it'aJfc - -'Vv- ;
"VS'-'V- tr:-'-'. -"::jai .".25?.;?"
NEVt SERIES.
GUEENSBOUOUGII, N. C FitiDAY MUHNLNG, SEPmII)Kll l4Tlb3Sl
VOL, II NO. 22.
imf&m
" " v- - f ,T - frreffinnrxre ; "f
MR. LEi.RE'.S 1 JITTER,
TO TilE COVERXOI: OF S. CAROLINA.
(CflflilHUtl!.)
So far, then, i iiiiiu 1 a. ii qmic pnlc in
gayintf lliatnu cuac vviiaU v r o.ii btxu uimh
out by ibuso wlio ' would have hi btll.
ihat tbe South is pjrticulai ly inti rested in
this change. Just the revtrso. We are
less concerned in it than any oilier jiurl ol
the country. Undoubtedly, it a desirable
for us, an for all well regulated butt, thai
our currency thuuld be us blable at jio.-si-Lle
; but that vc aie naiticularly called uj
on toefltct tliat result, by requiring' pjy.
meiit ol Iliopubic uucs, that ib, lroni one
third to one quarter of the whole idusb ol
dutiable commodities, tn gold and silver, I
utu rly deny. 1 thiukon the co;i:r..rv, j ii'u
Will admit thai we aru eji;iiiig o'.irelvos;
ia a more- or lets. serious tleree, uecordiny
to the vcribtiofM-ol'-the revenue and the di -posiles
on hand, io a fall of prices, wlneii
niuit bo tiwJ etLet ol nar, owing tho siKcif
fcuitaof the circulatioii in England; and
t hatpin fact, common prudence would nuke
us, of all others, ado;i any such change
wiLh extreme hcsitaliun and; reluctance.
This is a matter of so inucri iin)orlance
thai 1 will dwell upoa ii a lutle Jouger, in
another point of new.
-There, is no prautical problem, in 'politi
cal economy -o dilluult to solve with pre
cision, as t!ie tjiieslio i !iuv iar i!il- dii. inns'. -ed
supply of the prt-cio'J-i iiiel.ils fru n the
iMexieaii and South Aitiei'.eui mines hii'.ec
1H1U hasafl'ected Ih.uir.Vuluy or, t Ijk.1i u
tin; same thing, Ua4 alfeiffuj thv pnet s .ol
uther CBiAodaies, 'i'jc failing yll Ins
been erroneous considerably nior tliau
one-tiulfoii an avenge, of the yearly ;io
duce of the same niuins Jroui lsdt) to llt),
and upwards ol iwte'y tn:i.;oris of doliata
per (tiiiiuin, aiii iii'iti i.' m ih w hoi.- p..rio.l
liien'.i.ini-d, to 1 ully nt, t.),,)i) ). 'f i j
v. ear and tear ol th- un tai.-, !os by ca-iiMi-tr,"tS;c.,
innst also Ire t4ci-- into- the ae
oiiiit, and the ;iiiu.i tJ.n.iiuliuii Iroui
'these c'aniic'sis-isttiiiirtetl at o.ic per 'cent,
linking en the whole- btiek of gold and -il-TeT,
a- verv Jar'g aiuauut. fco in Jeh for ihe
supply, "Vhile this has been so npid'y
cltiitiHtsliitig, tho demand to them has been
just as rujn;ly irrcrt-asing. 1 First, frcm lue
"iuCtc-aiS "io'nf6pva1atroIi;''''actrrHinytofan--iRj
UKttf'd priiiple. t.Jreat liiitaui, which-ui
10;) ccu.itod only fift'-eii unliions ofinlt .-
Lit w,i. li.id in 1 ",;jJ, no le.-s t.iaa twe.it."
ty.!i' iir.llions. J'rus.-ia, v.hirh at the
i :ie-e i f I 15, rout iiiK 'l 3 i.iu-lhi.ig niuic
tThill tt ii millions, I tiiiuk) nun' bjuls ol
herlhu-n in:li;-.n . Ku--.ii Ii is iro u at
least. .jNtapulli. 4 o ol -y,:. o: n-.tio.i-.
W i tli our hvu exir toidi iary pr.it; r-. h t..
tlr.l v. it V von ari? tauiiitar. Tn-n, as i
pio4ucuve j o.vrr, another niiporf-int
.-.w-vrt hi ttrt fiHiimig t4ie valui- uf gold and
silver, 1 mVd'nni in. u'fo:i lint it ii.is been
every whi r.1 ninnc s ly au ,'i'n. uted, ami
uiill it, ofeOJ.-se, the in is.t of commodities
to be ircultlerl by nsoney. hook at the.
r,. it. in t rati,: fn r r..iu:pl( . h.s-tly, the co:i-
suniptia:i of the
io is metals in lur.n-
lUM.aiu! r.'.anul'ac lures ii iieeouie iiinnt'iise,
and is rvery dv o:i th inrr.'.ise ; not, a
has becti said, in i!t- course ol t!i;J dien--6ioii,
because they Jiavc been depreciated
and so driven out of circulation by .paper ;
but as a necessary consequence of tho pro
gress of commerce and rich, s, and the e.
ivation ef the standard of comfort 'among1
all classes of so'.'iety. The uietils are t.i
demand as commodities, pnrisHv b-mur
they arc .precious. Wo it ill ha.e til in a
any price, because th. use ol tiicui im re
quired by the existing nte of m-il:zitinrr,
and bucausc t!iu nnli'y fortunes arq i-ad
by industry or transiiiittrdliy tnlicritaurc,
put it in the power o tbo'jvi.ids and tens
ol' thousands to ohtain thei now wherr
' tens or hundreds formerly could. Com
pare EiYghti4 vytth Frnf i: -this -espel,
and you will, bp stt tick with tins apparently
singular hut really natural and instiuctr.i
result '. J-Vance has in circulation nm.-h
morelTiaTTwiee of ThreTfi ilmra thrj aTntmnt
of gold anil silver that England ha, csti-in-atirlg
the specie cum njforHhe Idtler tt
3O,000,Htlifcltut,io plate furniture, &c,
the tables aro exactly turned, snd Englan i
possesses twice or thrice as inucti as franc. .
Tliis ddcs not show that the aru tals are de
preciated in i JLliO formcf country, but the
very reverse. There is a greater demand
for them, becauso there is incomparably
greater Qpulcncc and juxury in the country
of banks and paper money than in the
country of an exclusive inctalic circulation.
This is in the present condition of society,
an inevitable effect of a great accumula
tion capital, which can only bo perverted
by sumptuary and agrarian laws a system
ftl legislation familiar enough in antiquity,
but quito inconsistent vvith our modern
ids of individual liberty and peisoual ac
commodation. 1 know no writer who Ins recently deni
ed that the- fall of prir-es, so universal
within the lifct twenty years, has been qwJ
ing, in some degree to the diminished
supply ol the, precious, metals, or, what
comes to the snme thrtig, who pretends
that those metals have boon-depreciated by
tho paper currency substituted for them in
soma countries, as some im in hers of Con
gress has roundly asserted, without any
means of ascertaining the slate of factsor
even deigning ttf consider them at all.;
McCulloch, who thinks that a very exige
ratcd importance has been attached to the
r trectsr of that d i m taction, stii I. admits
"rfcatl die! so septal vesrs aga.
that it may have operated to tho extent of
tiom :i to 5 per cent.-f The author of a
cievir little tre. use, to which 1 had occa
s on frequently to refer in my apcich at tho
evtr.i .?si()i , h. .-silales no lo'iiliiiii 111 .1,
uilhiri too peiioi just liientioiieri," thou
sands h ive, by this cause alone, .been pre-etp't-ited
inio inextricable embarrassments
of iht- se n t Kource of which, they had no
suspicibii.'f Sly 'OWtF opniioi), if I miy
venture to advance one on such a siihject,
if, tint, notwithstanding all that has been
s-aid on the cessation of the specie trade
witlnueeas?, the breaking Up of hoards lu
consequence of a long peace and establish ;
ed social order, thj tcononiiiing of tlie;
metals by means of a paper circulation,
eke., such is the iiiunense deve-lopeiaent of
eohmicrcc, industry, Hpulatio.i and richos,
that the ilt-mnnd for - trold and silver, both
for currency and for IndiHOfe and m.inu
f .icturerf, w ill In fori n.any years, beeone
'greatly dimproporlibueil to the provable
supply of tin in. Some other lucaus of
conducting the i xehanges uf tho trading
world w ill become iiide4-.u3iLde ; at least,
the us of gold and sihei lor any other
purpose, than us a standard for the ulti
mate comparison of prices will be superse
ded, and the great bulk of every circula
tion, like that of Eugland and the Linttd
State!, will co'isist of bank notes and pri
vate pap -r. Far fr.mi think; ig that the
credit sy: tern of Khese t wo great co'n.iier
cKil natiotis, with their advauccd civ'iiika
iion, is a mere accident, au anomoly, which
if'to ;( ep!o.L'd in a few ears, in order
io r. turii to the oi l Dutch plan, 1 consider
it ns th natural fru't of tint civiliz.itio i,
and expect to see them llourfsh. togifthcr,
Tn tin. '-b-irsc of things, on o'.her and less
ctineii-tl ro;ls. 'i'he bank note payable
o.r .l.-mind was as gr.-ai an improvement
t ho ne aa the lul! of exchange, wnen til
l.o.ubardy inerchan.s tir-t leann-.l to d.s
; use -with -i--i-m hi-tlier r.-mittaMCos-iioin
country to coiiutry ; and it were just
s rat ibhal to :-(jh ftriiig octfst j? " hack to
tho civilization of th.;- tenth or eleventh
century, when payments between distant
ptoes Were 'lliiiiW only ia spe cie, as to
wish to tiplodn tlie money mud lalor-siv-
ang contrivaiices ol ljniburu street, Dy
whtrrrtrartcttos t the arrtowit of untold-lailion-i
arc carried oil almost wi'.nout a
show of rein. Commerce is art ef h.uige
of commodities ; why eiu'uinber this sim
ple ojtei.itioi, furUi. r lluu is absolutely
ieros'iiv, f intro!uei:ig a thirJ commod
ity, like the precious metals, of which the
value or relit ton to all other product is
I'ouu.iu.dly Huctuat;g, tn a great or less
.! "re ?
1 have hilhorlo caiisidured . this Questiou
t.i what may be culled its external apeet,
m relerence, namely, to the effect which
tho projcrtctl rt-fortii to our JiHTiicy. is like
ly to liavj on the distribihtion of precious
uv-trtls throtigliout the whole commercial
world. 1 '.vi.ili now to look at it in anoth
er point ol view , in rt I', ren te to our own
r.rruli'.iioii exclusively. 1 think it will be
ijip.tre.it Ilia', lie re," to., we arc nut only a
leinntnisT loslt in a stro.iir and s- lUeil ctr
relit of practice- and opinion, bDt arj e.':
ging a war, fn tiers of coin...', as such a,
u .ii inu.-t always be, A':tti the nature of
ilyngs,
'i t. . re h a question which I have- f;?n
propounded to the adotMics of a intalic
c'.rculatioit, "and which i would bu glad to
hive answered in a satiolactory r.i-mucr.
.low e- .in. s it tliat, at no ptxiod of our ins
torv, ins this couinrv had a supply of gold
a;ei ilver at all ad. qualo to the wants ol
i!jv community, even for the most ordinary
p-irposes ol circulation ? The answer us
u. l gi vcii, though tiot unplausibl.:, is by
th meh a Mtftcwnt one, .via. .that.. all the.
channels of-circulation hiving been kept
piur;vJijl!) .cnoked. up with .pqr, .there
wis no fd.u-e for a meiallic currency, iv nch
v.; thus expi
ed the country. JJ Jt it is,
e.oovioiis to ohs -rvo that
rrrn- wrre-ths tac-t -aum-tma, it wouta be
itself an effect to be accounted for, and the
dillieulty would only be removed one M. p
further.' Hoi .comes it, would oe ine nexi
inquiry, that paper-thould, in all parts of
tne coMiitn, a.id at all penod.9 tM Mi, Histo
ry, h ivi circulated saawchtnorCexclusivH
ly than iexcepu.ig a few very, rare snd tx.
iraordmary dcinifrtftOt'-TJi "fc-vHxffC'n"
known to do elsewhere ? To what peculi
arity tt' eiiaracter or conJitioti is this to be
asciibtd ! "v '"-. ' '
Hut in the1 next place, it is not historical
ly true that ihe precious itijuIs have been
kept out, of circulation in the U. Stares by
paper. It can be shown clearly on the
contrary, 'hat, at certain periods of our
ntslory,' ihere his been a press.ng and uni
versal waul of a circulating medium ; and
vet, contrary to the general principle that
gold and silver will, like other commodi.
tieSj go wherever there is a demand for
them, tin y have not made their appearance
among us. I Cited, on a former -nccasion,
Die1 tV'is'i ngf..i Pi i.rs, to slmw , that,
durim' that p-nod of our history, when we
weru more nearly reduced ih.ni at arty other
to a metallic currency from'; I to '8 1) -'1)0
there were perpetual complaints ol a want
of money for the most. ordinary business ot
life. The dollar was not unfrequently cut
on into fivw parts, eash assing lor a quar
- i " I . T I . .
lur, 1 axes were p.nu ;
"coihmutables." .Many of the domestic
tCjuitncrcial Dictionary precious ine
lals . ... . "
Monev ana !t3 nClSallUaS in .vautv--
exchanges wcrecatricd on by barter, as in
the earliest stag?1 of ) society. General
Hamilton, in his report on the bank in 1790
ay s tlio same thing. There was a loud
cry, from all quarters, for an issue of papor
money by the .Slates, and it required all
tlie wisdom and firmness of tho great men
of that day, schooled as they had been by
a severe experience, to resist the de.ui ind.
Here, as well u elsewhere iu our early
h.stonv, we were- deeply indebted to the
sago and admirable conduct of the com
monwealth of Virgin taT"" NY'WtEhglahu was
in a stale of frightful anarchy ; thousands
of her young men, the most vigorous, ac
tive, and enterprising part of her popula
tion, openly revolted against the laws,
which, by refusing them an adequate sup
ple of the means of exchange, denied them
as they conceived, those of laboring and
living by their labor. Mr.' CJallatiu is a
uolher witness of the then state of things,
and lie happen to have favored u with a
true ac;ount of it, as ho saw and felt it in
the State of Peunsiylvania.
"We may aver," saith he, "from our know
ledge, that the western counties, of iMiiu
sylvaina had not, during more than lwent
years alter their liist settlement, tho specie
necessary for their own internal trade and
usual transactions. The want of comwu
nicalibn, and the great bulk of their usual
pro.lu-tis, reduced their exports, to a inost
inconsiderable amount. Tliotwe indisptn.
sable arliclej of iron and salt, and a few
others almost equally necessary, consumed
all their resources. The principle, almost
uuiwrstilly true, that jrach country will be
naturally supplied with the precious metals
according'to Us wants, did not apply to
thetr'situiliori. llousenoi.i mannt acturoo ;
supplieJ the inhabitants with their ordina j
rv clothiiiL', and the internal traile and ex-!
changes were alnost exclusivi iy carried on
by baiter. This effectually checked any
advaact, even in the most nee sa-ry man-
ul.ieturcs. Lvtrry specj' s ol business re
quired the utmost fcautiott, M any failure
in the perform nice of engagements, in the
way of barter, became, under th general
law of the land, an obligation to pay money
and might involve the party in complete ru
in. Under these ctrcustancc?, even a pi
p ir eurreTiey-, kept -within proper bounds,
might Iiava proved useful-"
I beg leave, in passing, just to call your
attention to this vivid, though . simple pic
ture of the condition even of th" most in-
dintriwid rM-ople, straitened for want of:
sullieient circulation Vou sea
how a
enteiprtsef is p :ralyed ; all labor arrested;
all the springs and principles of social im
provement weakened and relaxed, by want
of the means of exchtng th products
of labor as soon as they are produced, ,ind
I n - 1ia -. fM.i.ibr . mdal . i.uKrnirnl trt tltt
Ptiicef.- - Thete -is --rro - frcater- mi.ia that soft of fi i?; 4a cap.tal, the ubj .-t
take, as his been well remarked bf a sen K ahsur'! 1 enunciation here a:..T
sibh writer, than to consider a certain
quanaty of capital and s certain numbi r
ol labor rs- as nroductivc in?trumpnts of u-
" j in form power, or oprr.-.ling with a cert ii
" j niiifnnii inieiisily. Miuy cncurnHtances,
:v quickening the activity wiin vrtiicn iin-y
(hi y nr.- applied, may add immensely to the
re.-ults fleet, d by them. Amouf the
eausi s, rione is, p-'thaps more promi ient
than an abundant, and cspccialt a pro
gressive currency. Men labor only to aei!
and become rich; deprive them of a mark
and they sink into, npathy and idleness ;
make the market dull, diminish th chance
of exchanging the products of industry, and j
you discourage it proportion inly. Hence
afi lun-ir.cHS isnt.a standstill, as soon as n
want of money to circulate rmrnrxlities is
felt, and, by diminishing gradually the cur
rency, you would reduce society, inri po-
'if;'ti''frrtt(rrner?-perf-n4 barlafiaaa.t
In this generally progressivecouutrv, alwve
irltMTfrr,,-'we-rf.qitire-an eqaUy p-gres-sive
currency, or nil the effects of a de
creasing on.-' 'ii older countries would en
sue, though leas.dtsastgpittii). a'ppp irancv
because of the counteracting influences of
our youth and vigor.
But to return to our imtn diate topic.
Here, then, vve hive a state of facts entire
ly peculiar, to which the general principle,
as to the cerlaiuty of procuring all the spe
cif -WiBte'dy it a country lor the purposes of
eiruUtjoaodxyny docs, not pj?(j. , - J A
is one of tho phenomejriiwhich a philoso
phical inquirer will bo most anxious to ex
.plain his pwiVsatisJaction I etlrotir
attention to it, and that of thsdrbcates 67
this measure, who seem to think thejt hafe
nothing to do but to break down banks
and explode their paper, in order to flood
tho country with the prcciou.- metals. I
appeal to our own experience to show the
dangerous character of their projects.
I cite a fact, to bo accounted for on tho
principles of a sober, inductive philosophy,
rjot by metaphysical abstractions and theo
ries, a priori. The modern world has a
bandoned that sort of thing, and it is not
asking loo much of our great men, I hope
to expect that they Will tread in the foot
steps of B.tcou snJ Galileo. Ft t a, fact,
then, that during long periods, this coun-
Thoughts on Currency and Banking in
the U. States, p. 63.
fA full, afld even a redundant currency,
whitcver disorders might aocompanv it has
fii.i,.m (...uj io r,roIuce some ffootl. Law's
. ,h , tlsas,erous instance of
an excess.iii this wav, anv wherpjo be
met with-,-, was-ttemkd "with pcrroaneolt
bcucflT tot Friric.-. S'je f heifBtoa- -
try, and every part of it, hav been in th-j
I greatest etnbarrassmei.t fbr want of n cir
.: l. .., ..... . i i i -i
vuidtuig iiiuuiuiii , iiiiu jci goiu ami hiivei
1 to a fair share ia the common stock of
which wo were clearly entitled, would cot
come to our relief.
.This apparent anomaly must, no doubt,
be ascribed in a good degree, to the pecu
liarity of our condition as a young au.i
growing countrv,Jby far the greater amount
of whose very inadequate capital and labor
has been laid out jn cultivating a virgin soil
and covering it with improvements of nil
sorts. We have been .borrowers froiu the
beginning, but our great profits have ena
bled us to pay our debts, and t.i grow rich
by them, Without any other uiconveui'-nce
than tLis very scarcity uf the precious tu :
tals, treated by a standing balance of pay.
mruts against W, and that has been practi
cally none, because their place h is been
amply supplied by the use- of paper.
itut something, or I should ruber say a
great deal, is also due to out way of think
ing on these subjects. Whether tt be ow ing
to our peculiar s'tuatiou, which has ac
customed us to the paper system, or whi
leer it be that our people, in this as in so
many other reforms have anticipated ttttr
conclusions of philosophers and t&3 pro
gres$ of society, certain it is tint th-y hive
greater confidence in bank p( and
have accomplished more by means of it,
than any other nation in the worid. , J'ms
confidence, as his been well retnar' rd by
a very sensible French writer, who lately
travelled through the U. States, an. I whoie
inform it'on struck me at the time (for ins
letters were publish -d in" the UfeWs-pap' rs
at Paris) as, in general, remarkably exact,
is lot a blind confidence it is the result
of r. II ction and oXpei lenee.t It is fi ur
iuilnrment, a most tnkui and houor.ih!
trait ol our pi e.pi, ami an an index oisom
of the highest excellencies of the nat loua
I character, as well as of .the singujar hip
piriess nt our e.omiuion. i u.iv.o iisieueu
ith atrntishiiieiil to; tht) f ilsu and sitr-,
lie:al declam itioti, so much in vogue, up
on this subject. To her some persons
talk, you Would taker us for a nation ol
sharpers, suppose that the whole history of
our currency and banking was dne issue of
downright "knavery, aod impost ur." These
geuttcfcaii totally misapprehend the casa oi
I am sure they would not do so much in
justiec of their country as to turn what
rightly understood, is her glory into h r
shame. WTv, eir, vt.y perceive that, as
I the foreigner just quoted 'lias ohsi r.vcd in
regard to the compilative IV sliglit sliock to
credit oi'-asiom "d by the conrlagrtion at
i'W 1'ork, W' Jh ive !iee.i trading, ill ell'eel
upon ".i Uh'ral capita1, winch lire could
not eousiim. :' iio, no: icoTti nr nut rur
r.irt4 nor tiiu-Tcs tr ik in and steal. Tins
elsewhere a capital made up of skill, c t
picity, perseviranice, integrity, enterprise .
Political economists have always appeiir.-d
to nic to be guilty of one great cardi ia! er
ror, which wis pree.ibrdy ihls of not attach
ing, by any means, sufficient, importance.
mortil criMiis.ccuisidered unproductive paw
i rs li'. r r, ly,
The first heads it every well formed ta
ble of statistics ought lo be the national
character the Constituttiou and laws of h
People the lib- rty thev enjoy the race
H witch they belong the education lrnv
r. CCtve their Conduct, pujfiinl, a .d pn
c.ples, ; In com iariso i of thce, great fi a
tures of the f eg p v. phvsic d and tnitur-
.dot a country, us soil, eliii.atv' situ. ton,
rivers harbors, iStc. are really unimportant
Had some other People been planted on
rockv shores of New England, they might
liavo sunk into the condittoit of obscure
fi.-lnrmTlt7'perh
plijgi, instead of inheriting, as they have
ifone in' their giganticihcreSe,"direcliv'r
indirectly, half of this fair continent. ' Tim
mii'lit which slumbers in a peasant's arm"
in on.- country is awakened revealed,
brought out into mighty ..rid efficient exer
tions under the moral -influence of another
ind overs ih.- soil it cultivates with
nig mo.Timpnts of its power. It is this
high morality intelligeiicc, arum ited with
flic spirit of improvement, protected by e
q ial laws full of confidence in a future,
which the peftflliar circumstances
most happy situation could not fail to make
better th n the past it is these high qu d
kics, thse is-tnrguishe-d privileges, that
havo constituted the capital of a People
that had hardly any other : or in other words
have enabled them to anticipate, by means
of credit thfr abundant fruits of a few years
of woll-directed industry. We live trpon
the r sources of. to-morrow, became they
are sure io be better than ibofr to-day. This
is the magic under whtch a new and fettib:
country starts up, almost '.-instantly, into
life and beauty. Failure and disappoint
ment are not in our vocabulary, and though
they sometimes occur, .thoy are compari
tiveiv, so rare amidst the dazzling successes
of the great majority of adventurers, in our
wonderful career of improvement, as to be
scarcely Worth taking into thn. . account.
Thn Americans have the utmost faith
in paper money. It is not a blind -ronfi-dence,
for, if wo' have hd our assign its,
they haye had. their co jtincnUl money:
and it would not be necessary ioirace their
history far to find their banks failing, ch
mane. It is a corifid, nee., founded 'upon
r....diiu--ra cfturaj:..', t lu'regul t of iv Jieetiy.i
I (.Imvaiier, L. iif p. 1 17 , .. ... ..
One of jhc most extraordinary exampfes
of iho confidenco which all these circum
stances havo en.ililed and disposed us to
r pose in each other, is as h is been remark
ed b1' one of our writers iho ctedit of
i w. lv - .r i-ighieen moillhi htb'tuajly jjivn
by i roh ants in the At I auticcnn s to llios'
ol i In- n.terior, at a distance of twclv
hi dr-d w fifteen huii.li ed miles, whom
Ih v do no' expect to see before the exni
ration of that hinj period, in such easy
terms as are the best evidence of the gen
eral punctually and integrity of their cus
tomers. This tcni'-r may lead to occa
sion;.! excesses : and yet, I confess there
is some thing in this mutul co ifiJe-nce,
iliu-i pervading all class s of society and
all part of the country, SO full of a high
morality, of a refined hum i.iity, of a broth
erly union, cT a sense of all our happy pri
vileges as a People, that affect mo fx
tremely in contemplating-it. And the
more so when I come to ' compare it with
the Inh'ts and conditiou of other nations,
in this particular.! Take France, for ex
ample, with a pillule exception tho most
renowned of modem Siates, and, in tome
points of social refinement, porhajii thA
most civalizcd. rvr . . '
I am fortuuatdy alle to vouch here, too,
a wifncsH -vhoKe testimony may be. rdiod
b i. " A long tiiuc must chpae, (s ys -Mr.
Chcvalici.) bufore we cia enjoy in Ffiuce
n system of credit as extensive as that
Which pxUt in Engli td and the Cfiited
Stites. We are in this reap-ct in a staL
o( bartHrinm." He gives m.viy instances
which fully justify- this strong' langiisg".
Tin; j6ciure In; pfesLiifs of the urn versal
wan! of conli leiic. in pecuniary niatteis,
ul th - iniiunr in which it embarrasses
and retards all sorts of business, is a per
il M contrast lo the happy condition of our
own -con itry. . For instance, after stating
i... .i .1.,' r.. ...... ..r I.1. .,,.... i &an;i .
ii j i im i u'li i uv j ill a ii u Kiwii' j
i H),0.H, lie goes on to say that " a (wrt ol
tin immense capital is out of circulation,
a id rests liuri-d iitlllC Cufli ri -.! individ
uals or biMir.ltiJ hy thc. pior, unwilling to
-onfi le to any one their litUe savings."
A id tra remarks els; win re, that "if we bad
irr France the habit of Eagland the people
of the United States, it is prohibits that 1,
ODd.OOJ.OOO.ofcirculalicnaa.OtiO.OOO,) tiiff fH-'p'ipc'if and half li' caih, ':":wdtdd suf
fice for our transaction. Allowing for
our 'commercial inferiority, let 113 admit 1?
500,OUO,0m $:$0(,00 ,0i)t)j would be re
quiredand thit it should be coevioed tif
' Wo-thirds luo'nls, and onc-tliird p iier, t
''lows that wo might usefully dispose of
i i0,00,iK)t, or at leant l.-VM.Ma.'H),
(francs) now uiiro luclive hi ih form of
coin, added nothing to our comforts, to
our enjoyments, rr tit -our jrt-oduetws 00 w
er." 'I ria mural e.ffects of this want of
confidence are fully as disastrous.. as tlie e
'(in i-TiicaT "-' especially in regard r. t'her poor--
r classes, whose condition is ren.leri-d
o n;virttivelv hopeless. N'.mody is trust
. I vuthout smiriti) ; and what security
h ive thi poor to give f " In France (:;v
:h.t Hume Vriiit-r,) it you want credit, you
cannot obtain it ; but if you do not want
it, it is offend."
I think what I hare hitherto said s ilTi
cientlv accounts for the grc it peculiantv of
our: banking system .vlnch is, the very
small proportion of specie to deposites and
cirCulaiirfn. This has hardly ever amount
od to the half f what Ins been thought ue
c -ssiry in England, tint is to sny, one to
taree. Our circulation was t:vcr in
so'indcr condition than in IS')!) ; ind. ed,
th never was, in my opinion, s more pt-r-fv.ct
circulation in any country. Accord
ing to Mr. (Jallatin'seStiinate of it4 it stoo I
then. v
B. ik notes - -
D-posMtc ....
Sp ie'T.i; circulatibn
Sol.O'iOtOi)
1,0(0,MM
si it.to;t t)
?jccio in thc vaults of b'uks. . a2,0i)tJJ00
You seo that the basis of 1 19n l!;o is of
issues and credit was only, 'J'i,'l )(l,00i)
dollars; yet it is i'mjvxsilde.to iiiiiaiii- a
currency answering hILiIs h gitimite ends
morejiprcctly, and at th -'same time, in i.-v-
cry. respect, nwro safe, and stable. It is
uii'iifest that evry dollar ad'fiNl to the
k-rtf-gold- and wdv-fr- thutr oa ,-htd4M
tne vaults of biiiks wouul hivo- bii-.i jtisjjt
so much dead loss to the cornmu.aily, b--side
slowerifig r)rices,nud, so far, discour
aging industry.. And here I will take no
tice of another fallacy very gem ral hrre.
It is, to suppose that the proportion of one
to three maintained, or rather aimed at (for
it is-seldom effected) by the. IJeik of I in
land, is a fundairieittal, univcrsi! ml. of
sound banking. - Not at all. Whit this
pronortiot) ought to lv is iner" mi'ti-r of
loritl exp -iimiit, a id cannot be s. tiled a
priori. In this country tin- on r ..r
Carey. Credit syt. ;r; cS Franc .u . 'I
Britain and the 1'nitrd fci! itos.
tll-re is a beautiful illustration of wlnat
is stated in the text. Chevalier t i, 1 1 ...
; Society says to lhfta'i,i in (m r
i"s, labor 'v and if business sho 1 i ' e against
you and you shouWf ill, you wi.i ). -dilv
raise sgainfor hure failure is considered :s
a'wouotdreecived in battle; 1' will .tot cause
vo'u to lose esteem orooj'ifi I. 'uoc, provided
vou h 1 ve .atavi beTfii ternprrntirid - rogw
lar, i good Christian, and, a faithful lu-r-
iiaud. ,
. . . fThojjjh'j on curryQSy aJ Banlj'nj,
half a, century has, ostablishod beyond
doubt that nothing appro ichuig to a third
is required a'sixth, or l.-ss has been abun
dantly sufficient. Our peculiar sitiualion
out h.Jitsof bu.iuesi), a ii the ch tractor of
liie pi ojde have in idtt it s. In Englaiul,
were it not lliat ths banfi J o'atig d to
keep 01 hind specie oneugh to support
not nnlv its own circulitio.'t, but that of
the country and even the Scotch banks to.)
(fr, in case of a run upon them, t!i y -M
lavo recourse ft) Uifa less pr-riortiori woifd
be required. Mr. Ilorsely Palmar says
expressly in his exstniuation b -f oro a com
mittee of the House of Commons i n 1332.
While 011 this subject, I will slate that
I have been very rooetiil brought to do iht
fie soundness of some of my former ojin
nus on th;; history of American laiikint,
taken us a whole. -X littlo volumu alrea
dy referred to') seems to show that, in New
K igland especially, the systejn ha been
safe!, cheapest, most effective, and, in all
rcspe.us, the most Useful and beneficial
that could have been devised- This being;
merely a practical question, lo be settled
by experiment, every thing depends upo i
'tlie truo stale of facts. Scotch banking has
boon an immense blossing to that eoanln ,
whatever may be thought of it as np;fib
birt toothers. I take this occasiou ofc-ii;.
ing public attention th the South to a vol
ume, whi.th, if its statements should bu
found to be quitu accurate, will have piae
cd tins whole subje'ct in a new and strikg
point of view.
Now, sir, wo come to tho question :
What will be tho ffcct of the sub-Treasury
schciao with tho ''hard money feature"
upon the business of a country, bottomed
upon a L-yitcnt 6f banking thus 'conducted '
Suppose it should require only ciuht ur
t:i:i additional millions of specie. This wo
have seen, is as much as the whole aino i it
circulated throughout this vast couairy i.i ,
1S:JJ. It would aluorb every cent if it.
It is nearly half tin: treasurer of all tin; bank's
at jhu same ftiine. Is i not obvious that
ire should bi violently rdistnrbt:n'3: nfl the
settled proportion of things, and threaten
ing the business of tho country with perpe
tual disorder '( But what guaranty have
you that the amount will be only what lias,
been "stated ? Tliu couutry is iniMcosr 1
progresiirc," twenty-fire- years--doW--tta--population
and ressuices, and, consequent
ly, its revenue, levied a it ia, almost ex
clusively on commerce and tlie pubii- la 1 Is
whicti. must co.iti.iue to be a favorite ino.lu
of investioecit 111 prosperous times. It is
absurd to lay any stress uinur present eiu-barraii-uenis
j ihy uri inoreU ttuuporar) ,
and, what 1 more, any thing but us serious
as has been thought", llicy will ass a., ay
hs -though they hud- t;ver - befit, in- tho
coursoofa few years, if the fiovernmciit
wilt only (as I now think it shows a dispei
srtion "to do) irrf?pirt; the- community-- -tfrtfr-confidence
011 this great subject of finance.
The reduction of the tariff in 11 1 is just
as insufficient a guaranty against an nbun-,
di.it tevenuo and iarjo gurptases in thfj
I'reasury or, should these Ix; taken opfhy
proportionally largy expenditures, rur 'they
probibly will, against high averrge bil
a ices on hand. Every boly lifiows tliat
low duties increase cousumptipiri, and con
sequently revenue, and I should not at all
bo surprised to see ours iirynensely aug.ueii
t.'d in a few. years. Should it prove so, and
s inuld surpluses of thirty" or forty millions
aecunrnlate in thelVcastiry, ns in 1M3-J,
the der-uigi'm:iily of our whole b a lines?,
both by tha ffect of tho withdrawal n,
home and abroad, would be frightful. Kit
even without any such extraordinary ac
cumulation, a:;d supposing future apprapri
ati jtis.ftl ways equal to the revenue raised,
siiljfhu effects of this scheme of hoarding
are likely to be quite bad enough. It must
Lfcc remembered, that, it is not merely what
-wttt w lying-m -the -Hd stwes h,4 th
custom-house's, and the hands of dishing,
ing.oflners, that would bo abstracted from
etreuUhon. . The morch int and . p:ifoh
ers of I .ituh. would br; co npell.-d tu de.
mind of tho banks an amount of specie sul
fi.Ment to m et currant dishursem ;nt,s ; and
thn amount, whatever it w re, would bo.
just as completely lot to th;
uses of. cut -
Tuucy, as if locked up in one" of l!u s.iis
described la the bill.
The qUittity.of . uolit ud .iJxcc.wjtkh
WOUl.l i
r. "j air.nl by this change
of p oh
lo in in
ey would l.- iiiuoli greater here
.Euglaiiil, for instance, whero slmost all
pay uieit3 r j ultiinately rnado " in llriiidon.
The- VjsI extent of our country ; the inde
pendent exi-te-ncf and o'gaitiz'ittori of stito
insiilutions ; iho great dtspmpotiito. -KiT-iweeu
th:i rev-.-nue rais.'d, and the disburse
mi nts made by ihr Oovernui nt at differ
ont points of collection ; the ckvus quera
u essity of frequent tranVrs-.f lie. pub.
lie money fro m o.ic pTt of the L'.:i . 1 to ...
not her, would oxos.: u?, in a -v;.iv n.-ci;!,-ar
iiu'ini;, to dor.iiigctncrtls of bus ;i s3 &
circitsuea i'.oni such a system. As tot.'io
rncquubfy e-r cxp. liditur-is it his been, :is
yo i koiO'V, a theme of eloquent ce.nplaint
and denunciation to your Ueprcse natives
ere for years past. O.ic of colleagues i i
the House,. VIr, Thompson, .ha?, in .a. v r.y
able and argumentative sp.ch at tins ve
ry session, treated tliat tu;iic so fully as t
surierlsede the necessity el
tn- s i, i;w a
-.ltlii.ng:.mQre uf it In-rc, It is
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