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The Madisonian. (Washington City [i.e. Washington, D.C.]) 1837-1845, August 19, 1837, Image 1

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Tiie Majhsonian will be devoted to the support of
the principles and doctrine* of the democratic party, aa
delineated by Mr. Madi*on, and will aim to consummate
that political reform in the theory and practice of the
national government, which has been repeatedly indi
cated by the general sufferage, as assential to the peace
and prosperity of the country, and to the perfection and
perpetuity of its free'institutions. At this tnno a singu
lar state of ailairs is" presented. The commercial in
terest* of the country art overwhelincd.wnh embarrass
ment ; its monetary concerns are unusually disordered ;
every ramification of society is invaded by distress, and
the social edifice eeems threatened with disorganization;
tivery ear is filled with predictions of evil and the inur
inurings of despondency ; the general government is
boldly assailed by ? large and respectable portion of the
people, as the direct cause of tkcir difficulties ; o|?en
resistance to the laws is publicly encouraged, and a
spirit of insubordination is fostered, as a necessary
defence to the pretended usurpations of the, party in
power ; some, from whom better things were hoped, are
malting the "confusion worse confounded," bv ahead
long pursuit of extreme notions and mdeliuite | hantomi,
totally incompatible with a wholesome state of the
country. In the midst of all these difficult*? and em
barrassments, it is feared that many of the less firm of
i the friends of the administration and supporters of
democratic principles are wavering in their confidence,
and beginning, without just cause, to view with distrust
those men to whom they, have been long attached, and
whose elevation they have laboured to promote from
honest and patriotic motives. Exulting in the anticipa
tion of dismay and confusion amongst tbe supporters of
the administration as the consequence of these things,
the opposition are consoling themselves with tho idea
that,Mr. Van Buren's friends, as a national parly, are
verging tb dissolution ; and they allow no opportunity to
pass unimproved to givo eclat to their own doctrines.
They are, indeed, maturing plans for their own future
government of the country, with seeming confidence of
certain success.
This confidence is increased by the fact, that visionary
theories, and an unwise adherence to the plan for an
txclutive metallic currency have unfortunately carried
some beyond the actual and true policy of the govern-'
ment; and, by impairing public confidcnco in the credit
system, which ought to be preserved and regulated, but
not destroyed, have tended to increase the difficulties
under which the country is now labouring. All these
seem to indicate the necessity of a new organ at the
seat of government, to be established upon sound prin
ciples, and to represent faithfully, and not to dictate, the
real policy of the administration, and the true sentiments,
measures, and interests, of the great body of its sup
porters. The necessity also appears of the adoption of
more conservative principles than tho conduct of those
seems to indicate who seek to remedy abuses by de
stroying the institutions with which they are found con-,
liectcd Indeed some measure of contribution is deemed
?sscntial to the enhancement of our own self-respect at
home, and to the promotion of the honor and credit of
the nation abroad.
To meet these indications this undertaking has been
instituted, and it is hoped that it will produce the effect
of inspiring the timid with courage, the desponding with
hope, and the whole country with confidence in the
administration of its government. In this view, this
journal will not seek to lead, or to follow any faction, or
to advocatc the views of any particular detachment of
men. It will aspire to accord a just measure of sup
port to each of the co-ordinate branches of the govern
ment, in the lawful exerciso of their constitutional
prerogatives. It will address itself to the understandings
of men, rather than appeal to any unworthy prejudices
or evil passions. It will rely invariably upon the prin
ciple, that the strength and security of American insti
tutions depend upon the intelligence and virtue of the
people. *
The Madisonian will not, in any event, be made the
instrument of arraying the north and the south, the cast
End the west, in hostile attitudes towards each other,
npon any subject of either general or local interest. It
will reflect only that spirit and those principles of mutual
concession, compromise, (ind reciprocal good-will, which
?o eminently characterized the inception, formation, and
subsequent adoption, by the several States, of the con
stitution of the United States. Moreover, in the same
followed spirit' that has, at all periods since the adoption
of that sacred instrument, characterized its defence
bv the people, our press will hasten to its support at
every emergency that shall arise, from whatever quarter,
and under whatever guise of philanthropy, policy, or
principle, the antagonist power may appear.
If, in this respoj*iwe undertaking, it shall be our
good fortune to sifi-ceed to any degree in promoting tho
harmony-and prosperity of the country, or in conciliating
jealousies, and allaying the asperities of party warfare,
"by demeaning ourself amicably towards all; by indulg
ing personal animosities towards none ; by conducting
ourself in the belief that it is perfectly practicable to
differ with others in matters of principle and of expe
diency, without a mixture of personal unkindncss or loss
of reciprocal respect; and by " asking nothing that u
not clearly right, and submitting to nothing that is
wrong," then, and not otherwise, will the full measure
of its intention be accomplished, and our primary rule
for its guidance be sufficiently observed and satisfied.
This cntcrprize lias not been undertaken without the
approbation, advisement, and pledged support of many
of the' leading and soundest minds in the ranks of the.
democractic republican party, in the extreme north anil
in the extreme south, in the cast and in tho west An
association of both political experience and talent of the
highest order will render it competent to carry forward
the principles by which it will he guided, and make it
useful as a political organ, and interesting as a journal
of news, Arrangements also have been made to fix the
establishment u|H>n a substantial and permanent basis.
The subscriber, therefore, relies upon the public for so
much of their confidence and encouragement only as the
fidelity of his press to their great national interests shall
prove itself entitled to receive.
Washington Citv, D. C. July, 1837.
A correspondent in Trenton desires to know what we
mean by a Loto Foto. A loco foco, in the present ac
ceptation of the term, is a man not satisfied with any
thing as it exists ; but is in favor of an equal distribution
of property, an uprooting of the institutions of the coun
try, and a substitution of some monstrous and impracti
cable fancy of his own in their stead He professes to
be in favor of " Equal rights, equal privileges, and equal
laws," by wluch he means rights, privileges anil laws
which will make him as rich, as influential, and as con
sequential as his more industrious, prudent, able, perse
vering, and thriving ncightiours, without any particular
talents or execution of his own. A loco foco wants a
new constitution ; he desires that there should be no
credits ; that all debts should be debts of honor ; that
no man should be superior to himself; that we should
have no medium of exchanges but gold and silver ; that
the whole form of sonetv and government should be
changed, and that he should have the privilege of con
cocting a better. He is a restless, insatisficd mor
tal ; and could he have all his heart desires to-day, ho
would-grumble to-nforrow just as lustily as ever ? L'tica
When fame's.loud trump hath blown ita noblest blast, .
Tliouuh long the sound, the echo sleeps at last;
And glory, like the Phrriux midst her fires,
Exhales her odouis, blazes, and expires,
SPEECH OK MR. liivta,
On Ike currency*/ the U. Stale., andIkecoUul,on of
ike VMk Revenut,?Delivered in Ike Senate V. 8.
J u h\hi i y 10, 1B37.
The following resolution wm submitted liy Mr. *IVKS,
M?:SuU for .to resolution of Mr Ewing, of Ohio,
proposing lo rescind ih? Treasury Order of July 11.
Resolved. That hereafter all sums of money accruing
or becoming payable lo the United State., whether from
custom, pulSTc land*. tales, debts, or oltorwise ?hal to
collected and paid only Ui the legal currency of,h" United
Sla eTor inlW note, of bank. which an payable and
on demand in the .aid legal currency, under the ftl
fowini: restrictions and conditions in regard to such
*o7eL that is, from and after l.he p^age of t ... rc?, u
lion the notes of no bank which shall issue bills or notes
of a'less denomination, lhan five dollars, shall to received
I in uavment of the public due.; from and after the first
dav of July, 1839, the notes of no hank which shall i?suc
lulls or notes of a U-ss denomination than ten dollars,
1 .hill m." hie; and from and after .to first day of
! July 1841, the like prohibition shall be extended lothc
! notes of hII hank, issuing bills or notes of a
nation than twenty dollar"; Provided, I hat no
notes .halt to taken, in payment by the collectors or re
ceiver*. which the banks in which they ?1^to
ed .hall not, under tto supervision and control ol me
Secretary of the Treasury, agree to p?s to the cn-d.t of
the United Slates as cash.
Thg question being on the adoption of his substi
Mr Kivbs said, that in asking the indulgence of the
Senate, it * a. not hi. design to abuae ito.r j-t.enc? by
rearguing ihe questions which had already been ao fully
I and so ably discussed, in relat.on to the legslity or the
policy of the Treasury Circular. It was hi. wish on v
to state, somewhat more at Urge than he had yet hud
an opportu.fity of doing, the views under the influence
of which he had offered the proposition which is now
pending before the Senate as sn amendment to ihe
I resolution of the Senator from Ohio, (Mr Ewing ) In
reference to the most important objecta of the 1 reasury
' Circular, he regarded that measure as having done its
office ; and the interests of the country are now much
more concerned in ihe provision we .hall inakc for the
future, than in anv decision we may pronounce upon
the past. When I had the honor, .oinc days ago, said
Mr R , of .addressing a few remarks to the Senate on
'this subject. I said what 1 take great pleasure now in
repeating, that in whatever different lights the operation
of the Treasury Circular , may have been viewed, of
? one thing 1 was thoroughly pcnmaded-ihat the mo
tives which had induced the high functionary at the
head of the Government to direct the issuing of it, were
in perfect consonanco with that elevated and patriotic
spirit which had so conspicuously marked the whole
course pf hi. public life ; and that no defect of legality,
in mv estimation, had been shown in the authority un
der which it was issued. I added also, that the mea
sure was properly to be viewed as a tem|>orary one, to
continue in operation until the action o Co...reas on
the whole subject could be obtained ; and that the 1 re
sident himself, as shown by the evidence of his mes
sage at the commencement of the session, attached no
importance to its adoption as a permanent rule ol
^One of the leading objects of the Treasury Circular,
at the tiine it was issued, was to check that tendency
to extravagant bank issues and bank credits, which has
?o signally marked the history of the last twelve or
eighteen months. But, so far as that object is concern
ed, the same effect will now be produced m a manner
not less certain, though by a process more gradual,
and therefore easier and safer to the community, bv the
operation of the depo.ite act No one can doubt, Mr
President, that one of the chief causea of the recent
over-action of the banking wstem in this country, is to
to found in the immense |ums of money, left in the
dcposite bank., and which have been used and traded
upon by them, as an addition of so much to their
banking capiuU. This is a state of things which h?*
been eminently pernicious in all its bearings. Ihe
correction of so great nn'cvil formed in ray mind one
of the strongest considerations for giving the cordial
support I did lo the deposite act of the last session ;
a measure which, however much misconceived or mis
represented in regard to it. true character, has. in my
opinion, conferred upon the country a double benefac
tion of the highe.t value : first in putting out of the
w.v of the Government the temptation, whose power
ful influence we were already beginning to fcfcl, to use
less, extravagant, and anti-republican expenditure ; and,
secondly, in taking from the dcposite banks that gratui
tous and artificial increment of their capitals, which has
been a main cause of the unnatural distension of our
paper currency, and of that inordinate spirit of specula
tion, which has prevailed through the country. In gra
dually withdrawing, as we arc now doing by the act ol
the last session, these large amounts of the public trea
sure from the possession of the dcposite bunks, and m
avoiding, as, I trust, by a wise and provident legislation,
we shall do, the accumulation of any idle surplus in In
turc,the Government will take away the stimulus which
itself has given to the excessive issues and credits of
the bank. ; and we may then hope that, under the saHi
lary control of the laws of trade, they will return with
in those safe, proper, and natural limits, which the busi
ness of the community requires. .?????
While on this branch of the subject, Mr. President,
I will make one other observation. However necessa
ry or desirable the contraction of our paper circulation
may be, (if it be indeed, the large excess which is sup
posed bv many.) it must be borne m mind that there is
no operation more .delicate than the reduction of the
currency of a country. A decreasing circulating medi
um it i. agreed alike by the theoretical writers and by
enlightened practical men, is precisely thai condition in
the monied affairs of the community ?h:ch is the most
critical and distressing. It i? a transition from high to
low prices, from a certain and liberal reward of labor
to diminished wages and precarious employment, from
active and prospering industry'.to general languor and de
pression Mn all the operations of business. It is a
change to which society always adjusts itself slowly and
painfully ; and. under the most favorable circumstances,
must be attended with distress?otun with extensive
ruin. Great caution, therefore, is necessary, lest it be
unduly precipitated in its progress, or harshly aggravated
in its' effects. We have, in the history of our own
country, at a period not too remote for the recollection
of most of us, a memorable example of the distressing
effects of a rapid reduction of the circulating medium.
It is strikingly exhibited in all its dcta-ls in, the able re
port of Mr. Crawford, then Secretary of the J reasury,
on the currency, in 1S20. It is there shown that the
circulation of the country, in throe years from lNin to
IS 19, had been brought down from 110 millions in the
former, to 4.r> millions in the latter: making the enor
mous reduction of 65 millions within that short periot
The scene of wide-spread rum and distress, which en
sued, is fresh in the memories of all who witnessed it.
It inculcates, at least, the necessity of caution in the ac
tion of Govcfnmcnt., on this subject. It is our duty to
withdraw from the hanking operations of the country
that artificial stimulant which the Government itself has
administered ; but thAt being done, a just policy, in ge
neral, requires that the concerns of trade should be left
to regulate themselves by their own natural remedial
Regarding, tlien, the. Treasury Circular as having
mainly done its office, we arc now called upon to es
tablish some permanent and equal rule for the collection
of the public revenues. It is a duty which we cannot
evade, if we would In the joint power whu h Ihe (.on
stitution invests iu Congress, to " lay and colled ' taxes,
our duty is read to us in terms too significant to tie mis
taken. It is as much a part of the legislative authority
to sav in what manner and by what rule the collection ot
the public revenue shall to effected, as to say what
amount and from whnt sources it shall be r.nsr./ Im
portant as such a regulation is at all tunes, H derives, at
the present moment, a particular interest, from its close
connection with the subject of the mrrmry It is in
that connection, that all who have participated in this
debate have discussed the question before the Senate .
and it is. doubtless, in that connection that the public
attention is turned with most anxiety to our decision up
on it I feel, Mr. President, all the magnitude and all
the difliculty of this great question of the currency ?
There is none that rises higher in importance, or de
scends more deeply into the in'erists of society. ^
'? comes home to the business aft. iosoms of men.
It affects alike the humblest laborer and wealthiest capi
talist ; on it depend the security of property, the sta
bility of contract., the comfort aud support of families,
and, I will add, in a great degree, the public morals,
for nothing, m mv opinion, is more calculated to unset
tle the moral ?ense and habits of a community than the
dispositions and pursuits fostered by the lottery ol a
fluctuating currency. In approaching such a auljjcct, 1
feci all the diffidence which a just sense of it. difficulty
ai-d importance properly inspires. But having submit
ted to the Senate a proposition, which, would, if adopted,
I flitter myself, exert no .mail influcncc on this great
intercut; and ?? the friend* of the administration (uiy
silf among the numlier) ha*e been accused of enter
taining visionary, impracticable and pernicious notions,
in regard to a reform of the currency, 1 must beg the
indulgence of tlie Senate while I state, with as much
precision as I may, the viewa of that reform, which I
entertain, ami which have determined I lie stupe of the
proposition now under their consideration.
In discussing the question of a reform of the cur
rency, it is necesssry to settle our ideas clearly as to
two things : first, the nature and extent of the end to lie
aimed at ; secondly, the means by which it is to be at
tained. If I am asked, what is the end I propose?
whether I am iu favor of a sjM-cic circulation exclusive
ly, and I he total suppression of bank paper, I answer,
no. Even if such an object were desirable, it is plainly
impracticable. In the present state of commercial pro
gress and refinement throughout the world, it would
probably lie impracticable any where; but in this coun
try, and under our aystem of government eapecially, it
is obviously wholly unattainable. Whether right or
wrong, we find twenty-six independent atate legislatures
possessed of the jtower to'cruate banking corjtoralions.
Whatever speculative douhtalftay exist in the minds of
some as to tne constitutional validity of this power, the
states now actually possess and exercise it, as they
have invariably done from the foundation of the Govern
ment, and there is not the slightest probability that they
will ever.be divested of it. In every sober and practi
cal scheme of |>o!icv, we must proceed ujioii the as
sumption that tins independent state power will remain.
How, then, can the banking aystem bo suppressed by
this Government! Such a notion, if entertained any
where, would Iks Utopian and visionary.
My object, then, would be, not the destruction of tbt*
? hanking aystem and the total suppression of bank pa
per, but an efficient regulation of it, and its restriction
to safe and proper limits ; not tho exclusive use of spe
cie as a circulating medium, but such a substantial en
largement and general diffusion of it, in actual circula
tion, as would make it the practical currency of com- J
moil life, the universal inediu^ of ordinary transac
tions?in short, the money of the farmer, the mechanic,
the laborer, and the tradesman ; while the merchant
should be left 'in the enjoyment of the facilities of a
sound and restricted paper currency for his larger nit
rations. Such a reformation in the currency as this,
would, in iny opinion, be productive of the most beno
ficial results. It would give security to the industrious
classes of society fur the products of their labor, against
the casualties incident to the paper system. The labor
er, in returning lo the bosom of his family from Ins
weekly toil, wobld no longer find his similiters broken
by the apprehension that the hard earnings of the week,
|>erhaps the accumulation of long years of honest indus
try, might be dissipated, in a moment, by the extilosion
of a bank, or the bursting of some paper bubble. It
would give security, to a great extent, to the whole
body of the community, against those disastrous fluc
tuations in the value of.pro|>erty and contracts, which
arise from the ebbs and flows of an unrestricted paper
currency. It would give security to the banks them
selves, by providing them, in the daily internal circula
tion of the'country, an abundant and acccssiblo fund
for recruiting their resources, whenever they should bo
exposed to an extraordinary pressure.
This, sir, is the happy state of things We might pro
mise ourselves from replacing (as it is the aim of tho
jiroposition which I have had the honor to submit, to do)
all bank bills under the denomination of twenty dollars,
with a solid circulation of gold and silver. Is there any
thing wild, any thing visionary, any thing pernicious, iil
such a system of currency as this ! It has the sanction,
Mr. President, of the profoundest writers on questions
of political economy, and has received the practical as
sent of the wisest nations. I am well aware that it
would ill become mo to present for the consideration of
the Senate any scheme which was not thus tested anil
approved. Of all the writers.who have treated and ex
amined questions of this character, none (jossess,>o
high an authority as the author of the " Wealth.of Na
tions." It has been well and justly suid, that Adam
Smith had done for the science of political economy
what Racou and Newton had done for physical science,
and Sydney and I^ockn for the science of government,
and the fundamental principles of civil and j>olitical li
berty. His work, aptieanng contemporaneously with
tho American revolution, was deeply imbued with tho
free spirit, and the large and vigorous thought, which so
remarkably distinguished that great era. He came forth
as the zealous and powerful champion of free trade, the
inflexible opponent of monopoly and restriction in all
their multiplied forms, the ardent advocate of every
thing that is hlieral, generous, and popular, in tho insti
tutions of society and the intercourse of nations. .No
work has ever exorcised so large an influence for good
on the policy and destiny of nations, and none, I am
sure, considering the stamp of liberty- as well as wis
dom impressed upon it, is better entitled to the respect
of an assembly of American legislators. Adam Smith,
by a strange mistake, has been held up, rather oppro
briously, as tho advocate of a paper system?as tin*
founder, in fact, of the paper school! Sir, there can
be nb greater mistake than this. While, he recognized
the utility of a judicious system of banking, in libera
ting and putting into productive employment capital
which would otherwise remain dead and inactive, and
the facilities it is calculated lo afford to commerce, ho
vet insists that the general circulation of the country
should be of gold and silver.
As the general principles he has laid down on tho sub
jects of banking ami currency continue still to be ap
pealed to by the enlightened writers who'have followed
him, as affording the soundest exposition of thojc sub
jects, whatever modifications of subordinate points may
have been made by subsequent inquirers, 1 will give to
the Senate, and principally in the words of Adam Smith
himself, an outline of his system of currency. After
speaking of the advantages to be expected from a judici
ous and properly conducted system of banking, he says
expressly, that " the commerce and industry of a coun
try are not so secure when suspended, as it were, on
the Diedalian wings of paper money, as when they travel
aliout on the suhil ground of fold and silver." He
says, therefore, it is the policy of wise governments "to
guatd, not only against tiiat excessive multiplication of
paper money which ruins the very banks which issue it,
but even against that multiplication of it winch enables
tliem to fill the greater pail of the circulation of the coun
try with it." He then proceeds to show that "the
circulation of evorv country may be considered as di
vided into two different branches ; the circulation of the
dealers with one another; and the circulation between
the dealers and consumers." His next position is " tliat^
paper money may lie so regulated as either to confine
itself very much to the circulation between the different
dealers, or to extend itself likewise to a great part of
that between the dealers and consumers," This regu
lation is effected by fixing the denomination of the notes
permitted to be issued. "It were better," ho adds,
" that no banknotes were issued m ariy.part of the king- !
dom for a tmnllrf sum than five pounds. Pa|>cr money (
would then confine itself to the circulation between the
different dealers and where this is tho case, he says,
" there is always plenty of unld and silrer " " Hut
where it extendi itself to u considerable part ol the cir
| culation between dealers and consumers, it haniskes gold
and silver almost entirely from the country " The sys
tem of Adam Smith, then, resolves itseli into this : that
tho circulation between dealer and dealer may be of pa
jier, but that the circulation between denier and consum
er should be of precious metals ; that this result ought
to be secured bv prohibiting the issue of bank note* tor
a less sum than five jiouiids. and that if such a restric
tion bo adopted, thcie " will always be plenty of gold
and silver" in circulation, performing all the offices of
exchange in the "ordinary transactions" of society,
while the use of paper would lie confined to commer
cial operations of a larger scale. Instead of being tho
advbeate, far less the founder, of au uiiieatrictcd paper
system, he urges :!ie necessity of confining it to com
mercial accommodation in the larger transactions be
tween dealer and dealer, lie is m favor of the suppres
sion of all banks notes under five pounds , whereby gold
and silver will be t^c ordinary channels of circulation,
and become, iu fact, the common practical currency ol
the country.
Hut this system docs not rest on the authority of
Adam Smith alone. Not to mention the illustrioua
names or the |>olicy of other enlightened nations m su|>
itort of it, it has received the successive sanction ol a
long line of the ublest practical statesmen in England
It is a remarkable fact, that the great work of Adan i
Smith having appeared, in 1776, tho Parliament of (!re? t
Ilntain, in the very next vear, passed a law prohibitir g
all bankers from issuing notes under the denommatic n
of five ]H)unda. This continued to lie the legislalr o
policy of that country till the memorable year of 179
wheti, in consequence of the exigencies and embarra *s
ments of that tremendous conflict, growing out ol the
French revolution, which desolated and convulscd F Eu
rope for more than twenty years, the Hank of Kngla .id,
with the sanction of the Government, suspended *p? tie
payments, and, at the same tune, resorted lo an i? sue
of one-pound notes. As soon, however as tho war wa?
?t *>) end, and the country wu in ? situation to admit
?of the leaoiuptiou of specie payments by the hank, tho
?-nlij;hieiied statesmen of England recurred to the pro
Jiibmoii of all note* under the denomination of live
pound*. This return to a sound policy, however, wag
not accomplished, nor has it been inaiiilained, withvut
unr-uuntering a strenuous and |ierscvcrmg opposition.
There is something so instructive in the history of
this reform of the currency in England, that il dcsciVea
tohu traced somewhat more in detail. In 1819, a. law
was passed directing a complete resumption *f specie
paynumts by the bank in three years, to wit, 1822 ; and
at live same tune, it was enacted that in two years after,
in 1NV4, all small notes under the denomination of live
pounds should be prohibited. The first provision was
carried fully into effect at the designated period; but
such wa.i the influence of the country bankers, and other
associated interests, that, before the appointed time for
the suppression of the small notes arrived, the latter
provision was repealed, and the final suppression of the
amsll noieh was adjourned to 1833, the year of the ex
piration of the charter of the Bank of England. But the
greatcor.imcrcial convulsion of 1825, which swept banks,
merchants, farmers, every thing before it, with tho dc
structivo fury of a tornado, noon after occurred, and
forcibly admonished the British statesmen of the neces
sity of seeking a remedy?in part, at least?in a more
solid constitution of tbeir currency. Accordingly, in the
beginning of 1826, l,wJ Liveipool and Mr. Itobinson,
the one the First Lord of the Treasury, the other the
Chancellor of the F.icheouer, introduced and carried a
bill providing for the prohibition, after April, I82'J, of
all small notes under the denomination of live pounds
Thia hiw was stoutly and zealously opposed at the time
of its enactment, arul repeated attempts w ere subsequent
ly made to procure its repeal; before the period Used
for its operation. But these efforts were happily una
vailing ; and the doe-trine of Adam Smiths in regard to
the prohibition of all notes under the denomination of
five pounds, re-established in 1820, after experiencing the
Mutter fruits of a temporary departure from it, may now
lie considered os the final and settled policy of the Bri
tish Government. It has received the sanction and sup
port of her ablest statesmen?of Liverpool, of Peel, of
Canning, of llusfcisswi, of Brougham, of Wellington;
all of whom, upon the fullest experience and considera
tion, have, from time to time, borne their testimony to
the value and importance of this essential restriction
upon a paper circulation.
And what has been the result in practice ? Whv, to
give to the |>et>ple ef England virtually a metallic cur
rency; for gold and silver form there the daily luihitual
medium of all ordinary transactions.. A Iwtvk note, ex
cept on social occasions is a sort of phenomenon On
this point we have precise information It appears, from
statistical returns referred to by the Chance-lion of the
Exchequer in the House of Commons, a few years ago,
tlait the amount of gold then in circulation was iTi,'
0#0,000 (twenty-two millions ef pounds sterling) and of
silver /8,000 000, (eight millions of pounds sterling.)
I do not speak.of gold and silver locked up in vaults of
bulks ; but of that which pauses daily from hand to
h?id, in the ordinary transactions of business. "Mr.
Gallatin, in his mstructive pamphlet on the currency,
pirfilished in 1830, slates the metallic circulation of Eng
lacwl at precisely the same amount. Allowing nothing
far any augmentation since, the people of England have,
Usbii, an actual circulating medium of gold and silver to
tb- amount of about one hundred and ftfey-millions of
! dollars. The Secretary of the Treasury, (who, doubt
j lens, has access-to the most authentic sources of in
| formation on the subject.) in bis annual report at the
I commencement of the session, states the whole paper
!' cart-ulation of England, at this time, at one hundred and
fifty-two millions of dollars. We may, therefore, cort
cfridc that what Mr. Gallatin says, in the pamphlet just
referred-to. is substantially correct?that '"by the sup
(pression of all notes of a less denomination than lb ster
,l?ig, the amount of the circulating metallic currency in
England has become equal to that of bank notes .of every
inscription." One-half of the entire circulation con
se-us of gold and silVer, constantly passing from hat.d
U* hand, and performing all the olliccs of exchange in
1 tfce ordinary business of life, and thus forming, in fjet,
] tfc?- practical currency of the country. It is tlus large
i ixjf'i.-inn of the precious metals which has preserved the
currency of England, in the main, in a healthy condition,
uasler a system of banking wluch her Prime Minister hinv
seif (Lorvj; Livcrpod,) in 182(5 pronounced to be, in
odber respects, '? the most insecure, the most rotten, the
vtry worst, which it is possible to conceive." Much
h*s been sajd recently, I know, Mr President, of great
conmiicmsl embarrassments in England, which arc at
trim ted bv many to a deranged state of her currency
llscse embarrassments, in my opinion, are viewed in
nm h too serious a light; but if they arc not, it must be
borne in mind thnf all commercial countries, however
sobd tiie constitution of their currency, will occasionally
be visited by revulsions m trade. If, too* they are to be
considered as indicating a derangement in the currency
of England, tlie source of that derangement is to be
found in those defects of her system of banking which
were referred to by Lord Liverpool as making it so inse
cure ind precarious, and not, surely, in that salutary
chock, the prohibition of small notes. On the contrary,
the abundance of gold and silver which that restriction
secur ?s m the common circulat;on of the country is the
gtcat preservative of the system, and the anchor which
cnabl t-s it to ride in safety amid fluctuations and tem
pests that ini?ht otherwise overwhelm or subvert it.
It i? this abundant supply of the precious metals, fill
ing ai id saturating the ordinary channels of circulation,
which I desire to sec brought about in our own coun
try. That is the mil to be aimed at. What are the
tnrt ra by which it is to be accomplished W'c have
seoii that in England it has accomplislied bv the prohi
bition of all bouk notes of a less denomination than lb.
Similar means will, doubtless, accomplish the some end
hcrv i and. I must aild, nothing dm unit. It is in vain
toc.t jeet to lirirtg gold and silver coins into circulation,
wtthi lut a previtws suppression of all notes of corres
]>ondi jig denominations. " The reason is obvious. If
thare exist in any country two distinct currencies, both
of the m answering equally well the purposes of domes
tic circulation, Nit one of them possessing only a local
value,, confined to the country of its emission, while the
otlwr ]ias a universal and equal value throughout the
worlt'n in quest of the riches and productions of foreign
iiatio ns, leaving the former at home to perform an of
fice which it does equally as well, though it would be
whol |y without use ot value abroad. The total incom
patib ilily, therefore, of a paper and metallic currency of
the *tamc denominations bus grown into an axiom.
Edm und Burke, (whose sagacity in questions of this
sort i s well known,) at lite memorable period of the bill
brou jht forward bv Mr Pitt for tho suspension of specie
payn icnts by the Bank of England, in 1797, in a letter,
writ' .en during his last illness, to Mr. Canning, winch
the 1 alter gentleman brought most touchingly to the no
tice of the House of ("ooimons, in u debate of great
mtei est and instruction on this whole subject, at a much
more- recent jx-nod, ,(1826,) used these memorable
word .* : " Tell Mr. Pitt that, if lie consents to the nwuc
of oi te-potiiid notes, he will never see a guinea again."
I he prophecy, sir, been me history. No one saw a
guin ea in circulation in England while the bank ron
tinui id the issue of one-pound notes.
in 1828, when a great struggle again took place in
the ] 3ruisli Parliament, on the final consummation of
tho i ilfort to restore metallic currency, there was not a
smgl e distinguished man who did not bear his testimony
to th e truth of Mr. Burke's axiom. The Chancellor
of tli e Exchequer said, on that occasion, "there was a
liatl) rat antipathy between tike one-pound note atid the
sovi reign. They would not exist together, for the note
sooti drove the sovereign out of circulation." The
Dnk e of Wellington, who was eminently a practical
man. and spoke from the teachings of cx|>cricncc. ^aid,
"th^ experience of the last few years hud proved the
truth of the tlieory, that onp pound notes and gold
stive reigns would not circulate at the same time. If
y ou are to have gold in circulation, you cannot have
?me-pound notes," Mr. iluskisson, whose fanuliantv
T.vith questions of this sort was the result of profound
studies, as well as matured experience, said, still more
(?omtedly. " Kheu the paper is let in, the gold will dis
appear. 1 hey might vote the money, they might coin
tt; but how could they retain it in the country ' ' Tlu*
remark applies moat forcibly to our present situation
\\ o have voted the metallic money ; we havF coined it;
'<ut it w ill not circulate Since we corrected, by I iw,
i heumjerva luation of the gold coins, (but little mofc
iharrTwo years ago.) the quantity of gold in the country,
?according to the late annual report of the Secretary of
the I rcasury, has increased fifteen millions. We have
?coined at our own mint, within ctltat luue, according to
the same authority, ten millions of gold. But where is
it' In the vaults of the banks, or hoarded by indi
viduals ! and we Shal+-iievTr see it in circulation, until
we have or ened lite way for it by a previous suppression
of the small notes. If we mean to do any thing practi
cal and effectual for introducing a more general circula
tion of specie, we must begin at the right end, by first
petting dow n the small note circulation.
Tin. is the true policy of the Government, and is tliat
9r actual rtfuim of tlm currency which haj been steadily
held in view by the present administration and ita
j friends.^ The honorable .Senator from Massachusetts
(Mr. \\ elister) discovered great solicitude to know what
is to be the system of policy of the new administration
[ upon this subject. 1 have no means of knowing, Mr.
, President, which that gentleman does not equally poa
! seas It is generally supposed, however, that the eom
| lit); administration ?vil|, m the main, conform ita policy
to the exemplar of the present. The inquiry 0fthe
honorable gentleman, then, may lie satisfied, by showing
him what has been the policy of the present adiuinistra
tion ; and that cannot be better stated than in the worda
of our venerable and patriotic Chief Magistrate himself
I beg the indulgence of the Senate while I read a very
unequivocal and explicit passage on this subject in the
Preaident'a me usage of the last year In that document,
he says :
" It has been seen that without the agency of a great
moneyed monopoly, the revenue can lie Collected, and con
venient ly and safely applied to all the purposes of the
public expenditure. It is also ascertained that, instead of
being necessarily made to promote the evils of an un
checked puiier system, the management of the revenue
ekn he mode auxiliary to the reform which the legisla
tures of several of the states have already commenced
in r-?ard to the suppression of small bills, awl which has
""'V kr futtered by prviicr rrgulations on the part of Con
grttt tn nturt a vriutieal return, to the eitent required for
the tcenrttu of the currency, U the cvntHtntunuil medium.?
: ocYcrt-iJ frum the covermutM am political engines, and
I ?ot susceptible of dangerous extension and combination,
| the state hanks will n.>t be templed, nor Will they have the
power which we have seen exercised, to divert the public
binds from the legitimate purposes of the'Government ?
j rhe collection and custody of the revenue being, on the
contrary, a source of credit to thein, will increase the se
curity which the states provide for a faithful execution of
their tiusts, by multiplying the scrutinies to wluirh their
operations an4 accounts will be subjected. Thus dis
posed, as well from interest as the obligations of their
charters, it- cannot be doubted lh.it such conditions as
Congress may see fit to adopt respecting the deposites in
these institution* with a view to the rrruM disuse of the
tmull btlit, will be cheerfully complied with ; and that we
shall soon gain, in the place of the Hank of the United
State*, a practical reform in the whole paper syatem of
the country. If, by this policy, we can ultimately wit
ness the suppression of all huuk bills below tn mtxj iMlart,
it is apparent that $old and silver will take their place,
awl become the principle circulating medium in the com
mon business ot the farmers and mechanics of the coun
try. The attainment of such a result will form an era in
the history of our country, which will I* dwelt upon with
delight by every true friend , of its hberty and indepen
dence. It will lighten the great tax which our paper syir
tein has so long collected from the earnings of labor, and
do more to revive and perpetuate those habits of econo
my and simplicity which are so congenial to the charac
ter of republicans, than all the legislation which lias vet
been attempted.'
Here we have a complete delineation of the policy of
the admniisfration-on this great question of t-he currency.
Neither the President, nor the body of Ins friends, have
proposed a total suppression of bank paper, or an ex
clusive metallic currency ; but, to use his own words,
they have desired to see " a jiracretal reform in the bank
| ing system, by the ultimate suppression of all bank bills
below twenty dollars; so that gold and silver mi^ht
take their place, and become the principal circulating
medium in the coqimon business of the fanners and me
chanics of the country." This, he expressly declares,
w ould be " a practical return, to the extent required for
the setirrily of the currency, to the constitutional me
dium and tho attainment of which, he adds, " will
form an era in the history of our country, which will be
dwelt upon with delight by every true friend of its liber
ty and independence.'' There is nothing in tH? Treasu
ry Circular inconsistent with this interpretation of the
administration. That measure, as I have already anid,
was an occasional and temporary act, resorted to under
a (>ecuiiar emergency, till the power of Congress could
j he interposed to apply a more systematic remedy, and
; cannot lie considered as a departure from a settled and
j general line of policy. Orvthe contrary, the President,
in his message at the commencement of the present sos
| moti, expressly recurs to the suppression of the lower
1 denominations of bank notes, by the concurrent Jcgisla
j tion of the General and State Governments, as forming
" the true policy of the country," by which only " a
j larger portion of the precious metals can be infused in
j to our circulating medium." No other plan can be cf
j fectual for the accomplishment of such a result; and,
j until it shall lie adopted, all that inav be laid, however
| glowing and fascinating, of the advantages of a metallic
circoiati?mw^ti"rpsfrt-e but barren thewv, nnd delusive
j and unprofitable generality. You may bring gold and
j silver^flto the country, anil pile them mountains high in
I your banks; but without the suppression of the small
I notes, thev will never circulate in the business of socie
1 tv, and will always be exposed to be drawn off by the
I absorbing currents of foreign trade. The object of a
| rational policy is, to bring thein into a darty and active
use, invigorating and sustaining the pursuits of industry,
and not to have them, like the ancient household relics
described by the poet, '?wisely kept for show.",
The question, then, is, by what means in our power
I this great object of the suppression of the small notes
I may be promoted or accomplished. It is through the
collcctiou and management of the public revenue only,
I that the agency'of this Government can, at present, be
; usefully interposed. By refusing to receive, in payment
j of the public dues, the notes of all banks which shall
issue lulls of the lower denominations, as is proposed by
| the resolution I have had tS* honor,to submit, as strong
' inducement of interest will I* held out to the leading
I State banks to discontinue their smaller issues. The
! consideration of the credit and more general currency
given to their paper, by a receivability in payment of the
: revenue, would, doubtless, induce mure or less of them
I to conform to tiie standard which shall be established in
i this respect by the legislation of Congress. Hut my re
I liance is not so much upon ilie operation of the measure
per sc, as upon the moral influence it is calculated lo
1 exert upon the policy of the States. They have the
i complete power to prohibit, by law, the emission and
circulation of the smaller notes ; and I cannot doubt it,.
| if this Government shall hold up to them a standard
deemed indispensable to the purification and reform
j ol the currency,-that that power will, in process of time,
, be exerted so as to second and render effectual the |k l.
I cy of our legislation here. Have we not every en
couragement, in what has already taken place, to hope
for such a result ! It is only a few veurs ago that Imt
three ol the States, according to Mr. Gallatin, (Pennsyl
vania. Maryland, and Virginia.) had prohibited the issue
of notes under five.dollars. Hut, sinre that time, it has
been the policy of the General Government, in the col
lection and management of the public revenues, to dis
I countcnance bank notes under that denomination. And
; what has been the result ' We have seen the States,
one by one, successively conforming to the example, till
' now a majority of tham have prohibited all bank notes
i under tiie denomination of five dollars. The confidence
, I feel m the enlightened patriotism of the State Govern
; tnents, and hi tlw popular intelligence and virtue which
| control them, gives me every assurance that an appeal
to their co-operation in so great and noWe a work will
not be iii va n, especially when thev sliall have before
the in a sober and practicable exhibition of the probable
results of the policy in which their concurrcnce is in
1 vitcd.
I.et lis then inquire v. hat is hkelv to lit the tttent of
the cflect which will be produced on the currency by
i the successive j inhibition ?f all notes under five, ten,
ami twenty dollars, respectively Mr Gallatin, whose
skill m questions of this n>rt is universally admitted, in
j his able pamphlet on the currency, written in lHtJO, es
timated the reduction in the amount of the paper circu
j atirtn which would arise, ut that tiuie from the suppres
: siofi of all notes under live dollars, at mz millions ; and
I tintt likely to be produced by a suppression of the notes
Under ten dollars, ot about seecn imlltniis ; making an
aggregate of thntren miliums of dollars, slid equal to
one tilth of the whole paper circulation of the country.
Another highly respectable authority on American bank
log, (Gouge,) estimates, in 1831, tiie ainouut of notes
unijer live dollars then in circulation at sercn millions ;
and of notes under ti n dollars, at ten millions ; making
on aggregate of srecnteeu millions. Hut let us take
Mr. < Gallatin's estimate, and suppose that the suppres
sion of the notes under five and ten dollars would, to
( gctlier, opf rate a reduction of one-fifth in the whole
amount of l>aiik paper in circulation. Let us then sup
pose, (which, I |>resnine, would not lie extravagant,)
that the suppression of ull notes under twenty dollars,
and above ten, would produce, in amount, a diminution
of one-liflh more of the paper circulation. Hy the ulti
mate suppression of all notes under twenty dollars, we
should then gam an aggregate reduction of two-fifths in
J the whole paper circulation of the country. According
to the recent report of the Secretary of the Treasury,
the whole paper circulation of the country amounts at
this time to 1'iO millions, two-fifths of which would be
48 millions of dollars Hut, in order to be within sure
limits, we will suppose that the amount of bank paper
which would be withdrawn from circulation by the sup
pression of all notes under twenty dollars, would be only
40 millions. That, of course, w ould be replaced by an
*{ual auiouut of guld and silver. How, tUen, woutt
stand the account iu the final reault' Forty milhooa,
taken from the 120 luilhon* of paper circulation, would
leave 80 milium* of paper; and added to the 38 inU
liona of gold and ailver already in circulation, according
to the estimate of the Secretary of the Treasury, w?i?
give ua 6H million*; or, (for the aake of roundnumber?,
and te compensate htieral deductiona uiade above,) 70
nullum* of guld and tthv ?* ?cine circulation?not
daunted up and stagnating in the coffera of the banks,
but spread ove* tlie land, irrigating, refieahmg, and fci
tilizmg the whole country.
Such, Mr. Prcaident, would be the aohd and practical
rcault of the ultimate eupprcsmmi ?f all bank billa unde*
tlie denomination of twenty dollars. It would give to
the country nearly one half of it* whole ciiettWij
in the precious metala, forming a aolid and unfailing fund
for the payment of labor, for the buying and selling of
the necissaries of life, for the great mass of daily trans
action*, including the wants and interests of tlie farmer,
the mechanic, and the tradesmen ; while the other half
woujd conaiat of an improved paper currency for the
ute and accotinnodhkUon of the merchant, lud foe In?
larger operation* af trade and buameaa. I would ask
gentlemen if auch a reault ia not " a consummation M*
voutly to be wished V9 Would it not, in the glowing
and patriotic language of the President, form " an era
in the history of the country which would be dwell upon
with delight by every true friend of its liberty and in
dependence 1" And can we suppose lhat the enlighten
ed legislatures of the States, in the view ef such a re
ault, pregnant with consequences so important to lbs
safety, the prosperity, and the morals of the whole com
munity, aiia especially to the interests of those numer
ous aiid industrious classes which form the basis and
aupport of out republican system, could be so deaf to
the united call of patriotism and w isdom, aa not to lend
their co-operation in so great and salutary a reform f
For myself, Mr. President, 1 feci a cheering c onfidence
lhat they will give a helping and efficient hand to this
great work The Legislature of my own State is now
encaged in revising her Unking *yslem, and I console
* myself in ihe belief that she will be among the foremost
to vindicate the wisdom and patriotism of the State
councils from distrust, by hearttlyjeconding, in her le
gislation on the sunject. eur effort* here lo establish ?
souud currency for the country
But sir, till by ihe suppression of the small notea the
circulation of the country has become better filled with
the precious petals, I do nol think it would consist wiih
a just, wise, and paternal policy "on ihe part of the Go
vernment to exact payment of its due* m specie exclu
sively . It could not be dene, without great hardship to
Ihe public debtor, and exteriaive distress and embar
rassment to the whole community. To demonstrate
this, nothing more is necessary than to compare the
amount of specie in circulation with the amount ol tl?
revenue ; for it i* conceded now, that if payment v> ?"?
branch of the revenue be required by any pcrmantnt
regulation to be made m specie, all ought to be . paid in
specie. According to the estimate of the Secretary of
the Treasury, (which appears to me a very liberal one,)
the whole amount of specie in circulation doe* not ex
ceed twenty-eight millions of dollars. The revenue
diirm.' the last year amounted to forty-seven millions ;
and perhaps, with all our ellbrta to reduce it, it .nay aull
not -"full sliari of thirty millions. '1 here would then be
thirty millions of dollars to be paid to the Government,
out of a circulation of twenty-eight millions ! I? ceo
front tlie two sums is lo show the temerity, if not the
impossibility, of the attempt. If Hie public debtors
should be thrown upon the banks for large amounts ol
specie not to be had from the circulation of the coon
try, no one can be at a loss to perceive to what a dis
astrous extent the business relation* and pecuniary con
cern* of the whole community would be embarrassed
and deranged. Aikl how much of specic, permit me to
auk, would remain for that immense mass of payments
in private transactions, which, according to a practical
estimate made by Mr. Gallatin, in reference to the reve
nue collectcd, and the business done, in the city of Now
York, exceeds mure than fifty time* the payments to
Ihe Government1 Nothing, therefore, can bo-clear"
than that an attempt, with our present limited meMUC
circulation, to collect the public revenue ui spccio alone,
would bo distressing to the last degree, and could not
abide tlie test of that public judgment, without whose
approbation no system of [.olicy can or eight jo ?t?nd.
The honorable Senator from Missoqri, (Mr. Benton,)
in the able speech made by him in the o|tening of th??
discussion-r-a *|>ecch which does him groat credit, not
only for the extent and variety of the research displayed
by him, but for the force and ability With which he il
lustrated his own views, (m some of which it is my mis
fortune to differ from hrfn>?brought to the notice of
the Senate, from the evidence takwi b?fore the Com
mittee of Secrecy of the House of Commons on the
Bank of England charter in 1B32, tlie case of a banker
at Manchester, who |wud out, in tjie course of ihe year,
about six millions of dollars in specie to the operatives
of that place. But this was done in. a country which,
as I have already shown, possesses an actual circulating
metallic currcncy of one hundred and fifty millions of
dollars, w hereas our metallic circulation is but twenty
eight millions ! The examination of Mr. Samuel Jamee
Lloyd (the banker referred to) on this point, is so in
structive in itself, and so strikingly illustrative of the
arguments I have advanced, that I beg leave to read the
whole of that portion of it to tlie Senate, in the form of
question and answer in which it is reported :
? Qurslinn. You are aware that a great amount ef spe
cie is required every week for tlie payment ol wages at
Manchester ?
Anttrrr. A very large amount. ?
q Can you give tlie committee any idea of the
amount^o, ^ r>nnol. lmt KO far as regards the i**ue of
our owu house, I should say that upon the average we pay
about 25,000 sovereigms a week. ?
Q l.s that a fresh supply ol sovereigns in each week,
or do you obtain it from the circulation oj the place.
A We require a continual fresh supply, but not to
that extefit. I think the fresh supply requisite"will ave
rage something less tlian 10,l>00 a week.
(j Before the abulition of the 1/ note*, were those
payments generally made in 1/ notes ?
A. Kntirely. ,
Was the amount then about the same :
jl. Quite as large . .
(J. You say that about 25,000 a week is wtotyou M*
called upon altogether to nay, and that about 15.M0CMM
bark mto your hands ' What do you apprehend becomes
tlie remaining 10,000 sovereigns i,
A< When the 1/notes were-m circulation, we could
trace it pretty accurately, and I believe the course to be
the same with the sovereigns; they are paid prmc pallr
in wages. The work people lay them out in clothing
and provisions, and those sovereigns pass to the provi
sion dealers ; and thence into the districts from which
the provisions are supplied ; the sovereigns then [*? ??
to the hands of country bankers in those districts, wh?
rithrr tend up lo London, or return thtm to MancMHtr, aa
may tie most convenient to them. .
(J. It does not follow, then, because you are obliged
to Itnvc 10,000 sovereigns from the branch bank, (that is,
brunch of the IWik of England) that the amount of he
circulation in M*ncl>estcr is continually increasing at the
rale of 10,000 a week ? . . .. .,
A. No, I do hot appreliend it is increasmg at all.
Now, s.r, let us sec how these large payments in spe
cic, in Mancliesfer, are made. Mr. Lloyd snysexpress
Iv, Unit, of the 25,000 sovereigns a week paid out by
him 15 000 of them are obtained from the circulation
?/ the place, as, ihreugh that channel, they regularly
romc bark into h,* hand* : that he requires a fresh sup
ply of about 10,000 sovereigns a week, from tlie bank,
but these ten thousand sovereigns are also constantly
returning to the bank from the circulation of the coun
try They are first paid by the work people to the pro
vision dealers ; then, by the provision dealers to the
farmers, of whom they can procure their supplies ; from
the farmers they pass into the hands of the county
bankers, who either return thein lo the t-ranch bank at
Manchester, or, what is the same thing in effect, send
them up to ihe parent bank at Ixindon. Hum. ??
whole amount of these siiec.ie payments is supplied y
the actual circulating medium of the country?a thing
easy and convenient enough, and ]>erfceily
where the amount of gold arid silver in daily and ?ct'
circulation .? 160,000,000 of dollars, I o make largo
navments in specie, under such circumMances, is at
tended with no difficulty, because s,*cic is the common
and habitual currency of ihe country. The n.eulhe
circulation of England is a prrrH>iusl ^
the streams which How from, ami sre constantly return
ing'.nto, n. But to make payments m specie, to the
Government alone, of thirty or twenty millions of dol
lar- or the half or the fourth of those sums, m a coun
trv whose circulation consists of 120,000.000 of paper,
and of but 28,000,000 of gold and silver, ui a far dif
'^Another^nost important lesson is to be derived from
the evidence of Mr IJoyd llow were these P?yme"W
for wages made in Manchester previous to the pr"hibi
tion of Ihe smell notes t In ?nvrreign* ? In Kotd aiid
tilrcr f \*l us turn lo the examination of Mr. Eloyd.
(J Hrlote the abolition of ihe 1/ notes, were ihoae
peyments generally miule in 1/notes
U Was the amount then al?out the same '
A Quite as large."
Previous to ihe suppression of the -rnsllnoU.. ***
the whole .mount of payment* now ma.le m |
" . j, Aiclusivelv in one-pound notes ; and, but lor tnai
r,ire"'on! w^ld still be nude m one pounl noH-r
W^ule the one-pound notee were in circulstion, l^h
Mvments could not l?e made in goM. I-c.uMr gold w
notTn circulation. Gold was, doubt ess.m the co.m
try, accumulated ui the ?aulta of banks , but no nf

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