The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1880-02-18

I'll those channets were overlooked by an ex
cess beyond all the calls OF circulation. But al
though we have so imprevidently suffered tn
held of circulating mslidm 10 be dlched froI
US BY private individuals. yet | think we ma
! recover II IN pari, AMI even in the whole,
the States W Il cooperate with Us.
/ If Treasury bills are emitted on q tax an
proPrlated for their redemption in fleel
years, and ito insure preference in the frs
moments OF eompstitiou} bearing an interes
OF per cent, there is no one who would no
take them in preference 70 the bank paper nov
/ ahoat, on a principle OF patriotism as well a
interest; and they would Re withdrawn frou
| circulation into private boards TO consider
able amount Their credit once estabiish "a
others might be omitted, bottomed also on
| tax, but not bearing Interest; and if eve
their credit falterg1, open public loans. OF
| which these bills alone should be received "a,
specie These, operating as sinking fund
| would reduce the quantity in circulation. :,
| as to maintain that in an equilibrium witt
specie. L IS not easy To estimate the cbsta
| cles which, in the beginning, We sheuld en-
| counter IN gushing The banks from their pos
| session Of che circulation bus steady ans
| Juilclous alteration OF emissions and loans
would reduce them IL time. But whlle this is
| going on, another measure should be pressed
| To recover ultimately our right TO the circula-
| lation. The States should be applied to ID
| transfer the right of issuing circulating paper
| 10 Congress exclusively, IN perpetuUa, If pos
| sible, but during the war at least with saw
ing OF charter rights. | believe that every
! State west and south of Connecticut river,
except Delaware, would Immediately do il;
and the others would 10 low IN time. Congress
would, of course, begin by obliaing unchar-
tered banks to wind up their affairs within a
short time, and the others their charters
expired f9rbidding the subsequent circulation
of their paper This they would supply with
their own, bottomed. every emission, on an
adequate tax, and bearing or not bearing in
terest as the state of the public pulse may in
dictate. Even in the complying States,
these bills would make their way, and sup
plant the unfounded paper of their hanks by
their solidity, by the universally of their
currency, and by their reeeiva5ihty for Gus
toms and taxes. II would be IN their power.
too to curtail those banks to the amount of
their actual specie, by gathering up their pa
per and running 1t constantly on them. The
national paper might thus take place even in
the nou-complyinG States. In this war, | am
not without II hope that this grear, this sole
resource for loans in IN agricultural country,
might yet be recovered for the use of the ma
ton during the war; and if obtained in per-
petuuDa it would always be sufficient to carry
Us through any war.
LETTER SEPTEMBER H. 1913 vol VI, PIP. l99,
200, POI
"The question viii be asked and ought to
be looked at, what is to be the recourse III loans
cannot be obtained There is but one" Car
thdgo deieHda est Bank paper must be sup
pressed and the circulating medium must be
restored TO the nation to whom it belongs. It
Is the only fund on which they can rely for
loans; it is the only recourse which can never
fail them, and il is abundant one for every
necessary purpose. Treasury bills. bottomed
on taxes, bearing or not hearing interest, as
may be found necessary thrown into cIrcula-
ton viii ia ke the place of 50 much gold and
silver, which last, when crowded, will find an
eftfuX into other countries, and thus keep the
quantum of medium at its sanitary level. Let
banks continue II they please, but let them
discount tor cash alone for Treasury notes.
by comparing the first and the last Of these
articles, that ii the United States were
they ought to be, they could redeem what they
could borrow from that. dollar for dollar, and
in ten annual instruments; whereas, the
usarpation of that fund by bank paper, oblig
ing them 10 borrow elsewhere at ! = per cent,
two dollars are required to reimburse one |
SO that ii IS literally true that the federation
Of banks OF paper discount, costs the United !
STATE s one-Half their taxes CT, in other |
words, doubles the expenses of every war |
Now thinS, but for "A moment, what change |
Dt condition that would lie, which should save |
half our war expenses, require bat half the |
taxes, and enthral us in debt but half the |
time (P. 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
sub tie bank notes for greenbacks-refused |
20 receive the Treasury notes at par and the |
United States Bank was chartered, against |
he advice of both Jefferson and Madison.
Mr. Madison has been called the father of |
he Constitution, and next to Mr. jefferson,
vas certainly the father of the Democratic |
parry.
He in favor of issuing Treasury notes
or circulation, aud vetoed the first bank bills |
passed during his administration because 1t
ended to withdraw Treasury notes from cir
ulaton.
OPINIONS OF JAMES INSTRUMENTATION OF MAD
IsoN, JANUARY 20, 1Sl5-(srATEsMENS MAN
UAL, Vol. 1. PIP. 323, 324.)
''The capital of the bank is to be compound
Il Of specie. of public stock, and of the Treas
Try notes convertible into stock, with a certain
proportion of each of which every subscriber
) to furnish himself
''The amount of the stock to be subscribed
viii not, it is believed, be sufficient to produce
n favor Of the public credit, any considerable
r lasting elevation Of the market price, while
his may be occasionally depressed by the |
,ank itself, if it should carry into the market
he allowed proportion of its capital, consist
ng of public stock, in order 10 produce specie, |
which it may find its account in procuring
With some sacrifice on the part OF its capital.
Nor viii any adequate advantage arise to
he public credit from the subscription of
treasury notes. The actual issue of these
Iotes nearly equals at present, and Will soon
Xeeed, the amount TO be subscribed to the
lank. The direct effect of this operation is
imply to convert fifteen millions of Treasury
49,
With the collateral effect of promoting adj
itional demand for Treasury notes beyond
What might be otherwise negotiable.
IE<sAGE OF DECEMBER 3 1916, VOL 7. p. 337.)
Upon this general view of the subject, it is
bvious that there is only wanting to the fiscal
prosperity OF the government the restoration
{ a uniform medium Cf exchange. The re-
ources and the faith Of the nation displayed
q the system which Congress has established,
nsures respect and confidence at home aud
broad. The local aecumuiations OF the reve-
ue have already enabled the Treasury to
.eet the public engagements in the local cur
ency Of most of the states, and it is expect
d that the saIae cause will produce the same
feet throughout the Union. But for the in
erests Of the community at large, as well as
Dr the purposes of the Treasury, it is essen
al that the nation should possess II currency
f equal value, credit and use, wherever il
lay circulate. The Constitution has in'rust-
/ Congress exclusively with the power of
reating and regulating a currency Of that
escription.'
public credit mig ht indeed be expected to
erive advantage from the establishment of n
ational bank without regard to the formation
its capital If the full aid and corporation
f the institution were secured TO the govern
rent during the war, and during the period
{ its fiscal embarrassments. But the bank
will be free from all legal obligation
cooperate with the public measures, and
-hatever might be the patriotic disposition of
s directors to contribute 10 the removal Of
nose embarrassments, and to invigorate the
OF the war, fd city to the pecuni-
~ and general interest of the institution,
10 their estimation of il, nj gLt OBJ
ge them TO decline connection of their op-
rations with those Of the National Treasury.
uring the continuance of the war and the
iffculties incident 10 it. Temporary sacri-
ces of interest. though overbalanced by the
Iture and permanent profits of the charter,
OF being reputable of right in behalf Of the
ublie, might not be gratuitously made, and
he bank would reap the full benefit Of the
rant while the public would lose the equya-
mt expected from it..
Mr.. Jefferson had said ''bank paper must be
but he foresaK the difficulty Of it
hen he said; 'It is not easy 10 estimate the
ostaeles which in the beginning we should
1counter in ousting the banks from their pos
ssion of the circulation" Gen. Jackson
1t the full force of these difficulties and af-
r desperate struggle succeeded in doing