The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1880-02-12
LETTER SEPTEMBER II, 1878 (yoL. vi, PIP. 1893,
200, POLL

"The question will be asked, and ought [
. be looked at, what Is to be the recourse floan
4 cannot be obtained There is but one" Ca,
thdgo deleada estn Bank paper must be SUP
} pressed, and the circulating medium must b
restored to the nation TO whom it belongs, |
is the only fund ON which they can rely 70
loans it is the only recourse which can neve
fail them, and it is an abundant one for ever,
necessary purpose. Treasury bills, bottomet
on taxes, bearing or not hearing interest, a.
may be found necessary, thrown into circula
ton will take the place ESQ much gold anG
silver, which last, when crowded, will find ar
efiux into other countries, and thus keep the
quantum Of medium at its salutary level. Lei
banks continue il they please, but let them
discount for cash alone or for Treasury notes
"By comparing the first and the last Of these
articles, we see that if the United States were
in possession of the circulating medium as
they ought to be, they could redeem what they
could borrow from that, dollar for dollar, and
in ten annual instruments; whereas, the
usurpation of that fund by bank paper, oblig-
ing them TO borrow elsewhere at Z u rer cent,
Il two dollars are required to reimburse one.
So that It's literally true that the liberation
of banks of paper discount, costs the United
\ States one-half their war taxes; or, in other
words, doubles the expenses of every war.
| Now think, but for a moment what change
4 Of condition that would be- which should save
half our war expenses, require but half the
time" II. 20l.)
But we were in the midst of war, and the
| New England bankers-the fathers of the same
money power in the East which now seeks to
substitute bank notes for greenbacks-refused
to receive the Treasury notes at par, and the
United States Bank was chartered against
the advice of both Jefferson and Madison.
| Mr.. Madison has been called the father of
the Constitution, and next to Mr.. Jefferson,
was certainly the father of the Democratic
party.
He was in favor of issuing Treasury notes
| for circulation, and vetoed the first bank bills
passed during his administration because it
| tended to withdraw Treasury notes from cir
culation.
OPINIONS OF JAMES MADIsoN-MEssAGE OF MAD
IsoN, JANUARY 30, 1861 srATEsMEN's MAN
uAL, VOL. 1, PIP. 1928 324.)
"The capital of the bank is to be compound
ed Of specie, Of public stock, and Of the Treas
ury notes convertible into stock, with certain
proportion Of each of which every subscriber
is to furnish himself.
"The amount of the stock to be subscribed
will not, it is believed, besufficient to produce,
in favor Of the public credit any considerable
or lasting elevation of the market price, while
this may be occasionally depressed by the
bank itself, if it should carry into the market
the allowed proportion of its capital consist
ing of public stock, in order to produce specie
which it may find its account in procuring
with some sacrifice on the part of its capital
"Nor will any adequate advantage arise to
the public credit from the subscription of
Treasury notes. The actual issue Of these
notes nearly equals at present, and will soon
ann1 In mt IN ha had tn ho
bank. The direct effect of this operation is
simply to convert fifteen millions of Treasury
notes into fifteen millions of per cent. stock,
with the collateral effect of promoting an ad-
ditional demand for Treasury notes beyond
what might be otherwise negotiable.
MESSAGE OF DECEMBER 3l8l6, (voL. l. p. .887.)
"Upon this general view Of the subject, it is
obvious that there is only wanting to the fiscal
prosperity of the government the restoration
of q uniform medium Of; exchange. The re-
sources and the faith Of the nation displayed
in the system which Congress has established,
insures respect and confidence at home and
abroad, The local aceumulations of the reve-
nue. have already enabled the Treasury to
meet the public engagements in the local cur
rency of most of the States and it is expect
ed that the same cause will produce the same
effect throughout the Union: But for the in
terests of the community at large, as well as
y,
tial that the nation should possess currency
of equal value, credit and use, wherever it
may circulate. The Constitution has intrust-
cd Congress exclusively with the power of
creating and regulating currency OF that
description"
''Public credit might indeed be expected to
derive advantage from the establishment of a |
national bank, without regard to the formation
of its capital if the full aid and cooperation |
of the institution were secured to the govern |
ment during the war; and during the period |
of its fiscal embarrassments. But the bank |
proposed will be free from all legal obligation |
to Cooperate with the public measures, and |
whatever might be the patriotic disposition of |
its directors to contribute 10 the removal of |
those embarrassments, and to invigorate the |
prosecution of the war, fidelity to the pecuni-
airy and general interest Of the institution,
to their estimation of it, might OBJ
lige them to decline connection of their OPP |
erations with those Of the National Treasury,
during the continuance of the war and the
difficulties incident to it. Temporary sacri-
fces of interest, though overbalanced by the
future and permanent profit of the charter,
not being requirable of right in behalf of the
public, might not be gratqitously made, and
the bank would reap the full benefit of the
grant while the public would lose the equiva-
lent expected from il"
Mr. Jefferson had said "bank paper must be
but he foresaw the difficulty of it !
when he said; FIT is not easy to estimate the
obstacles which in the beginning we should
in ousting the banks from their pos
.ession of the circulation" Gen. Jackson
felt the full force ofthese difficulties, and af-
Ter desperate struggle succeeded in doing
What this great leader had said should BIO done.
But the descendants of Jefferson and Jackson
ire now called on to meet the Aydra-headed |
monster of bank circulation again, and we
must meet it as they did.
OPINIONS OF ANDREW JACKs0N--MEssAGE OF DE-
oEMBER 8, 1924 srATEsMAN's MANUEL, VOL.
II, PIP. 7l3, 7l4.)
'tThe charter of the bank of the United
states expires in 1886, and its stockholders
yill most probably apply for renewal of
heiF privileges. In order to avoid the evils
esulting from precipitancy in measure in
rolving such important principles and such
leep pecuniary interests feel that l cannot,
n justice to the parties interested, too soon
present it to the deliberate consideration Of
he Legislature and the people. Both the con-
and the expediency of the law
reating this bank are well questioned by q
arge portion of our fellow citizens; and it
must be admitted BY all that it has failed in
he great end of establishing uniform and
ound currency.
"Under these circumstances, if such an in
- Il Al |