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.-FRIDAY, APRlt 15,v1814;
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DAKK QUESTION.
rMr.Sunl.SpcbWludi f
The objection to the right of ukipg
Jcoeot upon tea days notice is
J. Vj nnnn an ?pnorance of the el-
fMaacu r o ,m
rcCi of this power. 'ncu uuu,.
Vja to thc Jcbtorthan to
- v.w nn i ii 1 1 r rm,
i i n
more
If the bants were un.uue
l their debu but by a .uu
... .1-,niiv course of ihe fear o
10
f
ctr ta be spprenenaco irom wu-u5c
h th- circumstrjiccs of the debtor
ixntios this suit, wouW jndae them
to gnnt lows only to the rich to
,uch whose wealth rendered punctu
tiitr probable, tnd delaylbot danger
cw. Bo: with the righ to enter : a
Wgrnent it aoy time afwrdciinquen
cr.upoo giviog ten days, notice, the
UtX were less rigid in tequinfig ei
therthe principals or securuies to be
ifiamt. The same rcbsoning ob
tj.aed among thoe whoj became, se
cures for the borrO irera of thc banks ;
tad uader the protectinn1 . ffordr J by
this rignt. by the ccruint j uf having
the bui es .petlily dosid,if circtim
iriucts required itperfcO&adaiJy be
cixcrespoDab!c for their frfends in
ttwJerctectrtumstanccSjpr who were
rmharkinc in SOfflcne tUTSUit, who
but lor the existence of this priviU-gr,
could cot have obtained the secutin
a&l coastqurntiy nottnclloan. 'It is
tokc retnerobcred too that th's jight
exists ia no Vase ; but j Vrhrre thc
dror bs expressly consented o be
subject to iu opertdon by making his
tc:e cegotiab:e it the bankiw Some
kTsitnat who had beedj udsted up
ca uiiijiote and choscnot to piy;
roctctttd tne rigtit ot recovery in
this ctode '.he qaettion went tlhe
S'jfreaie Court and wasj. there ileci
4cd to be coustituttrmal. j
The objections to the existence of
paper money and to the il.c of it by
tve banks, have been talcti up'withoui
iueexaminitioo, and ht,ve received
acurrmcy.to which they have no
cUisi from their worth. I"he Legis
btore is 1811 baring enacted that
te piper money thill cense to be a
trader after the year 181 T, I have .no
iocliairion to engage In an argument,
o strictly ex pottjacto to hcw thi
C::b:cnvas uairise; but! pressed up
en me as the subject is, byjthe re m ar k a
effhe eecderntn who hare prti eded
I may be pard .oed fcr a brief no-
fice cf them.
Mocry is of valoe cm!y as itreprr
aa other things whic can be o
t3'd 10 exchange for it: its. value
penris on the demand and tWe aup
pyandas these vary, tbe value Ot
occey fiactuates also. Jhu, beforr
discovery of America, on ounce
go!d would purthase ten ounces cl
butsituethc optiiingol that
''"in 0f the prcriou, roeuls which
cd from the initeso! South Am-
an ounce ot gold will now com
.d'cntceo ounce-of s'lvrr. So
tDgbnd, in the year 1700, om bu
, 01 iht was v.prih4. 6d: a day'-s.
8d,a sheep 14:. telling but in
ommauded
the day's wcrkSs. ajd the sheep
Gold and silver, precious as we
7iluem, are htnnsicaUy but of lit
yhi themitals neither serve
t" fcod nor raiment, edge tools oi
''PcDible necessity jihcy cannot
rniC' d 1 susPccl you Would find a
or Sl!vcr plough an indifferent
rSmcnt for our n rt, ex
til few arlidtf$ bouschofd
iron is of inGnitelyl more value
?old and silver. The value. of
te mctl1 then when convened tn
nolJimnif but C6C7.
ind ,tt3cPends upoo, the consent
Teat 3?TCrniCDl f rnankihd, not on its
cf mW.lii Tn,s vatuej the'eonsenr
ckmdmay impart to-any sub
cf d "ber it be iron money
,8,qttiryt the gold and siver or pa-
lv JCCy of modem timet, only
hltVj kreat supply
w rPHg the demand laser its
value. and every durable, pairpose of
money is obtained nd'niatter what the
material of which its nude,!. Paper
money then 1' contend twy answer
Jl the valuable uses of mbocy our
own history proves it ; fori-six from
the settlement of thla country tOv-the
peace of 1783, every , colony had its
paper money ; with scarce any other
than paper money, these U. States,
jnce a tvilderness, have, been made to
nlossom, like the . rose ; industry has
tcen rewarded." commerce, acricul-
ture and manufactures have flourish I
ed, and our Independence established.
Of the writers, otr political economy
whose opinion claim respect, one,
vhoe name supercedes all "eulogy.
Ueojamin Kranklio, the patriot and
'he sage, has given to the doctrine I
hive advanced all the support of his
sterling judgment His valuable pa
per In support of paper money "may be
found in his works, and will reward
the time of those who choose to read
it. The only dancer from the useof
paper money, is, that the power to is-. !
sue it may br abused and more may oe j
thrown into circulation than thc com
uteres of ttvR countVv can employ
the conscq'. nee then ia, itdrprer.iates.
But the remnant of paper current i
cxitinsjvin this state was not o5- J
n xious to. this objection the stat-;
having by the federal constitutfon sur
rendered thepower to issue paper mo
ney, thkt which it had previously is
sued so far from denreciati. c. had ac- ?
tu?!lv appreciated, and from. 14s. to
the dollar, at which the federal con-,
sutution found it, it had been impro- j
ved to lOs. to the dollar, at which it
has remained. Fort every domestic
purpofe triis money wasis good as
gjld and ailyer it brought the .le
gislature toccther, maintained r and
cirneatnem norne it gves tne most
reapecrable men" for governors, and
the best lawyers forjudges it boys
land and pays debt?,. The pedlar,
the merchant, the idneraot and; the
emigrant w not accommodated by
it, because it was not; money out of
fhe State ; so much the better, sir, for
then they were in some measure com
pelled to; a course infinitely, more
advantageous-to the state .than the ex
portation of its specie to pay debts, I
mean the exportation of our 'surplus
produce. Din it is said other, states
ha.ee only gold and silver, and why
should not we also have gold and sil
ver? Because, sir, re are nofas
! rich as other states . To the - man
i who labors in the fields of the gentle-
iutn .irom urang oy aay, Jina. ai
night sleeps in a hut; I roiht.as well
ay why do you not Jive in that big
housr aud roll in that carriage ? f?o
vcrty is no reproach";, the answer is
'be sarnie in G th cases, " my poverty,
at my.will coDsents7a. .. r'-$-Of
this -paper money ihus aefuli
secured against depreciation, we had
in 1811 three hundred thousand dol-
t trs. To meet the views of the State
liaok, the legiHlature of 1811 declared
this money should be sunk and after
1817 should cease to be money. In
this act I Ifiimlv believe the ne6ple
sustain a loss of an amount equal to
six , years ordinary revenue -or tne
state ! You annihilate, beyond .the.'
potver of restoration, that which was
to every valuable purpose money and 1
get nothing in- return ;And by a
strange pr version of reason, the ac
complishment of this injury, tp be; ef-
iected through the instrumentality ol ,
the state Uank, is ascribed o the
Slat? Bank as a merit! Yes, SirJ,
the State Bank agrees to apply the di-:
videads of thc Statr Stock the state's -own
fiHids, and no other, tathe annual '
redemption of this money Great me j
rit and wondeifurgeneVostty'-, indeed 1 j
Ngt less fallacious have been the oth- f
er promises ot the State liank. They
reviled thVBanks or Newbern and
Cap Fear because their notes did oot
pass out pf the state but on a discount,
and boasted that the notes of their
Bank should have the credit of gold
! and silver every where That the old
banks paid paperjmoney, thty would
pay onty gold and iilvver '
- AA balante of .trade one of the ia-
evtubie resuits of commerce, and ex
lists more or less in every country
whete trade is koowni Unforturiate.
Iy for; North-Cafqlipa,;m her inters
course with the Northern States, the
balance is awinst us. We imnort
from them goods to a greater a niotrat
" wc vn pay lu proauce suited to
their markets r the difference U to be
madeupin money. If to pav thisba-I
Tiance tne bank not.es of this state zri
aorin,' nowever unquestionable
thefetyof the bank, the notes wilt
pass dk!y at iuccr.ean8
Carolina being- cdnVaritiyi in debt to
the Nortbein.Stttea ; the lioiders of
our notes,ther4 having'hojoceasionto
send mnney outbl4the notes remain
on hand till sent on serially to be ex
changed. The value of imr Bank
Notes in the Northemarket de
pends then on the alanci ' f irade
That bing against us, our note must
pass at a discount .The court of
trade of the Southern States is ihe
sam and the effect on thetr-rDank
notes the same They also only piss
at a discount . x
The State Bank, overlooking this
state of things and the reason of it,
undertook that their notes should pass
current in the northeo markets.-.
1 riey'cstablihecTalcreditTthere to a
certain amount with certain Northern
Banks, upon the terms that they
nhouid 'edeem them at certain peri
od. What w?s the cooscqucme ?
Their notes from every quarter flew
to the north and were received at the
bank thearDid these banks circu-l
Ute them, or did they keep themj-.
Sir, you can no more prevail ' on a
northern bank to circulate a southern
bank note,' than1 you can: prevail bo a
oorthern shoemaker to sell southern
shoes. The banks sent the notes
home for - payment. , Besides pay
ment by bills, waggons were loaded
with silver by the State Bank. .Af
ter, the.firstsettlement, this trade stop
e d, and State Bank notes, after all
the splendid promises of its Direc
tor' . sunk to the s me discount as the
notes .of Newbern and Cape Fear.----Yes.
SiK and at this time, except bo
the line of Virginia, Ww; hose people
live as near our banks as ourselves,
you riiay travel north with a pocket
ftrtl of State Bank notes, and starve
lor a dinner They will oot pass ex
cept in cities, and then poly at a dis
count. As to foreign uses, then, the
notes of the State Bank are absolute-
l If -no better than the notes of New-
oern ana L.ape rcar,a!thougn tne pro
ject id make them better has cost thc
state tne ios oi us paper money, tnree
hundred thouKnd dollars, besides oth
er'loss'es r have mentioned. . :
- A i home how is it, si r X The State !
uunic, not conacscenoing ip enquire
whether and by what means gold and
silver could be. obtained to answer the
trams' pf domes'tic circulation and for
remittance also, but ' with presump
tuous confidence, as if their fiat like
that whtchfiaid ' let there benight and
there was light e6uld-call specie into
existence where before there was
none, undertook, to pay all their notes
with gold, and silver on . demand,
See , the consequences So, for from
beinc able to. meet their notes 'with
specie they are compelled to resort to
devices to keep off the payment.! By
i suing iit btic bffii e, r.etes jfiyable" at
another . and rif hen these, note's are
brought fotf. f payment; turning the
holder round to take a journey across
the state, fronVNctYbern to SaHsbury.
or to Fay ette ville, totget. his specie,
ihey evaded the payment' Another
device is, tothosejvho happily having
fuuncl the branch whose, notes they
hold and 'who ask for silver, except
invery smalLsnms, they .tender gold,
to know the value of Which; requires
a sqence ouripcople di not possess,
and :it is : therefore- refused. -t' apeak
only what I wibw anti can' prove ; in a
court Hustiee. Such are the tricks
by-which the Sfite-rIjarik shelters toil
sell from tne payment joxtujaotesf.?.
do nbtcebsureihcse,' devices' dis
honbriblcihiey rtsoffomi
and might be papncaVut fbrthe
ridiculous boasting of the) fvfcank, ;and
its censures of the other bnki for va.
luin a paper money shield to.4 their
specie , The consequence, however,
is.
s beak particularly of Newbern,
wprre t knW the, fact) that State
tiank notes pass a a discount ot-hve
percent in exchaligeHipr ; silver
. A: little more abouf tbiSuiteajat
maxhinery and rhav'otie; witli'.JI,:
TThey ten you they Have extracted the
paper, money from the Banllpf Ne w
bern! and Cape, Fear : . that they did
this" pot from hostility but from duty,
ainclrefo.re. their concluct-as me
nious. lert? again Jt is my duty
toelpcnie a istatemenhe ex?
perl en ce of a very snort tire-ionyinc-ed
the State Bank, of the difficulty,!
had to encounter in - dealing only in
specie in a state, where very little of
that articlearas to br Found, and where
that little jwas in a course oPsteady
drain to the northward The devii
ces I have mentioned gave a; little
respite : The banks of Newbern and
C?je Fear possessed more than their
capitals in specie ; but withy th rigrjt
tterfder paper money to SAlch as were
sn4wn to ask lor specie-tor the. pur
poseNF sending it. abroad their spe
cie wa ptotected. To. lighten its
burthen, h make the other banks bear
a partowVat it had undertaken to
sustain alonelvthe specie pavments of
the state, the iaVe Bank Jjndertook
to compel thc ptbr. banks to pay in
spear a com menceCr the runs 1; have
already mentibned,---e banks of
Nnwbern and Cape xafvkner.they
should be obligedtbyietdSiftef pa
per money or their specirhese
runs,' 'and though they hao refuejf to
unite tneir stocx witn tne otaie
yet willing tp be on sucn terms ?6f
inenciiy jntercourse' as are usual a-
! rnpng banks'in June, 1S12, by letter
i to the president and Directors of the
i Stite Bank proposed, terms of inter
j course and offered to; deliver to them
immediately aU the paper currency and
to take any notes in paynlent, or e
ven tp credit tKem if they required it.
The reply of the State Bank to this
offer was; that the banks of Newbern
and.Cape Fear should pay them, the
paper money xuhen demjnded-VhK
exhange of notes mutually re
ceived should be made at stated pe
riods and the balance made in specie
-(Here Mr. tanly; read parts, of the
correspondence of. the Bdnks t6 this
effect.) This attempt at a treaty
failed. The State Bank continued
its runs, and was paid in paper money
to, about St40000. The' payments
in piper axoncy were therisusiienried,
and subsequent runs paid in State,
Bank notes, until, tOth (of October,
1812 when, finding the .'contest tin
profitable, its courage diluted by the
paper money payments, which lay as
dead capital on its hands, the Stafe
Bank magnanimposly proposed to
Come) terms, and a treaty was made
which the Bank of Newbern in its
corres pohden ceHas justly ..called not
an alliance of friendship buVa regula
tion of the mode of warfare.
s Since this treaty the b3nk,of New--bern
tendered tothe Newbern Branch
of thts State Bank in payment of its
notes, a sum of .paper which that
Branch refused torceiicvthcUs
nevertheless reserved tor them and
still Waits the'call ;of that branch,'
Nov, "Sir 'knowing aswe do, that
the State Bank is,not Ii3und, by the
actof 1 8 U to Jail jn the pape rr m -ney
Jintil December, 1817 WfftKthe
facts in proof that j die" 'paper money
was . offered to tbqni by the Other
banks as early a dy tSl andnot
actepted that what paper money
they have was therefore forced upon
the rnthat they have since refused
to receive a sum (l believe Vl 8,000
which to this day awaits theirtall -at
theBanltgf Newbern-and thtt'they
uniformly' refuse (to receivCiapjr
morieyeither in pay mentaorA x
Changefroni iridic toroaWht
shall we hipk ofthe canrJof opdeie
gentlemen who (extracted tnis
nevari nerfbrmance of a duty malte;a
ratrit of -baying done Boodytt
whinmgly complain of -'iitVdead
weight. Sir Iheir eumitynotieir I
W . . . -I J. - f '"tf
milA lAn Tn''thff flltnithmrnt Immimfl.'
I thev received it 34 aA;hlldci
(V
trtgny xA rirry feciV; They
avactco, ukc iowto jitnrapie
who piit te addle
to spite tli.l)
1 -The bbt.OTrwtlfth
caWsQtB
Capeeit?an$ exen "l
currency wi begn,;tssjte -7
fidgev In napinlob
if practicable Would jie;a ppbefiQ nosv
aniiniury.,toj5jate :,
Legislature f .'i J8 JiVex . rc rcsl iit l
to be clje iitb$J ;
Cmmitteje prid
of wbrti;-and :C0it0iiMf .j :
decmtfMpaiseT 9 oneyb1a the '
Ktamtermk andidmlnvtlsam f
redeera iaudrrtiUip
ther andlby' an
strict these Urmil , paf '
per rriotiey ,ia aa payment but to
. the -state. J.:- rt::'TiK V' - "
. rom jneidreaqptjtnta t
and iupnriebrsfrerjrt
uaoger tjuld im
tbiiched atiy.tbing tnit gold ajscj Eiryerj
or that th!oughv they .condesciEund tq
issue notes stamped on .baoer; tbev
yet can,pay gold aqd ailver fori thehi -
all at sight;;, Their practiced have
shewfi is fir otherwises Iiijthcse tj ,
Statesi the total and silver coin,
rtn the opinion, ol the ablest; statists;
does not exceed ten millions of idol
dollars. vUpon thtSiSpecie capital wt;
have banks in jher tl State! Twhose
capitals exceed fifty rpilh'ons'; & these
issue notes probably riot Ussj'than JOf '
yentr ft ye ImiUiopsi Thre isTkhp a
circuiting imediu
oi aouara oi paper money.wnicn tne re .
fc n Specie to' ' roe'ati? ' Ye
p laour affairs prairy ell without
iScier: ; Ahdtnia
bufsfter1 all th it thev -for: tKen "
selvejC H m no better asitoatioo as to
specif m&tm
which cannjJt.bny process be tarn
ebirttor csijt.-amoimot
stotk paid for; byrli subscx iber-iol 'I "
thpij 6w joot0ri
ed lrorri the bank aid!paymehta E
made m4 thepptes ofotlifor
theriwriie wacnd f
paylhe biaciduetbankf
and sir; rny life dpcihcbal
of s oecietits one thirS-esi Ithao) oni
third jqf their capltalir Look at anoii
Thev divide $ bet cent on
S5 1 9fYlimn nrnjitinttrtir ia 60
:and:theayext
j ; lieatof ieven- 6HSt bt
less'thai
-"VI
wnrn spews jneir aan
rciceipts tcibe at least
gsi;coo
Of this sum the itate paya
in intertat on 164,00(
. atf perlcent - . '
To, raisejthe balance rt'.
it
6,560
8 I.Z&ISAAJ OQIIS4 (O
be on intcfest at a pet cen.S
R81ib00
HoWhaVt they nntthis g24nddr :
qn-intefest Bby;letidibg;;5;thfir bbtea
tthatarnbuti whichr
p nn' we owe tfo t heir holders. ! The re
la inai ine wu h9
fa debt Of at least 1.241,000 tj that one'
foprthf-ibKisJcapUal i
face idebt anditallprb
money jt ha 1 tbpiy itaf deblta Is buje
thirdf;tbe sdfebtjiitw A Isat
thus sVtbatie( ls xble: for reiqrt
ing to' aStvfccsi to 'idnret, -rf
theif-nrjte;So
kin& alean dlsiideni of five rco:
-Nor jitheicd
hanks to be jv0derta ati r 1 ;v
iijo deterjirom:
doing .what's
both iut and rT'oniab
cinthiivbusf?
tidss. w.e are towlfnpl
ereiUMr,
5rftbur.
eetettk-vw
r sic with
fronxtutf treasamtptdm k
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