Newspaper of Burlington Free Press, April 20, 1838, Page 1

Newspaper of Burlington Free Press dated April 20, 1838 Page 1
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ammrlrrmmmimrmmmmmtmmmmmmnmmmmmmmmmm imwimjwiiiu i 'W wimiiiiw " ' in n j wi. illjm ui iiiiwim NOT T II U GLORY OF C Ai 8 A It' n V T THE WELFARE OF ROME BY II. B. ST ACT. FBBBAY, APSOIy 210, ft 838. .rjaiammrmm-; rn"'1 ' mm minimum hup M n . V K B 3 T 13 It S S P B ECU. continued. Pew nf us. iMr. Presid- nt, ore nworc of what would bo the amount of the general production of the country, if it could bo oc cnrotely ascertained. The Legislature of Massachusetts, under tho recommendation of the intelligent Chief Magistrate of t lint State, lias cnVod to be prepared and pub lished o report on thu condition and pro ducts of curtain branches of its industry, for the year ending in April, 11137. The returns of the authorities of each city mid town were made, apparently, with much care; nnd the whole has been collated by tho Secrctoy orState. and tho result din tiuctlv presented in well-orungcd statisti cal tu'blcs. From a summary ol the siato tnents in these tables, I will lake the liber jy 'of selecting n ,uW nrlicles, nnd of nd vertinc in them here, as m.-lancos, or spe cimens, ol tho annual product of labor and imliiitrv in tlut Si Mo. Apr! m bocin with a vory necessary and imnr.rinnt article. I find, that of boots and times, the value of the whole amount imniifiirtured within the year exceeds lour. , miliums nnd n half of dollars. If the mm,iit of oilier articles of the same class, or material, be added, viz. leather, saddles, trunks harnesses, &c..thc total will be not far from eighteen millions and a half of dollars. I will read the names of some other ar tides, and slate the amount of annual pro wt holtinc'tug to each : n.utn fabrics gl7.409.000 Woollen fabrics 10.399,000 T-islienes 7 50'2 000 Books and stationery, and paper 2,59'. 000 I.U.'U.UUU 2,500.000 1,235.000 01a 000 031.000 700,000 ' 2,013.000 538,000 The grand to cil is million seven hundred thousand dollars. From this, however deductions arc to be made for the cost of the raw material when imported, and lor pprinm articles enumerated under dillereut heads. But, then, the whole statement is confined to sima branches of industry only jresiJil ao entire and comprehensive Snan and candles Nnils, brads, ond tacks Machinery of various kinds Agricultural implements Glass Hats Clothing, nccklolhs, &c. Wool These, sir, are samples, nnd tn an l,iw' lrc should be added the gains of commerce within the year, the earnings o navigation, and almost the whulo ngricul inrnl product of the Stale. Tho result of all, if it could bo collated ond exhibited together, would show that the annual product of Massachusetts capi ml nod Massachusetts industry exceed one hundred millmna'nf dollars. Now, sir M.uenr.liii'.Gtis i a small State, in extent of irrritorv. You may mark out her di pensions seven or eight limes on tho map ofVirginia. Yet her population is seven hundred thousand souls: and tho annual result of their laborious industry, economy and labor, is us 1 have slated. Mr. President, in looking over this re toll, it is most gratifying to find, that its treat mass consists in articles equally cs ifnunl nd useful to all classes. They are tVu luxuries, but necessaries and comforts. 'fllf.V biMOIinr to loon anu cunning, K tui,:p in d conven piich'h, oim ciiuuiuiun s thov are more nno more miiliiplied, ill e&t majority of society becomes more el aled, better instructed, and happier in all ipsnrets. 1 nave iookcu mroiign nil hhole 1 ist . 6ir, to find what there is in Imt miiTbt be fairlv classed among th lirrher luxuries of life; and what do I find In tho whole Iiundred millions, I find but bnc such item ; ond that is on item of two hr throe hundred thousand dollars for Howelrv. silver, and silver plate." 'Thi Is all that belongs to luxury, in her annual product, ofa hundred millions; ond ol tin, ho doubt, the far greater portion was sent Ihroad. And vet we hear daily, sir, of the Imossing of arit-tncrattc wealth, by the jrogress of manufactures, nnd the opera ions nf tho credit system ! Aristocracy, i 6 said, is stealing upon us, nnd, in tho form If aggregate wealth, is watching to seize koliiical power from the hands of the Pco- Mp! We have been more than once fcravoly admonished that, in order to im brove the times! and restore a metallic cur jency for the benefit of the poor, iho rich light to melt down tneir pinic ; vinnev reuch a meliiog process might find to act Inon elsewhere, Mr President, I assure fou thai in Mas-achusetts it would discov tittle. A few spoons, candlenlicHs, am; Lther similar articles), some old family hitchers and tankards, and tho silver por- Hnerx of our nurseries, would be about t lie whole. J Sir, if there bo any aristocrats in Massa Hinsctts. tho People nro nil artr'ocrals because I do not believe there is on earth In a highly civilized society, a grealc tqunlttv in the condition oi men. inan exi here. ' If there be n man in die Stato w maintains what is called an equippago, Hriupii four hores in his coach, I am acquainted with him. On the other hand, there arc few who nre not able to carry 'their wives and daughters to church in eome decent conveyance. .It is no matter of regret or sorrow to us that fow aro very rich; but it is our pride and glory that few are very poor. It is our still higher pride, and our just boast, as I think, that all her Wizens possess means of intelligence and education; and that, or all her productions, bIio reckons, among the very chiofest, those which Bpring from the culture of tho mind md tho heart. ' , Mr. PresVIent, one of the most striking ,i,nrnninriRil- nfthis ana is the cxtraor nnrv DWss wincn u una wiuhwbu nowl nnUr UnoTvledire. A new and powerful mpulso'liBB been acting in the social sys em of laic, producing this effect in a strik- nc degree. ', n. , t i:,: n .) In I Inrntnrn. I clip IB. in morale, in ijuiiiu.o, i mi - there is n vast accession to the number of renders, nnd to the number of proficients. The present Mala nf popular knowledge- is not l he result of a slow and uuilorm pro gross, proccodingjllifough n lapse of years, with the samu regular degree ot motion. II evidently the result of some new causes. brought into puwerlul action, and producing their consequences rapidly nnd strikingly. What, sir, ar" these causes? This is not nn occasion, sir, fur discus sing such a question at length; allow me say, however, that the imnroved slnlo ol pillar knowledge is but the necessary re suit of tho improved condition of the great mass of the People. Knowledge is not one our merely physical wnnts. Lite may bo sustained without it. But, in order to live, men must bo led, nnd clothed, nnd hollered ; and in a slnto of things in which one's whole labor can do no more than pro euro clothes, food, and shelter, he can nvo no I ime nor menus for menial im provement. Knowledirc, thereloro. is not attained, nnd cannot bo attained, till there some degree nf respite from dally mauu toil, nnd never ending drudgery. But whenever n less decree of lobnr will pro duco tho nbsolulo necessaries of life, then there come leisure and means, both to tench and to lenrn. But if this grcnt nnd wonderful oxtcnion of popular knowledge be th& result of nn improved condition, it mnv, in the next nee, well be asked, what are tho cause which have thus suddenly produced that great improvement ? How is It that tin mentis of lond, clothing and shelter, arc mnv so much more cheaply nnd abundantly procured than formerly? Sir, the mam cause I lake lobe tho progress of scientific art. or n now extent of the npphcntioo ol cience to nrt. This it is, which ha much distinguished the lasthalf century in Europe mid in America; and its eflects arc verywhere viMble, nnd especially among us. :inn uas mono new allies ami uuxn iancs in the powers of Nature, and in tin inventions of mcchnnisin. The general doctrine of political econo my is, dial wcaltli consists in whatever i useful or convenient to man, and that labor is the producing cause, of all this wealth. This is very true But, then, what labor? In the sense of political writers. and m common language, it means human in'diu-try ; but, in a philosophical view, il may receive a much more comprehensive meaning. It is not, in that view, human toil only the mere action of thews and muscles; but it is any active agency which working upon the materials with which the world is supplied, brings forth product: elul or convenient to man. 1 he male rinls of wealth nre in the en rib, in the sea and in their natural ami unaided productions jnbor obtains them, works upon them, and fiiyfnnns them to human n-e. Now, it ha been the object nf scientific art, or of the pplicntion of ccience to art, In increase this active ngency, to augment its power creating millions of laborers in th form of antprnntic machines, nil to be dill gently employed, nnd kept nt work by the force ol natural powers. I o this end these natural powers, principally those of steam nnd lalling water, are sii'jjidiz-'d and taknii lulu liimn n employment. Spinning ma climes, power-lo'oms, and all the mechaui cal devices, acting. among other operatives in the factories ond workshops, nre but so many laborers. J hey nro usually deonio inat'ed labor-iawng- midlines, but it wool oo more jusi id can mom uour roiri"- ma chines. I hey aro made to be active ngents; to have motion, and to produce effect.; and though without intelligorici they are guided by those laws of scienci which aro exact and perfect, anil lliey pro duce resultj, therefore, in general, more accurate than I lie human hand is capabl of producing. When we look upon one of these, we behold a mote tellow-iuborer, ol immense- power, of mathematical exactness nnd of ever durmg and unwearied ell irt. And wliik ho is thus a most skilful nnd productive inborer, ho is a non consumer nt lit, beyond the wants of ins tnechini cal being. He is not clamorous for food, raiment, or shelter, nnd makes no de mands for the expenses of education. The eating and drinking, the reading and writ ing and clothes-wearing world, are benefit ed by the labors of theso co operatives, in Iho came way as if Providence- had provi tied for their service millions of beings, like ourselves m external nppearancc,''ahlo to labor ami to lull, mid yet requiring little or nothing for their own consumption or sub sistance; or rather, as if Provulenco had created a race of giants, each of whom, do, mamling no mare for his support nnd con sumption than a common laborer, should yet be able to perform the work of a hundred. Now, sir, turn back to tho Massacliu- celts tables of production, and you will see thai il is theso'automaiic allies and corpo rators, and theso powers of Nature, thus employed nnd placed under human direc lion, which have como with huch prodig ious eltect, to man s aid, in tho nreat business of procuring the moans of living. of comfort, and of wealth, and which havo swollen tho products of herskilful industry. Look at theso lames once more, bit. ond you' will see tho effects of labor, united with and octing upon capital. Look yet again, and you will bqc that credit, mutual trust, prompt and punctual dealings, and commercial confidence, are all mixed up as indisponsablo elements in I ho general system. I will ask you to look vut once more, sir, and you will perceive lhat gen eral competence, groat equality in human condition, a dogreo of popular knowlndgo and intelligence, nowhere surpassed, if anywhero equalled, and tho prevalence of good moral sentiment, and oxtrnordiuary genaral prosperity, is iho result of the whole. Sir, I have dono with Massachu setts. I do" not' braise tho old "Bay Stato." of the Revolution; I only present her as not Mr. President, such h the Mate uf thing"' nclually existing in the country, and of which I havo now given you u sample. And vel there are persons who cnnctnutlv clamor against this statu of things. They call it aristocracy. They beseech tho poor to make war upon the rich, while, in lruih, they know not who nro either rich or poor. 1 hoy complain ol opnrfssion, speculation, and the pernicious influence of accumulated wealth. They cry out loudly against nil banks nnd corporation", anil nil the ineaii by which small capitals b eoine united, in order I o proline" iintioriant and beneficial results. I lii v t'.'i'ry on a mail ho.-tili v against all (-mln-died institution. They would ehnko up the founinins of industry. and dry all its streams. In o country of unbounded liberty, they clamor against pprcssion. In a country ofperlect equnli ly, they would movn heaven and eartl agaim-t privilege ami mouopmy. in r country where the wages of labor are high beyond nil parallel, and where lands nre cheap, and the means of living low, they would teach Iho laborer that he is nut an oppressed slave. Sir, what can such men want ? What do they menu ? They cnu want nothing, sir, but to enjoy the. fruits of other men's labor. They enn mean not fi tng. but disturbance and disorder: the lifTusion of corrupt principles, nnd the desl ruction of tho moral seniimenls and mornl hnbits of sncicty. A licentiousness of feeling and of action is sometimes pro duced by prosperity itself. Men cinnoi always resist the temptation to which they aro exposed by tho very ubundancu of 1 1 e bounties ol Providence ami the very hap piness of their own condition; as Ihu (-teed lull of tin.' pasture, will, sometimes, throw hnn-elf ngnmst lis onolnMiros. hrenk nwav from its confinement, and, feeling now frc from needless re-traini, betake himself to to the moors and barrens, where want, ere ong, brings linn to hi mjii-o, and starva tioii and death clon Ins career. Having said so much, sir, on the general condition of tho ciuntrv, and explained what I understand by credit, I proceed to consider tho present actual atnto of the currency The most recent Treasury estimate .vhich I havo seen, suppose that there are eighty millions of metallic money now I he country. This I believe, however bo a good deal loo h'gli, I cannot bellevi t exceeds sixty million, at most; nnd nppo-ing ono half this sum to be in th bulks, thirty miliums nre in circulation, or in private hand. Wo have seven hundred banks nnd branches, with capitals (i-igii"d for tho security ot their nine1? and hi amounting to two hundred and, eighty mil hoiis. The amount n! bank notes in actual circulation is supposed to bo nun hundred million ; so thai our whole circulation I: about one hundred nnd thirty million Tho nmount of debts tu." () 'he banks, Iho amount of their loan and di-cmml may be taken at four hundred and filty millions. Now, sir. this vory short statement ex hibits at once n general outline of our existing system of currency nnd credit We see r. grent nmount of money or prop erly in bank, ns their assigned ami appri priate capital, and we see a grent amount due In these haul's. Those bank debtor generally belong to thu clnt-ses of activ biiMne, or aro such as have taken credits for purposes of investment in laud or merchandize, looking to future proceed as the means nt repayment. II we com pare this -t itc of circulation, of bank cap Hal and bank debt, with the same tilings in Hnglaml, important differences will not fail to The whole paper circulation nf England by iho Intcst accounts, is twenty eight mil lions sterling undo up of eighteen millions of Bank ol Loglaml nolo, nnd ten million ot i ho notes ot private bankers nnd joint stock companies; bullion in the bank, niin and a half millions; debts due the Bank England, twenty-two and a half millions The amount of Innn and discounis by pri vote bankers and joint-flock companies not usually stated, I believe, in the public uccnunl. II it bear tho i-amo proporit to their notes in circulation, as in lint case of the Bank of England, it would exceed twelve millions. We may, therefore, lake the amount nf bank debts in England to bo thirly-livfl millions. But I suppose lhat, of the securities hold by the bank of Eng land, exchequer nnics constitute a large part; in other words, that a largo part of tho bank debt is due by the (jovernment. The amount of com in nc ual circulation is estimated to he thirty and n hall milT'inis. Tim whole nmount of circulation in Eng land, 1 1 i ' 1 1 1 1 1 1 1 nnd paper, is u-unlly i-In led, in round niimbeis, ai -ix'ty million-; which, rating the pound -ierling at jjl "0, is equal to two hundred and eighty-oight millions of dollars. It will be seen, sir, lhat our paper circu lation is oue-hall less than that of England, but our bank debt is, nevertheless, much greater ; since thirty fivo millions Marling amount to only one hundred and sixty-eight millions of dollars ; nnd tins sum, loo, includes the amount of exchequer bills, or Government, debt in tho form of such bill. which thu uanK lioius. these lacls nro very mnlerial to any just comparison of Iho state of things, in the I wo countries. The whole, nr nearly the whole capital ol the Bonk of England, is lont to Government, not by means of exchequer notes, but on a permanent loan. And as to the private banks and joint-stock companies, though thuy issue bills lor circulation, tuny have no assigned or appropriate capital whatever Tho bills circulate on the private credit of tho individual banker, or of tlmso who composo tho joint slock companies. In the United States, nn amount of capital, supposed to bo Biiflictcnl to sustain the credit of the paper nnd securo tho public against loss, is provided by law, in the net of incorporation for each bank, and leihiluie of the b.uik. And if tin pit a I be fnirly nnd substantially advanced, is n proper security; and in miwt case no doubt il is snhsiuutinllv ndvaneed. Tho directors ore trustees of I his fund, and they nro liable, both civilly nnd criminally, for mismanagement, embezzlement, or breach of trust. Thi amount of capital, thus secured, is the basis of .loans and discounts; and tin the reason why permanent, or nt. Icnl ong, loan aro not considered so intippro pnnto to banking operation, with us, ns hey nre in rjiiglnnd. With u. it is ovi- ni that I lie directors are agents, holding fund intended to bo loaned, and acting I ween lender nnd borrower; and this form of loan has been found exceedingly convenient and useful in the country. In some Males, it is generally prelorrcd tn mortgage, I hough there u'e oihcrs in which tnorlgages aro usual. Whether exactly conformable to the true notion of banking, or not, the troth is, that Ihe object and operation ol our hanks is to loan mo nny; and this is mostly on personal hucurity ho t-yslem, no dnobl, is liable to abuse, in particular instances. There may be directum who will loan to freely to them selve. nnd their friends. Gross enses of this kind have recently been detected and exposed, nnd, I hope, will be suitably treated ; but, considering the grcnt number ol bonks, these instances, I think, arc! markahlv few. In general, the hanks hnve been well conducted, and aro believed to he solvunt and t-afo. We havo heard much, fir, in the course of this debate, of i xcess in the is-ue of hank notes for cireulal inn. I have rn doubt, sir, that there was n vry imprope expansion some yea's ago. When Presi lent Jackson, in KI32, had negatived the bill for continuing the Bank of the Unitqd Slate,, (w tiicit ncl I esteem n the trn original source of all thu diMrd"r of Hi currency,) n vim addition was immediately mndu to the number of Si no bank. In 10JJ, tin; public depositc were actually removed Ironi the Bank of tho U. Stale; and placed m eolecled S ate Banks. And tor the purpose of showing how much bet tor the Public would be accomodated with out', than with, a Bank of the United Stale these hanks were not only encouraged, but ailinoin-lied, lo be free nr.d libera! in loan and discount:!, made on the strength of th public moneys, to uiorchanis and olhi individual'.!. The circular letter from th l'res3ory Department , addressed lo th new d"p isile batiks, under onto til beptetn her 20, 1 1133, has tin Mgnifieaut clan which cfi u ill not have been misunderstood I'lie deinjilcs of public money will enable you lo iill'inl mriLMscu l.if.ilities In riunmpiro, iinil extend otir ncroium! uion to niiln ; iitul ns Ilii; iliini'8 uliicli me ;iij ihlu in I lie (ioicrnin mise from t Ik: Imainc' iiml cntpipriii of lh in ih.inl pii;;.i::fil in luicin u nip, it is lint m.imr,tlilo III, il they Himilil In: nrrn-iicil in I hi niMitiou; iirp.oinii.l.ilini) which tilt- public dppn-itps will rn hln tittr institution incite, uhbiuivcr il cm lie done without inm-iicp to the chums ol olhcr chiei lln: roiiiiniiuity." Having read this letter, s;r, I ak leave to refer the Senate lo tho 20th suction I lie bill now before us. There wo fini: I lint. ,lif aiiv olliccr, charged with the sad keeping of the public money, t-hall loan the same, or any portion thereof, with or will out interest, siHi act shall be deemed an embezzlement nnd a high mirileinennor and the parly convicted thereof &hall bo sentenced to iinnri-oiiment." Sir, what pretty piece of consistency is here ! 1IJU3 the depositories of the public money were not even lelt in their own desire gain, or their wishes to nccouimodat others, ns being sufficient incentives lend it out: they were odinom-hed and directed to nffird 'nerved facilities commerce, and 10 extend their iircjiinnda lion to individuals, miico the public inom in their vaults would enable them to gi ,-ncli additional accomodation ! Now. sir under this bill, any officer who shall do any one of the same things, instead of hem praised, is to be punished : ho is 10 adjudged guilty of c;ub zztcmcut, and a high ini-deiiiennor, nod is to he confine for niiglii I know, in cells as dark and 1 mat as the vaiiiM animates winch are contain 0111 metallic currency. But, though I think, sir, that. Iho acts of Gov eminent created this expansion, yet I am certainly of opinion that there was a very undue expansion created. A emit raction iioweyei, had begun; and I am ol opinion that had il not been for the miccic order Jul v. IIJ3G, and for tho manner in which the depoiiie law was executed, the haul would havegone through the crMs without Mispensinii. 1 his is my lull and lirm nolicl. cannot, however, discuss theso points here. They were t rented with very great ability, last year, by n gentleman who thou occcupiod one of the eats of Georgia on thi floor. Whomsoever ho did not satisfy, I cannot convince. Still, sir, tho oticstmn is, whether there was an excess in the general nmount of tinr circulation, in May last, or whether there bo now such excess. By whal standard is this to be judged ? If the question bo. whether thero bo too much paper in circulation, it may ho .an swered by reference to the amount of com in the banks Irmn which the paper issues; because I am unquestionably of opinion an opinion which I believe nothing can ovor shake that tho truo criterion by which lo decide the question of excess, iu 0 convertible paper currency, is the nmount of that paper, compared with iho gold nnd silver in Iho banks. Such excess would not be proved, abmlutoly nnd curliiinly, in every case, by thu mern Incl ot the sneiicn smn of specie payments; because such an event might be produced by panic, or other Hidden cause, having power to disturb the regulated pyslcm ol paper circulation. But the immediate question now is, wheth er, taking the whole circulation together, both metallic and paper, there was an excess existing in May, or is an oxcess now linns nn execs-royo or undue amount of cir culalinn for Iho United Stales? Seeing that one part of (his circulation is com. and the other part piper, resting upon coin. nil 1 11 1 on iled to bo convertible, is the whole mass more thin may he fairly judged necessary to represent the property, the transactions, and the business of tho coun try? Or. in order to Misloin such nn nmount of circulation, nnd to keep that pari of it which is composed of paper in n h stale, should wo bo obliged to attempt draw to ourselves more than our just proportion of lhat metallic money, which i in the use of all the commercial nations ? Pheso questions appear to me lo l.o but different modes of stating tho same inquiry Upon this sub eel wu may perhaps, lortn some general idea, by comparing ourselves with others. Various things, no doubt, exist, in different places nnd countries, to mudifify, cither by enlarging or diminishing the demand for money or currency in the tran-actinns nf business; still the amount of trade anil commerce may furnish a gen oral element of comparison between differ ent Slates or nations. The aggregate of American imports and exports in IC3G was three hundred nnd eighteen millions; that of England, reckoning the pound sterling nt fvl 00, again, uas four Iiundred and eighty millions ns near as I can ascertain; the currency of England being, as already taled, sixty million sterling, or two hun dred nnd eighty eight millions of dollars If we work out n scsult from these primer Hon, the currency; oflhe United Stnies, it will he louiid, should be one Iiundred nnd uiuciy million", in order to be equal to that ol hnglntid; but, according to the limatcs ol the t reasury, it did not, even in that year, exceed one Iiundred and eighty millions Our population is about equal tnthat of Uiiigliintl nnd Wales, 1 he nmount of our mercantile lounge, perhaps, 0110 fifih less But then we are to cmi-ider that our conn iry is vnstlv wider; and our facilities of in ernal exchange, by means of bills of ex change, giently less. Indeed, there nro brunches nf our intercourse, in which re mitt ances cannot be well mad !, except in currency. J alio one example: 1 he agn cultural p'Oilncis nt Kentucky are sold l South,' her purchases of commuditic made nt the North. Thero can be, there lore, very hltle of direct exchange between her nnd tho places of pnrchnso and sale ' he trade goes round in a circle. There fore, while the Bunk of the United State exiPteo, payments were made to a vas amount iu the North and Ens', by citizen of Kentucky, and of the States similarly Hunted, not m lulls ot exchange, but 1 he noles of the Bank. Theso considerations augment the do mand lor currency. More than all, the country is new, sir; almost iho eutiic amount of capital active; nnd tho whole nmiiunt ol properly, in tho aggregate rapidlv increasing. In the last three years thirty seven inilhonsof acres of land havo have been separated from the wilderness purchased, paid for, and become subject to private individual ownership, to transfer and sale, and all olhcr dispositions to which other real estate is subject. It has thu become properly, to hi bought and sold for money: wherea, while 111 iho hands o Government-, it called for no expenditure funned tho basis ol no transactions, and created no demand for currency. With. 11 that short period our people have bought Irom tjovornnient a territory as largo inn wnoio 01 Ejtigianu ami wnio, ant taken together, far more fertile bv Nature This seems incredible, yet tho return show it. Suppose all this to have been bought nt tho minimum price of a dollar and a quarter per acre ; and suppose lb value to bo increased in the common ratio 111 which we know the value of land increased, by such purchase, and by lb preliminary steps nnd beginnings of culti vaiion; nn immense augmentation, 11 w readily be perceived, is made, even o .short n tune, of the aggregate of prop orty, in nominal price, nnd, lo a great ex tent, 111 real value also. On the whole, sir, I confess I know no standard by winch I can decide that nor circulation is at present in excess I not believe it is so. Nor was there, ns I think, nny depreciation in the value of money, up to the moment oflhe suspension of specie payments by tire-banks, eompar. iug our currency with tho currency of other nni ions. An American paper dollar would buv n silver dollar in England, tie- luetiug only iho charge of transporting a lollor across the ocean, because it com manded n t-ilver dollar hero. Thero may bu excess, however, I admit, where there is nn present depreciation, in iho sense in which I now use tho term. 111 assigned as a trust-fund for Iho payment of1 existing l ono hundred and thirty mil It is hardly necessary lo dwell, Mr. President, on tho evils ofa suddenly de predated circulation, Il arrests business, puts nn end tn it, and overwhelms all debt-i ors, by depression nnd downfall of prices. And even if wo reduce circulation not suddenly, but still reduce it farther than is necessary to keep it within just and rea sonable limits wo pioducu many mil chiefs; wo augment tho necessity of for eign loans ; wo contract business, di-cour ago enterprise, slacken the activity of cap ital, and restrain tho commercial spirit of Hie country It is very impurtant lo be remembered, sir, that in our intercourse with other nations we aro noting nn n prin ciplo : of equality ; that is to say, wo do not protect nnr own shipping interest by pecul iar privileges; wu ask a clear field, and neck no favor. Yet, the materials for ship building nro high with us, and the wages ol ship-builders and seamen are high als.0. We havo lo contend against theso unfavor nblo circumstances; mid if, in n d J it ion to theso, wo nro to stiller further by uiinccc sary rcbtraiuti mi currency, and cramped credit, whn can tell what may bo tho cllcclr Muney is abundant in Lnglaiit, very ahun dant ; tbo rate of interest, therefore, is low, and capital will bu seeking ill investment wherever it can hope to find it. If we de range, our own currency, compulsively cu1 t nil circulation, ard break up credit, how aro tho commerce and navigation of the United States to maintain themselves ngnmst foreign competition? Before lenving, altogether, this subject of nn excessive circulation, Mr. President, I will say a few words upon n topic which, if time would permit, I should be glad to consider at more length ; I mean, sir, tho the proper guards and securities for a paper circulation. I have occasionally addressed the Senate on this subject before, especially in the debatn on tho peme circular, in December, I03G; but I wish to recur to it again, because I hold it he of tho utmost importance lo prove, if can be proved, to the satisfaction of tho country, that a convertible paper currency may be so guarded as to be secure against probable dangers. I say, sir, a convertiblo paper currency : for I lay it down na an unquestionable truth, that no paper can bo made equal, and kept equal to gold ami ilycr, but such as is convertiblo into golu nd silver, on demand, lint, 1 have gono further, and still go further than this; and contend that even convertibility, though itself indispensable, is not a certain and unfailing ground of reliance. Thero is a liability to excessive issues of paper, even while paper is convertible nt will. Of this thero can bono doubt. Where, then, shall regulator bo found ? What principle of prevention may we rely on ? Now I think, sir, it is too common with banks, iu judging of their condition, to set ft all their liabilities against all their re- tinrces. I'liey lool; to the quantity ot pecie in their vault, and to the notes and I11IU becoming payable, as means or assets ; and, with these, they expect to be able to meet I heir returning notes, nnd to answer he claims of depositors. So far as the bank is to be regarded as a mere bank of dir-cnunt, all tin? is very well. But banks il circulation exorcise another function. By the very act of i-suing their own paper, they aff xt the amount, of curreocv. In England, 1 he Bank of England, and in tho United Slates, all the banks, expand or contract the amount of circulation, of course, as they increase or curtail the gen- oral nmount ot their own paper. And Una renders il necessary that thev should be regulated and controlled, The question is, by what role ? To this I answer, by .-ubiecting all banks lo the rule which 'tho most discreet of them always follow by compelling them to maintain a certain fixed proportion between specie and circulation; without regarding deposites on one hand, or notes payable on the other. There will always occur occasionally fluctuations in trade, and a demand for specie, by ono country on another, will arise it is too much the practice, when such occurrences tako place, and specie is leaving the country, lor banks to issue more paper, in order to prevent a scarcity of money. But exactly the opposite course should bo adopted A demand for specie to go abroad should ba regarded as conclu sive evidence of the necessity of contract ing circulation. It, indeed, in such cases, it could be certainly known that thu de mand would be of short duration, the tern, porary pressure might bo relieved by an issue of paper to fill the place of departing specie. But this never can be known. There is no safety, therefore, but in meet ing the case at the moment, nnd in conform ing to the infallible index of the exchaoges. Circulating paper is thus kept always nearer to the character, and to the circum stances of that, of which it is designed to ho the representative, tho metallic money. This subject might be pnrMied, I think, nnd clearly illustrated ; but, for the present, I oply express my belief that, with experi. once before us, and with tho lights which recent discussions, both in Europe and America, hold out. n national bank might he established, with mnro regard lo its Innciion of regulating currency, than toiu function of discount, on principles, and subject to regulations, such as should ren der its operations extremely useful; and I should hope that, with an example beforo them of plain and eminent advantage, Stato institutions woold conform to the same rules ond principles; and that, in this way, nil thu advantage of convertible paper might bo enjoyed, with just security against "its dangers. 1 have detained the Senate too long, sir, with these observations; upon the slate of the country, and its pecuniary system and condition. And now, when the banks have suspend ed specie payments, universally; when the internal exchanges aro all deranged, and the business of the country most seriously iiucrrupicu, 111c questions are Whether the measure before us is suita ble lo our condition ? and Whether it is a just and proper excrciso and fulfilment of Hie powers and duties of Unngrcss .' What, then, sir, will bo the practical operation nnd effect of this measure, if it should become a law? Like its predecessor of the Inst session tho bill proposes nothing for the general currency of tho country ; nothing to restore- exchanges ; nothing to bring about a speedy resumption of specie payments by tho banks. Its wholo professed 'object ia tho collection and disbursement of tho public revenuo. Some of its friends, in deed, say, that when it shall go into opera lion, it will, incidentally, produce n favor nblo cflbct on the currency, by restraining the issue uf bank paper. But others prcsa it as if its cflcct was lo bo the final over throw or nil bonks, nnd the introduction of mi exclusive metallic currency for all tho uses ol the country. Are wctnundetbtnnd, then, that it is in tended, by means, of which this is thu lira to rid iho country of oil banks, as beim

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