CACK 
 
 S 
 
 036 
 
 406 
 
 A LETTER 
 
 ON 
 
 CURRENCY MATTERS ; 
 
 TO THE 
 
 PEOPLE OF THE UNITED STATES. 
 
 BY ONE OF THE PEOPLE, 
 
 NEW - 
 
 PRINTED BY T. & Cj 
 
 No. 16 
 
 , STATIimERS, 
 
 *
 
 INTRODUCTORY HINTS TO THE READER. 
 
 THE following pages are written with less inten- 
 tion to captivate the mind by elegant diction and 
 arrangement, than to instruct by simple illustration. 
 Every man has his world " What will Mrs. Grun- 
 dy say ?" Every man in " his world," or circle, has 
 in his mind's eye a Mrs. Grundy, whom he fears or 
 desires to please ; but it so happens, that one man's 
 Mrs. Grundy is not another man's Mrs. Grundy, 
 and hence, some, or any particular Mrs. Grundy, is 
 
 
 
 not pleased or propitiated by any attempt, unless 
 it so happens that the attempt is so guarded and 
 protected by truth and common sense, that the most 
 captious Mrs. Grundy can't gainsay it it re- 
 mains to be seen how many Mrs. Grundys will find 
 ground enough to assemble a formidable opposition 
 to the principles set forth in the following pages 5 
 that they will please, or be approved by all is not 
 expected. The first object of the writer is not so 
 much to instruct the instructed, as to give such 
 hints to the uninstructed that they may not be hum- 
 
 20O3524
 
 IV 
 
 bugged by the demagogue 5 and as among naviga- 
 tors, after a long storm and no sunshine, there is 
 nothing so natural and sure, as to take advantage 
 of the first chance for accurate observation, to 
 know where we arc, so it is in politics 5 a storm has 
 been raging : pure democracy got befogged : it 
 found itself mixed up with palaces, lobster sallad, 
 and champaign : hard currency and no currency : 
 new, if not selfish experiments : but no useful re- 
 sults : hence it paused, and took an observation 
 and a new departure, and starts anew from the Log 
 Cabin and Hard Cider. 
 
 This determination is soothing to the alarmed 
 patriot, for he sees in it that the people are true to 
 themselves 5 that every honest man, however hum- 
 ble his station, feels his identity as a freeman, and 
 determines that he is part and parcel of the body 
 politic , and that, although the public servant may 
 for a season usurp the powers of a master, he will 
 be told through the ballot-box, who in reality is 
 master. 
 
 In our money matters, it seems that every con- 
 trivance has been resorted to, to bewilder, perplex, 
 and deceive 5 and so ingeniously have things been 
 managed or mismanaged, that many, very many, 
 have become disgusted with the very name of Banks, 
 and Currency, and Corporations. 
 
 The following humble attempt is respectfully 
 offered, to sift the matter a little, and see how we 
 stand ; and if it should so happen that one mis-
 
 guided mind be directed to an honest and reasona- 
 ble, and patriotic view of the subject, or rendered 
 capable so far of understanding the matter, as to 
 shield him hereafter from the influence of the self- 
 ish and partizan demagogue, the Author will feel 
 more joy over that man thus instructed, than over the 
 ninety and nine who need no instruction. And to 
 the latter he would simply say, that should they see 
 instances where more could or should be said, or 
 further illustrations adopted or extended, to bear in 
 mind old Jabez Stiles' caution to his captain : 
 " Never to write a letter too long to be good for 
 nothing j" to avoid which liability, the Author 
 has been impelled to forego the discussion of many 
 incidental points, not the least ^of which is the abso- 
 lute injustice and consequent danger to a people's 
 interest, in their permitting an Executive power, 
 or any other power, but their own in Congress as- 
 sembled, to possess the ability of affecting the value 
 of any thing by an exposition of an opinion so far 
 conclusive or dogmatical, as to be in a measure the 
 law of the land. What better source of revenue 
 could an Executive Chief require, than the ex- 
 istence of that state of things in the public mind 
 which allowed his will to be law 5 or even that will 
 having a controlling influence over the law-making 
 power, which would be measurably the same thing ? 
 Ask any broker in Wall street what he would be 
 willing to give for the power of affecting the value
 
 VI 
 
 of any stock by the expression of his opinion or 
 will ? 
 
 The impression that no Executive would be 
 likely to abuse this right, is no reason why he 
 should possess it : for, admit the rule, and there can 
 be no necessity for any check or restraint, or de- 
 fined rule of action, as pointed out by the Constitu- 
 tion and the Laws. 
 
 It is precisely the difference existing between a 
 government conducted by one man's will, arid a 
 government conducted by a system of laws which 
 have been framed by the will of the people, for their 
 general good, and not exclusively for any particu- 
 lar individual : the difference, in fact, between 
 an unlimited monarchy and a democratic re- 
 public.
 
 TO THE 
 
 PEOPLE OF THE UNITED STATES. 
 
 THERE is a fable which describes a congregation of birds, 
 called together for the purpose of fixing upon a plan of 
 building a nest for, up to that period, only one class of birds 
 had a nest which was deemed a very perfect one, having a 
 snug and tight top as well as bottom, and a convenient hole 
 in the side. One of this class of birds offered his services- 
 to give a lesson of instruction. He first began by selecting 
 a suitable position in a limb of the tree, and called particular 
 attention to this point, as indispensable^-whereupon the crow 
 caw'd out a hoarse note, and said, " Any fool would know 
 as much as that." The lecturer, undaunted by this uncour- 
 teous remark, next proceeds with sticks, and grass, and 
 moistened clay blending and fastening all together as he 
 proceeded, and lining the inside with softer materials ; but, 
 at every step of his progress, some bird or other would 
 chirp out a note of astonishment " that the lecturer or in- 
 structor should suppose that such simple work required in- 
 struction, for any bird having beak and claw could do the 
 same by intuition !" The nest being half finished, the instruc- 
 tor's patience forsook him, and turning to the circle about 
 him, he said, '^Really, gentlemen and ladies, I find you so
 
 intelligent and so familiar in the art of nest-building, that 
 it would be but a waste of labor on my part to proceed. 
 The nest is now half made, and I leave you to finish it." 
 And with that he flew away. And from that day to the 
 present, the generality of birds have been compelled to con- 
 tent themselves with a half nest ; when, by a little patience 
 and a little more courtesy, they might have enjoyed, and 
 their successors after them, a good, well covered nest, and 
 protection against all weathers. 
 
 This simple fable is introduced to apply no further than 
 to counsel patience whilst we proceed in the subject before 
 us, for it is purposed so to conduct the investigation, that 
 perhaps, before it is even half finished, its simplicity may 
 lead to a feeling of surp/ise, if not an exclamation, not un- 
 like the crow's in the fable, " That any fool would know as 
 much !" It will not escape notice, however, and the expe- 
 rience of many will attest the truth of the remark, that there 
 are many things which appear so simple, that few take the 
 trouble to investigate them, and without an investigation 
 into, and familiarity with, their simple elements, an attempt 
 at construction generally results in complete failure. 
 
 The subject matter to which I purpose devoting the fol- 
 lowing pages, I could readily wish was one of more novel- 
 ty ; but, such as it is, I can only assert my solemn convic- 
 tion, that next to that which directs and interests man's des- 
 tiny hereafter, I know of nothing of deeper interest to him 
 in this trading world, than matters of money. And that 
 next to sound morals, in my judgment, stands a sound cur- 
 rency. The period seems propitious, nor can the attempt 
 be called presumptuous, to undertake a simple discussion of 
 this question of currency, when it appears that the wisest 
 men in the world, (in other matters,) are as to this matter,- 
 completely at variance : some either knowing too much or 
 too little regarding it, and, in the contest, leaving large
 
 masses knowing nothing at all. We have seen one set of 
 men carefully constructing a fabric and system which un- 
 deniably performed, even more for public good, than they 
 dared to hope it would ; and in the midst of its success, we 
 have seen another set of men professing more wisdom, as 
 deliberately tumble it into ruin ; and now we see both sets 
 looking on the ruin, as it were, waiting for public sentiment 
 to pronounce which was the wise, and which the foolish. 
 One thing is pretty evident, both parties cannot be equally 
 wise in this matter ; the " cap and bells" most surely belongs 
 to one of them ; but it is not my purpose here to trouble 
 myself in adjusting this matter. I leave that to the people, 
 who, though they may require time in deciding, are gene- 
 rally found unerring in their decision. 
 
 The subject of Currency, as usually discussed, I can easily 
 conceive to be, to the minds of many, an almost mysterious 
 science one that but few care to master, and the many take 
 for granted, and let it pass it is measurably not unlike the 
 science of steam. How many of us are dragged or paddled 
 about the world by this extraordinary power of steam, with 
 its valves, and pistons, and cylinders, and cranks, and cog- 
 wheels, and yet how few of us, if called on to explain the 
 actual use of this or that pipe, or cylinder, or pump, can 
 give a lucid or practical explanation of them. I, at least, 
 frankly confess that the whole combination was for years a 
 sealed book to me. I knew there was hot water and cog" 
 wheels ; but the " modus operand!" of applying the one to- 
 the other, was like Tony Lumpkin's puzzle between the Z 
 and the R. It was in vain to look for information from the 
 books ; the karned writers, no doubt, intended to be very 
 clear and explicit, but they seemed to forget that they were 
 called on to instruct the uninstructed. They seemed more 
 desirous to show to the learned and intelligent engineer, that 
 if they did not know more than he did, they knew at least 
 2
 
 10 
 
 as much ; and hence, I found myself, from title-page to finis* 
 involved in and perplexed by technicalities atmospheric- 
 pressures, vacuums, and so forth ; and it \vas not, in fact,, 
 till an accidental opportunity offered, under guidance of a 
 plain-minded engineer, for examining carefully a steam 
 engine in the progress of construction, that I at all compre> 
 bended the true character of this? mighty combination of 
 power : (I took care, however, at the time, to avoid the folly 
 of the birds in the fable, or this steam-instructor might have 
 left me with the knowledge of half an engine, limiting 
 his instruction to the " cut-off.") 
 
 Measurably so has it been with me, in regard to Banks 
 and Currency. Here we have technicalities also, and scien- 
 tific cognomens ; " contractions" and " expansions" ; " dis- 
 count lines" ; " deposit lines" ; " suspensions" ; " resump- 
 tions" ; " circulation" ; " liabilities" ; " elastic debt" ; " dead, 
 debt" ; " coin" ; " currency" ; " safety-fund" ; and so forth. 
 Now, what comes nearer to Hebrew, than these, to a large 
 number of fellow-citizens, who have nothing more to do with 
 banks than taking their bills in payment of debt, and passing 
 them round from hand to hand as money : they hope they 
 are good and reliable, just as they hope a steamboat or rail- 
 road cars and locomotive are ; they hope neither will blow 
 up, so long as they are passengers at least, but go on safely. 
 Thus far, they feel it incumbent on those who manage to look 
 to these matters, and if trouble comes, to see the cause ex- 
 plained ; and if error exists in the system, to have it cor- 
 rected, if hi the management to correct that even to the 
 punishment of fraud or neglect, should such be proved to 
 exist. It is important, however, that they themselves should 
 at least know enough about the character of the machine 
 and its management, that they may understand where the 
 error may be traced ; and it is with this view that I purpose 
 to sketch, in as simple a way as possible, my notions in re-
 
 11 
 
 gard to Banks, Banking, and Currency : and my only au- 
 thority for doing so results from the accidental fact, (as in 
 the case of the steam engine.) of an opportunity having 
 been offered to me of aiding in the construction of a bank, 
 and noting the operation of things connected therewith. 
 
 I shall, for convenience' sake, and for greater perspicuity, 
 conduct the inquiry under separate heads: 
 
 1st. The probable origin of paper money, and its natural 
 transitions from its primitive aristocratic character to its 
 present transitions, under democratic corporate formations ; 
 
 2. The influence of paper money, or what may be called 
 a Credit Currency, upon trade and intercourse with other 
 nations, showing the probable effect of abandoning the 
 system as a retaliatory measure, and the natural condition of 
 a hard-currency people dealing with a paper-currency people ; 
 and, 
 
 3d. A common sense view of the whole matter, without 
 resorting to statistical tables, and puzzling the brain by mil- 
 lions of figures, but leaving every man to see that 2 and 2 
 make 4, if added together, (though by an ingenious system 
 of reasoning, the same figures may be so placed that many 
 assert, and cause others to believe, that 2 and 2 make 22.) 
 
 First, then, as to the probable origin of paper money. I 
 say probable, because it is difficult to date the ezact period 
 when, or the exact form in which, it originated. There 
 was a period, no doubt, when there was no paper money ; 
 but money of some kind or other was adopted at a very 
 early period of the world. An examination of a collection 
 of ancient coins tells us there was a time when brass, cop- 
 per, iron, (and other precious metals we now call base,) 
 were used as money. At that period, gold and silver were 
 almost too rare and precious to be used as a currency, or 
 measure of value. In time, however, gold and silver be- 
 came more plenty, and were adopted as coin; and iron.
 
 12 
 
 brass, and copper became too plenty and abundant for that 
 purpose. How long it may be before even gold and silver 
 will become too abundant for current measures of value, and 
 cease to be used and adopted as coin to that end, it may not 
 here be necessary to calculate. Already silver has ceased 
 to be a coin, or convenient measure of value in England, in 
 consequence of its abundance ; and no one can force a re- 
 ception of it as a legal tender over 5 sterling, in payment' 
 of a debt, any more than he could iron, or brass, or copper, 
 or block tin. No one can say, then, that the time will not 
 come, when gold, for the same reason, may follow the foot- 
 steps of its "illustrious predecessor," silver, and join the 
 great family of baser metals, and go by weight along with 
 them. 
 
 This may not come in our day ; but it is a matter that 
 will at least teach us that there are, in this world, other 
 property and other things, valuable, besides gold or silver, 
 which metals of late seem to have figured before the brain 
 of some of our citizens in high stations, as the only deside- 
 ratum of life, and all-obsorbing object of governmental ac- 
 tion ; and for the possession of which, all other interests of 
 the country and the whole fabric of industry have been up. 
 set and tumbled into as much confusion as a Missouri buffalo 
 bull, wild from his native prairies, would occasion among the 
 gpindles of a cotton factory. 
 
 There naturally must exist some " measure of value," be 
 it what it may ; and that which is most rare, but of conve- 
 nient abundance for coin, and least liable to change or fluc- 
 tuate, will be adopted in all civilized communities. For the 
 present we require gold and silver as that measure of value. 
 Congress directs what quantity of either in weight shall con- 
 stitute a dollar of value, and no other coin shall be deemed 
 a legal tender in payment of just debts between man and 
 man. This is a fundamental law with us, and no power
 
 13 
 
 can change it ; neither Congress, or State Legislatures, or 
 any other power in the country ; and here I would call my 
 reader's especial attention to this fact, (which I may here- 
 after recur to,) and from which he will sec the marked dis- 
 tinction between us and such other nations with which 
 some of our demagogues have presumed to compare us, 
 and who ignorantly or wilfully have attempted to identify 
 our paper currency with that of nations which assume the 
 right of making their paper money the measure of value, and 
 a legal tender between man and man. It is not so here, nor 
 can it be ; and so long as we stick to this great and funda- 
 mental principle, that nothing but gold or silver shall be a 
 legal tender between man and man, (so long as these precious 
 metals continue precious enough for the purpose,) what have 
 we to fear from a depreciated paper currency of our own 
 country ? I assert, without fear of contradiction, we bear 
 no comparison or analogy with or to such nations who as- 
 sume the power of creating a paper currency, and say, 
 " this is equal to so much gold or silver, and is equally a 
 legal tender between man and man." No such power in 
 government, state or general, exists here, and there can con- 
 sequently be no depreciated paper currency here as un- 
 derstood in other paper money countries. We may have 
 bank notes and individual notes, which we may take in ex- 
 change for other things, and we may measure them in their 
 ability to be paid in gold and silver on demand, or through 
 the process of law, and take our chance for final redemption, 
 and, according to the delay, or trouble, or risk of obtaining 
 payment, value them accordingly; but of this hereafter. 
 We return to the probable or natural origin of paper money. 
 In any civilized country under the protection of laws se- 
 curing the possession of property and enforcing the perform- 
 ance of contracts, there will naturally exist a proportionate 
 degree of mutual confidence. Now, it is not possible to con-
 
 14 
 
 ceive that the people of such a country would not as natu- 
 rally resort to a paper representation of metallic money, as 
 they would adopt any other method of facilitating or conve- 
 niencing their intercourse. 
 
 Suppose, for example, in this country up to this period, no 
 such thing as trading or buying and selling between distant 
 parts of the country had been conducted except with "hard 
 money" how long would any one individual in New York 
 enjoy exclusively to himself the advantage he certainly 
 would possess over his neighbors, were he to conceive the 
 plan of depositing his coin in the hands of some well-known 
 person, and taking his* receipt, promising to deliver up said 
 coin on the presentation of said receipt, and sending or taking 
 said receipt to New Orleans, or St. Louis, or Cincinnati, where 
 he might require to make purchases of produce, and being 
 quite sure he would meet at either of said places some tra- 
 der like himself, who might desire to transport coin to New 
 York to make purchases there of merchandize, would not 
 such a receipt for coin deposited in a safe and reliable hand 
 in New York be exactly what the New Orleans, St. Louis, 
 or Cincinnati man would desire to possess ? And would he 
 not readily pay its amount in coin at either of these places 
 instead of lugging said coin across a wide country, exposed 
 as it would be to all the vicissitudes to which it would be 
 liable ? Two long journeys of coin are thus saved. And is 
 not said receipt just so much more valuable than coin for all 
 said purposes of trade and intercourse between distant and 
 remote points, as the amount it saves of the expense and risk 
 of transporting coin? And is it probable, therefore, that 
 such a labor and risk saving system would long remain un- 
 used or unadopted by all engaged in the great and multifa- 
 rious branches of trade and commerce ? 
 
 This receipt, then, may be justly denominated \he first- 
 born of paper money. It is the offspring of that natural con-
 
 15 
 
 fidence between man and man which will exist in all coun- 
 tries where laws exist to enforce contracts. No one will 
 deny that such receipts for coin actually deposited in safe 
 and reliable hands would be at least " as good as gold,'' and 
 consequently " a sound currency." Equally certain is it 
 that such receipts would scarcely be so regarded, and could 
 not be used with confidence, if given by such of our fellow- 
 citizens usually denominated " poor devils," having no repu- 
 tation for virtue, integrity, or honor. Hence it is apparent, 
 that whatever of remuneration might follow this system of 
 holding coin and giving receipts for the same, would be en- 
 joyed exclusively by such of our fellow-citizens who had 
 established a good name, and especially such as were known, 
 far and wide, to possess large means of their own ; for in 
 matters of confidence of this nature, men will first look to 
 reputation, and next to money ability, and quite as often to 
 the latter first, trusting to the laws for enforcing contracts as 
 a sufficient guarantee against attempted fraud. At any rate, 
 it is highly probable that he who had most of his own would 
 get most of others in deposit ; and though the poor might 
 not be made poorer, surely " the rich would be made rich- 
 er" by this system. 
 
 No one would hold coin if he could find a safe depository 
 and take therefor receipts, which, possessing the confidence 
 of all, would perform all the duties of coin, and especially 
 as such receipts could be so formed as to secure the rightful 
 owner against loss, accident, or theft ; and so long as these 
 receipts were issued on an actual deposit of coin, and for 
 nothing else, they would be as good, if not better than coin, 
 This may be called primitive banking, requiring no statisti- 
 cal calculation showing the effect of contraction and expan- 
 sion. It is one and the same currency, and is that system 
 of banking whi^h perhaps a very few of known large means
 
 10 
 
 of their own would have no objection to see restored, for 
 obvious reasons. 
 
 The first natural transition from this primitive system pro- 
 bably was that some very well known banker, whose re- 
 ceipts were found to pass from hand to hand far and wide, 
 leaving in his strong box a large amount of coin doing no- 
 thing, would create other receipts and loan them to his neigh- 
 bors on interest, taking their " promise to pay" on demand, 
 or at short periods ; or, beginning more simply, he might 
 venture to loan them a portion of the coin left with him on 
 deposit, taking their " promise to pay" on demand as above, 
 with interest. The very coin thus loaned would come back 
 through other hands to him, and be represented by his re- 
 ceipts, and thus he would go on step by step till he had 
 reached a point, beyond which, if he proceeded, he would 
 exceed his ability of redeeming the receipts he had issued, 
 with coin on demand. (Here it may be mentioned that by 
 some it is asserted that the laws of trade will distinctly desig- 
 nate this point. No doubt of it. But this law of trade 
 comes to tell its tale after the mischief is done, and panic 
 and alarm brings unnecessary ruin to many, and banker and 
 all are swept down by it. Far better would it be for this 
 banker and his dealers if some indication, some reliable evi- 
 dence of proximity to danger, should throw its beacon light 
 and warn him that the breakers were near. To this matter 
 we may have occasion to recur hereafter* Thus much, 
 then, by way of parentheses.) 
 
 It is evident that this system of banking, so profitable to 
 the banker and convenient to those who have coin to de- 
 posit, and to those especially who borrow on their industry, 
 would lead to severe competition among those who desired 
 to participate in the profit of banking. None of course could 
 expect a share of this profit unless possessing wealth enough 
 "to damn him as an aristocrat;" for, strange as it may appear,
 
 17 
 
 from the days of primitive banking to its present extreme of 
 transition, there never was known a real "up to the hub," 
 or, in more modern parlance, " a whole hog" democrat, who 
 would prefer in matters of banking to patronize a poor 
 though honest democrat's " promise to pay," when he could 
 put his fingers on a rich man's " promise to pay." What, 
 then, was a democratic people to do ? Were they to suffer 
 a branch of business so important as this to rest in the hands 
 of a very few, whose large means would naturally in time 
 become larger, till perhaps we should have a Rothschild, a 
 Hope, a Hottinger, or some other Jew or Gentile, to whom 
 the trading world would look, and even the Government 
 itself consult, before undertaking measures requiring money 
 or means to carry out ? To obviate this evil, so repugnant 
 to democratic principles, copartnerships would be formed,, 
 thus bringing into one mass an accumulation of small means. 
 But we all know the inconvenience of copartnerships, com- 
 posed of many individuals, in the process of "suing and being 
 sued." Es-pecially, too, in the event of death, before an ex- 
 piration of the time of copartnership, when "executors,, 
 administrators or assigns," must necessarily be introduced in? 
 the " record." In this- state of things, and in a country like 
 ours, where it is well that all have a little, and no man a 
 great deal, the admirable and truly democratic system of 
 " incorporation" was adopted a system which was not only 
 " E pluribus unum," practically translated, but which, at one 
 blow, scattered to the winds the whole fabric of individual 
 presumption : a system admitting any number of individuals,, 
 male or female, the lame, the halt, and the blind, the infant 
 or decrepid, to come in with small means, or large means/ 
 and participate in whatever of profit or advantage might be 
 derived from any lawful pursuit which required large means 
 to carry on, or accomplish whether in Banking, in Canat- 
 ling, in Railroading, in Bridging, in Turnpiking, in Steams
 
 boating, in Mining, in Gas Lighting, or in Manufactur- 
 ing. With this peculiar advantage, also, over private enter- 
 prize, that in whatever pursuit in which the interest of the 
 public at large may directly or indirectly be affected can 
 be controlled by that public, through the corporate form, in a 
 manner, which could not be applied to the individual ; for 
 instance, in Banking, what law would square with the Con- 
 stitution, (the great charter of our liberties,) which would 
 authorize an examination of a private Banker's books and 
 concerns, and announce to the public, that he was too far 
 extended, and therefore dangerous to trust ? What law 
 could present to him that he might issue receipts, (which we 
 may now call Bank notes,) only for coin deposited with him, 
 or for a certain amount beyond the actual coin, and count 
 the same in his strong box, and examine his other securities ? 
 What law could prevent him from issuing his " promise to 
 pay," on a deposit of iron or lead, or any other metal or 
 merchandize, or on assignments of bond and mortgages, or 
 any other security, as well as for the purchase of land ? 
 What law could define the difference, and say, this is a bank 
 note issued on a deposit reliable for its redemption, and 
 therefore lawful and that is a bank note or promise to pay, 
 issued for other purposes, and on other securities, and there- 
 fore not lawful ? This would be preposterous, and the at- 
 tempt, if persisted in, would upset the fundamental principles 
 of our Government. But under the corporate system all 
 these safeguards can be adopted. No matter how severe 
 the restriction, how minute or exact the examination, or how 
 public and wide-spread the result of such an examination 
 may be ; it is in the compact and bargain between the pub- 
 lic and the corporation, and the latter has no ground of 
 complaint. The corporate power is granted for the advan- 
 tage of its wide circle of stockholders, but the public retain 
 the right of checking, as far as practicable, that advantage
 
 10 
 
 from encroaching on public safety. If in the progress of ex- 
 perience, these checks and supervisions have not yet reached 
 an entire prevention against injury or fraud, it is no reason 
 why they should be abandoned. If a steam-engine explodes 
 and scalds passengers, are we to say it is useless to con- 
 tinue any system of guarding against such accidents ? is it 
 not wiser to follow up the precautions which experience 
 enlightens, and be assured as common sense must tell us, 
 that without any precautions, or check, or supervisions, we 
 should very soon be adrift, and exposed to more frequent 
 explosions, as well in banks as in steamboats. 
 
 It has been the fashion of late in the modern schools of 
 democracy to declare open and " uncompromising hostility* 
 against " corporations," or, as they term them, " corporate 
 associations of wealth" "Modern democrats" think they 
 see danger to the democracy in these institutions, and the 
 alarming cry is raised of " Free Trade, Free Trade in all 
 things ; No Monopoly I" What is the practical meaning of 
 this doctrine ? what the natural result, should such senti- 
 ments triumph ? 
 
 Can the demagogue " define the position" of things, should 
 the corporate system be demolished ? Will he look to the 
 object and motive of its adoption, and answer an intelligent 
 democracy ? (He has, however, put the question, and 
 been answered most effectually through the ballot-boxes* 
 and, therefore, I do not deem it necessary to press the matter 
 further here.) 
 
 The natural system of depositing coin, and using its re- 
 presentative, would suggest itself also with a view of avoid- 
 ing a depreciation of the coin itself; a coin of gold or silver 
 is intended to contain so much of these precious metals, as 
 its stamp may indicate. Now let these coins go into active 
 circulation, and perform the duties imposed on their repre- 
 sentatives in paper, and, after a few years, let one thousand
 
 20 
 
 dollars of various denominations, from a gold eagle to a six 
 cent silver piece, be promiscuously taken and weighed, and 
 it will be found that an actual loss by wear and tear has 
 been sustained, which, if made applicable to a bank bill, 
 would render it incapable of circulation; no bank bill could 
 be sustained in circulating with such an actual depreciation. 
 It would go back to its source long before, and be liqui- 
 dated, and a better would take its place ; and here we see 
 some evidence of the assertion just hazarded, that a serious- 
 ly depreciated paper currency cannot exist in this country ; 
 frauds may be practised, some " rascally bank" even one in- 
 corporated, may creep in, and defraud a community. But I 
 put the question now to the mass of the trading community, 
 and ask if the loss they individually have met by a depre- 
 ciated paper money, comes to a tythe of a per-centage of the 
 loss they may have experienced in other securities or traffic ? 
 
 It is obvious that a paper currency claiming to represent 
 coin, must cease to circulate, the moment it becomes de- 
 preciated or doubted to any inconvenient extent, so long as 
 competition exist ; and the security here against a permanent 
 depreciated currency is found in the fact, that no power in 
 Government, (State or General,) can create or authorize the 
 creation of paper money as a legal tender, in payment of a 
 debt between man and man, for, be it remembered, there is 
 no other legal tender but gold or silver in these United 
 States. 
 
 The Government of the United States, in cases of ex- 
 igency, has issued paper money under the name of Trea- 
 sury Notes; these have been depreciated far below their 
 promised value, even in exchange for bank notes and in- 
 dividual notes. The reason of this was, first, no one could 
 tell how far Government would be compelled to extend the 
 issue ; and, 2d, no one could sue the Government for their 
 redemption, in gold or silver, as he could a bank or indi-
 
 21 
 
 vidual. These Treasury Notes were but another form of 
 borrowing money by the Government, being in fact " Go- 
 vernment Bonds," in small amounts, " to suit dealers," paya- 
 ble when the Government was able to pay them, and not 
 before : the theory being, that the Government is the 
 people, and the people cannot sue themselves. But the Go- 
 vernment retains the right to sue any of the people. The ap- 
 parent hardship of this admitted rule would be not a little 
 increased by the adoption of the modern doctrine, by which 
 the Government assumed hostility against all and any 
 species of paper currency, which the people desired to 
 have, and which they could at any time compel a redemp- 
 tion of, in gold or silver, and at the same time, the Govern- 
 ment itself issuing a clumsy Treasury Note, which could not 
 be so enforced, but might, at the will of the Government, 
 remain unredeemed by gold or silver to suit its convenience. 
 No wonder the framers of our Constitution, aware of this 
 tendency in Government, denied, in toto, the right of Govern- 
 ment to issue a paper money as currency, and confined it to 
 the simple power of borrowing money if required, feeling 
 quite sure, if the right to issue a paper currency were granted 
 to it, it would soon usurp and surcharge all the channels of 
 circulation, with a currency which would practically subvert 
 the great and fundamental security involved in the fact of 
 gold or silver being alone a legal tender. And yet we see 
 many in high places, and professing democracy, and strict 
 observance of the letter of the Constitution, so scrupu- 
 lously cautious as to the sacredness of that instrument, seeing 
 in it no power or authority to adopt any law, having for its 
 object the safe and sound control of a currency, redeema- 
 ble in gold or silver, at any time when demanded, and at the 
 same time voting for the issue of a currency which exempts 
 the issuer from paying the same in gold or silver, unless 
 perfectly convenient to him. The reasons assigned are, "the
 
 banks have suspended ! the paper circulation of the banks 
 is good for nothing ! ! It is useless for Congress to attempt an 
 organization of a system which has so signally failed, and 
 as for corporations, they are monopolies, anti-democratic, all 
 humbug ; and therefore, we are compelled to ask gold from 
 the people, and for convenient currency, we give the people 
 Treasury Notes" ! ! ! And this doctrine is received by many 
 as sound, unconscious of the real fraud and deception, in- 
 geniously cloaked by these pumpkin-headed and cunning 
 depredators. 
 
 Let any honest and intelligent common sense man look 
 back to our past history, he will see there were periods of 
 many years following each other, when there were no sus- 
 pensions, no material fluctuations when he could take a bank 
 note from the Branch of the United States Bank at Maine 
 and find it " as good as gold" at any part of the country he 
 chose to send it the revenues of the country collected and 
 disbursed without charge to the Government, and without 
 the loss of a cent, all the sound State banks working in their 
 orbits, and a sound currency performing its functions, and 
 none but a sound currency holding its existence a moment. 
 The mechanic, the manufacturer, the planter, or agricultu- 
 ralist, if he chose to be his own merchant, could sell the pro- 
 duction of his industry to his fellow-citizens at the extreme 
 and remote parts of the Union, and collect his pay at less 
 cost than transporting the specie ; and if any thing rendered 
 our motto, " E pluribus unum," a practical fact, it was the 
 sound and reliable currency we had. What is our condition 
 now as to this matter ? 
 
 It was the democratic party of its day, which deemed this 
 system not only constitutional, but indispensable ; but it 
 seems that our modern democrats, in and out of office, read 
 the Constitution differently. They see no power specifically 
 granted by the Constitution which would authorize Congress
 
 23 
 
 to adopt any measure calculated to control a salutary regu- 
 lation over a paper currency, and the people say. they must 
 have a paper currency, of some form or other. Now, lei it 
 be asked, where does Congress find the right specifically 
 stated in the Constitution which authorizes a law prohibiting 
 a citizen from sending the productions of his labor coastwise 
 in a foreign vessel ? Still this is positively prohibited by 
 a law of Congress. None but the American flag can do 
 this ; and though a foreign vessel might offer to do it for 
 nothing, she would be condemned for so doing. But Con- 
 gress finds this right, in that clause of the Constitution which 
 authorizes the passage of such laws as may be found neces- 
 sary to regulate foreign commerce and commerce between the 
 States. Then again, as to steamboats (a power scarcely 
 known when the Constitution was formed) in what part of 
 the Constitution does Congress find the right to prescribe 
 certain rules and regulations as to the construction of the 
 boiler and the management of the engine and boat ? It can 
 nowhere be found, save in that common sense construction 
 which authorizes the adoption by law, of such regulations 
 and salutary rules as may be required for the public security. 
 The same right is exercised by Congress in prescribing 
 heavy penalties against all vessels carrying more passengers 
 than are allowed to a certain tonnage j and even the quan- 
 tity of water and provisions is specified by the law. This 
 is a humane construction of the Constitution ; but humanity, 
 though it fully approves the measure, cannot put its eye. 
 with or without spectacles, upon that clause of the Constitu- 
 tion specifically granting to Congress this power ! ! 
 
 The framers of the Constitution have specified in that in- 
 strument what powers Congress shall exercise. Among 
 these is the regulation of foreign commerce and commerce 
 between the States. And after enumerating various specific 
 powers, it adds, " and Congress shall have power to pass
 
 24 
 
 all such laws as may be found necessary to carry the fore- 
 going into effect." Congress has already enacted laws re- 
 garding foreign commerce and commerce between the 
 States ; but in matters of banking, some wiseacres have dis- 
 discovered that banking and currency have no influence 
 whatever over foreign commerce or commerce between the 
 States ; and hence they say Congress has no right to con- 
 trol, or direct, or regulate it in any way or form. Will 
 these politicians come to practical men in trade and tell 
 them that a good and sound currency, one of equal value 
 all over the country, has no favorable influence over trade 
 and commerce between the States, and that, nice versa, a 
 confused and dislocated currency is not obstructive and in- 
 jurious to intercourse, and not at war with that great object 
 of our Union, which was to be "E pluribus ttnum ?" They 
 must say this if they persist in asserting that Congress has 
 no right or control over the currency. But suppose it can 
 be demonstrated that in the present advanced state of the 
 world, a state or nation, with an exclusive hard currency, 
 dealing with other states and nations using a well organized 
 paper or credit currency, the former has no more power to 
 escape being beaten and outstript by the latter, than she 
 would be, if denying to herself the use of steam power, and 
 left the control of that mighty labor-saving invention to 
 others, and contented herself with poles, sails, and cold 
 water, can nothing be found in the Constitution to autho- 
 rize Congress to grant to the people some law and regula- 
 tion to countervail and protect themselves ? Can the Go- 
 vernment of this people find no sanction in the Constitution 
 to this end ? Yet this demonstration just alluded to, can be 
 furnished, and will appear under its proper head. 
 
 We conclude this part of our subject, then, after having 
 shown as briefly as the limits of these pages will allow, the 
 " probable origin of paper money its natural transition from
 
 25 
 
 primitive banking its leading to competition the exclusive 
 advantages to the few rich, but for the adoption of the cor- 
 porate system the security to the public, controlled through 
 corporate organizations, which could not be thus controlled 
 without it with a glance at what we once had, and what we 
 now have ; by which it will be seen how important it is for 
 a people to watch and guard against, and check, early at- 
 tempts of men in power, for we see in this matter of cur- 
 rency how an Administration step by step proceeds, giving 
 plausible reasons for every step, till in a few brief years the 
 whole condition of the country is changed from a sound and 
 stable currency to one of disorder the nation itself, with a 
 full treasury and out of debt, now brought to empty iron 
 safes, called sub-treasuries industry prostrated the nation 
 in debt, and borrowing on treasury notes, from hand to 
 mouth, of the very banks " the party" attempted to despise 
 with an increasing debt the public revenue squandered, and 
 partizan'officers absconded, and perhaps the worst not known 
 yet. Now, compare this state of things with that departed 
 from, would the Administration which has brought upon us 
 these evils been allowed to proceed, if the people could have 
 foreseen this result ? But this result was proclaimed from 
 the house-tops in every form by those who had seen just 
 such results before from similar causes. But " the glory" that 
 surrounded the Chief was a passport to favor ; he gave the 
 signal and proclaimed that all these evil forebodings and pro- 
 phecies were erroneous. " I am the Government," said he ; 
 " I take the responsibility, and down with all and every at- 
 tempt to oppose me." Modern democracy for a time thought 
 this sound doctrine, and threw up caps, and cheered the on- 
 ward course to "glory and reform? till the country got both 
 to its heart's content : quite enough, it is to be hoped, to last 
 out the present generation. What has been the cost of "the 
 experiment" we cannot exactly tell, till we see the end of it : 
 4
 
 26 
 
 it was a great frolic, and, like all frolics, the piper is to be- 
 paid. But some will point to a period in the midst of the 
 experiment when all was going on most swimmingly, and 
 say, " all was well then when was the country more pros- 
 perous and happy, prices higher, and money plentier than 
 then*?" Never, to-be-sure. And when will the wheels and 
 hands- of a watch, wound up, go faster than when you twitch 
 out the balance wheel 1 But look at it when it has " run off 
 its mortal coil," has it lost no cogs from its wheels ? Are 
 all its springs sound its pivots unaltered ? And because 
 the clumsy hand that set it spinning round at a merry pace 
 to destruction cannot restore and adjust its balance and for- 
 mer accuracy, is he to be allowed to escape public disap- 
 probation under the assertion, "that the machine is not trust- 
 worthy ?" 
 
 2d. As to the influence of paper money, or what may be 
 called a credit currency, upon trade and intercourse with 
 other nations, showing the probable effect of abandoning 
 the system as a retaliatory measitre, and the natural condi- 
 tion of a "hard currency people, dealing with a paper cur- 
 rency people." 
 
 It will be admitted, no doubt, that what is found to be the 
 best mode of cultivating a hill of potatoes, will be found the 
 safest mode to apply to a thousand hills or field of potatoes. 
 And the safest and most savory mode of mixing and cooking 
 one pudding, is equally applicable to a thousand puddings 
 of the same materials. The remark is equally applicable to- 
 banking in one small community dealing with other small 
 communities, as the banking of a large nation dealing with 
 other large nations. The principle is identical. Now, for 
 the purpose of better understanding this matter, let us resort 
 to a simple illustration in a small way. Let us suppose, for 
 example, that Boston was the only point in these United 
 States where there was an organization of a good and relia-
 
 27 
 
 ble bank, its capital large and abundant for all the purposes 
 of controlling and securing confidence in all its " promises to 
 pay." The interests involved in this bank would naturally en- 
 hance all such interests as were identified as part and parcel 
 of the prosperity of Boston, and that branch of industry 
 which was deemed of greatest importance would of course 
 be most strongly represented in the direction of the affairs of 
 this bank. Now, let us suppose that the manufacturing 
 interest happened to be so regarded as the abiding and relia- 
 ble basis of Boston's prosperity, this interest "would consequent- 
 ly be strongly represented in the bank direction. We must 
 also suppose that Boston is the leading market for the sale 
 of raw materials required to be manufactured, and in fact, or 
 measurably, the market where the producer would send or 
 take his productions. Now, let us suppose that Charleston is 
 a leading point, whence the shipment of this raw material is 
 made to Boston, and that raw material cotton. It will be 
 borne in mind that all such productions of the earth come 
 periodically. Boston, as before stated, is at the head of the 
 credit currency. No other State or community has attempt- 
 ed to compete with her : they possess no such organization. 
 Now, it is admitted on all hands that it is this description of 
 money or currency which alone admits of expansion or con- 
 traction, for every dollar of it in circulation which exceeds 
 the amount of coin actually deposited is so much currency, 
 or money added to the amount of coin, and is money just so 
 far as it performs the functions of money. Can any one 
 doubt, that when it suited the interest of the owners and di- 
 rectors of this Boston Bank that money should be scarce or 
 plenty, that it would not expand or contract the amount of 
 money at will ? or, in other words, when Boston manufac- 
 turers were purchasers of raw cotton, would it not be natu- 
 ral that this bank would contract the amount of money, and 
 when Boston manufacturers had supplied themselves with
 
 28 
 
 the raw material, and had manufactured goods to sell, then 
 the money market would become more easy and money 
 more abundant: prices of course measurably varying with the 
 scarcity or plenty of money? What possible chance would 
 any community have in trading with another possessing this 
 formidable control over prices by periodical and timely chan- 
 ges of the money market ? And would it not be the same 
 in the case of an individual possessing this exclusive power 
 in his intercourse with others ? But what is the remedy? 
 What course should the cotton growers adopt to avoid this 
 baneful influence ? for, regularly as their cotton crop was 
 ready for market, they found complaints general and wide 
 that money was very scarce and prices flat, and after the 
 crop was sold, the " money market" became easy, and all 
 prices advanced. Perhaps they would call public meetings 
 and adopt resolutions, and send a copy of the same to Bos- 
 ton, denouncing banks and calling upon all good citizens far 
 and wide to go for "hard currency exclusively," and no 
 bank rags." Boston, in turn, would respond to these reso- 
 lutions, and assure the cotton growers that banks were great 
 evils, and that no people, especially producers of raw materi- 
 als and consumers of manufactured goods, should ever adopt 
 any such organization, and that in fact Boston intended to 
 get rid of hers as soon as she could bring her people to see 
 their folly. They would even go so far as to induce some of 
 their ingenious people to write books on political economy in 
 general, and currency in particular, and by millions of figures 
 show how much better a people are off without banks than 
 with them ; but yet the time never comes for the people of 
 Boston to see the practical folly of having a bank and being 
 at the head of the credit currency. The producers of raw 
 cotton and consumers of manufactures grow annually poorer 
 and poorer, and Boston and her manufacturers grow richer
 
 29 
 
 and richer. What, then, is the true remedy for the cotton 
 growers to adopt? 
 
 Before answering this question, let us transfer Boston to 
 Great Britain, and let our cotton growers and consumers of 
 manufactures remain where they are, in the United States, 
 which being the actual condition of things as at present, we 
 need the aid of no further apt illustration. 
 
 The Bank of England is now at the head of the credit 
 power of the world. If money is scarce in England, its effect 
 is felt elsewhere just as soon as steam power or other con- 
 veyance can tell the story at the remotest points where Eng- 
 land's trade extends. Whether this scarcity or pressure pro- 
 ceeds from accidental causes or from interested motives, it 
 matters not the effect is the same. Money scarce in Eng-^ 
 land makes money scarce every where, and vice, versa. It 
 ean scarcely be expected that the Bank of England would 
 ever admit in any form that she made money scarce for any 
 other reason than for general good. That general good of 
 course is England's good. John Bull is an honest, open- 
 hearted fellow, with this self-satisfying conviction in his own 
 mind, that if he is well off in the world, all the world must 
 feel the benefit of it from him, and therefore he feels per 
 fectly authorized to take care of himself first, and then reflect 
 his fullness elsewhere. 
 
 In the intercourse of nations it may be observed, that what- 
 ever systems are adopted by any one nation, their effects on 
 other nations dealing with said nation are felt either directly 
 or indirectly. For instance, if one nation should impose a 
 tonnage duty on the vessels of other nations visiting her 
 ports, it is pretty evident if other nations do not impose a like 
 tonnage duty on her vessels, she will very shortly enjoy the 
 exclusive carrying trade. This is so direct a proposition, 
 and involves so little mystery, that even " free trade people" 
 cease using their dogmas in opposition to a retaliatory sys-
 
 30 
 
 tern. If one nation adopts any improvement in art for man's 
 comfort, or in war for his destruction builds ships of war 
 propelled by steam or sails, other nations would be untrue to 
 themselves if regardless thereof. These are all palpable and 
 direct matters, understood by all, and tell their own story too 
 plainly to admit of sophistical or Jesuitical reasoning. Next 
 comes imposition of duties on the productions of labor, and 
 though a little more involved, still it would seem that a com- 
 mon sense view of the matter would counsel retaliation; that 
 is, if one nation raised grain and cotton, and another nation 
 also raised grain and not cotton, but manufactured said cotton 
 into cloth. If the latter nation said, I will take your cotton 
 and not your grain, and you must eat your own grain and 
 consume the cloth I make for you, it is pretty evident (to 
 say nothing of the influence of the money power on prices 
 just alluded to) that the cotton and grain growing country 
 would soon become as poor as colonists always have be- 
 come under such a bargain. History tells not to the contra- 
 ry, that unless the producers of raw materials of one nation 
 are protected by as wise and shrewd laws as those which pro- 
 tect the manufacturing -interests of other nations, the former 
 must inevitably fall a prey to the latter. The producers ask 
 for free trade or exchange of the productions of industry. 
 But what kind of free trade is that which says, I will take of 
 your productions just what I choose, and no more, but you 
 must take of mine whatever I choose to send you ? Unfor- 
 tunately for us in the United States, this question of retalia- 
 tion has met opposition among ourselves, in consequence of 
 one portion of our country producing a raw material, which 
 England, wanting, takes at a very low rate of duty, while she 
 rejects by prohibitory, or partially receives under excessive, 
 duties, nearly all the other productions of the United States, 
 involving, therefore, a vexed question among ourselves, not 
 easily adjusted, whilst certain politicians desire to keep it as
 
 31 
 
 they desire to keep the Abolition question, like "the raw'' 1 
 described by Scott on the Irishman's horse, which was kept 
 so, " for a trot up the avenue." Leaving this matter to the 
 return of a better state of sound national and patriotic feeling, 
 and to be adjusted in the spirit of honest compromise, let us 
 recur to the question which is the one intended mainly to be 
 considered the money power. Here is a power which in 
 the foregoing pages is attempted to be shown as capable of 
 exercising a momentous influence ; and whatever nation, 
 community, or individual, possesses an exclusive control 
 over that portion of it which has been described as the credit 
 currency, must indisputably triumph over all other influen- 
 ces in trade, and eventually bring all else subject to it. 
 
 Who can deny that an individual possessing the exclusive 
 power in a community over the currency which he would 
 possess, if the only banker or person capable of issuing a 
 credit currency, contracting and expanding the same at will 
 would not, if he chose to use the power, bring all interests 
 tributary to him, so far, at any rate, as increasing wealth 
 could effect this object ? 
 
 Would not this power in a community of people exercise 
 the same control in its intercourse with other communities 1 
 And precisely so in the possession of a nation in its inter- 
 course with other nations ? There can be no difference 
 the principle is the same, and equally applicable in all cases. 
 But to many minds it is an involved question, perhaps pur- 
 posely rendered so to bewilder and mislead : its operation 
 comes indirectly, and not directly, as in the case of the ton- 
 nage duty. The question recurs, what is the remedy to 
 counteract its influence or render it harmless ? Is it to dis- 
 organize a similar power we may possess ? to scatter our 
 forces, and pass resolutions denouncing banks, and bank 
 rags, and bank barons, and go for hard money ? What an- 
 swer returns to us from that nation which possesses a com-
 
 32 
 
 plete organization of this credit currency power is it not 
 precisely such as has been already supposed to come from 
 Boston to the cotton growers ? The true remedy, then, 
 must be to do as they do to organize a similar power for 
 ourselves, and be ready to counteract whatever of injurious 
 influence may be attempted. Thus, if a sudden fluctuation 
 downward in their money market occurred just as our cot- 
 ton was ready for market, whether by design or accident, 
 our institutions could come to the rescue, and save our plan- 
 ters from the necessity of seeing their crop change hands at 
 ruinous rates. And, vice versa, should another fluctuation 
 upward be attempted to further sales of their manufactured 
 productions and expand prices, our institution would look 
 to that also, and keep matters as straight as practicable. 
 The game would be a just, if not a short one, where two can 
 play at it. 
 
 We heard nothing of these extraordinary fluctuations 
 when we had such an institution. Who among us inquired 
 then, as we do now, with anxious minds, on the arrival of 
 every packet from England, regarding the action or condition 
 of the Bank of England, and look to the amount of specie in 
 her vaults with as much interest as if it was our own bank, 
 and measured our steps accordingly? They may have had 
 their fluctuations, but they affected us not it was the busi- 
 ness of our institutions to watch them but now scarcely an 
 interest in the country is not affected more or less by the 
 course pursuing and about to be pursued by the Bank of 
 England. And can it be said, then, that this matter is not 
 intimately interwoven with the foreign commerce of the 
 country and commerce between the States and being so, is 
 it not the duty of Congress to look to it ? 
 
 Thirdly, and lastly. What do the people ask of their Go- 
 vernment touching this question ? 
 
 They ask to be provided with such a state of things as
 
 will enable any man, be he a merchant, a manufacturer, an 
 agriculturalist, or mechanic. to collect from, or remit to 
 any portion of the Union, in a sound and reliable currency, 
 in the most economical manner possible, a currency con- 
 vertible at will at any point where presented. This is not 
 asking an impossibility, it is but the restoration of a system 
 the country had and prospered under for two periods of 
 20 years each, and during the absence of this system, con- 
 fusion worse confounded ensued. Difficulties, however, pre- 
 sent themselves in restoring such a system ; some still have 
 constitutional scruples regarding the right of Congress to 
 charter a bank, regarding it as an infringement, also, upon 
 State rights ; others contend with more reason, that capital 
 has now so far directed itself to the construction of rail- 
 roads and other enterprizes of a similar nature, that to at- 
 tempt to create another large bank with ample powers, 
 would tend to draw from these laudable and patriotic en- 
 terprizes the capital now required to carry them to com- 
 pletion, leaving them unfinished and useless, and a dead loss 
 of what has been done. This view of things is entitled to 
 consideration : Congress, if true to the vital interests of the 
 country, should pause and weigh well any measure that 
 might by possibility molest or arrest the great work of in- 
 ternal improvement now going forward. In reality, we 
 want no additional banking capital, we have abundant, per- 
 haps more than is necessary ; all that Congress need do, in 
 fact, is to adopt a simple measure which will lead to an or- 
 ganization of so much of the capital as will suffice to 
 furnish a currency for national purposes, supplying that' 
 which the State institutions, as at present conditioned, can- 
 not do. It is not even necessary that Congress should frame 
 a charter to this end. 
 
 The fatal error that was committed after the removal of 
 the deposites from the Bank of the United States, was in
 
 34 
 
 placing said deposites in, and causing the future receipts 
 and disbursements of the public money to be made through, 
 a number of banks, selected as agencies by the Treasury 
 Department : banks having no unity of action with each 
 other. This was as erroneous and as certain to lead to bad 
 results, as in the event of the navy or war departments 
 assigning twenty Commodores to one naval station, or as 
 many Generals to the command of one military station. 
 Each Commodore and each General moving on his own 
 hook, and reporting alone to their respective departments. 
 
 Now, instead of such an arrangement, had Congress 
 adopted a resolution in something of this form, a great mass 
 of evil would have been prevented, and all would have 
 gone on smoothly. For practically, it makes very little 
 difference whether Congress, or any other body having the 
 power to incorporate a bank, creates said bank, provided it 
 is a bank, with competent capital and ability for the work 
 assigned it : 
 
 " Resolved, That the Secretary of the Treasury be autho- 
 rized and hereby directed to cause the public revenue to be 
 paid into such bank, and its agencies, which bank shall give 
 ample and satisfactory security for the disbursement of the 
 game in gold or silver, or their equivalent, free of charge, 
 at such times and places as the said Secretary of the 
 Treasury may direct, provided said bank also furnish peri- 
 odical statements, and agrees to admit of such examinations 
 into its affairs, as often as said Secretary, under the direction 
 of Congress, shall prescribe." 
 
 Now, in this simple resolution are embraced all the func- 
 tions that a charter from Congress could give ; as also, all 
 the security that a bank, chartered by Congress, could pos- 
 jsibly control. No principal could ask more of its agent, 
 and no agent could give more to his principal. The Trear 
 gury and Congress do not prescribe to said bank what kind
 
 A 000105408 9 
 35 
 
 of money said bank shall receive ; but the bank is bound to 
 pay whatever she has received, in gold or silver, or their 
 equivalent, wherever or whenever demanded by the Trea- 
 sury. Said bank will take care to select good and reliable 
 agents in all parts of the country, wherever the Government 
 may have money to deposit, or to disburse. Such an ar- 
 rangement would be equivalent to a National Bank, for all 
 purposes of equalizing exchanges at home, by bringing the 
 collecting and disbursement of the public revenue in harmony 
 with the current trade of the country, and not as now in its 
 eccentric character, crossing and re-crossing the tracks o* 
 trade, and so far disturbing and harrassing the latter as to 
 disable it from furnishing revenue. 
 
 If something of this form is not adopted, or an entire re- 
 organization of a National Bank, we can never see that 
 prosperity restored, which once saw all the interests of the 
 country, in all the branches of productive industry, pro- 
 gressing side by side, slowly but surely. The East from the 
 West, and the North from the South, will gradually become 
 more and more distant, less and less familiar in in- 
 tercourse and our national motto, already quoted, be as 
 applicable to the nations of Europe as to these United 
 States. 
 
 We may boast of our hard currency, and lock it up in 
 our iron boxes ; but what is its pother compared to that of 
 a people or nation having the control of the credit power, 
 and the credit currency of the world ? The possession of 
 gold, without this power, is like cold water in a steam-boiler; 
 but give to a nation or people the ability of " firing up," 
 and converting at will this cold water into steam, and the 
 control of the engine, with its cranks, and piston rods, and 
 safety valves, and cut-offs and what becomes of your 
 gold your cold water power. 
 
 The Author of these pages would be erroneously judged,
 
 if classed among those who prefer paper to coin, banks t5 
 no banks, protected trade to free trade ; but he is called on 
 to discuss matters as they are, not as he could wish them: 
 And he has no idea of going on foot, when all the world 
 beside avail of railroads or steamboats ; nor counselling 
 such a course to others, because his reason tells him they 
 would be left in the rear. 
 
 For himself, it matters little what fluctuations or revul- 
 sions come, he can hang his wheel in such a way as it will 
 turn as well with a flood, as an ebb tide. 
 
 But he is not of those who may enjoy success in the 
 sight of prostration and ruin around them. He would 
 much prefer to see all interests, all branches of industry, 
 prosper slowly, but surely; and take his humble share with 
 his fellow-citizens, feeling perfectly sure, that in their abiding 
 prosperity is involved inseparably the abiding prosperity of 
 our common country. 
 
 ONE OF THE PEOPLE.
 
 POSTSCRIPT, 
 
 J>ln WOW .'.. v ixKTl 7ff>iJ1 }! '!!'; 
 
 TO THE 
 
 -od isJIjsm i; ai ,yonom Jnuru'.' <; ' ; 
 
 LETTER ;<>F "ONE OP THE PEOPLE." 
 
 M .woJeiK) iryrij^-m jqa bli/QW oil ,iMri) -)ol 
 uoiiw ^uiwofi/! b*i!i ,!io o-j 
 
 n/;vifi oa fl/?3.ri. t v9nonrt wl 
 ;l gj; %HO[ afe bins j Lnuo-i li 
 
 I\ stating the importance of keeping " the receipts and 
 disbursements of the public revenue in harmony with the 
 current trade of the country" the Author might at the 
 time have given an illustration of his meaning, which he now 
 purposes to do. 
 
 Let us suppose that Mr. A. is a large property owner 
 houses, farms, &c. at various points of the Union, and all 
 well tenanted by people engaged in all the multifarious 
 branches of industry ; and Mr. A. appoints Mr. B. his agent, 
 to collect rents, and pay Mr. A.'s orderg on him for money so 
 collected. Mr. B. engages to pay all orders drawn by Mr. 
 A. in gold or silwr, or their equivalent, and gives Mr. A. 
 ample security for doing so. 
 
 Mr. B. the agent, finds on entering into the business of 
 his agency, that nearly all these tenants would be better 
 able to pay their rents, if Mr. B. the agent, could manage 
 to take notes and drafts, which they have been induced to 
 take from their dealers in the course of their trade, because 
 they raise produce, or manufacture articles, which they sell 
 to persons near, oi* persons distant. Mr. B. the agent, sees
 
 38 
 
 that he can facilitate matters by making an arrangement to 
 take these notes and drafts, and collecting them feon* these 
 tenants, and so he organizes agencies all over the country 
 to effect this object, and which he can do cheaper than the 
 tenants can, for that is not so much their trade. Now the 
 cost of collecting and discounting these notes and drafts, 
 and transmuting them into current money, is a matter be- 
 tween these tenants and Mr. B. the agent. It is pretty clear 
 if Mr. B. does not do it as cheap as they can do it, or others 
 for them, he would not get .their custom. Mr. B. can thus 
 go on, and knowing when ms principal, Mr. A. will want 
 his money, he can so arrange matters as to accommodate 
 all round ; and so long as he pays the money he collects to 
 the entire satisfaction of the persons who have claims on 
 Mr. A.. Mr. A. has no cause of complaint, and all goes on 
 smoothly ; and thus, " the receipts and disbursements of Mr. 
 A., through his agent Mr. B.,' are kept in harmony with the 
 trade of the tenants. 
 
 Now suppose Mr. A. concludes to try an experiment, 
 and issues a specie circular, and tells his agent, Mr. B. to 
 receive nothing but gold or silver, or turns him out of office, 
 breaks up his arrangement for transmuting exchanges, and 
 declares that the tenants must pay rent only in gold or 
 silver. 
 
 Well, they try it, but it goes hard with them. Some, to 
 get gold and silver, have to make large sacrifices others 
 cannot afford to do it they try their best, but they cannot 
 do it they have property, but it is not gold or silver yet, and 
 the process of getting these metals is a new trade to them, 
 and before they can learn it, they must either change lodg- 
 ings, or suspend payment of rent. This is " Sub- Treasury ;" 
 its result is, Mr. A. gets no rent his revenue is short his 
 tenants are knocked up, he is knocked up, all are knocked
 
 39 
 
 up, A., B., and the rest of the alphabet, in consequence 
 of the experiment. 
 
 Is it strange that the whole tenantry should desire a 
 change of such an experiment ? or that a change should 
 follow the first chance at the ballot-boxes ? 
 
 ONE OF THE PEOPLE." 
 
 *<l 
 
 fQ