over the currency nor do I
intend 70 inquire whether the word coin" Is lin
tied simply 10 the metals, or may be extended TO
other substances. - pass these points.
All these questions leave open idccdc none
II Congress has q right 10 receive ANYTHING else
than specie In its dues they have the right to reg.
late Its value, aud have a right Of course TO adopt
the Constitution, to effect the object II matters
not what they reccive-tobacco, or anything else
.his s, right must attach @ e i do not assert the
vertible that II Congress were to order the dues OF
the Government to bo paid for instance, in tobacco
they would have the right, nay, more, they would
be bound to use all necessary aud proper means to
give i an uniform and stable value inspection,
appraisement designation OF qualities aud what.
on tho same principle II they receive bank notes,
they arc equally bound to uso ali means necessary
ann proper according to the peculiar nature OF the
safety.
Volume 2, p. $50, he said:
They (the banks) are, in point of fact the mint
81 M the United States They coin the actual money,
issue and consequently Its value.
Volume 2, page 80, he said:
The very receipt Of bank notes on the part OF the
Government In Its dues would Il is conceded. make
them money as far as the Government may be con:
make them, to great extent, the currency OF the
country.
Now. you admit as Calhoun contended, that
Congress has the right to issue Treasury notes
and make them receivable for public dues"
Calhoun contendcd that such receipt by Gov
ernment would make them money, and that
the right to regulate their value must at
tach; nay, more, that Congfess was "bound by
high obligation" TO prevent their value from
being deprecated by tho money changers. Tho
only way to do that Is to make them legal
tender.
But let us see what Calhoun did say In that
speech Of 3rd Of October, 1887, to which you
refer. IL was urged by tho advocates of the
banking system that unless the banks were
permitted to furnish the currency for tho
country, the people would DO reduced to tho
alternative of having no money but gold aud
silver, which, Calhoun declared. had not only
become In this commercial aud trading era
insufficient for circulation" but also insult
cient to form the basis Of the widely extended
system Of banking"
In reply he said, vol. 3, p. 121.
But, Mr.. President, am not driven to such alter.
natives. an. not the enemy, but the friend Of
credit-noi rs the substitute but tho associate and
assistant Of the metals. In that capacity hold
credit to possess many respects vast superiority
over the metals themselves object to II In the
form II has assumed In the banking system. for
reasons that are neither light nor few, and that
neither have been nor can bo answered. The
question Is not whether credit can be dispensed
WIN but what Is rs best possible form, the most
yonient and cheap. threw out some ideas on this
important subject In my opening remarks. have
heard nothing to change my opinion. believe
that Government credit, In the form / suggested,
combines all the requisite qualities of q credit cir.
eulNtion in the highest degree aud also that the
Government ought not TO use any other credit but It's
own in its financial operations. When the Senator
fIom Massachusetts made his attack on my sugges.
uons was disappointed: ! expected argument,
denounce, when II is hard 10 reute: and when that
senator gives denuncintion instead of argument
conclude that II Is because the one is at his com.
mnnd and the other not.
We are told the form suggested Is but a rcpetI.
ton of the old Continental money, ghost that is
ever conjured up by all who wish TO give the banks
monopoly Of Government credit The assertion is
not true. ,oero Is not the least analogy between
them: The one was promise to pay when there
IN the dues Of Government when there Is an abuud-
ant revenue.
We are also told that there is no instance of A
Government paper that did not deprecIate. In rc.
ply, affirm that there is none assuming the form
propose, that ever did dcprcclate. Whenever a
m tNa1 la In sEf l...n
anything like fair trial It has succeeded Instance
the case of North Carolina referred to In my open.
Ing remarks.
So far from this being to take for granted"
that Congress has no power to make Treasury
notes legal tender, l understand 1t to be, when
taken in connection with the passages above
quoted, direct and positive assertion that
Congress has that power.
As to the form of the Treasury noto con-
tended for by Calhoun, he advocated its issue
as absolute money receivable for all public
dues; that 1t should read This Is ten dollars"
and not THE United States promise to pay ten
dollars"
On this point he said, vol. 3, p. 80
II is then my impression that in the present con-
diton OF the world, paper currency IN some form,
II not necessary, Is almost Indispensable In finan.
cial and commercial operations Of civilized and
extensive communities. In many respects It has a
vast superiority over metallic currency, especial.
y In great and extended transactions It's greater
chcapness lightness, and the facility OF detcrmin-
ing the amount The great dcslderatum is TO ascer.
tain what description OF paper has the requisite
qualities OF being free from nuctuation in value
and liability to abuse In the greatest perfection
have shown, trust that the bank notes do not pos.
sess these requisites IN degree sufficiently high
for this purpose go farther. II appears to me
after bestOwing the best reflection can give the
subject that no convertible paper-that Is, paper
whose credit rests on a promise 10 pdy-is suitable
for currency, II Is the form Of credit proper IN
private transactions between man and man, but
not for standard Of value, to perform exchanges
generally which constitute the appropriate finc.
tons OF money or currency
Jefferson denounced the prctense Of con.
vertibiity Of bank notes into specie US n fraud,
Calhoun declared 1t to DO a doilsi1n. (Seo vol.
3P. lO7) And his chief objection to a con-
vertible paper, either governmental or bank,
was that that delusion made our financial sys-
teIH part, and a weaker part Of the European
system, so that whenever one of the pdnics, iu-
separablc from n system based on that delusion
came, the calamiiy must fau on us as constituting
The TedkeT pat Of the boiler" (See vol. 3 p. 6lS.l
By referring to the pages l have cited you
will sec that Calhoun clearly indorsod what
you call the 'pornicous heresy of absolute or
fiat money" aud that he never sanctioned the
doctrines promulgated In your letter of in
structions to your constituents. Nevertheless,
1t cannot be said that he did not sustain tho
doctrine Of States Rights on all proper occa-
sions. Respectfully, BEN. L. GREEN.