Year: 1860

objectionable to me-


believe the Legislature Of 1856 inauguratel
the system Of the suppression of small notes. Tha


restriction has been found to be very wholesome
Z and has done much to purify our circulating ne


dium by increasing our specie circulation Tld


being so, the Legislature of 1851 proposed t,


limit bank issues to notes Of q still higher denOmi


nation and provided that from and after the frs


day Of January, 1860. no bank should issu,


or pay 0nt any note Of 4 less denomination thar


ten dollars. And am sitisfied that the people en-


dorsed the action of the last Legislature in thai


particular act. The Democratic pErty has declar


ed by its platform that it insists on the limitation


Of bank issues to notes. of large denomination


and that platform stands endorsed by an overwhelm


ing majority Of the voters of Tennessee. When tha


platform adopted the Legislature bad already


prohibited the issuance Of notes of lower deuomi
/ nation than ten dollars So the platform could MOI


have contemplated the issuance Of notes Of less de-


nation than ten dollars.


We came here pledged to cur constituents to con


tnue that reform, and as near as possible perfect


the banking system OF the State. The bill under
consideration only proposed originally TO keep the
restriction at ten dollars where the last Legisla-
ture put it. Bat the bill has since been amended so
as TO strike out ten and insert FIVE dollars. 1 am
unwilling to vote to permit them to issue five dol
| notes. ! would if I had my choice, prefer putting
the limit at twenty dollars.


The experience of every nation on the face Of the
globe that has banks of issue proves that a small
note circulation is the bane and curse Of currency
as an expeller Of the precious metals, and before
| we make retrOgade movement il would be well to
look to the opinions Of those VINO have gone before
us, and there learn what has been considered the
| greatest evil of our whole paper system.


And, sir, gentlemen may say what they please,
but can but think that the adopting Of this bill is
Abacklg doloa1 from our platform and from the po-
| sition that Gov. Harris took in his message. He
Recommended that no bank be permitted to issue
notes Of less denomination than twenty dollars,
and adds, this viii secure specie currency for all
the smaller transactions OF the country, at least
partial exemption from loss by bank failures and de-
preciated currency Of that class Of the community
who are least benefited by bank accommodations,
and yet are the most serious sufferers by their fail
ures and depreciation. And tie large amount Of
specie necessarily retained in the country would go
far to relieve if not prevent the commercial reyul
sions and financial arrangements which have been
/ Of but too frequent occurrence.


Gov. johnson in his message TO the Legislature Of
1857 favored this as means Of reforming our
| banking system and said


i In 1910 Mr.. Buchanan Introduced into the Senate
Of the United States resolution directing an IN
quiry INTO the expediency Of sc amending the Con
stitutiOn of the United States as to authorize Con
gress to passa general law prohibiting throughout the
United States the circulation of small notes, but
fortunately the proposition was attended with too
many difficulties TO be then practicable We're such
| a measure adopted, the currency Of the country
would Son be put upona firm basis far beyond the
reach Of any panic, and a permanent and untailing





cial convulsons to which we have been frequently
subjected


But sir, Gov. Harris and Gov johnson were not
the first to advocate this particular mode Of reform,
Cor by reference to Gen. JacksOns seventh annual
Message YOU will find that he recommended the
suppression of all bank notes under twenty dollars.
He sa1d If By this policy can secure the ulti-
mate suppression Of all notes below twenty dollars,
it is apparent that gold and silver viii take their
place and become the principal circulating medium


-, h4rrf 1ff f1a ind ma
chanics Of the country. The attainment Of such
result viii form an era in the history of the country
which will be dwelt upon with delight by every true
friend OF its liberty and independence. 1t viii
tighten the great tax which our paper system has
long collected from the earnings OF labor and DO
more TO revive and perpetuate those habits OF econ
omy and simplicity, which are so cOngenlal to
the character Of republicans than all the legislation
which has been attempted"


Again in his eighth annual message he said, '.ln
the acts of several Of the States prohibiting the
circulation Of small notes. and the auxiliary enact
ments of Congress at the last session torblddlng
their reception or payment on public account the
true policy of the country has been advanced, and
large portion of the precious metals infused into our
circulating medium. This policy viii probably be
followed up in due time by the enactment OF state
laws banshing from circulation bank notes Of still
higher denomination, and the object may be mate
rally promoted by further acts OF. Congress pr0hib-
itng as fiscal agents the employment of such banks
as continue the issuance of notes Of low denoml-
snztien aad-thuov impedments in the way of the
circulation of gold and silver


John c. Calhoun said in 1888, Il propose to pro-
hibt the issuance Of any note under ten dollars st
and after certain interval under twenty dollars,
and to refuse to receive the notes of any bank that
issues less in order to raake total separation be-
tween the banks that refuse to discontinue the IS
suarce of small notes and others in the hope that the
influence OF the latter with the voice of the commu-
nitv would ultimately compel a dlscontlnuance. L
hold a sound, a stable currency, to be among the
greatest encOuragements 70 industry and business
generally: and an unsOund and fuctuating one, now
expanding and now contracting, so that no honest
man can tell what TO DO. as among the greatest dls-
couragements. The dollar and the eagle are the
measures Of value, as the yard and the bushel are
the measures ofquantity, and what would we think
of the incorporation Of companies to regulate the
latter to expand and contract 10 shorten length
en- at pleasure with the privilege to sell by the short
ened or contracted, and buy by the expanded or
Ienqthened Is it not seen that it would place the
whole country and business Of the country under
The control of such companies. But It would not
more certainly affect it than similar control pos
sessed by the money institutions Of the country
over the measure of value and l go further and
confidently assert that the excess OF paper clrcua-
ton as well its unsteadiness Is as untavo-able TO
the industry Of the country. and business OF the
country 1t raises the price of everything and
consequently increases that of production and con
SUMPTION and is IN the main hostile to every branch
of industry


In 1884 Mr.. Benton said 'the evils Of a small
aner circulation he considered among the greatest
grievances that could affiict a community. The
evils were imumerable and fell almost exclusively
upon those least able to bear them, or to guard
against them. If bank stops payment, the holders
of the small notes who are usually the working
portion of the community are theast to tnd II out
and the first to suffer If counterfeitng is perpe-
traed it is chiefly the small notes which ae select
ed for imitation, because they are most current
among those who know least about them and who
are most easily made dupes OF lmposluon ana VIC
tins of fraud. As the eXpeller Of hard money,
small notes are the bane and curse of the country.
A nation is scarce or abundant in hard money pre-
c1sev in the degree in which 1t tolerates the lower
denomination Of bank notes. France tolerates no
less than 500 notes and has gold and silver circu-
Io+ion Of s350OOOO00 England tOerates no less
than s25 notes. and has gold and silver circulation
of Sf3O 600 900 In the United States where So Is the
medium size of the Federal Baak notes, the whole
specie circulation including what Is IN the banks
does not exceed S30,O000OO To increase tde amount
of hard money in the United States and supply the
body of the people with an adequate specie curren-
cv to serve for their daily wants and ordinary trans
actions the bank note circulation below SzO ought
TO be suppressed. If Congress could pass law to
that effect il ought to be done. The people OF tie
United States when countenanced and supported by
the Federal Government would indulge their natu-
raj antipathy and honest detestauoR Of small paper
currency.


They would make war upon all small paper notes.
The State Legislatures would be under the control
of the people and the States that should have the
wisdom to limit their paper circulating to a mimi
mum of $40 would Immediately fill up with gold
and silver. The common currency would be en-
tirely metallic and there would be broad and solid
basis for a superstructure Of large notes. while the
States that continued to tolerate the small notes
would be afflicted with all the evils Of most pes
tilential part of the paper money system, small
notes. part counterfeit, part worn out, part incur
rental incapable Of being used with any regard
to a beneficial economy. / regard the evils Of
small note currency as the bane and curse Of the
laboring part of the community, and the reproaca
and opprohrium Of any government that tolerates
it."


Mr. Webster said in the Senate, in 1885, That no
State or State institution could give circulation to
an ounce Of gold or silver not sanctioned by Con
grass Yet all the States, and hundred State IN
stitutio1s claimed and exercised the right of drv
inc com from circulation by the Introduction Of
their own paper and then of5depreciating and de-
grading that paper by refusing TO redeem it. Now,
sir think close inquiry into the direct source Of
evil "a spurious currency will suggest the remedy.
/ Why have we so small an amount Of specie circu-
/ aton. Certainly the reason is that we do not re-
quire more. We have but to ask its presence and
j it viii return. But we voluntarily Danish it by
4 the great amount Of small notes


In most of the States the banks issue notes of all
the low denominations, down to a single dollar.
How is it possible under such circumstances to re