The Daily clarion. [volume] (Jackson, Miss.) 1866-1888, 1880-02-12

0 bank with the necessary officers as branch
the Treasury Department, based on the publ
: and individual deposits, without power.
make loans or purchase property, which sha
Q remit the funds of the Government and tf
expenses of which may be paid, If though
advisable, by allowing its officers to sell bill
; of exchange to private individuals at mod
: crate premium. Not being corporate BODY
having no stockholders, debtors or propert,
J and but few officers, it would not be obnoxiou
to the constitutional objections which ar
urged against the present bank and havin
no means to operate on the hopes, fears, or in
terests Of large masses of the community.
would be shorn of the influence which make
that bank 50 formidable"
But it was left for Mr.. Calhoun, the cleares
intellect our country has ever produced, to ex
subject he touched.
Rejecting the idea of what is called fla
money" he required shat it be left perfect.
free to those who have claims on the gov
eminent to receive it or not"
OPINIONS OF JOHN O. CALHOUN.
! We quote from the speech of Mr.. Calhoun il
the Senate Of the United States, in October
1887 as follows:
| Tits, then, my impression that in the pres
ent condition Of the world paper currency
| in some form is almost indispens
BILE in financial and commercial operations Of
| civilized and extensive communities In
many respects it has a vast superiority ovel
a metallic currency, especially in great and
extended transactions, by its greater cheap
ness, lightness 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 large amount of paper, which
1 l. L., -
| also made d legal tender, but which of course
was not made obligatory after the adoption OF
the Federal Constitution. large amount
| say between four and five hundred thousand
dollars--remainedin circulation after that pc
riod, 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 100000 per
annum."
mo one can doubt but that the Government
credit is better than that of any bank; more
relable-more safe. Why, then, should it
mix it up with the less perfect credit of those
institutions? Why not use its own credit to
the amount of its own transactions? Why
should it not be safe in its own hands, while
it shall be considered safe in the hands Of 800
private institutions scattered all over the
country, and which have no other object but
their own private profit; to increase which
they extend their business to the most danger
GUS extremes. And why should the commune
ty be compelled to give 6 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 Government 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 as gold
Ill. ,lalo b ha
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 not" zap
pendix to Congressional Globe, first session
Twenty-ffth Congress, p. 36, 1887.
Quotation from Mr.. Calhoun:
1--WE are told the form l suggested is but o
repetition of the old Continental money!
ghost that is ever conjured up by all who wish
to give the banks an exclusive monopoly OIL
Government credit The assertion is not true;
there is not the least anology between them
The one is o promise to pay when there was no
revenue, and the other a promise to receive in
the dues of the Government when there is
abundant revenue.
"We are told that there is no instance of
government paper that did not depreciats
In reply, affirm that there is none, assuming
the form l propose, that ever did depre-
ciate. Whenever q paper, receivable in dues
of Government, had anything like a fair trial,
it has succeeded. Instance the case of North
Carolina, referred to in my opening remarks.
The drafts Of the Treasury, at this moment,
with all their incumbrance, are nearly at par
with gold and silver. The case of
Russia might also be mentioned. In 1927 she
had q fixed paper circulation in the form of
bank notes, but which were inconvcrtible of
upward of $l20 100000, estimated in the me-
tallic ruble, and which had for years remain
- Al -.otl,s a.
sustain it but that it was received in dues of
the Government, and that, too, with o revenue
of only about $90,000,000 annually. l speak
on the authority of respectable traveller.
Other instances no doubt might be added, but |
it needs no such support.
st has another and striking advantage
over bank circulation, in its superior cheap
ness, as well as greater stability and safety,
Bank paper is cheap to those who make it,
but dear, very dear, to those who use it-fully |
as much as gold and silver. 1t is the little
cost of its manufacture, and the dear rates at
which it is furnished to the community, which |
gives the great profit to those who have mo- |
nopoly of the article, Some idea may be |
formed of the extent ofthe profit by the SPLEEN
did palaces which we see under the name of
and the vast for
tunes which have been. accumulated |
in this branch of business; all of |
which must ultimately be derived from
the productive powers of the community, and
of course adds so much to the cost of produc- |
ton. On the other hand, the credit of Gov |
while it would greatly facilitate its
financial operations, would cost nothing, or
next to nothing, both to it and to the people, |
and of course would add nothing to the cost of
production; which would give to every branch |
of industry, agriculture, commerce. and man
ufactures as far as circulation might extend, |
great advantage both at home and abroad"
Quotation from Mr. Calhoun, in 1888:
II now undertake to affirm positively, and |
without the least fear that can be answered |
what heretofore have but suggested-that |
paper issued by Government, with the simple |
promise to receive in all dues, leaving its |
creditors to take it or gold and silver, at their |
option, would, TO the extent to which it would |
circulate, form . perfect paper circulation,
which could not be abused by the Government,
that would be as steady and uniform in value |
Is the metals themselves. | shall not go into |
he discussion now, but on a suitable occa-
sion shall be able to make good every word |
have uttered. will be able to do more-to |
prove that 1t is within the constitutional pow
,r of Congress to use such paper in the man
lgement of its finances according to the most
'igid rule of constituting the Constitution;
ind those at least who think that Congress
IAN authorize the notes of private corportions
o be received in the public dues are estopped
rom denying its right to receive its own
,aper."
Let those who pirate about returning to the
Id Democratic doctrine study what the Dem