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Tarborough, (Edgecombe County, X. C) Friday, May 23, 1834.
Vol. XXo 3G.
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From the Globp.
SPEECH OF MR. HALL, OF N. C.
In the House of Representatives', on Monday,
2Sth April, 1834, upon the subject of the Depo
sitee and rcchartering the United States Hank,
as presented in sundry memorials and r solu
tions from his constituents, previously laid be
fore the House of Representatives.
Mr. Speakei: May ! be permitted to say ami I do it
with the must mine lespect for this House that in rising on
the present occasion, it is more to address a Tew remarks to
mv constituents through it, than to address the House itself.
Am 1 wrong in making this candid acknowledgment? I hope
7 shall not he misunderstood. I repeat, that it is from a feel
m the very reverse of disrepect. Sir.no one can suspect
ine of having the vanity to imagine, that any thing I can say
at this late hour, tipon so hackneyed a subject, will be listen
ed to with any feeling but that of lassitude and disgust. A
subject, which, to use a miller's phrase, has been for the last
Vour or five months ground over and over aain, and bolted
r.nd rebolted down to the very bran. Sir, I have no such
vnnbv. In regard to this protracted war which ha been so
long raging between the Federal Government here, and the
"real paper money government in Philadelphia, so far as it is
a mere political party war, I wi.-h to be understood, that
wiih it a such. 1 have nothing to do.
If it be in anv degree a mere game of political pugilism
between the various politic! parties for precedence, that so
fir as it is. such a game, I do not feel bound to play the part
of bottle holder to Cribb, Molineux, or Belcher. But sir,
there are oilier elements entering into this contest, of a differ
ent and ranch higher character, which impel me to take part
in it. I have, from principle, always been opposed to the
w hole paper money system, of which the United States Bank
is the central machine, acting upon and controlling the whole.
I am opposed to the tank upon constitutional grounds, and
because I think it not only inexpedient, but at war with the
principles of our institutions, and ihe true interests of the
People. An J here permit me to jay, that with I he views end
feelings, as well as the principles, which I entertain on the
subject, had I pursued any other course than the one which 1
have pursued, I should have been a traitor ro my principles,
lomy understanding, to my constituents, and to the institu
tions of mv country. Sir, I shall commit no such treason.
I will not adhere to the enemy, giving him aid or comfort.
In saying this sir, ! speak only tor myself, and of myself.
Let it not be supposed that t mean to reflect, in the slightest
degree, upon others: they have, their views and opinions as
rules of action; they have as mnch right to them as I have to
mine; and I am bound to respect them as being as sincere
and upright. With the motives of others, as with their
creeps, 1 have nothing to do; they rest between man and his
Maker. And w ho has made we the searcher of the heart ol
my fellow man? I claim no such prerogative. It is not my
yurpoc to examine more that a single point of the a'gu
ment in nation to the depositee, because it is entirely unue
ressarv that is, the nature of the power and functions of the
Secretary of the Treasury whether they be legislative, exe
cutive, or judicial. Upon this point there appears to me to be
a most strangf hallucination prevailing. I say to those who
admit the legality, the constitutionality of the Bank charier,
that they are utterly estoped from charging illegality or un
cnsti!tiiionality upon the act of the executive officers of the
(Jovernmrnt in relation to the deposites. The argument is,
that the charter is a contract Let it be so, sir, but it
it is a contract, n legal and valid contract, it is also
a law of Congress. All contracts are either executed or
executory. Everv condition of any contract is a part ol the
contract. In the execution of the contiact in this case, or n
iy part of it, the laic is executed; becaue the contract in all
its parts is the law. Sir, is this law? Is it logic? I will say it
is sound sense, and that is v hac both Jaw and logic ought to
be. One of the cond tions of that part of the contract con
taiued in the sixteenth section is, that the Secretary has a
discretionary authority in J'uluro -a power in abeyance, lo
be exercised upon rettnin contingent circumstances, of which
he is to judge when they occur. The condition isexecutory
and discretionary. This very condition is itself a part of the
contract is is therefore a part of (he law to execute it is to
execute the law. In this sense the Secretary is no more the
agent of Congress than he is of l he Bank. It he is the agent
of one, ho is the agent of the other, if to execute a contract
between them, which is itself the law, constitutes him an
agent of either, it does of both. If he is, therefore, under the
control of one, by parity of reasoning he is under the control
of the other, each in this case being bis principal. But he is
not the agent of the one or of the other. He is no more a
legislative agent than any other Executive officer who exe
cutes t'.ie law. In executing this law, he is but an executive
instrument, carrying into effect a part of that executive pow
er, all of which ha been vested by the constitution, and not
by Congress, in the executive deparlment ofjhe Government,
w ith the Executive Maitrte hcaoo which all hs
parts, as such, are subordinate. To execui e the laws, is
that very function r power cf which the KrctfuHpe power
consists, and whirh the constitution in so many words vestf'm
fne rresilrntwUt-n- t say, the President, the Executfce Yla
iMS'rate, I do not mean Andrew Jackson, more lhan any oth
er individual incumbent I speak of that public functionary,
which the constitution ha made and inverted with the appro
pi hie anlhoiity of seeing that ihe laws be faithfully executed.
'I be Secretary, therefore, in this act, not only dicharged an
executive function, but must have done so as the ministerial
or sub-tgent of the President. Executive officers are not le
gisbuive agents in the sense that the word agent applies
ttie subordinate of a principal. If the Secretary was a legisla
tive agent it his functions were legislative and not execu
tivi lie would pass laws, instead of executing them. If
Congress had attempted to give him any such power, the act
would h ive been uncon-titutional and void. So, if Congress
bail undertaken to vest any other power. Legislative, Judi
cial, or Executive, differently from that dUtrihution which
toe constitution has made and ordered, it would have been
void In aid of my argument, let me refer to an authority
w hich has been invoked bv others on the opposite side of the
question. Mr. Speaker, it is very well lo be able to go to the
very same source for aid in sustaining myself in this case, to
which those on ih othpr side have appealed And here 1
take leave to say, that this very decision in the case of Mar
bury vs. Madison, that the reasoning in this case is precisely
the thing which I would invoke, to illustrate and enforce my
own reasoning on the subject. Sir, I say to those about trie,
if they will permit me Id call their attention, I will iiwite
them to an intellectual banquet of no ordinary character, if,
in reading to them a portion ol the opinion of the court. I
may induce them tore;. ihe whole of an argument which is
so strictly and directly applicable to this case, that all thev
will have to do, will be merely lo change a word or two, and
me jaie win be told of this instead ol the other. Lei the rea
soning be of or concerning the Executive, or Legislative De
partment of power, it will be equally as beautiful, lucid, and
cogent, as it is, applied to the judicial. In this case the court
declared a part of tlie 13th section of tlie judicial act uncon
stitutional, because Congress bad altered lhat distribution o
judicial power made in the second section of the third article
of Ihe constitution.
'I he principle and the course of reasoning, as I have said,
will be strictly applicable to the other powers vested by the
constitution. The Court says 44 1 he constitution vests the
whole Judicial power ot the U. States in one Supieme Court,
and such inferior courts as Congress niHy, form time to lime,
ordain and establish," The Court, in another paragraph,
says "If it had been intended to leave il in the discretion o(
the Legislature to apportion the judicial powers between the
Supreme and inferior courts, according to the will of that
body, it would certainly have been useless to have proceeded
further than to have dt fined the judicial power, and the tri
bunals in w hich it should have been vested. If Congress re
main at liberty to give this Court appellate jurisdiction where
the constitution has declared their jurisdiction shall be origin
al, and original jurisdiction where the constitution has de
dared it shall be appellate, the distribution of jurisdiction
made in the constitution is form without substance. That
the People have an original right to establish, for their fu
ture government, such principles as, in their opinion, shall
most conduce to their own happiness, is the basis on which
the whol.- American fabric has been erected. 'Ihe exercise
of this oiiginal right is a very great exertion; nor can it, nor
ought it, to be frequently repeated. The principles, there
tore, so established, are deemed fundamental. And as the
authority from which they proceed is supreme, and can sel
dom act, they are designed to be permanent. This original
and supreme will organizes the Government, and assigns to
differtnt departments their respective powers. It may either
stop here, or establish certain limits not to be transcended by
those departments. The Government of the United States is
of the latter description. The powers of the legislature are
defined a.mi limited; and that those limits may not be mistaken
oi forgotten, the constitution is written. To what purpoe
are powers limited, and to what purpose is that limitation
committed to writing, if these limits may, at any time, be
transcended by those intended lo be restrained? The distinc
tion between a government with limited nnd unlimited pow
ers is abolished, if those limits do not confine the persons on
whom they are imposed, and if acts prohibited and acts al
lowed, are of equal obligation. It is a proposition too plain
to be contested, that the constitution controls any legislative
act repugnant to it; or that the legislature may alter tiie con
stitution by an ordinary act. Between these alternatives
there is no middle ground. The constitution is either a su
perior, pat amount law, unchangeable by ordinary means, or
it is on a level with ordinary legislative acts; and like other
acts, is alterable, when the legi?latuie shall please to alrer it.
If the former pait of the alternative be true, then a legislative
act contrary to the constitution, is not law. If the latter part
be true, then written constitutions are absurd attempts on the
part of the People, to limit a power, in its own nature illimita
ble. Certainly all those who have framed written constitu
tions, contemplate them as forming the fundamental ami par
amount law of the nation: and consequently, the theory of
every such government must be, that an act of the legisla
ture repugnant to the constitution is void.' Mr. Speaker, I
have only read such portions of this mass of profound rea
soning, as seemed more immediately required; but have, from
its great length, been compelled to omit much, well woithy
the attention of every member of this House. The principle
carried out and entorced is, lhat the legislative department
of the Government, in its appropriate action, cannot alter, in
any degree, that distribution of power, whatever it may be,
which has been made by the constitution. "J his case of Mar
bur v vs. Madison, i not the only instance in which the Su
preme Court have enforced this principle. In 1792 an act
passed, directing the Secretary of War to place on the pen
sion list such disabled oClcers and soldiers as should be repor
ted to him by the Circuit Court; which act, o far as the duty
was imposed on Ihe Courts, was deemed unconstitutional.
The erior here was a dislocation of power, not consonant
with the principles cf the constitution. This was also the
principle in a recent case, in which an executive department
was supposed to be charged with the exercise of a function
properly, in its nature, belonging to the judicial department
ot the GoveruineiM. And I undertake to say, that theie are
now on your statute book many other acts, or parts of acts,
w hich, if fairly brought belore the Court, would be found lo
be liable to the same constitutional disability. It is a funda
mental principle in our political institutions, that not only the
different departments ofthc Government should be kept sep
arate and distinct in their appropriate action, but that tnr
Federal and Slate Governments themselves have their appro
pi iate spheres of action, separate and distinct from eacli oth
er. Does not every one see, that if the executive, the judi
cial, and the legislative departments are fused or intermin
gled, that the genius of the Government is changed; lhat in
stead of a Government of three centres, acting as mutual and
salutary checks on each other, you unite the Executive, the
Legislative, and Judicial into one, which is the very defini
tion of despotism. But, sir, to return to the Secietary and
the sixteenth section of the Bank charter. We have seen
that, in executing the condition in relation to the deposies, he
performed only a discretionary power given by the law itself
as a part of it. There still remained another condition, an
imperative condition, after having rcmored the deposites,
which was, that he should give his reasons for so doing.
This he has done as the law required, and having executed
this part of the law, he was fundus officio quoad hoc. Can
any one who says that Ihe law by which the Bank exists,
being constitutional, that the act of the Executive officer, in
executing any part of that, in pursuance of the very require
ments oAhe law itself, is illegal, is unconstitutional. Most
evidently all they have to dispute about is, as to the proprie
ty, or impropriety the expediency, or inexpediency, of the
act. This is some ground for difference of opinion; but it is
mere matter of opinion.
But let us look a little fnrlher into this matter of the func
tion of the fiscal officers of the covernment. I undertake to
say that everv fiscal officer or agent who is legally and con
stitutionally "su.li, is, ex vl termini, an Executive officer or
agent. I say this of every fiscal agent, from the hend of the
'treasury Department down to the mcst inconsiderable sub
agent concerned in any way in executing the laws in relation
to the collection, safe keeping and disbursing the revenue.
So far, I say, as any gent is a fiscal agent, agreeably to the
law and the constitution, he is precisely thus far an executive
agent for that very reason; and the Bank of the United States
itself, if constitutionally by the charter a fiscal agent, then so
far as it was legally such, and aided and abetted in carrying
into effect the laws in regard to revenue and financial opera
lions, that it was not only an Executive agent, but it was a
subordinate agent to a subordinate Executive officer, and
placed in this relation by the very law itself. Sir, it does ex
cite my most special wonder, that a fact as plain as the nose
on a nian's face should so wholly have escaped all who have
spoken on the subject. Who will deny this? Sir, I put the
proof upon hiin. What says the 15th fundamental rule
this part of the fundamental law the charter of lhat body
politic? Why, sir, it may be rather humiliating to its high
standing, but such is the fact; this rule says: "The officer at
the head ofthe Treasury Department of the United States
shall be furnished from time to lime, as often as he may require
not exceeding once a week, with statements of the amount of
capital stock'of the said corporation, and of the debts due lo
the same: ofthe moneys deposited therein; of the notes in
circulation, and the specie in hand, and shall have a right to
inspect such general accounts in the books of the Bank, as
shall relate to the above statement. The 15th section is to
tl'is effect: "That during the continuance of this act. and
whenever required by the Secretary ofthe Treasury, the said
corporation shall give the necessary facilities for transferring
the public funds from place to place, within the United States,
or tiie Territories thereof, and for distributing the same in
payment of the public creditors, without charging commis
sions, or claiming allowance on account of difference of ex
change, and shall also do and perform the several and re
spective duties of the Commissioner of loans for the several
States, or of any one or more of them, w believer tequired by
law." The fifteenth fundamental rule, with the l-"th and lG'h
sections, prove undeniably, that the Bank, as a fiscal agent,
is subordinate, and made responsible to the Secretary ofthe
Treasury, who is himself but the subordinate of tiie Execu
tive head. This must necessarily be so with every officer
or agent, of every description, legally managing or control
ing, in any manner, the fiscal operations of the Government.
And I undertake to say, that the terra, that Congress can con.
stitutionally make any laws, rules, or regulations, of or con
cetning the collection, safe-keeping, disbursing, or controll
ing the pub'ic revenue, without the execution of these laws,
nppropi iately belonging to the Executive department ofthe
Government, is, from Ihe very structure of our Government,
as manifested in the constitution, wholly erroneous and delu
sive. And the most uninformed must perceive, that so far as
this execution of all Ihese laws necessarily gives control over
the revenue, that thus far the legal control, in the collection,
keeping, and disbursement, is of necessity in the Executive.
When I say Executive, I do not uiean the mere man I do
not mean that Andrew Jackson or any other President for
the time being', is to take the public treasury into his private
personal possession lo put il into his breeches pocket, or in
anyway control or use il for any other purposes than tire
law directs none but the most uninformed can believe this.
And, Mr. Speaker, as I am now, by permission of the House,
speaking to my constituents, I will take leave to say, thai the
President of ihe United S'ates has now no more personal con
trol or custody of ihe public money than he bad before the
discontinuance of the dijiosites in the United States Bank,
and that he can not finger even a quarter of a dollar of his
own 'py without the very same permission nnd action ofthe
law by which be has alwats rtcctved it. And tins, sir, you
know, and so does every man within the sound of my voice,
ami as every man ought to know, juntas well as vou know
you sit in that chair.
But, sir, a word or two about Executive usurpation, Lxec
utue patronage, tyranny, and despotism, ice. &ic. Why,
sir, I was never very violently affected with Jacksonism.
My Jacksonism has been rather of a mild, placid character
not noi-v scarcely to be noticed, except when Jacksonism
happened to coincide with Hallism on p blic measures. We
sometimes differ, as you know; but yet let me do mere jus
ice, as indeed, nnd in duty I should, to all. As to usurp
ing tiie powers of the other Departments, as to the vast pat
ronage exercised by the Executive, what is the fact? The his
tory of his admini-italion shows that from the commence
ment, he has the gi eater part ofthe time beeji in a decided
minority on mot measures in both Houses, until the present
session. And who does not know that a very large part of
that very patronage, Rnd that vat expenditure out of which
it originates, grows out of the legislation of Congress. The
Executive power, though co-ordinate, is secondary and con-
Sfquenttal lo the Legislative. Everv extension of Legislative
porter necessarily gives a commensurate extension of Execu
tive power. When Congress so legislates as to put large
masses of expenditure as a duty upon the Executive, is he not
from necessity compelled to employ subordinates to aid in
cat r ing these laws into effect? And thus he is compelled to
exercise, whether he will or not, a vast patronage, that I can
not see bow any wise man couid ever desire. Who passed
the pension system, with all its patronage of agents, clerks,
bureaus, &ic? Who passed the tariff, with all its increase of
revenue officer, clerks, collectors, inspectors, &c? Who
passed that beautiful system of internal improvement, with
all its engineering nd supervising, Sic. which require aids
and assistants, all of w hom are subordinate Executive officers?
Could the Executive pass these laws? Could he but in one
way even attempt to stop their being passed? We all know
w hat odour the ve'o is in. But let me be just to all. So far
BSlht Executive ha, in these instances given sanction to
them, so far he has been particeps criminis; but common jus
tice ought to give him no more than his share. Put down all
these unnecessary sources of expense and patronage. This
can be done il' we will all join with right good will, at least so
far as very materially to reform the Government. I am for
reform.
Air. Speaker: I said, in the commencement of my remarks,
that I had always been opposed to the paper money banking
sj'stem, as it exists in this country. This fias been generally
known to all who have known me; yet, sir, I shall probably
be blamed for not altering tny course a thing which my con
stituents know I am not apt to do, in public matters. 1 shall
regiet this, if so it be; but must, if suc h be the case, content
myself wiili saying
"' t is nt in mortnls to command success;
But do you more, Semproniu?, don't deserve it:
And, take my word for if, you'll not have any less.
Watch the time, and always serve it;
Give gentle way when tbete's too great a press;
And, for your conscience, only learn to nerve it;
Tor it wiil, if well tiied, like a racer training,
Learn to bear much, w ilhuut paining.''
I have said that I w :i opposed to our sytem of banking,
upon constitutional grounds, and because I was, also, as mat
ter of expediency, opposed to Ihe paper money system. I
propose presenting some views upon both these points, and
will first advert to the latter branch. I think that when, as
is the case at present, 1 have it in my power to present my
views, expressed by another, better than I could hope to do
it myself, it is best to avail myself of such aid, and, in the
present case, 1 will pursue that course. I propose to read
from an elementary woik, by a celebrated Frenchman, who,
I believe, at the time of its writing, was a member of the
French Legislature, a hort,but comprehensive, and, 1 think
I may say, universal history of paper money; whether issued
directly by the (iovernment, or indirectly by corporations
authorized by Government. The w ork from which I shall
read is Tracy's Political Economy. He says:
"Paper, like every thinj else, has no necessary value but
lhat which if has rnst to fabricate it; and no market value, but
its pt ice in trie shop, as pnper. W hen I hold a note, or an
obligation of any kind, of a solvent person, to pay me at sight
an hundred ounces of silver, (or goidj this paper has only
the real vidue of a piece of paper. It has not that of the hun
dred ounces of silver which il promises me. It is for me on
ly the sign that I shall receive these hundred ounces of silver
when 1 wish; in tru'h, when this sign is of an indubitable cer
tainty, I am not anxious about realizing it. I may even,
without taking this trouble, pass il by areenvnt to another
person, who will be equally tranquil with myself, and who
may even prefer the sign to the thing signified; because it is
lighter and more portable. We have not yet, either the one
or theofher, any real value, ((count for nothing that of the
piece of pnper.j but we are as sure of having it w hen we wish,
as with the money e are sure of having a dinner when we
shall be hungry. It is this that induces both to sy, that this
paper is the same thing as silver. Rut this is not exact; ''''
the paper only promises and the silver alone, is the value it
self. Proceeding on this equivoque, the Government comes
and says, you all agree, that ttie paper is equal to silver.
The function of the Marshal has bpen considered a be
in on'y ministerial t the Court. To some extent, this is
Iriie. While waitini on ihr Court in attendance, he is strict
ly ministerial; but in executing the decisions of theCourt, be is
executing the ih these decisions being only the explication
Mine, for a much stonger reason, should have the same prep,
erly, for I am richer than any individual; and moreover, you
agree that it is my impression alone which gives to silver
(or gold; the quality of being the sign of all values; my sig
nature communicates to this paper the same virtue. Thus
it is in all respects a real money. By a surplus of precau
tion, they do not want inventions to prove that the paper a
bout to be emitted really represents immense values. It is
hypothecated, sometimes on a considerable ;naniity of na
tional domains; sometimes on the profits ot a commercial
company, which are to have prodigious success, (like th
South Sea;) sometimes on a sinking fund, (well understood
in England, which cannot fail to produce marvellous effects;
sometimes on all these together, urged by argument so solid,
all who hope that this operation will enable the Government
t.-i grant them gy5, and all its actual creditors, who fcnr
hai wiihonl this they will not be paid at aH who hope to
have this paper among the first, and to pass it away very
soon, before it is discredited; and who moreover, calculating
that if they lose something by if, thep may amply indemnify
themselves by subsequent affairs do not fail to say they are
fully convinced that the paper is excellent; that it is an ad
mirable invention, which will secure Ihe safety of the State:
mat they are all ready to take it; that they like it as well as
silver for goli;) that their only embarrassment would be, if
they should meet with persons stubborn and distrustful, as
there always will be, who would not be willing to receive it,
that lo prevent this inconvenience it will be necessary to com
pel every body to do as they do, and that then all difficulties
ill have vanished. The public itself prejudiced by so ma
ny sr phisms, which have such numerous supporters at first
relishes the measure, then desires it, and persuades itself
that one n.ust be absurd or evil minded not to approve it.
I bus they make a real paper money, that is to say, a paper
which every one has a right to give, and is obliged to take as
good money; and it is not perceived that it is precisely the
force they employ to render this paper belter, which radical
ly vitiates it. Afterwards the Government uses the same
means for its ordinary expenses. It observes necessarily less
economy, conscious ot resources always ready. It embarks
in enterprises either of war, politics, or administration, of
winch it would not have dared lo think, knowing well that
without this facility they would surpass its abilities. The pa
per is then greatly multiplied. The contractors for the Gov
ernment are the first to say that all things have grown very
dear, that they must have much higher prices. They are
careful not to avow, that it is because a promise is not silver,
(or gold,) nnd that the (paper) promise begins to appear
doubtful. They attribute this fad, at which they appear sur
prised, to a momentary incumbrance, which it will be easy to
remove by slackening all payments except their own; to the
intrigues of a party of malcontents, which should be suppres
sed, i:c. Uc. It is impossible not to yield to such good rea
sons, tind, above all, to necessity. Theexpences are there
fore augmented considerably, and the paper likewise. Peo
ple receive it still, because they are forced; but every one de
mands much more of it for the same thing. Soon nn acknow
ledged and known proportion is established between paper
and silver, (hard money.) It becomes disadvantageous to the
paper, salaries are augmented, particularly those of the offi
cers of Government, which is by so much the more burthen
ed; others suffer horribly. Government already experiences
the same loss in its imposts that individuals do in their annui
ties, (income.) It is embarrassed; it creates more paper; the
difference between paper end silver (or gold) increases; no
one ventures to give any credit, or make any loan; business
is interrupted; soon the daily transactions which require ev-.
en small amounts of money cease for a hundred francs in
paper would he given for one in silver; and for the same rea
son, if you owe twelve francs, no one would give you change
on a note of a hundred. They attempt to remedy the evil by
issuing small notes; all their gold and silver money disap
pears. You see not a crown, (here nothing but some half
dollars,) soon there is no necessity for small notes the lar
gest having no value. We have seen three thousand livrcs
paid for a pair of shoes. Then the Government increases
the denomination of its paper, as If it could increase its value.
Thus in France, towards the last existence of paper money,
the Government made mandats, which were nothing bnt a
siguats (notes) of n new form, till at length a note of any de
nomination had not the real value of the piece of paper on
which it was written, and would have been worth more if
blank. In vain may it be said paper money may be used
without being abused to this excess; the experience of the
world proves the contrary. Let us conclude that paper mo
ney is the most culpable, and most fatal, of all fraudulent
bankruptcies."
What 1 have read, sir, is the history of paper money di
rectly isued by the Government; now let us see what the au
thor says of the indirect issues by Banks, after our fashion.
Our forefathers tried the one, we are in n fair way to try the
other, even h second time. After speaking of bankers, bro
kers, &c. he 6ays: "All these bankers, exchangers, agents,,
lenders, discounters, at least the richest and most accredited
of them, have n strong tendency to unite themselves in large
companies. Their ordinary pretext is, that transacting thus,
much more business, they may be content with smaller pro
fit, and perJorm all the services on much better terms. The
truth is, that on Ihe contrary, they wish, by getting Into their
own hands most all the business, to avoid competition, and
make greater profits. Government, on their part, are much
disposed to favor the establishment of these large companies,
and give them privileges to the detriment of others, and of
the public, with expectation of receiving from them loans, Stc.
either gratuitous or at low rates. But these companies are
ot much greater inconvenience. They emit bills payable at
sight, bearing no interest, which thoy give for ready money.
All those who depend on them, or are connected with them,
take fbeir notes with eagerness nnd offer them to others.
The public having confidence in their solvency, receive them
willingly, as very convenient. Thus they spread with facUf-.
ty, and are multiplied extensively; the company reaps in this
an enormptis gain, because the whole sum represented by
these bills has cost nothing but the fabrication of 'Us paper
and yields a profit as ready money. But soon the govern
ment which has created it but for this purpose, asks loans
to satisfy this demand it creates an excessive quantity of new
notes, delivers them to the government, the circulation is
overdone with them; inqnietude follows, every one wishes tp
realize them. It is evidently impossible, unless the govern
ment repays what it has borrowed; this it does not. The
company asks to be authorized lo suspend paymeqt 0f their
notes, and to give them freer circulation. It obtains its re
quest, and society finds itself in the full tide of paper money.
of which we have seen the consequences. Thus the Bank of
discount produced the assignats in Fiance. It is thus the
Bi.nkof London brought England to a similar state. It is
thus all privileged companies end they are radically vicious.
It would be easy to shew that were these great machines so
sophisticated as not to produce the horrible danger we have
just described, the advantages promised by thein would he
illusory or very tnconsiaeraoie, ana couM sua out very utile
to the mass of national industry and wealth." We here have
the history of paper money, both direct and indirect, com
ing, as alwas must be the case, sooner or later, to nearly
the same result. It is in vain to say that the people are in
this countiy not bound to take their notes we see the fact;
that they can take nothing else. Yon see not an eagle, or half
or quarter eagle, nor a dollar; and if they would issue notes
of 50 and 25 cents, you would not see a half or quarter dol
lar. 1 ou might f.s well say to your prisoner in jail, with no
thing but tead and water, that you did not compel him to use
them, but he should have nothing else. The fact speaks plain.
Paper and metal of the same denominations will not circulate
long in the same place. Banking proper the mere exchang
ing nnd transmitting money from, place to place, is a mercan
tile instrument. Confined lo its appropriate function, it can
nnd application ot the law to particular facts and cases, pre-1 never vitiate the circulating medium, banks of deposite and
paratory to its execution. He also performs fiscal functions, exchange require not the interference of the Legislature,
In the collefiio-i of the revenue, his functions are in some an interposition, asked only I o grant some privileges, in efTcct
decree both executive and ministerial. Judicial jurisdiction denied to others. Tfcese Banks, with bills of exchange,
issuing what 'he law is. and as sn-h he execute 'drafts, thf! evidences of cnosires, Sec. and the prirarc credit