01 R 
 
 CURRENCY. 
 
DUKE 
 
 UNIVERSITY 
 
 LIBRARY 
 
 Treasure %^om 
 
OUR CURRENCY: 
 
 SOME OP ITS EVILS. 
 
 AND 
 
 REMEDIES FOR THEM. 
 
 BY A CITIZEN OF NuRTH CAROLINA. 
 
 RALEIGH : 
 
 JOHN W. SYME, PRINTER TO THE STATE CONVENTION . 
 
 1861. 
 
 <? j¥ 
 
 2. 6 */ 
 
 / 
 
COPYRIGHT SECURED ACCORDING TO LAW. 
 

 OUR CURRENCY: 
 
 SOME OF ITS EVILS, AND REMEDIES FOR THEM. 
 
 He who would rightly understand the subject of currency, 
 should, we think, begin with the position, that the real and intrinsic 
 value of gold and silver is almost nothing; that, in other words, 
 their current value, is ideal, imaginary, conventional, representa- 
 tive; that the true order, in real and intrinsic value, of the 
 metals and of some of the minerals, has been invened; that the 
 diamond, for instance, which is valued above them all. is really and 
 intrinsically, the most worthless of them all; that it has but one 
 really valuable property, viz : that or cutting glass, which, how- 
 ever, may be done by other means; that next to the diamond, 
 gold, which is so highly prized, is of less intrinsic value, much 
 . if indeed it have anr. than iron — so also, of silver; that the 
 true order of the metals and of the mineral mentioned, in real 
 value is, iron first, and far above them all — infinitely so; then 
 perhaps, copper, next to iron; then gold or silver; and lastly, the 
 diamond. This idea, fixed in the mind, and properly dwelt upon, 
 will aid in the correction of errors almost universally prevalent, 
 upon the subject of currency ; as, for instance, that bank notes are 
 merely the representatives of gold and silver; that they are not 
 money; that they do not and cannot add any thing to capital. 
 We shall see of these things, however, further in the sequel. 
 
 So, too, he who would rightly understand the subject, should 
 make himself as familiar in thought at least, "if not in expression, 
 with the idea of buying gold or silver with other property, as land, 
 or corn, or cotton, or horses, or other goods, as he is now with the 
 opposite expressions. It would doubtless sound strangely at first 
 to hear one say he is going to buy an hundred dollars in gold or 
 silver with a parcel of wheat or cotton; or another, that he wishes 
 to purchase an hundred dollars in silver with his horse ; or a third 
 person, that he has bought five thousand dollars with his farm or 
 plantation ; and yet, either one of those expressions would be as 
 true as its opposite. The euphony of language might seem to be 
 a little disturbed by the use of them, but only so because they 
 would be new to the ear. A. with his hundred dollars in gold, 
 
8 
 
 or silver, or bank notes, does not more really buy B's horse than 
 B, with his horse, buys A's hundred dollars. It is a mere ex- 
 change between them, of commodities of different kinds. They 
 both buy, they both sell, in fact. In other words, he that would 
 rightly understand the subject should learn, and have it fixed in 
 his mind, that gold and silver are commercial commodities, subject 
 to all the laws that govern other commodities of commerce, in their 
 relations to one another, of comparative abundance or scarcity. It 
 is not more true, for instance, that*an abundant crop of wheat in 
 the country — the amount of currency and the quantity of the 
 other cereals remaining unchanged — will reduce the prices of 
 wheat, than it is, that the crop of wheat being an ordinary one, 
 allowance being made for increase of population, &c, that an 
 increased amount of currency, will increase the prices of wheat. 
 These results are not always necessarily uniform, invariably so, 
 we admit. The increased quantity of wheat may be absorbed by a 
 diminution of the crop of indian corn, or by means of some other 
 scarcity, and so the increase of currency, may be taken up by some- 
 thin 0, else, and the price of wheat remain stationary. But all we 
 claim is, that gold and silver are commodities of commerce, and 
 that the same results, " mutatis mutandis," are to be looked for 
 from the abundance or scarcity of them, compared with other 
 commodities* as grow out of the abundance or scarcity of those 
 other commodities, compared with each other. That the relations 
 of those commodities to each other are intricate and difficult to be 
 thoroughly traced out, is certainly true ; and that that difficulty is 
 much enhanced where gold and silver are one of them, is equally 
 true • and in the greater ability of one commercial man than others 
 to do it, perhaps, consists his superiority and greater success in busi- 
 ness. They, gold and silver, are more universally used, and have 
 a much more extended and uniform value or estimation than any 
 thing else in comme'ree ; but that fact, instead of taking away 
 from their character of commercial commodities, goes to charac- 
 terize them the more strongly. To return: To buy, we know, 
 universally implies, into whatever language it may be translated, 
 the use of money. So we learn it, such is our language ; we grow 
 familiar with it as we grow up, and, indeed, never hear of buying 
 with any thing but money. We do not complain of it, or wish it 
 
altered; but thence clearly arises one of the difficulties of fairly 
 getting hold of the subject of currency in a truly analytical way. 
 The mode of expression gives direction to the manner or current of 
 thought upon the subject, whereby we are misled. 
 
 So, too, the difference between the external or foreign commerce, 
 of a people or nation, and their internal or domestic commerce, 
 .should be considered. It will readily be seen that our internal 
 commerce greatly exceeds, in amount, our external or foreign. Our 
 foreign commercial currency is, gold and silver; our internal is 
 paper. No European or other foreign merchant, who sends or sells 
 his wares to the United States, thinks of taking in payment for 
 them our paper currency. Not so with much, nearly all, indeed, 
 of our internal commerce. It is carried on with paper, bank notes, 
 bills of exchange, kc. 
 
 Capital, too, is a thing much misunderstood. It is, we admit, 
 a word in this country, and indeed in all commercial countries, 
 but particularly in ours, of uncertain and unsteady meaning. It 
 is very changeable, too. What is really capital to-day, and reckoned 
 as such, may not be capital to-morrow. Under an inflated state ot 
 the currency, what is admitted to be capital, may be, indeed must 
 be, very different in amount from what it would be under an 
 opposite condition of the currency. How would the valuation o* 
 property in the city of New York, e. g. made carefully by compe- 
 ten and correct men, under the currency as it exists there to- 
 differ in amount from a valuation made, after all the bank notes 
 in circulation should have been called in and nothing substituted 
 for them ? We noticed a valuation of Boston recently — $262,000,- 
 000, in all ; but what would it be after the withdrawal of all the 
 bank notes from circulation, and no substitution of any thing in 
 their stead ? Bank notes not capital ! Why, they constitute a large 
 portion of the capital of the country. Not capital ! Why, a good 
 counterfeit bank note in circulation — no matter, indeed, whether 
 so very well done or not, so long as it is not detected — is, for the 
 time, an addition to capital. We have known an old and curiously 
 wrought button, with the eye purposely broken off, to constitute a 
 part of the capital of a set of men who had agreed amongst them- 
 selves to receive it as a sixpence. Out of the circle of those meu, 
 it was an old broken and worthless button, but within it, it was as 
 
10 
 
 good as a silver sixpence, and passed for one, and it was amusing 
 to notice the constant increase of the circle in numbers. It may, 
 for aught we know to the contrary, be yet in existence, and still 
 circulating its worthless button. Bank notes don't increase capital ! 
 We should like to know who, if he had in his pocket $20,000 of 
 the notes of one of the best banks in New York, or Charleston, or 
 New Orleans, would not feel that he had capital? Inform him, if 
 you please, that the bank held but one dollar in specie for every 
 three dollars that it had in circulation in notes ; would you alarm 
 him ? Would he change his mind and doubt his $20,000 being 
 capital ? Daily experience, constantly occurring facts, prove the 
 contrary. Take another case: A holds $20,0*00 of the notes of a 
 very good bank. The Assessor comes to him to ascertain his estate 
 and assess his tax. To the inquiry, " how much money have you?" 
 A replies, " I have no gold or silver; I have $20,000 of the notes 
 of the bank," naming it, " but they are not money; they are not 
 capital; you can't tax them." " But," says the Assessor, " they 
 are capital, and I must tax them." A replies, " they are not, and 
 besides, you have already taxed them at the bank ; their capital is 
 $500,000 ; you have taxed that — that lies in their vaults — I have 
 only their notes; no part of their capital, and they are not taxable; 
 they are not money, and do not make or increase capital." It 
 would be no easy matter, I trust, to get clear of an assessor by 
 such an argument. Bank notes do make, do add to, do increase 
 capital. They may not always do so. Some misfortune may occur 
 to, or there may be some mal-administration of, a bank-, and the 
 whole excess of its issues may cease, in a moment, to be capital; 
 but that does not alter the fact asserted. We have just now seen 
 that metals, in themselves worthless, may, and actually have, be- 
 come the representatives of value; have become money; have 
 become, in fact, the measures of value ; that they do, indisputa- 
 bly, constitute a large portion of the acknowledged capital of the 
 country, not only, but of the world. No one will be found to 
 dispute this. Well, if the world, or the commercial portion of it, 
 may make metals of no value in themselves, the representatives 
 of value; the measures of it, in fact; may make them capital — 
 may not a portion of the world, a State, a government, a nation, 
 for instance, make some other material, with suitable and conve- 
 nient devices upon it, a representative of value, as well, for its own 
 
11 
 
 internal uses, for its domestic commerce? We not only claim 
 that it can be done, but that it actually has been done, is being 
 done now, here, to-day, amongst ourselves, and we are all the wit- 
 nesses of it — with what experience, will be seen in the sequel. 
 
 But bank notes, it is insisted upon, are not money. This objec- 
 tion has, perhaps, been fully met under the head of capital. If, 
 as is claimed above, they make or add to capital, they can only do 
 so as money. It may be useful, however, and perhaps facilitate a 
 right understanding of the whole subject, to inquire what is money ? 
 We answer, it is merely a measure ofvatue^ and may be of ^old or 
 silver, or of paper— bank notes. We use it, and indeed it has 
 become indispensable, for the same reasons that the pound weight, 
 the yardstick, the gallon measure, etc., have become so. And the 
 greatest inconvenience resulting from the use of it, is, perhaps, the 
 fact that it is the most uncertain and variable of all our measures. 
 For, although the measure of length or breadth is derived, origin- 
 ally, from three barley corns laid end to end, which makes the 
 inch, that of weight from the same source, and, indeed, all our 
 measures from sources equally simple • yet, no one of them all 
 is half as uncertain, irregular, variable and fluctuating, as is the 
 measure of value. A planter may have his bales of" cotton for 
 sale, or his hogsheads of sugar, his barrels or bushels of wheat, or 
 of Indian corn, or his hogsheads of tobacco, or any other of the 
 products of his plantation ; a farmer, his cereals of different 
 kinds, or his beef or pork; a distiller, his whiskey, and so on, of all 
 the producers or sellers of, or dealers in, commodities of almost 
 every kind, and he can, and generally does, ascertain with great 
 accuracy and precision, the quantity of any article he may have 
 fur sale, in weight, to an ouuee, or even less than that— in capacity 
 to the smallest modicum, or in length to an hair's breadth— having 
 done which, however, though never so carefully and accurately^ 
 he must at last submit to having the value of any and every one 
 of those products measured by that unsteady, everchanging and 
 fluctuating measure of value, money— a measure, to alT the un- 
 steadiness and inequality bf which, arising from the proverbial 
 uncertainties of mining, and the very unequal, annual, or other 
 periodical products, of gold or silver, from the unsteadiness and 
 fluctuation in the quantities ot them, that necessarily result from 
 the facts, that they are the currency of the world, that every peo- 
 
12 
 
 pie under the sun are constantly striving to get them into their 
 possession, and to keep them, and that they arc an universal mea- 
 sure of value. To all which unsteadiness and inequality, of which 
 measure, we say, we in the United States deliberately superadd • 
 nay, take great pains and care, and are at great trouble and expense 
 to empower, by solemn acts of legislation, in more than thirty dif- 
 ferent States, companies of men, to superadd all the irregularities 
 that must necessarily result from each one of those companies, 
 making and issuing almost "ad libitum," this measure of value 
 in paper — bank notes ; it being, at the same time, the interest of 
 each one of those companies to issue as much of it as it can. 
 
 There, reader, stands the naked fact in all its deformitiy, stript 
 of concealment. We are no painter, and would not colour it in 
 the slightest degree, if we could. 
 
 Ah ! but, says some one, and indeed the idea is generally preva- 
 lent, "bank notes do not measure value; it is only gold and silver 
 money that do that." Pray, objector, whoever you may be, think 
 of that again. Are they not capital ? Do they not add to, increase, 
 and make capital ? If you have gone with us through the argu- 
 ment under that head, yielding your assent, it is now quite too late 
 to attempt to withdraw it. We have no desire to entrap you, if we 
 could, but the danger now lies in your attempt to retreat. Let us 
 proceed, then. 
 
 If bank notes do make or add to capital, they can do so only in 
 the character of money. What is there in a slip of used-up-paper, 
 however fine and beautifully ornamented, that can give it value or 
 importance, but the idea of money? And do not bank notes, in 
 their limited sphere, perform all the offices, answer the same ends 
 that money does ? Do they not pass from hand to hand, pay debts, 
 purchase property of all kinds, as well as gold and silver money 
 does 1 Ah ! but, you say, all that arises from their representative 
 character j from the fact that they are, or are believed to be 
 redeemable in gold and silver at the pleasure of the holders of 
 them. But have we not seen that gold and silver are also mere 
 representatives of value ? Who would want, or have, or care for 
 them, if they, too, were » not redeemable at the pleasure of the 
 holders of them, in other property of real and intrinsic value? We 
 have already seen that they are, in and of themselves, as worthless 
 as the used-up-paper of the bank note. Value is ideal, conventional, 
 
13 
 
 in both cases, equally so; with the single difference in favor of gold 
 and silver, thattheidea is world-wide or co-extensive, at least, with 
 the commercial world, whilst that idea in relation to bank notes 
 is confined to the State or country in which they are issued. Gold 
 and silver money go out with natural and known ear-marks (so to 
 speak) that clearly designate them throughout the world — ~o 
 where their value is recognized, and has been for centuries. They 
 are commercial commodities every where, and as such have been 
 known and used time immemorial. The idea of value attaches 
 to them everywhere; whereas, the bank note carries with it no 
 such distinguishing marks beyond the State or country in which it 
 is issued. The idea of paper money is modern ; is of recent origin ; 
 it has not the sanction of the commercial world, and is not, indeed, 
 known to much of it. It is none the less, however, the money of 
 our internal commerce ; and need it be argued farther that the 
 long and continued use of it, habit, custom, considerations of its 
 convenience, its portableness, facility of storage, its durability 
 under ordinary care, its exemption from abrasion, together with 
 its various and numerous other good qualities, all go to recommend 
 it as money, as far as it can be made to circulate, and to bespeak 
 a faith and confidence in it like that, that obtains in favor of gold 
 and silver? They who have taken the trouble to trace paper money, 
 in history, to its first introduction into use, have seen with what 
 •facility, and how readily it may be introduced and become money 
 to all intents and purposes. But why pursue the argument of a 
 fact so palpable, especially to the people of these United States ; 
 to a people who have learned in their schools, from their legisla- 
 lators individually and collectively, from their governors — from 
 their laws, from habit; aye, and we will even go so far as to say, 
 from their experience, that a bank note issue of three dollars for 
 one dollar of gold or silver in its hands, is a safe, prudent and 
 provident issue, as well for the community as for the bank itself. 
 Pray let us ask what are the two one dollar notes over and above 
 the one that represents the dollar in gold or silver in the vault of 
 the bank, but money ? That the one is, we presume, all will 
 admit; but do not all the three pass with equal facility, and circu- 
 late as freely? To deny, under such and other additional facts 
 that " are known and read of all men," that bank notes are money, 
 that they do make capital, is, we cannot but think, with all due 
 
14 
 
 deference, plainly and simply absurd. If money, then necessarily 
 they are measures of value. 
 
 We have said that money is merely a measure of value — merely 
 so. This, in view ot the other measures to which we have alluded, 
 and which in themselves, have really little or no value, may at 
 first seem to be too narrow and limited a definition ; for money 
 itself, it may be said, has value, either real or conventional. So it 
 has a conventional value, and that fact, and that alone, constitutes 
 or adapts it to become a measure of value. Value is an idea. 
 Length, weight and capacity are physical properties. It might as 
 well be objected to the yard stick that it has length, and therefore 
 is not a yard stick, or to the pound, that it has weight, and there- 
 fore is not a pound, as -to money that it has value, and is therefore 
 more or less than a mere measure of value. It is the very property 
 of value, real or conventional, that makes it a measure of value. 
 And in the case of bank notes even, our position will not, we pre- 
 sume, be disputed; for, except as money, to light a pipe or to be ap- 
 plied to a still more vulgar and every-day purpose, are certainly all 
 the uses to which they can be put, (and we will certainly be borne 
 out in saying that the notes of very many banks ought never to ob- 
 tain any other kind of use or circulation.) In the case of gold and 
 silver, as mere metals for mechanical uses, or in the arts, it is, per- 
 haps, the fact of their scarcity that would detract from their value* 
 Were they abundant, they would doubtless be intrinsically valuable. 
 in those respects; never, however, reaching the value of iron. 
 They, no doubt, would make very good roofing for houses, &c, 
 not being subject to corrosion, or good sheathing for ships, on 
 account of their resistance of the action of salt or of fresh water; 
 but their great scarcity would necessarily preclude any such uses 
 of them. 'Tis true, a high value is now attached to them as gob- 
 lets to drink out of, and as dishes to ornament a table and be eaten 
 from, &c, and as ornaments to the person; but all this arises from 
 their conventional value as money, of rwe cannot but feel that the 
 taste or pleasure of him who prefers the use of a golden or silver 
 goblet for his wine or other drink, to the clear and brilliant crystal; 
 or the golden dish for his meats, to the pure white porcelain, or 
 china ware, is not to be envied. * It would seem that the value of 
 gold and silver is more truly ideal the more we examiue it. 
 
 It is true that the use of paper money implies, and necessarily 
 
15 
 
 t 
 
 requires a fixed, well defined and settled standard of value, which, 
 for aught we can now see, must remain what it is, gold or silver, or 
 better, perhaps, than either of them, platina (now used, it is said, in 
 Russia;) letter, because scarcer, and therefore, as money, lighter and 
 more portable. Gold and silver money being made and issued, 
 wherever it is made, under governmental authority and regulations, 
 is its own standard, each piece being the precise counterpart of every 
 other piece of the same denomination. Why they have become to be 
 exclusively standards of the measures of value, is too obvious to need 
 inquiry here. It is plain, however, that paper money being now used 
 to a greater or less extent amongst the most commercial nations, the 
 nation that could introduce it. under wise and proper regulations, 
 and control, in the largest quantity — its comparative population 
 and uses for currency being taken into the account — and could 
 exclude from circulation, a proportional amount of gold and silver 
 money, preserving the standard, however, would thereby secure 
 the greatest degree of steadiness and uniformity in the prices of 
 things, for the reason, that the sudden and great changes and 
 fluctuations, in the quantity of its currency, necessarily incident 
 to a large use of gold and silver even, might, under the control 
 and guidance of a wise, provident and cautious head of its finan- 
 cial department, be very much diminished, if not prevented. The 
 argument, therefore, is in favor of paper currency (the standard 
 being maintained) over a metallic one, provided, always, it If "/>_ 
 der proper control. And here we have in view, prominently, the 
 great evil — the source, indeed, of almost all other evils of the cur- 
 rency of the United States. It has no head; is under no govern- 
 ment; no control is exerted over it or attempted to be; any power 
 in the General Government over it is denied, and has, indeed, been 
 repudiated by the Government itself. The currency is, therefore, 
 beyond restraint, and cannot be limited in amount. Every bank, 
 to use a vulgar but expressive Americanism, ' : goes upon its own 
 hook." No single State authority or action, be it never so wise 
 and salutary, can be made to aifect the currency generally to any 
 very beneficial extent. The States are too numerous, and their 
 views too diverse ; nor is there the least ground to hope that any 
 general concert of action in the matter could ever be brought 
 about amongst them . A single State might legislate never so wisely, 
 
16 
 
 for itself upon the subject, but to no purpose. Her adjacent sister 
 States may, at their pleasure, set her legislation at naught, even 
 within her own borders. The union of the States implies and 
 calls for a concurrence of legislation, and of action in matters of 
 general concern and interest. Antagonistic legislation too readily 
 leads to action of the same character, and that to collision. Of 
 this we have certainly had quite enough experience already. But 
 no individual State takes cognizance even of the currency of the 
 country, for the reason, perhaps, that she can exert no power over 
 it, or it may be that she exonerates herself of it, in favor of the 
 General Government. But the General Government, in turn, 
 repudiates, if not cognizance of it, authority over it; and that, in, 
 the face of and against as plain and clear constitutional provisions 
 we cannot but believe, as can well be expressed. But of this we 
 shall see more fully by and by. 
 
 We conclude here, these, our premises, by re-asserting briefly 
 
 That the current value of gold and silver is imaginary, conven- 
 tional; not real and intrinsic. 
 
 That they are commercial commodities. 
 
 That they are especially the money of our external or foreign 
 commerce, and bank notes of our internal or domestic commerce. 
 
 That bank notes do make and increase capital, and 
 
 That they are money. 
 
 Now, of our currency, it may be asserted, we think, without a 
 fear of contradiction from any intelligent source, that it is greater 
 hi amount, vq, proportion to our population, and the extent of our 
 agriculture, manufactures find commerce, than that of any other 
 nation in the world* We mean to say that we have a greater amount 
 of currency per man, in proportion to our population, and the uses 
 we have for money, than any other people in the world. Great 
 Britain certainly has less ; France less than she, and so of all the 
 nations of Europe. Asia everywhere has a less amount of it than 
 the nations of Europe. 
 
 Another very important position may be taken, we think, with 
 equal confidence, viz : that our currency is made up of more paper 
 
 * We do not speak here, of course, of those nations in which the converti. 
 bility of their paper into gold or silver, or other properly, is not even 
 thought of. As in some of the South American States, for instance. 
 
17 
 
 and of less gold and silver than that of any other nation in the 
 world. We have no statistics, no evidences at hand, from which 
 either of these positions can be clearly proved, and indeed, if we 
 had, we should not consider it necessary to offer them ; beside, 
 they would necessarily make voluminous what otherwise we shall 
 condense as much as we can. Assuming these, then, as a basis 
 for the argument or remarks that are to follow, we shall merely 
 remark, in passing, that in addition to our gold and silver coin, we 
 have now, in the United States, not less than fifteen hundred banks 
 and branches, all, or nearly all of them, issuing notes, discounting, 
 &*., &c— each and all of them pushing their paper upon the 
 community, with as little regard to the condition of the currency 
 of the country generally, as if it were a matter of no importance; 
 many, indeed, most of them, never once casting a glance abroad to 
 observe the condition of the currency there, and indeed many of 
 them totally unconscious of the very deleterious consequences that 
 must necessarily result to us from the great comparative excess of 
 currency here over that of foreign countries with which we are in 
 intimate commercial intercourse. That there are amongst the 
 banks high and exemplary exceptions to these remarks, we knows 
 and are quite willing to acknowledge that the number of them is 
 far beyond the extent of our knowledge. Still, the general fact, 
 are as stated. 
 
 Well, if the positions I have taken be tenable, what must be 
 the natural, the necessary, the inevitable results of them ? What 
 under the laws that govern in the exchange of commercial com. 
 modities? What, under the rules above suggested, that necessarily 
 grow out of the relative abundance and scarcity of things ? What, 
 indeed, has our almost constant experience, from the establishment 
 of the government down to the fall of 1857, and thence even to 
 this day, proved to be the results of them? Higher prices here, 
 of course, for every thing than elsewhere. Higher prices fur 
 labor — hence the influx upon us of so many laboring men, artisans, 
 &c. Higher prices for our agriculture, for our manufactures, and 
 for the conducting of our commerce, internal as well as external. 
 Indeed, it is as necessary that these consequences should result 
 from the facts stated as that water should flow down hill. That 
 there are exceptions to these results we freely admit; as land for 
 agricultural purposes in the great west, and in other sparsely 
 
18 
 
 settled parts of the country. The cereals, also, very generally so; 
 but these and other exceptions of the like kind arise from the 
 great relative superabundance of them over our currency, even as 
 it is. We are very much inclined, however, to the belief, that 
 were our currency reduced to the proper relative amount compared 
 with that of Great Britain, that our cereals would find a constant 
 market there, to a very considerable extent. There are, too, in 
 certain other cases, causes that go to counteract these higher prices, 
 and very much to modify them, insomuch, indeed, as, in some in- 
 stances, to make them exceptions to the general results above 
 stated. Take the case of a laboring man, for instance. He is at 
 the age of discretion, and of some degree of reflection ; he has 
 arrived upon our shores from a state of villienage or serfdom 
 almost ; finds himself here a freeman ; gets high wages, higher 
 much than he has ever received in his native country ; meets it 
 may be. with an old acquaintance, or comrade, or relative, perhaps, 
 who has been in the country some years, and who, by his in. 
 dustry, economy, &c, has acquired the means of living comforta- 
 bly and respectably ; has become a citizen, a freeholder, a voter, 
 in fact. Will these things produce no effect upon the laboring 
 man, if he be a man? Will they not urge him on, stimulate him 
 to greater exertions ? In which country is it probable he would 
 do the most labor in a day — work with more spirit, with better 
 will — in the one from which he has migrated, or in this? Then, 
 too, in agriculture, we have our labor-saving machinery, the best 
 and most efficient in the world; and our abundance of new, rich 
 and cheap lands; our manufactures, our machinery, our mechanical 
 and constantly producing ingenuity, ever on the alert to invent, 
 adopt and improve. In commere, our skilfully constructed, well 
 provided, thoroughly manned, and very swift navy. Doubtless 
 these things do go, in many instances, very far toward reducing 
 those higher prices. We will freely admit, for instance, that the 
 men of Connecticut can make a good clock, and afford to sell it 
 for a less price than any other people in the world ; but this is a 
 result of their ingenuity, of their peculiar machinery for the pur- 
 pose. They are thereby enabled to do it in spite of the facts, that 
 they pay more for the labor, more for the metals used, and more 
 for the wood than is paid for them in other countries ; but it is in 
 that, as in most other cases of the kind that might be cited, in 
 
19 
 
 which downright, persevering mechanical skill is industriously and 
 economically brought into operation. It must ultimately prevail- 
 But the general fact remains as above stated. We pay higher / 
 prices for every thing than are paid elsewhere, and the reason for 
 it is too obvious to admit of a doubt. We have more money ; more 
 currency in proportion to the uses we put it to, and to our popu- 
 lation, than any other people in proportion to their numbers and 
 the uses they make of it. Without the accompanying qualifica- 
 tion, the position would not of course be a sound one. There are 
 people who Lave little agriculture, no manufactures, and no com- 
 merce, but who have money, gold and silver j and they being 
 natural products of the earth they occupy, they may, at times, 
 have them in excess, and above the currency of the rest of the 
 world; and whenever that occurs, their prices are increased pro. 
 portionally until their gold and silver, their staples, have been so 
 far gotten rid of as to cause a reduction of prices. They must, 
 then, if they wish a continuation of imports from other countries, 
 go to work at their mines again ; must produce more gold and 
 silver — replenish — and as certainly as they do, just so certainly, 
 other things remaining somewhat in '• statu quo." will they be in the 
 receipt of imports again. It may be that their gold and silver are 
 constantly in excess; in that case, their imports will be constant, 
 and they the gainers thereby, or not the losers, because gold and 
 silver are their staple commodities ; their proper and legitimate 
 exports. They produce and manufacture them, but having no 
 uses for them, comparatively, the same effect is produced amongst 
 such a people with respect to prices as exists amongst us, without, 
 however, the very serious and terrible consequences to them, that 
 we so often experience from the use of our currency. "We go on 
 in the use of our mixed currency; indifferent to, and regardless of 
 the escape of gold and silver from amongst us, until suddenly the 
 fact bursts upon us, that they are gone; gone to pay our foreign 
 indebtedness, and to some considerable amount, absorbed in the 
 creation of new banks. Our banks refuse to discount; get in what 
 specie they can, a panic seizes us, and away we go. Oue failure 
 produces half a dozen more ; credit has been infinitely extended, 
 every thing rests upon promises to pay. They make our currency 
 in fact. Gold and silver can't be procured immediately; what of it 
 that has not gone abroad, is locked up by common consent; in some 
 
20 
 
 cases, by a dispensation from the Legislature, perhaps; and there 
 being no alternative, a general cancellation of promises takes place 
 upon the best terms to be had, and debtors are let free to begin 
 again. In time a little gold and silver are gathered in again. The 
 necessities of the country demand supplies. Trade begins to revive, 
 confidence to be restored. The banks begin to discount again, 
 each one issuing, without regard to, and many of them — most of 
 them, indeed — in utter ignorance of, and indifference to, the con- 
 dition of the currency. Soon another flood of paper is produced ; 
 our imports become larger than ever before; extravagance, the 
 order of the day — promises to pay as rife as ever before — our gold 
 and silver gradually leave us again — another discovery of their 
 great scarcity, compared with our paper currency, is made, and 
 the catastrophe is re-produced. Who that has lived the half of 
 three score years and ten has not witnessed it again and again ? 
 
 And but for that very important and valuable staple of the 
 Southern States, any one of these catastrophes would be, and would 
 have been, irreparable. But, fortunately, we are the producers of 
 cotton in great quantity ; the largest producers of it, in proportion 
 to the number engaged in cultivating it, in the world. The soil and 
 climate in which it may be grown here are very extensive. The 
 soil is only partially occupied, and may be had at low prices. The 
 demand for the product in Europe, with the addition of our home 
 demand, are together quite equal to the quantity produced. The 
 prices of it have been, and are, not only remunerative, but gene- 
 rally profitable. The domestic commerce between the Northern 
 and cotton producing States has always been favorable to the 
 former. They have been the carriers of the cotton to Europe, as 
 well as to their own States, whereby the profits derived from it 
 have been very much divided between the two sections of country, 
 and these, added to the profits of the Northern States upon their 
 imports, much of which have been sold to the cotton-growing 
 States, as also are much of the manufactures of the Northern 
 States, have made them very large participators in the profits de- 
 rived from cotton ; which profits have been applied toward the 
 extinguishment of their foreign indebtedness. Tobacco may be 
 placed with cotton in this respect, but to a much less amount; so 
 may naval stores; so may canal and rail road shares, State bonds, 
 
21 
 
 corporation bonds, &c, to some extent. But these things, although 
 closely connected with our subject, need not be dwelt upon. 
 
 It is in view of the effect of our currency upon our tariff of 
 duties upon imports that the subject becomes most interesting and 
 important, and here we would ask the experience of commercial 
 men, when, since the close of the war of 1812, had we the most 
 efficient tariff upon imports; a tariff the most prohibitory and 
 unproductive. We think we will be borne out by every commer. 
 cial man of experience in pointing to the year 1842. And, yet, 
 that was not a tariff laid by Congress, nor by any direct or imme- 
 diate act of our government, but by the facts that the banks had 
 called in their paper, had ceased to discount, and were in a condi- 
 tion to exhibit, generally, something like what the banks in the 
 State of New York, exclusive of the city, did actually, in the 
 aggregate, exhibit, to-wit, eleven dollars in specie in their vaults 
 for every dollar they had in paper in circulation. We trust to 
 memory in making this statement of their condition in New York, 
 and have so often recurred to it, that we feel a confidence in 
 making it. Be it, as it may, however, there was at any rate, a 
 very great excess of specie over paper with them, as well as with 
 those of the city and the country generally j and as a necessary 
 and inevitable consequence of it, we ceased "pro tempore," to be 
 importers; no foreign goods came to our shores — nay. more foreign 
 goods that had been imported, was actually exported by us in some 
 instances, and sold when and where they could be. Hire there 
 was no market for them. There was comparatively no money, no 
 currency. We have cited this instance merely by way of illustra- 
 tion. The condition of things in '42, was by no means a desira- 
 ble one — far otherwise. We hope we may never see the like again. 
 We wish to show that a tariff of duties upon imports cannot, un- 
 less, indeed, it be prohibitory, and intended to be so, be made 
 thoroughly efficient according to the meaning and intent of Con- 
 gress, without the use of the currency as a means of doing it. In 
 other words, that it is only through the currency that an effectual 
 tariff can be laid in this country. Every reduction of our cur- 
 rency goes to increase the existing tariff, and every increase of 
 currency goes to reduce it, and this will be found to be true, though 
 not precisely to the same extent, whether the duties be specific or 
 ad valorem'here, or ad valorem at the place of export. The greater 
 
22 
 
 comparative amount of currency here must produce higher prices. 
 The less amount of it would necessarily beget lower prices. 
 
 In all of Europe, we think, it may be said with safety, that the 
 different governments have, respectively, more or less control of 
 their currency; or, if any of them be not actually vested with that 
 control, they yet exert it in an admonitory way. Would to God 
 that it were so in either, or in any sense with owe country and 
 government, and until it shall have become so, by some means, 
 we must continue to be the victims, nationally, as well as indi- 
 vidually. Take, for example, the United States and Great Britain; 
 Congress lay a tariff of duties upon her exports to this country, 
 whereupon Great Britain reduces, as she readily can, through the 
 bank of England, the amount of her currency, which, like ours, 
 is a mixed one, though partaking much more largely than ours 
 does of gold and silver. Our currency is, on the other hand, on 
 the increase. Now, what of our tariff? No matter whether the 
 duties under it be specific or ad valorem here, or ad valorem there, 
 (duties laid ad valorem here would, we admit, counteract the result 
 in a measure.) Why, our tariff is avoided, circumvented and set 
 at naught almost, we aiding and assisting — nay, actually doing the 
 work ourselves, against ourselves, by a continual increase of our 
 currency, and even of the number of our banks. Will it be said 
 that Great Britain does not, in fact, and could not if she were so 
 inclined, thus reduce her currency. That to do so would carry 
 distress a#d ruin to the manufacturers. Why, it should be remem- 
 bered that she manufactures greatly in excess of her domestic 
 wants, and that that excess must be disposed of. To hold on to 
 it would be worse for her manufacturers than to sell it even below 
 the cost of manufacturing it. The one course would be totally 
 unproductive, so long as it might be persisted in ; whereas, the 
 other would produce something, though there might be a loss by 
 it. Besides, the manufacturing population of Great Britain (we 
 mean, now, the operatives) are not only very numerous, but are 
 the most dependent population of the kingdom outside of the poor 
 houses — an( i if in the matter of a reduction of the currency, the 
 questions of losses to the manufacturers, or of the stoppage of the 
 factories, and the consequent throwing out of employment of the 
 operatives, should present themselves, it is easy to see which way 
 
13 
 
 the Government would incline. But unfortunately for us, the 
 necessity for so acting is seldom, if ever, imposed upon Great 
 Britain. She seldom need interfere with her currency in order to 
 bring about the results we have been speaking of. She need only 
 (and she well knows it) stand still, wait, look at what we are doing*. 
 We will soon have done the work for her. A few more banks, 
 . a little more specie, a consequent increase of bank notes, a good 
 crop of cotton or the appearance of it, will soon bring about an 
 inflated currency, and thereby open the way for her. She may ex- 
 port hither freely again. We want her fine goods, and the more 
 costly they are the better we like them. We have plenty of money, 
 and if we want more, the banks can easily issue it, and if they do 
 not wish to do so, why, we can easily make some new ones. Our 
 country- is a great hot-bed for banks. One will take root and shoot 
 in anight, come up in the morning, and by noon be fully expanded. 
 We are forcibly reminded here of an anecdote for which we be- 
 lieve there was much more foundation in truth than in fiction. The 
 Cashier of a bank that had been doing a reckless business, found 
 it necessary, at last, to elo.sc its doors during banking hours, and 
 as in duty bound, went to the President who, fur the day, was con- 
 fined to his house by reason of a slight cold he bad taken. The 
 Cashier very demurely, and with a long drawn and very lugu- 
 brious face, communicated to him (the President) the fact thathe 
 had just closed the doors of the bank. Closed— the— doors— of— 
 the— bank— at— this— time— of— day! Why, what on earth do 
 you do that for? exclaimed the President. Why, Mr. President, 
 replied the Cashier, the fact is, the bank has failed; we've got no 
 money. Got— no— money— sir ! Why, have not I been signing 
 notes as fast as I could, almost night and day, for weeks ? re° 
 sponded the President, and yet you say you have no money— how 
 can that be, sir? It is needless to say that that bank remained 
 closed and never opened its doors again, except, I believe, to the 
 Sheriff, who found it a perfect vacuum, within, as regarded money 
 or property of any kind, and that the banking house belonged to 
 a private individual— we think, one of the Directors. It°never 
 paid One cent on the dollar of its notes. 
 
 To enact tariffs, to alter, modify, amend, repeal and re-enact 
 them, has been a staple business of Congress for mure than forty 
 
years. The object of it lias been to throw taxation into the shade, 
 as it were ; to endeavor to hide it as much as possible from the 
 knowledge of the people. And so effectually has this been done, 
 that the belief is by many entertained and persisted in, that the 
 import duties are actually paid by the foreign manufacturers; that 
 our Government actually derives the greater part of its support 
 from those duties thus paid ; that we are, in fact, in that respect, 
 " quartering upon the enemy." A greater fallacy can't well be ima- 
 gined. They (the duties) must fall upon the consumers or last 
 purchasers of the wares imported, or some one through whose 
 hands they have passed must have sold them at a loss. This may, 
 and we admit, doe's sometimes occur, but by no means so frequently 
 as to detract from the generality of the rule, that the consumer or 
 last purchaser pays the duties. But this is too plain to need 
 argument. 
 
 What we wish to hold up to view, is , that our superabundant cur- 
 rency, by the comparatively high prices it leads us to pay, enables 
 the European manufacturer to send hither his wares and sell them 
 at a profit — the cost of transportation, the time lost in effecting 
 it, the tariff, insurance, risk, commissions, &c, &c, notwithstand- 
 ing. And what does he take in payment for them ? Gold and silver, 
 or cotton, or tobacco, or perhaps naval stores. Cotton or tobacco, or 
 naval stores at our prices — at our valuation of them ? Oh, no. If 
 he did so, there would be no reason for complaint. That would 
 make it a much better business for us. We say, not at ours, for who 
 fixes the prices of those articles ? Not we, certainly. Where are 
 they fixed ? Unfortunately for us, always and altogether on the 
 other side of the Atlantic, where their limited currencies, and not 
 our expanded one, furnish the measure of value. They sell us 
 their wares, the cost of which to them is measured by their cur- 
 rency, with the addition to that cost, of the duties under our 
 tariff; of the cost of transportation, interest, insurance, &c, and 
 a fair profit, measured by our currency, and take our cotton, e. g., 
 in payment, at prices measured by their currency again, or else 
 they take our gold and silver coin by weight. The game, in other 
 words, is altogether in their hands, and we stand passively looking 
 on, rejoicing and congratulating ourselves upon our prosperity, 
 and with reason may we, indeed, do so. For our prosperity, if it 
 
30 
 
 may be so called, is actually in spite of our policy. * But, perhaps, 
 we have not been sufficiently explicit. It may be asked, what •' 
 don't we fix our own prices for our own cotton ? No, inquirer, who- 
 ever you may be — our home demand for it does not enable us to 
 do that. The annual crop is greatly in excess of our domestic 
 demand for it. The prices for it must therefore depend entirely 
 upon the foreign demand. 80 it has been ever since it began to be 
 produced here, and so it must continue to be until wiser counsels 
 prevail. "We plant it. we cultivate, pick it, gin it, pack it, and 
 transport it to market under our high prices for every thing we do 
 to it and with it, and then the foreign purchasers take it at the 
 low prices which their comparatively limited currency will justify 
 them in paying for it. and then, forsooth, make payment for much, 
 most of it indeed, in their wares as above stated, and the very 
 growers of this cotton are, perhaps, nay, in very many instances, 
 and to a great extent, are C( rtainty the last purchasers or consumers 
 of those wares, and upon them it falls to pay the tariff duties ; and 
 all this by reason of an inflated, aye, bloated, unwise, unequal and 
 unconstitutional currency. But how, after all, perhaps, asks the 
 cotton-grower, is the desired change of prices in our favor to be 
 effected ? We must, under any circumstances, he says, depend upon 
 the foreign demand for our cotton, the reduction of our currency 
 notwithstanding. So you must, indeed, we admit 5 but do you not 
 see that the reduction of our currency will not only enable you to 
 produce and get to market your cotton at very considerably less 
 cost to you, but that you will, also, in consequence thereof, be 
 enabled to purchase goods for which you now pay so extravagantly, 
 at much lower prices also? So, too, the tobacco-grower; and so. 
 indeed, to a very considerable extent, doubtless, the growers of 
 corn, wheat, &c, and the producers of beef, pork, tec. 'Tis our 
 currency; our currency, inflated to bursting, and, nlas! too often 
 actually bursting, that keeps us out of European markets with 
 much of our surplus products; that puts us, commercially, at the 
 feet of Great Britain and other European countries, and will keep 
 
 « 
 * How or why we have gone on and prospered to the extent we have, 
 under such a condition of things, is a very interesting inquiry, not by 
 any means difficult of a satisfactory solution, but involving too many 
 considerations t<> be made a subject of this paper 
 1 
 
us there, until Government, here, shall have assumed a control over 
 it as other commercial countries have over theirs, and shall have 
 begun to exercise the wise and prudent management of it, that is 
 so conspicuous with them. Commercial nations who use a mixed 
 currency, must have an eye upon each other's financial operations 
 and conditions, and act with direct reference to them. We have 
 been the victims, are now, because no such attention has been 
 kept up by us; and, indeed, if it had bfren, we have regarded our- 
 selves as powerless to effect the necessary change in our currency. 
 'Tis easy to see that were it wholly metallic, no such care need be 
 exercised, for gold and silver are commercial commodities, the 
 value of which is known and recognized throughout the world. 
 They are the currency of the world — not so bank notes. They, 
 from their nature, must be confined to the country and people 
 that authorize and permit the use of them. They have not the 
 ear-marks above spoken of, that belong to gold and silver, and 
 away from home are not known and are of no value. 
 
 Well, having thus cursorily glanced at some of the evils of our 
 currency — can they be remedied, and if so, by whom and how '( 
 
 The two first branches of this inquiry will be considered under 
 the proposition, 
 
 That Congress clearly have the power, by the Constitution, to 
 devise and apply the remedy. 
 
 That the power- to establish, regulate and control the currency, 
 is a necessary and essential attribute of sovereignty, was never, 
 perhaps, in the whole history of the world, more forcibly exhibited 
 than it was in this country during the time of our revolution. 
 Each State or Colony that chose so to do, (and we believe they all 
 did) then coined for itself and issued, "ad libitum," of paper 
 money, fixed what value it pleased upon foreign coin, and made 
 its own coin, of any weight, or value, or shape, or impression it 
 pleased to do. It is needless to say a word about the inconve- 
 niences of their coin, and the entire worthlesness of their paper 
 currency — continental currency, became a by-word and a reproach . 
 and every body has heard of it. The war having been brought to 
 a close by us, the confederation was entered into, in which " the 
 sole and exclusive right and power of regulating the alloy and 
 value of coin," was distinctly, in those words, conferred upon Con- 
 gress. Each State surrendered all its powers in that respect, with 
 
27 
 
 the single provision, (a very singular one by the by) that " Congress 
 shall not coin money, nor regulate the value thereof, nor emit 
 bills, unless nine States assent to the same." So, also, the i*igh fc 
 to emit bills of credit, was, by the articles of confederation, con- 
 ferred upon Congress. It was very properly regarded as a power 
 equivalent to. parallel with, and necessarily resulting from, the 
 power to borrow money — whence the expression used in those 
 articles: "To borrow money, or emit bills on the credit of the 
 United States." True, the States did not. in express words, restrain 
 themselves respectively from emitting bills, but without so doin; . j 
 acted under the idea and conviction, that the whole power so to do 
 Went with their grant o( it. and properly belonged to sovereignty 
 And this action, on their part, was not the result, of mere theory 
 upon the subject. They had tried it, had emitted bills, and were 
 well aware that large amounts of those bills were then still out- 
 standing, unredeemed, and more than likely to remain so. They 
 Bayr clearly, and were in the full experience at the time, of the 
 impolicy, the inconvenience of each of the States coining money 
 and emitting bills, without concert with her sister States, ancS 
 therefore, jealous as they were unquestionably of their States' 
 rights, conferred those powers upon Congress. It was a natural 
 and necessary result of all their experience in coining, and in 
 emitting bills, so to do The confederation came into existence, 
 and although the States were impoverished, and money exceed- 
 ingly scarce, no State undertook, or talked, or thought of creating 
 a bank, or of emitting its own bills of credit, or of conferring upon 
 others the power to emit them ; but Congress finding it absolutely 
 necessary to have a financial agent, for the use and convenience 
 of the Government, chartered the Bank of North America, in 
 Philadelphia, the only bank then, and until after the adoption of 
 the Constitution, we believe, in the United States. Strange that 
 the power of the Government to charter a bank, and the want of 
 such a power, in the respective States, so clearly exhibited by no 
 one of them actually doing or even proposing to do it, should so 
 soon afterward, not only be called in question, but actually reversed, 
 the powers of Congress, in that respect, remaining substantially 
 the same toa. 
 
 Well, the confederation ran its race, and the present constitu- 
 tion was adopted, the only bank yet in existence, being the one 
 
28 
 
 chartered by Congress, at Philadelphia, and very much the same 
 provisions about coining, emitting bills, &c., were adopted into the 
 Constitution, with an express prohibition against the States doing 
 either of them. Indeed, it may almost be said, that no powers 
 that had been conferred upon Congress, by the articles of confede- 
 ration, were taken away or withheld from the Government by the 
 Constitution, but, on the contrary, very important additional pow- 
 ers were conferred ; indeed, that was the primary and important, 
 and, in fact, necessary object in resorting to the Constitution. 
 True, the power to emit bills, which was expressed in the articles 
 of confederation as synonimous with that of borrowiug money 
 (above quoted,) is not expressed in the Constitution, and no doubt 
 for the very reason that the one necessarily implies the other. 
 The power " to borrow money on the credit ot the United States," 
 is, by the Constitution, conferred upon the General Government, 
 in so many words, and the power to make and issue some evidence 
 of indebtedness to the lender or lenders of the money, must neces- 
 sarily result from it, for, without something of the kind, it would 
 have been scarcely supposable that even Congress could borrow 
 money, and nothing of the kind, certainly, could be less objection- 
 able than bills of credit. Can, then, it may be well asked, the 
 power of the General Government to "emit bills" be questioned? 
 And by what means, it may also be well asked, has that power 
 gotten into the hands of the several States, and that, too, in the 
 opinions of many men, to the entire exclusion of any right in the 
 General Government to emit them I Against the States doing it, 
 there is an express prohibition in the Constitution. "No State shall 
 emit bills of credit;" and how, under the principle, "qui facit per 
 alium facit per se" a principle as old, certainly, as the Roman 
 Law, and quite as sound as it is old, a State can be admitted to be 
 capable of delegating, or communicating a power which it has not — 
 which it has expressly surrendered, transferred, in fact, is a question 
 which seems to us to admit of but one answer. 
 
 To proceed. "Congress," says the Constitution, "shall have 
 the power to coin money, regulate the value thereof, and of for- 
 eign coin." However definite the expression "to coin money/' 
 may be claimed to be, yet that of "to regulate the value of coin" 
 must be admitted to be a broader and more indefinite expression. 
 It certainly means more than merely to fix the value of coin, as to 
 
29 
 
 say of a cent, this is the hundredth part of a dollar— of half a 
 dollar, this is fifty cents, or of a dollar, this is an hundred cents- 
 That would be merely to announce or to fix their value respectively 
 but to "regulate," implies a larger or more extended action and 
 power over them. It, we think, fairly implies the adoption of 
 some rule of valuation, the coining of them by that rule, and the 
 following of them up, and keeping them to that rule. After Con- 
 gress have said of a dollar, for instance, this is an hundred cents 
 to regulate it, means to keep it so, to keep it to the rule of valua- 
 tion. A power beyond that of merely ascertaining and fixin- the 
 value of coin, was necessary. It was well known and understood 
 at the time, that the weights and composition of coin had under- 
 gone frequent and great changes. That, for instance, what was 
 then, and is now, in Great Britain, equal to five dollars, or a little 
 less, of our silver coin, was originally, in that kingdom, a pound 
 of silver, or more than three times as much as it is now', whence 
 the denomination in her currency of -pound," abbreviated into 
 £1. But the thing is very fairly and fully illustrated in the case 
 of our eagle, or $10 gold piece, which, not many years since was 
 by authority of Congress, actually reduced, in value, some 'sixty 
 odd cents, they directing it thereafter to be made that much lighter 
 The eagle had, in consequence of the disparity i„ value, between it 
 and the silver coin in circulation, appreciated, to the value of ten 
 dollars- and sixty odd cents, and Congress, with the unanimous 
 approbation of the whole country, of course, -regulated" it, brought 
 it to tbe true rule, and had it been a case of depreciation, to that 
 or any less or greater extent, no one, in his senses, would have 
 questioned the right, or power, or duty of Congress to have directed 
 it to be brought up to the standard or rule, by adding to its weight- 
 to have regulated it in other words. The weight of the piece at 
 the time it was fixed, and its value announced, was, we think, 
 right, but a change m the comparative value of gold and silver 
 coin made it necessary for Congress to regulate the value of the 
 gold piece. Here, then, we have a practical exposition, by Con- 
 gress of the word to « regulate," as applied to the value of coin 
 and that exposition will, of course, we presume, be admitted to hold 
 good, whatever may be the cause of the appreciation or deprecia- 
 tion, or other irregularity, in the value of coin. 
 
30 
 
 The question then presents itself distinctly : does the issue of 
 bank notes depreciate the value of coin ? Is it the natural, the 
 legitimate, the necessary effect of them so to do ? If so, then 
 clearly Congress have the power to regulate it. How ? Not, cer- 
 tainly, by changes in the weights or composition of the coin, that 
 would keep more than twenty mints at work; indeed, it would be 
 impossible, with any number of mints, to do it. The "milling" 
 of coin, highly as it has been improved, must yet fall far behind 
 the rapidity of engraving and printing. But just here, some one 
 may, nay, thousands we know, will persist in saying, that the issue 
 of bank notes does not, in fact, depreciate the value of coin. That 
 an ounce of our gold, or of our silver is, notwithstanding our paper 
 money, equivalent to just so much gold and silver anywhere, and 
 will buy as much here, or abroad, as any other equal quantity oi' 
 gold or silver, of the same degree of purity. Agreed; so it will, but 
 that don't touch the inquiry. We, by no means, mean to claim 
 that it debases our coin, but only that it depreciates it. The real 
 question is, will an ounce of gold or silver, here at home, amongst 
 ourselves, buy as much as the same ounce will buy in Europe, of 
 things common to, and producible, with equal ease in both coun- 
 tries ? Will it buy as much common coarse carpeting; as much 
 common blanketing; as many yards of ordinary woolen cloth; as 
 much clothing, or as much salt, or coal, or iron here, as it will there ? 
 But we have dwelt enough upon this part of the subject in 
 speaking of the tariff. He, that with our tariff and the amount and 
 variety of imports under it, before his eyes, will not admit so glaring 
 a fact, without argument, will scarcely be argued into it. Well, 
 then, if such be the fact, if bank notes do depreciate the value of 
 coin, then Congress, in the attempt to regulate that value, must 
 operate in some way, upon the currency. If they want to increase 
 its value, they must reduce the amount, either of coin or of paper, 
 in circulation, and so, vice versa. 
 
 And this brings us at last to the interesting and important part 
 of the inquiry. How ? What is the remedy 1 How can Congress 
 control the amount of paper money in eircul&tion so as U> reduce 
 it, if necessary ? 
 
 We answer: First, and most effectually, by a direct, positive 
 and decided exercise of their sovereignty over the subject. Let 
 them assume and exert their full powers in this respect, lake 
 
upon themselves, UdrnwOj the direct exercise of all the l'„„e- 
 ons conferred upon them by the Constitution , « of coining monev 
 and regulat.ng the value thereof." Lot then, positive!? forWd 
 -d proh.b.t. by al the penalties that may be rer.uLite. completely 
 • o &et the prohtbttto,, nny State Iron, etnittin, bills oLed, 
 and from aothonimg any persons or bodies to do it. Let the Su 
 preme Court follow the lead of Confess in this respeet. i „ rJZ 
 o ex,st,n, banh. and the thin, is accomplished, it wou.d fea 
 - Uow.to the claims of Stete rights, ,.f chartered rights 
 vested raghfe, or rights 1,- prescription, and all that sort oF thi U 
 being rnngont and sounded in onr cars in every variety of cha2 
 b» the evd ,. W e bar, seen, a destroying one! and must be cured' 
 r. S a consuming on-, and must be eradicated, or it will. soo?ler or 
 ater ■ cat out our-substance not only, but destroy our national in- 
 egnty, li not our vitality even.* It has. already, well nigh pro- 
 duced a catastrophe, at the prospect of which every patriot ~ w 
 pale, every lover of his country trembled, and the friends of liberty 
 everywhere stood aghast. We allude to the action of South Caro 
 w,a in opposition to the tariff, called, « nullification.- Jt was the con-' 
 dition of our currency that led to the enactment of that tariff which 
 so gnoTonsjy affected her (South Carolina's) interests. And the 
 murmur,,,,,, that now so harshly grate upon our cars, from within 
 her borders, proceed in reality rather from an alienation of feelim 
 hen unhappdy generated, and which the subsequent policy of the 
 General Government, in that aspect, has not, by any neans bee, 
 calculated to reconcile, but rather to keep dive, than from too 
 cause to winch they are more generally assigned. South Carolina 
 could, better than more .Northern States, and would, we believe 
 endure w,th composure, all the evils of abolition that fall upon her,' 
 md she not feel already jaded and sore under the burthens .that 
 mum, have imposed upon her. And. whence the necessity-,, 
 repeat*, wmenee the necessity of a tariff, but from the diLed. 
 thepielhoric, the bloated condition of our currency ? Should then, 
 
 tZ ' ™ " .It' ~ Indeed it8de8tr °y ?n S effect, are upon us, even sooner 
 than we, at the penning of these line,, anticipated-for a we have re' 
 
 ::,::' ««**«* '«««. « « ** .—,^0 that „,,.,;:. 
 
 turn ,, the true parent ol see, .sion, and that nullification grew out of 
 
82 
 
 what is now being so freely and openly talked of in the State of 
 South Carolina, and, indeed, begins to be, in some of the adjoining 
 States — be consummated, should she or they actually secede from 
 the Union, the future faithful and closely searching historian 
 will, we doubt not, find the true first cause of her movement in, 
 and assign it, as we have done, to our currency. We say this not by 
 way of palliating, or making light of abolition, by any means; for 
 of all the ridiculous, reckless, foolish and absurd, as well as unlaw- 
 ful and unconstitutional schemes or purposes, ever devised or con- 
 templated, by frail humanity, that,. in one view, under all the cir- 
 cumstances of it, claims precedence. The Ancient Crusaders and 
 their objects are, we think, to be admired and eulogised alongside 
 of the abolitionists and their views, with whatever of " higher 
 law," or sanctity, they may try to invest them. 
 
 But we digress again. The Supreme Court, says an objector, 
 will not follow the lead of Congress, in the course we have 
 above proposed; it cannot; it is ' ; res adjudicata," has been de- 
 cided already, after full argument and consideration. We answer 
 not with half the light that subsequent experience has ■ thrown 
 around it. It has been, and is an increasing evil. From being at 
 first, an innocuous plant, or one perhaps of a doubtful character, it 
 has grown to be a great poisonous Upas tree, overspreading the 
 whole length and breadth of the land, and causing desolation and 
 destruction throughout all its borders.* 
 
 We repeat it, let Congress take the lead in this reform, and the 
 courts will, without a doubt, follow. Knowledge is progressive. 
 The wisdom of Legislation is, or ought to be, progressive. Juris- 
 prudence is progressive also, and all our experiences are to no pur- 
 pose, unless we profit by them. 
 
 But, continues the objector, oh! you would encroach upon State 
 rights; destroy State bonds; take away the power of issufrig them; 
 or the power of the States to borrow money, and all that. We an- 
 swer, not at all. That is not in the constitution, nor should it be 
 the aim or object of Congress. It's whole object should, and under 
 the constitution would be, to prohibit any State from coining money, 
 
 * Note. 1861. — How emphatically true, is now apparent, if what 
 we have been attributing to our currency, be really due and owing 
 to it. 
 
or emitting bills of credit, or attempting to authorize any person 
 or persons to do either of them. A bond is not a bill of credit 
 '1 he States have nowhere surrendered their right or power to borrow 
 money, or to issue bonds for it, or for any other legitimate purpose 
 What is a bill of credit? What at the time the power was yielded 
 up, was meant and understood by a bill of credit? A's promissory 
 note for the payment of money to B, on demand or at sixty days, 
 may be called a bill of credit ; but A. of whatever State he may 
 be a citizen, has a right, unquestionably, to issue it, if he can find 
 any one willing to take it — a right so to do, of which he cannot, 
 without a gross infringement of his liberty, be deprived; so has 
 ]> and C, and every other citizen of every State, and that, too, 
 either individually or conjointly with a partner or partners, as a 
 company. The right to issue such bills, payable on demand, or at 
 different periods of time specified in the respective bills, upon any 
 and every kind of paper, whether in writing, or printed, or en- 
 nid however ornamented or plain in appearance, and 
 whether issued from, and made payable at, his own domicile, or at 
 what the maker of the note or bill chooses, or others see proper, 
 to call an oihec or a banking house, is a necessary and natural right, 
 of which no citizen can be deprived. But the right of a State to 
 do it, or to authorize others to do it, has been surrendered, trans- 
 ferred to the General Government ; it does not exist in any of 
 the States. But. continues the objector, may not a State borrow 
 money, or incur a debt, and agree to pay it in sixty or ninety days. 
 and issue evidences of her engagement to that effect ? Unquestion- 
 ably she may, but she must not issue them in the form of bills of 
 credit, nor, indeed, in any form tfiat may lead to the use of them 
 as currency, or money. It was this, at which the provisions, under 
 the Confederation, were aimed; this that the clauses in the Con- 
 stitution had in view. The object of both was the same, viz : to 
 prevent fo?ever thereafter any thing like the continental currency. 
 as itwas called. That was the evil to be remedied. It was that, under 
 which the States had suffered, and were then suffering so griev- 
 ously. It cannot, certainly, be argued with any degree of force or 
 fairness, that State bonds may be made to supply the place of coin, 
 and come into use as currency; but to such an argument, if urged, 
 and all similar ones, we would apply that clause of the Constitu 
 tion above, already quoted, which confers upon Congress the 
 
d4 
 
 / 
 
 " power to regulate the value of coin/' under which it may, fairly, 
 and with perfect propriety, be claimed that any thing, any form or 
 character of metal or of paper, no matter by what name it may be 
 called, or what its character, issued by, or under the authority of 
 a State, that goes to alter the value of coin, either by appreciating 
 or depreciating it, is unlawful and should be prohibited. Such an 
 authority is indispensably necessary and requisite, and the exercise 
 of it necessarily appertains to the supreme power alone. The 
 States cannot regulate the value of coin. If the power remained 
 in them, they could not exercise it with any degree of convenience 
 or advantage. The evils of n mixed currency, under such circum- 
 stances, would far outrun any action the several States could take, 
 and bring to bear upon them. Let, then, the power be assumed 
 and acted upon by Congress. Let its action be approved, and sus- 
 tained by the Judiciary, and the evils of our currency will readily 
 be curod. But what then. Are we, says some one, to have no paper 
 money ? Are we to be deprived of all the conveniences and ad- 
 vantages of the use of it? To be thrown back upon all the incon- 
 veniences of a hard money currency ? By no means. Paper money 
 is' not only useful and convenient, but it has become indispensably 
 necessary, and so long as it enters into, and makes a part of the 
 currency of other commercial countries with whom we deal, so 
 long we may with safety and economy, not only, but with great 
 advantages, use it, — but certainly, only with as carefully an ascer- 
 tained, and as full and accurate a knowledge of, and careful a 
 reference to the use of it, by those commercial countries, as all the 
 means within our reach will enable us to do, or possess ourselves 
 of. No commercial people are, or at this day can be, perfectly inde- 
 pendent in this respect. No nation can assume, or now hope to 
 mi rive at, an eminence in commerce, or in the arts, or in arms, even, 
 that would enable her to dictate in the matter of currency. 
 
 So far from the exclusion of paper from our jcurrency, we would 
 urge and insist upon the use of it, not only for the reasons of its 
 convenience and economy, but for the very important and salutary 
 additional purpose of correcting, by the use of it, the frequent 
 and unavoidable irregularities and fluctuations of gold and silver 
 as currency, hereinbefore alluded to. Indeed, in this respect, 
 we would that it were possible to substitute the use of paper entirely 
 for gold and silver. We could then, by a careful and provident 
 
lent of our currcn us complete 
 
 diness, and uniformity, in the prices (A thii irities 
 
 in the production or quantitic of those things would admit of, 
 without, as we now necessarily have, the addition to those irregu- 
 larities of the inequalities in the supplies of our gold and silver, 
 which all will admit arc, and under any circumstances must be, 
 very j^reat. As it would be under a currency wholly metallic cv< o 
 te the differences between prices, occasioned by an abundant or 
 by a short crop of wheat or cotton or tobacco, for instance, mu t 
 bl added the difference produced by the comparative abundance 
 or scarcity of gold and .-ulver, the concurrence of which differ- 
 ences, that is to say, the scarcity of both, would make the c< 
 the thing almost insurmountable — whereas, the abundance of both 
 would make the thing easily to be procured, though nominally, at 
 perhaps a high price. But when to those irregularities, nee 
 rily existing, and growing out of the very nature of the thin- , 
 the tremendous and frightful irregularities occasioned by th< 
 of paper money, over the issues of which there is no control, to 
 the amount of which there is no limit, and the quantity of which 
 may be so speedily and easily increased or diminished, at the plea- 
 
 o? more than fifteen hundred irresponsible institut 
 added, we may then begin to realize some of the evils of our 
 curr< • say irresponsible institutions, because their re ponsi 
 
 biHty to the respective States to which they belong ainouni I 
 nothing; for each State seems to regard the currency as a na- 
 tional affair, over which she las no control, of which I I ike 
 no care or heed, and that for the very reason, no doubt, that the 
 right to coin money is vested in the General Government exclu- 
 sively. But what avails the power to coin money, if every State 
 may, by hundreds of institutions of her own creation, deteriorate 
 the value of that money, "ad libitum?'' 
 
 We have said that we would, were it practicable, substitute a 
 paper currency entirely, in the place of gold and silver, and although 
 that cannot, for very obvious reasons, be done, yet w. arc quite 
 satisfied that a very considerable approach to it may be made, with 
 very great advantage, and this brings us to the consideration of 
 another of the means we propose by way of remedy. 
 
 We entertain no doubt whatever but that for our internal or 
 domestic commerce, a paper currency of the right kind, issued 
 
.36 
 
 from the proper source, in a sufficient amount, and for every variety 
 of sum, especially the smaller ones, would, upon a fair trial of it, 
 under circumstances as favorable as they might readily be made^ 
 be very soon found to be a far more convenient and useful, and 
 therefore desirable currency, than even gold and silver, and by it m 
 we mean Treasury notes — notes issued from the Treasury of the 
 United States, under the authority of Congress, redeemable in the 
 payment of dues to the Government, and in no other way, except 
 as gold and silver money i$ itself redeemable; and we *are right 
 glad to have had as much experience of the use of that kind of 
 money as has, from time to time, been afforded us. A mass of pre- 
 judice, and of foregone conclusions of an apparently overwhelm- 
 ing weight, are, we know, to be met by a proposition of this kind, 
 and the one to which we attach the greatest degree of importance 
 is, that it is proposed by us to carry a prominent principle of the 
 Homocpathetic practice of medicine into the currency; and, in a 
 sense, it is truly so. Not that we wish, by any means, to commit our 
 currency into the hands of Ilomoepathic or any other physicians, 
 much as it requires depletion, but merely to adopt, to some extent, 
 the principle that " similia similibus curantur," — in plain English, 
 that by paper money issued by and under the authority of the 
 General Government, payable on demand or presentation in dues 
 to Government, without interest, we propose to eradicate the evils 
 of our present currency by supplanting with it the present State 
 bank circulation of paper. And can the ultimately successful result 
 of it be reasonably doubted? Is not the credit of the Govern- 
 ment fully adequate to it I Let him who would falter here look 
 at Great Britain with her thousands of millions of indebtedness — 
 an amount of indebtedness that no subject, no creditor even, of 
 that government, believes or even hopes can ever be paid — an 
 indebtedness that has been accumulating for now nearly two hun- 
 dred years. Has she credit? Is faith in her promises adequate 
 to the full and liberal supply of all her pecuniary wants, enormous 
 as they are in amount ? So, too, reference may be made with 
 very much the same result to all the kingdoms and empires of 
 Europe. There the promise and expectation of the annual pay- 
 ment of a low interest merely, and the well-known regular and 
 prompt fulfilment of that promise, will insure to the Government 
 the use of a principal sum of money, which the lender has no 
 
37 
 
 reason to hope can ever be repaid. And can it be reasonably 
 doubted that here, in the United State.; alone, where the amount 
 of our national debt is below the annual expenditun me of 
 
 e governments, a credit of one or two, or even of live hundred 
 millions of dollars (were that amount nccedfeary | cannot be estab- 
 lished and steadily maintained ? It is not proposed merely to 
 spend money, to make a debt, but to furnish a currency which, 
 once furnished, need only be made to keep puce in amount with 
 the growth of the country, in population, in agriculture, <Vc. <y.c . 
 and which would merely require renewal, from time to time, as 
 wear and tear might affect it. "We do not want, probably, more 
 than half the amount of paper currency we have been using. 
 
 Is the power proposed, one in which there is danger ? Is it a 
 power that might be very much misused ? Tray, let US ask in 
 what department of the Government is there not danger'/ 
 Which of its powers may not be misused'/ There is perfi 
 no where. Constant care and vigilance i.> the price of all our po- 
 litical privileges, not only, but of all our enjoyments. Are not 
 the powers of the Treasury department large enough already to 
 admit of their being misused ? Arc not its receipts fjuite I; 
 enough, even now, to tempt cupidity ? \\c cannot have complete 
 safety in any respect. Should it be supposed that any thing would 
 be gained on the score of safety, or that greater wisdom and a 
 more provident administration of that department would be . ecured 
 by putting the power we contemplate into the hands of a commis- 
 why. let it be done: but in either, or in any e • very 
 
 irity far the faithful administration of it be thrown around it 
 that the wisdom of Congress can devise. For ourself, we would 
 have the head of the Treasury, single, as it is now, that it might 
 be prompt in action, incapable of a division of sentiment or opin- 
 ion. It should be wise, watchful and provident, of course, and the 
 more readily to secure the highest ability in the administration of 
 its duties, the highest place in the cabinet should be attached to 
 it. Indeed, that should always have been the case. 
 
 But, says some one, arc you not proposing to increase our paper 
 currency, of which you have been complaining so loudly, and to 
 which you have attributed so many and such great evils. Are 
 you not actually proposing to increase it by the issue of an cnor- 
 
38 
 
 mous amount of Treasury notes? to pile Pelion upon Ossa, in other 
 words, in the matter of paper currency ? We reply, not at all. 
 Let the Constitution be, in this respect, fur once, properly inter- 
 preted, and have its full and legitimate, and necessary operation. 
 Let the State banks be thereby, in consequence, dropt down to 
 their proper level of joint stock companies. Let them be stript of 
 legislative patronage, of State partnership and support ; be put 
 into their proper spheres of action, and confined there ; and let 
 the better currency of United States Treasury notes be furnished 
 as above suggested, redeemable everywhere throughout the Union 
 in payment of United States' dues, and the evils of our present 
 currency will rapidly begin to disappear. But there are additional 
 means, if necessary, whereby to make the remedy still more 
 effectual, as will presently appear. Vv r c tarry a moment, here, to 
 consider, in this connexion, matters that suggest themselves. 
 
 We have said above, "Treasury notes without interest upon 
 them," for the very fact of such a note bearing an interest pre- 
 vents its currency as money. Gold and silver, as currency, bear 
 no interest — any amount of it upon them, however low, would ' 
 interfere with their circulation, and any thing like an ordinary 
 interest upon them would stop their circulation entirely. Who 
 would want to circulate this gold and silver if, being in his pocket, 
 it were drawing an interest ? 
 
 Notes of the United States Treasury not a currency ! Why, it 
 is simply because they have never been fairly tried that such an 
 idea has obtained to any extent. In every attempt that lias yet 
 been made ' in that respect, they have either been encumbered 
 with an interest, or else they have been issued for amounts, seve- 
 rally, that has precluded them from getting into the hands of 
 people generally, and into the every-day business of life. Banks, 
 capitalists, etc., have seen and handled them. But banks wish to 
 give circulation to paper of another kind, and capitalists make but 
 a small proportion of our population, and besides, are generally 
 bank men. Give out, issue, we say, Treasury notes for every 
 variety of sum, especially for the smaller ones ; give to the notes a 
 convenient size, shape, &c, for a currency ; adapt them to it and 
 to the necessities and wants of the people generally, and they will 
 give them circulation. Faith in them will soon become implicit, 
 
so 
 
 and their complete ascendancy over every other money, even ^old 
 and silver not excepted, be secured and easily maintained. 
 
 But, what then ? says an objector — you will only have thus far, 
 according to your own propositions, furnished a governmental pa- 
 per currency in addition to the paper currency of the State banks 
 as joint stock companies, whereby you will- have made what was 
 before bad, worse. We answer, that the State banks will have 
 been reduced to a level with individuals — have been subjected to 
 the same laws — made liable to all the consequences of an over issue 
 of* paper money. Liability for its redemption will fall upon every 
 member of the company to the full extent of his ability, and as 
 above remarked, the shield of State patronage and support will 
 havg been taken from them, and they will have been deprived of 
 the indulgencies and dispensations now so often granted by their 
 respective States. And think you that they will thereafter be 
 found travelling beyond their appropriate spheres ? Should any 
 of them be found doing so, let them meet the consequences that 
 befall individuals under like circumstances. But the number of 
 them will gradually decrease with the decrease of their bush, 
 
 But we said above, that we had not yet concluded our remedies. 
 We would, in addition, stop operations at our mints, especially at 
 those that arc not located in the gold producing regions. What ? 
 ;tuj» the mints ! Yes, we reply, without hesitation — great and 
 wide-spread evils call for thorough and severe remedies. Stop the 
 mints until this overwhelming flood of State bank paper shall have 
 subsided, and the bitter waters of it retired into their proper re- 
 servoirs, and been secured there from further irruptions. They 
 ibmerging one of the fairest portions of the earth, and threaten 
 its desolation, if not its destruction. What are we coining money 
 for? For whom arc we now, and have we been coining it almost 
 from the establishment of our first mint? Not for ourselves, ccr 
 tainly, for we have now, and always have had, comparatively, very 
 little of it. We have been coining for Europe and Asia, and for 
 other parts of the world — arc doing so now, at this moment. The 
 expenses of doing it, great as they are, fall upon us, but other 
 governments and people have had, and at this moment are ha\ 
 the benefits (if any) of it. It goes abroad, leaves u 
 can coin it. Besides, coining it adds nothing to it;, value abroad; 
 it goes there as bullion, by weight only. The overissue — the pie- 
 
40 
 
 thora of bank notes, cheapens it here amongst us, and away it goes 
 to where it is more valuable — where, in other words, the " pro 
 rata" amount of currency in use is below ours. Gold and silver 
 are commercial commodities, pre-eminently so, and must come un- 
 der the rules that govern in that case. That there are, will be, 
 indeed, must, be occasional remittances of them to us again, there 
 can be no question, for as soon as we shall have been nearly drained 
 of them, as soon as the banks shall have found it necessary, for 
 the want of them, to cease to discount again, to issue more paper 
 money, a pressing demand for gold and silver must again arise--- 
 another panic comes over us. They will then appreciate rapidly 
 again, and must be had at any cost or premium, and back again 
 they begin to come, of course j but, alas ! too late, in too many 
 instances, and at what cost to us, too many commercial men, too 
 many manufacturers, and indeed, too many of all classes, can testify, 
 from a very sad and sorrowful experience. The regular and almost 
 constant current of them is, however, has been, and under our 
 present policy, must continue to be, from us. Let any one satisfy 
 himself what has been the amount of gold produced from Califor- 
 nia alone, within the last fifteen years — more, doubtless, than five 
 hundred millions of dollars, most of it, too, having been coined at 
 our mints — and ask himself where it is now? Have we it? Is it 
 in the United States? No, no. Take into consideration, if be 
 will, our increase of population; the increased number of banks 
 that have doubtless secured some of it, and the increase of our 
 agriculture, commerce and manufactures — still there is compara- 
 tively none of this immense California product amongst us. It 
 can't remain here. We can't keep it. There is a law of com- 
 merce as imperative and immutable as the laws of the ancient 
 Modes and Persians are said to have been, that they, gold and 
 silver, must go from whence they are less, to where they are more 
 valuable. Take into the account, too, the*golden product of Aus- 
 tralia, within a considerably shorter and more recent period, and 
 the effects of our paper currency upon gold and silver coin will 
 stand out in something like their true prominence. Let us stop 
 then, take away, in some healthful measure, the basis upon which 
 these banks are supposed to stand, and they must curtail their 
 issues of paper money. 
 
 Will it be argued that the banks will immediately possess them- 
 
41 
 
 selves of Treasury notes as a basis for their circulation, and con- 
 tinue thereupon their issues of paper, redeeming them therewith 
 instead of gold and silver. We reply, their charters require the 
 redemption of their notes in gold and silver only. Besides our 
 foreign commerce requires those metals over and above all the cot- 
 ton, and tobacco. &e., that are sent abroad. 
 
 Our foreign commerce ! But you will, says one. have destroyed 
 that completely — you will have s<» reduced prices here, by reducing 
 ^thc amount of our currency ; by ceasing, to a great extent, to coin 
 ^Rioney, which, you admit, is the currency of our foreign commerce. 
 to have broken it down completely. But not so, by any means. 
 What we really want from our foreign commoted is more gold aid 
 er, and a less, much less amount of costly foreign manufac- 
 tures Jand wares; the tine and expensive laces ; the eostiy silks 
 and satins; the rich bn the fine cloths; the elegant furni- 
 
 ture, and all that kind of things, of Europe and Asia, would be 
 but a small sacrifice upon the altar ot our country's really healthful 
 and substantial policy and success. The an uneducated 
 
 fan.-y ; of a false and foolish pride, ; of a low and unworthy ambi- 
 tion might produce a sigh over the loss of such things, but sure 
 we are. that no right minded lover of country, or of self, would 
 ever regret it. J3eside. encouragement of the right kind would 
 necessarily result from such a course to our own arts and manu- 
 factures, to our own enterprize and industry, and the line - 
 and the silks, and the rich wines, and even the delicious teay, now 
 so costly to us, would very soon begin to make their appearance 
 as products of our own industry upon our own soils. For it may. 
 we believe, be safely said that there is nothing in the whole cata- 
 logue of human wants that may not be produced abundantly within 
 the limits of the United States. He who would doubt the 8 
 tation of climate and soil in this country to every kind of product. 
 or the genius and enterprise of its people to every kind of indus- 
 trial and remunerative effort, has not, we fear, taken sufficient care 
 to advise himself in either of those respects. 
 
 We mean to be understood to say, not that we arc opposed to 
 foreign commerce, but that it has, in a great degree, become un- 
 profitable to us, and therefore unwise — not that we desire a sus- 
 pension of it, but that true policy and the best interests of the 
 6 
 
42 
 
 country require a modification of it. It has been urged on under 
 the stimulus of our inflated currency to an unhealthful extent. 
 Relieved of that influence, it would at once resume and pursue a 
 safe, healthful and beneficial course. Its happy results would re- 
 dound to us, not only individually, but nationally. We must, for 
 the present, at any rate, be a commercial people. The amount of 
 our exports demands that we should, but true policy and a wise 
 and laudible economy call for the importation of a less amount of 
 foreign products. As to the matter of currency, no braneh tf 
 national industry and enterprise can, with more safety to itself^ 
 better results to the country, be left to its own care and provision 
 for itself than our foreign commerce. If healthful and beneficial, 
 it will provide a currency for itself. If otherwise, better that it 
 should not be able to do so until it shall have resumed a healthful 
 condition. Reduce the amount of our currency ; bring it down 
 to its "prorata" amount compared with the currencies of other 
 commercial countries, and our foreign commerce will have quite 
 its proportion to do. Beside, our cotton and tobacco, and sugar, 
 and naval stores, rice, &c, to keep it in action, our indian corn, 
 our wheat, our rye, our beef and pork, our wool, and a long cata- 
 logue, indeed, of other products, will demand its aid; for no man 
 in his proper senses can persuade himself that any of those things 
 can be produced as cheaply in Europe as they can in this country, 
 under a " pro rata" amount of currency. Why, the comparative 
 prices of land alone, here and there respectively, ought conclu- 
 sively to settle that inquiry — the comparative qualities and va- 
 rieties of soil and of climate, the differences of taxation, civil as 
 well as ecclesiastical, the oppressive remnants there of the 
 Feudal system, and a long catalogue of other considerations being 
 left entirely out of view, and no allusion being made to the better 
 education and more thorough evocation here than there of genius 
 and talent, and enterprize and industry. . But we need not pursue 
 the argument further. No statistics are needed to prove that our 
 currency is an unwise and impolitic one, and that it is greatly in 
 excess of that of any other commercial people in the world whose 
 uses for currency are not much more numerous and extensive than 
 our's are. It must follow, as a matter of course, that our foreign 
 commerce is not in a healthful condition. 
 
 There remains yet to be considered the very important and inte- 
 
43 
 
 resting question, can Congress constitutionally make its Treasury 
 notes a tender in payment of debts ? If so, then, all the difficul- 
 ties of restoring to our currency a sound and healthful condition 
 would seem to have been overcome. We admit, of course, that 
 there is no express grant, " in haec verba," to that effect, in the 
 Constitution j nor, in fact, is the power to make gold and stiver 
 coin a tender granted therein. It must belong to Congress, how- 
 ever, if it exists at all, for it is very clear that no State can 
 make "any thing but gold and silver coin a tender.'' Now, punc- 
 tilious as we profess to be upon the subject of State rights, we are 
 constrained to admit that if the power to establish a tender, be 
 uartiy and unavoidably inferable from a power that is clearly 
 granted and indispensably necessary to the full and fair exercise 
 of the elearlj/-<jra, r, then Congress unquestionably have 
 
 the power thus resulting by implication or inference. We have 
 endeavored to state our proposition in a way to avoid all objections, 
 even from State rights men of the "strictest sect." 
 
 Let us, then, with candor, and we hope with patriotic views, 
 proceed upon the inquiry, "can Congress, Constitutionally, make 
 its Treasury notes a tender in payment of debts ? That they have 
 the sole and exclusive right " to coin money," "no one will qj 
 tion, and that they have the right to fix and determine, and to 
 announce, both by law and by " superscription" upon the face of 
 their coin, its value, cannot be questioned. But their power over 
 it does not terminate here, as we have seen above. Who is to keep 
 the coin to that law and " superscription," or to alter or change it 
 in any degree, if it shall become necessary so to do? Why, Con- 
 gress is to "regulate the value of it" k - in totidem verbis." To 
 regulate it for what purposes and uses ? For all purposes, mani- 
 festly, to which it is applicable. But we have seen that it is pecu- 
 liarly applicable to our foreign commerce, more so than to any other 
 use, indeed. Now, the course of our argument in this respect 
 having been hereinbefore clearly foreshadowed, we shall, in mercy 
 ro the reader, forego much of what we cannot say better or more 
 forcibly here than we have already said it. We shall, therefore, 
 very briefly inquire, how is Congress to " regulate the value of 
 coin ?" By wliat are they to regulate it ? What is to be the rule 
 of valuation? Whence is it to be drawn, or obtained, or had ? 
 With reference to what is it to be fixed and settled ? Why, clearly. 
 
44 
 
 undeniably, and beyond all cavil or question, reference is to be 
 bad to its value in the commercial world. Thence the rule is to 
 be drawn. It can be had from no where else — from no other source, 
 unless, indeed, all sense and judgment are to be dispensed with, 
 and mere blind and arbitrary will, without thought or reason, are 
 to be called into action, which cannot, for a moment, be supposed. 
 Well then, Congress, in the rational exercise of this power, are to 
 look about them and into the commercial world, and draw thence 
 the rule of valuation ; or, to speak more directly and plainly, they 
 are to adopt the valuation there existing, and settled, and estab- 
 lished. They can't go above it, certainly, and make our coin more 
 valuable, for reasons that are too obvious to need repetition here — 
 and should they fall far below it, they would thereby necessarily 
 exclude the country, to a great extent, from the commercial world. 
 Of the two extremes the latter would be the far preferable one, 
 however. But the very adoption, by Congress, of that rule of 
 valuation of the coin, although the only one that they can, in the 
 exercise of a wise and sound discretion, adopt, must necessarily be 
 productive of all the inconveniences and evils of an exclusively 
 metallic currency, tor the reason that commercial nations, especially 
 those with which the United States are in large and intimate com- 
 mercial intercourse, depreciate the value of coin by the use of 
 paper money — of bank notes. Not that they thereby depreciate it 
 abroad in the commercial world — they do not do that — but at 
 home, amongst themselves, respectively. They do it by means ex- 
 trinsic of any operation upon the coin itself. The means do not 
 go out into the world with the coin as a debasement of the quality 
 of it or a reduction of the weights of it would, but remain in the 
 hands of the governments that use them. Out of the hands of those 
 governments and people, their coin have a higher value than they 
 have within them, although the quality and weight of the coin re- 
 main unchanged. The means used arfc paper rnoney. It occasions 
 one value of the coin within, and. another out of the government 
 that uses it. Congress can operate to the same eifect upon the 
 coin by the use of similar means, but cannot make use of (heir's, 
 nor can Congress, having adopted similar means of its own, lend 
 or dispose of them, or communicate them to the coin in any way 
 so that they shall go abroad with it. They are effectual only within 
 the limits of the government that uses them, not outside of it. 
 

 r She use of paper money, in other words, depreciates the value of 
 coin within the government that permits it, which depreciation 
 
 docs not necessarily adhere to the coin upon its emerging from that 
 government into the commercial world, because the whole of that 
 world do not use paper money, or if any portions of it do, not to 
 the same extent that the government from which the coin emula- 
 ted does. If. perhaps, uses paper money, as we do, greatly in ex- 
 cess, and thereby greatly depreciates-// homeihe value of its coin ■ 
 but other portions of the commercial world do not, perhaps, use it 
 'paper money) at all— others use it very sparingly, and amongst 
 them it (coin) appreciates in a ratio inverse to the amount of paper 
 money used, the comparative population and uses for money being 
 taken into the account. 
 
 Well, that the appreciation or depreciation of money, by these 
 or any other means, must necessarily affect the prices of thii 
 has been put, we trust, beyond doubt or contradiction— and that 
 the relative cost or prices of things in different countries and 
 places, must enter into the consideration of commercial men is too 
 obvious to require more than an allusion to it. 
 
 ^ We come, then, to the absolute necessity, in the present condi- 
 tion of the commercial world, of thl introduction and use of paper 
 money. The value of coin cannot be wisely, economically and 
 judiciously regulated without it. It has obtained such a degree of 
 favor with, such a hold upon that world, that we must either^adopt 
 it or stand out of that world; but v\e are already in it— largely, 
 alas ! too largely so; over head and ears into it, actually drowi 
 in it— and that simply because Congress will not " regulate the 
 value of coin" here in the United States. Because they will not, 
 or do not, do what it is their exclusive right and duty to do. They 
 have suffered our coin to be depreciated by an excess of paper 
 money, until all the worthless gewgaws and trash of the world. 
 are brought and thrown upon us in exchange for our coin, at most 
 exhorbitant prices— until, comparatively none, of it can remain 
 amongst us. California has contributed— is contributing her im- 
 mense treasures of gold and silver— and our mints are milling it, 
 night and day, in vain. Our manufacturers have incurred the ruin- 
 ous competition necessarily resulting from it. Tarifts have been 
 devised, altered, amended, revised, corrected and adjusted, from 
 time to time, almost from year to year, indeed, for their benefit 
 
46 
 
 that did them no good, but carried distress and almost ruin into 
 interests of another kind, insomuch as to beget there an attitude 
 of almost open hostilities — aye, and until our enormous surplus 
 quantities of bread stuffs must lie rotting upon the hands of their 
 industrious and " deserving producers. But enough. If these, 
 and such as these, be the evils of our currency, then, let Congress 
 by all the means in its power, regulate it. 
 
 And from all that we have seen, we think the conclusion is clear 
 that it can only be done wisely and judiciously by a mixed cur- 
 rency of gold and silver, and of paper — of paper limited in amount , 
 capable of being readily controlled, and susceptible of an easy and 
 speedy contraction or expansion, as the condition, in that respect, 
 of the commercial world shall, from time to time, indicate to an 
 intelligent and capable observer, or to a committee of them, the 
 necessity of doing. 
 
 We must have, then, a mixed currency. Paper money must 
 make a component part of it. This, Congress alone have the power 
 to authorize, and being authorized by them, it must be lawful 
 money and a tender, of course, in the payment of all debts. 
 
 Shall it be the paper of a bank established by the authority of 
 Congress ? No ! We have trie€ that, with no very good or advan- 
 tageous results, and beside the prejudice that exists against an 
 institution of that kind, the profits of it, though derived to a great 
 extent from the uses of the public money, inure to a few. 
 
 A bank founded upon the revenues of the government, then, or 
 which is the same thing in effect, Treasury notes, would seem to 
 be the great desideratum. 
 
 The matters of branches or sub-officers of the Treasury depart- 
 ment in the several States, or in smaller districts, of loans or dis- 
 counts, of securities, &c. &c, being merely matters of detail, need 
 not be traced out here — indeed, whether loans or discounts should 
 be made or not is a question that we should decide rather with 
 the view of more speedily superseding the currency of State bank 
 paper than from any other consideration. That such a paper money 
 would ultimately obtain currency to the exclusion of that of the 
 States, without the means of loans or discounts, there can be no 
 reasonable doubt. It would require time, however. 
 
 Will the adoption, by Congress, of the remedies suggested fall 
 short of the object to be attained ? %hen let them adopt, in addition 
 
47 
 
 thereto, the one recently suggested by the President, Let them 
 enact a bankrupt law. Such a law is loudly called for, in our view 
 by a fair consideration of the best interest and welfare of the coun- 
 try. But upon that subject. Mr. Buchanan has said all that need 
 be said. 
 
 We conclude, then, here, for the present at any rate, our con- 
 sideration of the very important and interesting subject of the cur- 
 rency, written out « currentc calamo," and take leave of our readers 
 with the hearty and earnest appeal to each and every one of them 
 of "a quidreethia novisti. candidus imparti, si non his utcre 
 mecum." 
 
Date Due