The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1880-02-18
THE MESSAGE or ANDREW JACKSON, DECEMBER
lS3O-. sTATEsNAS MANUAL VOL. IN

So -
! The Importance of the principle involve,
IN the inquiry whether it will be proper TO lie
; chatter The Bank OF the Uaited state r.
quIres that | should again call the attention "a
Congress TO the subject. Nothing has oceurre,
To lessen IN any degree the danger whiel
! mauy of our citizens appreheud from thai insti
I tutlOn as at present organized. In he spirit o
improvement and compromise which distfu
: Eulshed our country aud its institutions i
becomes Us 70 inquire whether it BE- not posi-
, Die TO secure the advantages afforded BIZ III
present hank, through the agency of a. B1n,, d.
the United States 50 mods d in its principle
anu structure as 10 obviate constitutional aut
| other objections.
1T is houcht practicable 10 organize sucI
hank with the necessary officers as branch 90
/ the Treasury Department. based on the publ,
and individual deposits without power q
MAKE loans or purchase property. which shall
remit the funds OF the Government and the
expenses of which may be paid. if though
advisable, by allowing its officers TO sell bills
OF exchange 70 private individuals at mod
crate premium. Not being corporate body
having no stockholders, debtors. or property
aud but few officers it would not be obnoxious
TO the constitutional objections which are
| urged against the present bank; and having
no means TO operate on the hopes, fears, or in
| tere>ts OF large masses OF the cOmmunity il
| would be shOrn of the influence which makes
that bank formidable
But il was left for Mr.. Calhoun, the clearest
intellect our country has ever produced to ex-
haust the argument on this, as on every other
subject he touched.
Rejecting the idea Of what is called "fat
money, he required that it be left perfectly
free to those who have claims on the gov
ernment to receive 1t or not
OPINIONS OF JOHN c. CALHOUN.
| We quote from the speech of Mr. Calhoun in
the Senate OF the United States, in October
] 1887. as follows:
1T IS then. my impression that in the pres
| emf condition of the world a paper currency,
/ IN some form is almost indispensi-
/ bic in financial and commercial operations of
civilized and extensive communities. In
many respects II has a vast superiority over
a metali currency, especially in great and
extended transactions, by its greater cheap
ness, hghtuess and the facility of determin-
! ing the amount.
"Itmay throw some light on this subject TO
state that North Carolina, just after the Revo-
luton, issued a large amount of paper which
was made receivable IN dues TO her; II was
also made a legal tender, but which of course
was not made obligatory after the adoption of
the Federal Constitution. A large amount.
say between four and five hundred thousand
doilars-remalned IN circulation after that pc
Rod, and continued to circulate for more than
twenty years at par with gold and silver du-
ring the whole time, with no other advantage
than being received in the revenue of the
State, which was much less than $4,000 per
annum.'
NO one can doubt hut that the Government
credit IS better than that of any bank more
reliable-more safe. Why, then, should il I
mix it up with he less perfect credit of those I
institutions Why not its own credit 10
the amount of its own transactions Why 1
should 1t not be safe in its own hands while I
it shall be considered safe in the hands OF 500
private institutions scattered all over the I
country, and which have no other object but .
their own private profit to increase which /
they extend their business to he most danger
Gus extremes. And why should the communi-
" be compelled TO give per cent. discount
for the Government credit blended with that
of the bank, when the superior credit of The
Government could be furnished separately
without discount, to the mutual advantage OF
the Cove nment and the community?
but whatever may be the amount that can
be circulated hold it clear that, TO that
amount it would be as stable in value gold
and silver itself provided abe Government be
bound TO receive it exclusively with those
metals in all its dues and that it be left per-
fectly optional with those who have claims on
the Government to receive it or mott Gap
pendix to Congressional Globe, first session
Tweuty-ffth Con gress, y. 2G, 1891.
Quotation from Mr. Calhoun:
We are told the form | suggested is but a
repetition Of the old Continental money n i
ghost that Is ever conjured up by all who wish
to give the banks exclusive monopoly of
Government credit. The assertion is not true
there is not the least anology between them.
The one Is q promise to pay when there was no
revenue, and the other a promise to receive in
abundant revenue.
1--WE are told that there Is no instance of a
government paper that did not depreciate.
In reply, affirm that there is none, assuming
cqSte iorl nPeTTQgPose, 1nat ever ga dePre
OF Government, had anything like a fair trial.
it has succeeded. Instance the case Of North s
Carolina, referred to IN my opening remarks. i
The drafts of the Treasury, at this moment, ,
with I'll their incumhrance, are nearly at par :
with gold and silver. The case Of
Russia might also be mentioned. In 1927 she ,
bad a fixed paper circulation in the form of :
bank notes, but which were inconvcrtible, of !
upward of Sl2U,OO0000, estimated in the me- I
ialEc ruble, and which had for years remain I
ed, without huctuation, having nothing TO
sustain it but that it was received in dues of :
the Government, and that too, with a revenue ,
Of only about $9O,O00,OOO annually. l speak
IN the authority of a respectable traveller ,
Other instances no doubt might be added, but !
II needs no such support.
st has another and striking advantage }
over bank circulatirn, in its superior cheap q
ness, as well AS greater stability and safety. j
Bank paper is cheap TO those who make it, i
but dear, very dear, to those who use it-fully
ts much as gold and silver. 1t is the little 5
3ost Of its manufacture and the dear rates at !
which it is furnished to the community, which 7
gives the great profit to those who have mo- d
lopoly of the article. Some idea may be O
formed of the extent of the profit by the splen-
lid palaces which we see under the name Of '
and the vast for I
unes which have been accumulated =
n this branch Of business; all Of a
which must ultimately be derived from "a
The productive powers of the community, and @
# course adds so much to the cost Of produc- b
ion On the other hand, the credit of Gov t.
.rnment, while it would greatly facilitate its f
financial operations, would cost nothing. or "a
next to nothing, both to 1t and to the people d
md of course would add nothing to the cost OF n
productions; which would give to every branch b
f industry, agriculture commerce, and man
fractures, as far as circulation might extend, j.
lNr.lf HFsFt Il fg1e.n nd
Quotation from Mr.. Calhoun, in 1898: III
Il now undertake to affirm positively, and Q
without the least fear that l can be answered, t
Vhat heretofore have but suggested-that a
PAPER issued by Government, with the simple
'ro mise to receive in all dues, leaving its !
feditors to axe it or gold and silver, at their c
,pti0n, would, 10 the extent to which it would q
circulate, form a perfect paper circulation, z
which could not be abused by the Government, /
hat would be as steady and uniform in value C
Is the metals thems elves. L shall not 90 into o
he discussion now, but on a suitable oeca-
non | shall be able to make good every word =
have uttered. | will be able to do more-to y
1rove that 1t is within the constitutional pow 3
r of Congress to use such a paper in the man y
1gld rule Of constituting the Constitution a
md those at least who think that Congress =
an authorize the notes of private corpOrtlous 4
0 be received in the public dues are estopped
rom denying its right to receive its own
,aper I
Let those who pirate about returning TO the
i'd Democratic doctrine study What the Dem j
'cratic fathers taught As Mr.. Calhoun says :
Paper currency is indispensable in CONNER
ial transactions" and the simple question a
low is, who shall furnish that paper money. (
10 prudent man desires to return TO the sys- ;
EN- of wildcat banks. The paper money
must be national in character, and il must be t
ssued either by the government itself or by Z
National hanks, To show that Democrat
,an advocateits issuance by National banks, / =
lite the following from Thos. H. Benton, who 5
vas for thirty years a leader in the Demo- .
ratio party. .
OPINION OF T. IA. BENTON.
'fThe government ought not to delegate this
power lift could. 1t was too great power. to {