Page 2 of 1 May 1834 Issue of The Daily Cincinnati Republican And Commercial Regeister in Cincinnati, Ohio

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The Daily Cincinnati Republican And Commercial Regeister (Newspaper) - May 1, 1834, Cincinnati, Ohio <Í1«»)«IJOTS0'WA1I.V BY .Y.1SS .fc B18ÜEYC, SO. 11, WBsV TUIUD BTKEET. fjktUR, *i¿liM)oll m per «nnKB»~T«i Five ^•'«r -In BrtTROce."" •C~ AUTBBTISIfW—Onlly.wirh Tlrilevei M,ti«nire»nd rene* M often ' n UMT be Mr«*. tor ■ niiix > wjuare (. i< \tt liiu.-*) TweiitxJlüiJon l*»f year—iwv» «iuu.fes $45-ft*fe« «lu—'e», l|3n ••t L Ivnrtiw by'Uie jiu wll In cliareed, iwr «luetre, for one in¡ 1 !«»eift*-«*nin,-<brw! iiisiriioiui. One Dollar. 5>5*.Adv«riixins ' TmJWT*T l>OTA«TinBIT, i AprUl5,\m. \ Ser : 1 hnre the Itonor to tckDowfeOg# the rec«irt of foar letter, of the 7th hut., and proceed to re^ ry.effect on the great mass of vy» • ^ Í oftJieiB^ient cahootJ^tnie. The biSVf the. ordinary exchanges of the cc(p ntry, and it is worse Unite^ SuiTia has.not furniahed the n(tion with a{ than usSless to contibue the expr^nse of coining it sound paper currency, and I-"*-—■*—“-----*-1—•*; --• • • iless at the mint, unices it is trended for circulation. It Will never make its w ly into geiiarcl circulation un- lié niiiiitier of inf«rlioni upon Htatf üll>« coiiiinaed*'until forbitiUeu Report of Cic Comndltee of Wntfs ami Means, on the employment of State Bttitks as depositories oj public monej/. ^ Mr. POLK, from the Committee of WiJ'S and Means,made the follovVing Report: The Committee of VVayd and Means, in( pursuance of the third resolution ol their lornier report upon the subject of the Rank of the United States and the public deposites, which was adoi>-ted by the House, submit the following REPORT: a The House, by its vole, having decided “that the State Ranks ought to be continued as tho ¡daces of deposits of the public money, and that it is e.xpcdieiil for Congress to make further provision, by law pre-scnbing’the mode of selection, the securities to bc^ takcu- "and the manner and terms on which they arc to be employed,” the committee deemed it proper, in a measure of so much imporlance, to ascertain from tlie Secretary of the Treasury his opijiiou and vjows, in regard to the regulations propcrfto be tfdopted in the employment of the Slate banks as the deiK)sitories of the public money, and tlie fiscal agent of Government; and also for Ills views in regard to the probable effects which would he produced upon the currency by such regulations. They accordingly addressed a letter to the Secretary requesting to be furnished with the information desired, and herewith report the answer which has been received. In determining upon the mode in which the deposites Banks shall be selected, the commitee are of opinion that a due regard to tlie public irtterests will make it proper to leave the selection, in the first instance, to the Head of the Troasiiry department, or to some other person designated by law; but when once selected, to put it out of the power of the Executive to discontinue such depository without the sancliou and approbation of Congress. Should it, however, be deemed expedienl for Congress themselves to des'gnute, by law, the Banks which shall hereafter be cmph»yed as deixisitorics, ¡astead of delegating' the power of selection, in the first instance, to an executive ofiicer, there could be no objection to that mode, provided it be <|ci6in-ed practicable to make the selections in such manner as to protect and preserve the public funds to bo depostjed therein. The bill which they report presciibcs—First, the mode in which, and by whom the Slate Banks hereafter to be employed as the public depositories, shall be selected. Secondly, the terms and conditions upon which they shall hr employed, the duties and services they sliall perform, and the securities which they way be required to give, in order effectually to protect the Government against possible danger of loss, and thirdly, it provides that when once selected, they shall be placed beyond power and control of the E.xecutive Department, except as fur as the safe and prudent management of the public revenue may render such control indispansi-blc. The bill restricts the discretion ofthc Executive, and places it out ofthc power of that department to discontinue the sejected Banks as pi ices of public deposite, to cases of failure on the parts of said Banks to comply with tlie terms and conditions on whicli they may be employed, or to cases in wliieli any of said Banks may bcc<vnc unsafe depositories of the public money, and reserves to Congress the ultimate control over the whole subject. By its provisions the Secretary of the Treasury cannot, *- dtif'mg the session of Oongresi, d'sinlss from the service of the Treasury any Bank ofdoiKisiic, without having obtained'the sanction and approbat'on of Congress, and if, during the recess of Congress, any Biink shall fail or refuse to comply with the terms and conditions ii|)oii wliicli it has been employed : or if, from the periodical returns of its condition and busiiic.ss, or otherwise, the Secretary of the Treasury shall deem it necessary, in order to protect and preserve the public interest, to discontinue any of said Banks us public d> positorics, lie is athuriscd to issue such order, temporarily, but , is required, at the commencement < f the next session, to report to Congress the right to approve or reverse such order. Thus all apprehension that the power of the E.xecutive over tlie selected Banks may l>e used as a governmental patronage, or for corrupt purposes, is effectually removed. Üo long as the selected Banks shall continue to perform the duties required of them by the provisions of the hill (should it become a law) and so long as they shall continue ko to conduct their business ns.to keep the public funds dejmsiled therein secnw;, they cannot be discontinued at the will of thq ll-ecutivp, but will be cnfited to their custody as mlt ter of right unless it shall be the pleasure of gress to withdraw them, or change iJie place ofuc-posite. The comrpitlcc concur with the Secretary of the Treasury in the views whicU»hc has presented in his letter, in regard to the imiaortance of ban'.sliing from circulation Iwnk notes of the sniallcr denominations, and of substituting gold and silver coins in tiieir place. This may, doubtless, to some extent, be encouraged and effected through the collection and management of the revenue. Congress possess no power to restrict the State in-stitutious from issuing small notes; hut they have the |H>wer to iiiqxase as a condition u|Kan which any Bank shall first stipulate not to issue or use, after a given future day, notes of the smaller denominations in the course of its business; and they have a right to refuse to receive in ]>aymont to the United States, the notes of any B.ink which shall not cease after a given future d.iy, to issue small notes. Thu bill accordiflgiy contains a provision to this effect, designated to induce the State Banks to co-opcrate ia banishing from eirculal ion all notes of a lesa denomination than fiva dollars, after a given future day. In severnl slates such a prohibition already exista, and in those States a metallic circulation has been found to take the jdacc of tlie small notes which have been withdrawn. It may be necessary, hereafter, fur Congress to extend the prohibition to the issue of notes below the denomination of ten or twenty dollars. But the committee do nut deem it expedient, at this time, to recommend that the prohibition should bo extended to note» ulmvc the denomination of five dollars. Should it hereafter be deemed proper, Congress can adopt further legislative provisions upon the subject. It will be perceived from the letter of the Secretary of the Treasury herewith reported, that further legislation in relation to the coins, constitutes an important part of his scheme of the currency. . The committee concur in opinion that it if important that further legal provission sliouhi tx: made regulatmg the value of foreign coins and making the foVoign uold and silver coins a tender in the payment of debts, md also regulating the standard of value ef our own coins. They have, however, reported no bill upon tho subject of tlic coins, because bills upon that sub-iect, have already been brought before tho House by a select committee to whom this particular bnutch of lliti subject had been referred by the House. Tl»ey concqr in opinion that it is im|K>rtant they should be acted on at the profont sess'on of 4>'ongveif, DO saluta- , . ^ . y. w the issues .... to thq inquiries made by the Committee,,^\)^ys, oif the State bauks^are now in a safe and healthy j til the relative valuu of silver and gold is observ'hd, and Means. * .V condition. *' j as near as m.iy be, in jdie pieces coined of the res in qiy report to Congress at Uigcoipoi^cmept of The d.fficullies under which the Slate banks are pective metals. It has been truly said that gold is ----- c-------iaborjng^t this time, docs not prove • thatdhey are the antagonist of paoei*. Silver is too heavy to be unsound, and that they have been worse managed transported from pUcc to place, in large sums, thuli the Bank of the UnitecUStates; when reports: without inconvenience. Some other circulating injurious to4lie credit of the State banks are indus- i medium of general currency is therefore necessary, iriously'and vvidjly circulated, some degree of ein-Uven fur the expenses of a journey frqm one State the present session*, assigning reasons foi.renaoving the Deposites from the Bank of the United States, I expressed of the opinion that a corporation of ihkt description, was not necessary, either for the fical operations of tho Govcrmiient, or the general Iron-venience of the people. One of the, argmncnis mrilt ftcqnently urged in 'gene fivor of the expediency of a Bank of the U. Slates, is the salutary influence which it is sup|>o8ed to exert in securing to the country a sound currency.— It is siid the State Bifilts have a constant t^mJcncy to over issues, and that a superior power is necessary, to keep them in chick, and to control ihem in this ¡larticular—and the argument is constantly and earnestly pressed that a Bank of the United Statps is the fit and appropriate moans to accomplish this object. If there lie any force in this argument, the ¡lajvcr currency furnished by the State Banks, as well us that issued by the Bank of the U. States, ought will soon pass away. And the iutelliguucu of the,, to silver, before a paper currency of general cntclit citizens will readily discover iliat the preseht diifi- can be conveniently dispensed with. The charter culty is the offspring of useless alarm, and of a de- to the Bank of the United States, by making its liberate ik'sign to destroy the ofcdit of the Sta(c ¡ paper receivable every where for debts due to the' b.anks. '^iid when the real object of tire excitement | government, furnishes a paper currency not equal and uafouiided rumors which are daily circul.ited,! to gold or silver, but yet of sufficient credt for com-sliall be understood by the people, confidence will mon use, and for the purposes of travelling ftom kn Ut, .,'1a 11 b ila .11011:11 lllfirm (fl lllü/'iS 'PKia LL'111 fl 111 I f 111 O Until tkn *^il r\f ted States has been in existence seventeen years, and must h ive already exerted all the influence in rrdation to the ciiVreucy, which can ever be expected from such an institut on. And if it exercises a wholesome and salutary control over the conduct of the State Banks, and restrains tlicm within proper bounds, and it has had full time and opiwrtunity to exert that power, and tho notes of the State Banks, as well as those of the Bank U. States,4)Ught now to be found in a safe condition. For it must be admitted, that we have gained but little by chartering the Bank of the United States, i^iily the comparatively small portion of the paper currency furnished by itself, is sound, while the great mass of the circulating medium is inherently vicious, and liable to be disordered at any moment. It is believed that more than three-fourths of the present paper currency, is furiiislied by the State Banks, and if so large a portion of our circulating medium is unsafe and unworthy of credit, then t(m Bank of the United States is eilJier incapable oT^crcising the salutary control claimed for it, or it nas failed to perform its duty to the public. In cither event it is lime to look for some other remedy. Judging from the best information which the de-partnronl has been able to obtain, the paper of the ivarions Banks (including the Bank of the U. States) n actual circulation in ordinary times, amounts to at least eighty millions of dollars. Of this sum, the Bank of the U. Stales furnishes less than twenty inil-li(«s, and tho various State Banks more than sixty nmlious; the specie in the vaults of the same banks to suppojt this pqfcnsive credit, does not probabiy cq"eed twenty-five millions. . In^timating the amount of,specie, I confine myselTlo the'\imouiit of coi)isup|)oscd to be in possession of the Banks. In some of the States, the circulation of Bank notes below five dollars is pro-liibited bylaw, and in these States there is a considerable amount of specie passing from hand to hand, and forming a part of the ordinary circulating medium. It does not, however, probably exceed four millions of dollars. This metallic circulation lessens by so much the amount of paper, and to that extent it diminishes the evil occasioned by the great disproportion between Wie paper superstructure and its metallic basis. But the coin which is thuscir- soon be restored, and business resume its usual eliaimcl. Tho stoppage of a bank from any cause naturally ¡n-dduces a run on the banks in its neigh- now to be in a sound state. The Bank of the Un^ borhoocl^^d if p lins are taken to increase tho ex- culatin^pimnot be brought in aid of the paper cur rcncy,,Wie^ panic, or any other cause, suddenly throv^ it back upon the Bank for redemption. It canndf, thcrerorc, be estimated as a part of the means to secure the payment of the actual paper circulation. It lakes the place of so much paper in the m iss of the circulating medium, and thereby lessons the amount to he redeemed. But it will never find its way into the hanks when their notes arc rapidly n. turning upon them. They must rely upon the amount actually in their vaults—and it is with this amount that we must compare the paper circulation, in ord ;r to decide whether it is in a safe condition. It is evident tliat the chief part of the piper currency of the United Rlatcs must always bo furiiislicd by the State banks. No bank of the United States could provide a, sufficient amount for the wliole nation, witliont gi.ing to it a capital ol siicli enormous and startling magnitude, that no on; it is jiresiunod, would seriously priqiose it. And if Congress arc to legislate, with a view of securing to the people of the United States a sound piper currency, the condition of the notes of the State Banks is of much more importance to the commu iiity, than that of any bank of the United States. The notes of the dillerent local banks form the ordinary circulating medium of the great body of our citizens; and it would be unjust to them, to disregard its condition. The whole currency of the country should be placed in a sound and healthy state, as far as the legitimate authority of the United States will enable them to accomplish that object. Under the authority delegated to Congress by constitution of the United States, they have no power to establish by law a piper currency; and the influence which they may lawfully exercise in securing its soundness, is altogÜTkíirJilcidcntal. In legislating within the admrttcd scope of their authority, they may, without assuming powers not granted, look to the effect which their laws will produce u|ion an inferesl of so much importance as that of tho paper circulation now floating through the country. Taking this view of the subject, the first inquiry is, what is the present condition of the ordinary circulating medium of the United States? Is the great miss of the piper currciuy in a sound and healthy coiiditionj? If it is, wo must endeavor to find means to preserve it in its present state, when the Bank of the United States shall cease to exist. But if it is not, then it is obvious that tho creation of a bank of the United States will not accomplish this desirable object; and that, even on the score of expediency, without reference to constitutional objections, some other plan should bo devised. If tho estimate I h ive made of tho proportion bet ween tlie paper circiil.it ion and the ^ecio in possession of iho banka be correct or nearly so, the condition of llic curren^ is obviously such, that the n.ilion should not bflcontont with it, nor desire to cuiiliaiic it in its present state. It is an immense aiipcistruclure of paper, resting im a metallic foiin-l.ilioii loo narrow to sup|>ort it. has never been sustained by its own inlicrcnl ntrcwlli, but by pub lie cunfideiico. When every on that the notes of tho iniiks will, on i I coin, lliey readily circulate and piiriKises of money. But the mo dence is impaired, they lose their va citoment and alarm, tho evil will be more extensively felt tlian it woulil be in brdin iry times. Thrf tlangcrous expansion of tile paper circulation, compared with its specie basis, shows that there is something essentially vicious in the whole system; and the miscliicf, so far from being corrected or lessened by a bank of the United Stales, is more probably aggiiwjitcd by such an 'institution. The great amount of paper afloat proves that tliC quant-ty depends more on the diJer^ion and judgment of those who make the paper, than on their jjbiIity*to redeem it whenever it is called fof. The aoinin-ion which a bank of the United Slates must a%ays e.xf rcise over the smaller corprations of the StJites vests in it the entire discretion of expansion or contráctil. If it JltsoyAt and^rtue its paper freely, thqSkate banks arc iflduced, by tho hopes of profit, ^ibllow its example. If it suddenly curtail^iey must curtail also, or become tho victims ofrlieir own imprudence. And if, by any means, the conduct of the bank disturbs the public confidence in the safely of the State banks, thoir notes will be returned upn them with such rapidity as to endanger even the best managed institutions—and while such a pwer remains in the hands of a single coi-poration, the country will bo «rmstantly liable to sudden-Agitations and exciterneirte from the alternate expansion and contraction of the currency; and those engaged in commerce will, in the years of ab^i^idaiice, be led into an extension of their business, wliich must, in tiie succeeding years of scarcity, inevitably result in bankruptcy and ruin. In a time of pressure, confidence is easily shaken; and whenever it becomes the interest of the Bank of the United States to excite alarm in the country, its great money pwcr will most eominoiily enable it to effect the object, and by destroying confidence and credit, in a few months throw the whole buj?i-ness of the nation into corffusion. A system Uf currency thus liable to constant fluctuations, and always in danger of being entirely overthrown, is cei^ lainly one of the worst that can be devised. Every spcics of property is unstable and insecure, unless ^he currency which is to be exchanged for it shall be steady in its value, and not liable to be'^seriously disturbed by accident or design. And the danger and evil is abundantly manifested by tlic history of the United Stales, since the establishiñcnt of the present bank. Years of Jiollow prosperity have been sSccecded by years of pressure and suflering; and the present condition of things demonstrates how readily a concert to excite a panic and destroy confidence, may endanger the groat mass of firmly believes imand, be paid answer nil the ant that confi-10 as a part of Iho circulating inodium, and arc roluWd upon the hanks for redemption in specie, and the disproportion hetween tlio piper circulation and tho coin prepared to redeem it, is so groat, that t is conslandy liable to have its chief support, public confidence, withdrawn from it. In speaking of tho dangers to which the currency is exposed, I do not mean to intimate that the •State banks are unable to pay tho amount of notes they have issued. On tho contrary, I am persua-* dod that, with very few exceptions, they are as safe as tho bank of tliu United Biates. For that bank has never liecn in a condition to redeem its notes in specie,^f they were all suddenly thrown buck upon it, My object in itviting tho attention of the committee to this subject, is not only to show tlic reifl condition of Iho currency, but to mark tho utter incoiisistoncy of the argument, which urges ÜIO rochsrler of the bank of tho United States, on the giound that it has furnished a sound currency to Ilia nation, and at the game lime, atlempUi to discredit tiio notes of the Bute banks. Botli parts place to pjfice. This will continue until the 3d of iMarcli, iy30. It is desirable, therefore, that pro vision should he made at the' present session of Congress for the reform of the gold coins. The coinage will require lime-, iirul as this general paper currency is gradually retiring from circulation, the gold should be prepared to take its place. We prodjice gold toa largo amount in the United States, and the product is increasing every year. The greater p.irl of it is now exported as bullion, and this will continue to be the case until the value of the gold coin is changed; even if the change should be made at tlie present session, there would not perhaps be a sufficient supply of our own gold iolns to meet the demand for a circulating medium of general credit,at tho expiration of the charter of tho Bank. But it foreigwgold coins should be made a legal tender at thcy^cal value, there would doubtless be enough of that inptal, at the time above meii' tioned, to medt the wants of the public. And tlierc can be no sufficient reason for throwing out of circulation tlie foreign coins of gold or silver, wiiich are current in other parts of the commercial world. Indeed, as a measure of immediate relief in the present state óf things, it is necessary that tho foreign coins, both of gold and silver", should be made a legal tender, in payment of debts,., accordingj^hoir intrinsic value. Very large imputations of til^or-eign coins are continually arriving itL tbc United ,^Btatcs, and if they can be used by the State Banks to discharge their engagements, they will probably r^n lin here, and become a part of our circulating inraium. And if they were made a legal tendef in payment of debts, it would enable the State Banks to extend their issues, and to redeem th^r notes with greater facility. 1 respectfully invito^ early attention of JJongress to this sul)jc(%-jfóai^gard the proposed aKq^ion in our laws as pcftuliarly necessary in the prcsSfl e.xigenoy, and calculated to pro* duce immediate and extensive benefit. As the Bank of the United States withdraws its circulation, it is of Jhe first importance that the State Banks should enabled to extend their issues and to supply immediately, by their notes, the place which was filled by the Bmk of the United States. Wiffi the refurin of the gold currency, it is proper fo\ associate measures to prevent the issue of small nqte^ The only step which Congress could with proprtefy take, in relation to the notes of the State Banks, would be to provide that no Bank should be a depository of the public money, nor sliould the notes of any. Bapk be receivable in payments of debts to the United States, which issued notes below a certaitl4yioinin ilion. We in ly safely rely on the co-operation of the several Stales to imjiosc upon their Bmks the restrictions necessary the circulating medium, and injure most extensive-1 to aid in this desirable change in the state of the ly the properly and industry of the country. 'I’lic currency. The alteration proposed, sliould, how great evil of our present currency is the dispropor tion between the paper in circulation and the coin prepared to redeem it. The remedy is, to diminisii this proportion, and to give to the piper currency a broader and firmer metallic foundation. C m this object be best accomplislied with or without a Rink of the United States? n I do not perceive that a bank of the U. States, upon any plan, is likely to dimimsli the evil. ever, be gradual. A day might be fixed after which the restriction above mentiuried should go into operation, as jcla.Wa.4o nqtcs below five dull irs. A further rcslriclioii, so affect notes uiid -r ten dollars, would hereafter b^dvisalJ^, and ought to bo regarded as a part of tln^ jilan now proposed to be adopted. But it is not desirable, at tbis time, to name a definite day for that purpose. A great proportion of tlie issues of the Stale B inks consists of it may ¡lerliaps be supposed^liat a restriction on| fivp doflar notes. Aiiy^ ti^surc calcul ited to im-tho bank, wliicli would prevent it from issuing notes i P’^ir the currency of notes of this description, about below twenty dollars, would tend to accomplish llie the time the Bank of the United States is going out object. But the only etlect of such a restriction of existence, would he injurious to the public, would be, to substitute thenolcs of the Stale banks i ^Vhen the Bank of tlie United States is withdrawal the lower denominations, in the place of the ing its notes from circulation, the void must be fill-notes of the bank of the United Slates. j ed iip^by gold and silver, or by the notes of the Gold and silver will never circulate, where banks Stale Banks, or the currency will be injuriously con- issue notes which come in competition with them. For it will invariably happen that when the circulating mcdiun is composed of dillerent kinds of money, and one of them is less valuable than the other, but not sufficiently depreciated to be discredited, the inferior will, after a time, become the general currency, and the more valuaffia^wiU entirely disappear. This is obvious iif^ie States where the hanks issue notes as low us one dollar. For silver dollars arc never found in circulation where paper ones arc freely issued by the banks. In order, therefore, to bring the precious metals into use, the rivalship of pajier must bo effectually taken away. V\'« must not only remove the notes of the bank of the United States, but also the notes of Uie State banks. And to create a bank of the United States, and restrict its issues, us above suggested, would be to invite the Slate banks to issue largely that descrij)-tiou of paper which will not be interrupted by the cornpetitAn of the bank ofthc United Slates. Tlie piper circulation would nut be diininislicd, or. would iho proportion of ihc metals be incroasend I’aper dollars would still be manufactured in the same abundance; ih 7 would still come in comjie-li ion with gold and sdvor, und drive them from circuí ition. H The r. striclion, therefore, on the iss.ic of the smaller notes, cannot be cti'ectuni, unless tho several States (half be willing to co-operate with the legislation »if Congress. Tlicy could hardly be expected to prohibit the issue of notes under twenty traded. And if notes of five dollars were then put out of circulation, the diininu.fiiprbf the currency would j)erhaps be severely felt. And no measure should be adopted, calculated to impede their circulation, until it'kh dl be manifest that the country is relieved from any inconvenience arising from the withdrawal of the notes of the Bank of the IWflcd States. But as soon us that period arrives, and it is apparent that gold and silver can be provided for tho ordinary circulation below ten dollars, it would be advisable to extend the restrictian to notes of that denomination. For wc can never be safe from the fluctuations of the currency until all notes be low ten dullursare banished from circulation. And it will be still more secure when the restriction is carried up to notes of twenty dollars, so as to substitute tlie gold eagles in the place of ten dollar Bank notes. It will be seen from this sWitement, that it is no part of tho ¡iroposcd plan to dispense with the Stale Banks. It obviously is not in the power of Congress (if it desired to do so) to take any measures for that piirjHise, without an umcndincnt to the constitution; and the States would not, and ought not to surrender the power of chartering biqiking companies. Ttie Slate Banks arc now so numerous, und are so intimately connected with our habits and pursuits, that it is iiiqiossihle to siip|>ose that the system can ever be entirely abandoned. Nor is it desirable that it should be. They are often abused, like all other human institutions; yet their advantages arc in my, and under proper regulations. dollars by ttieir banks, while a bunk of the United mid with tho mctuliic basis now proposed fur their Sutes was in existence with all the advantages it would ¡lossess over tho State institutions. And if they could be induced to unite in such a plan, tho inevitable result would lie to put un cnd^ to the Slate hanks. Fur their circulation of larger notes would he so inucli restrained by the cumpetition and superior advantages of the notes of the hanks of the United States, that the small State cur]M»ra-tions would pruhahty soon find their charters of no value, and be compelled to wind up their tlicircon piper issues, they will bo found of much public ad-Viiiitagc. If there were no Stato Bmks, the profitable business of liaiikingand cxchaiigo would bo mono|>u-l:zed by the great capitalists. Operations of this sort require capital and credit to a I irgc extent, and a private individual in modérale circiimslanccB would bo uiiablo to conduct them with any udvaiitago. Yet there is perhaps 110 business which yields a profit 80 certain and liln r d as the business of bunking cerns. The field for paper currency would then bo ¡ and c:tcbangc, and it is proper that it should be 1 ;rt entirely to the bank of tlio United Stales, open, as far as practicable, to the most free compo- Tlieir notes being receivable every where in pay mcnt for debts duo to the governmunt, would give them a credit beyond their real valuu. The teinp-tution under such circumstances to over issues of pa|>cr would he almost irresistible. And after clu* sing by this course of ' „ ‘ , ' doors of tho Btate banks, we should soon find ourselves with a paper currency equally liable to depreciation with the present one, from the great disproportion the paper would bear to Iho specie provided to redooin it. In a pl.ni which would lead to such results, wo could hardly ex|>oct the Slates, to coino In aid of tho legislation of Congress, but wo might count on their cordial co-operation in efl'orts to place the whole circulating medium uf tho country uu a safe und du- titioii, and its advuiilagcs shared by all classes of society. Individuáis of moderate means cannot pirticipitc ill tlieiii unless they combine together, and by tlie iiiiiun of many small sums, create a large capital and catnblish an extensive credit. Jt in im possible to aceomplish this object without tho aid of acts of iiicor(>or Ition so as to give to the corn piny the sociirily of unity of action, and save it from tho disadvantage of frequent cliangcs in the pirtncrsliip, by the death or retirement 01 someone of the nuinerutis partners. Tho incorporated Banks, moreover, under proper regulations, will offer a safe and cunvcnicnt iiivostiiicnt of small sums to persons whose situations and pursuit/ disable them from employing their money profitably in any otlior mode ruble fuundatiUH, when it can be done without in-| It is nut more liable to bo lust when vested in tho justice to their own citizens who aro inluresled in ; slock of a Bank, than when it ia loaned to iiulivid-(lio Btato institutions. uuls, Tho interest on it la paid with muro piiiictu- TJio first step towarda a aound condition of tho, niity, and it can bo sold and converted iiiJLo cash ciirroiicy, is to reform the coinage of gold. Tho whenever the owner desires to employ it iW some Resent gokl coin is worth muro in silver than its other way, und if a larger (KUtion of tho inotnis are oomiaaj vtluo. ll is thorcfuro never soon in iho infused into Uio circuluiiuii, Uio business of bmik- ing. will become more sound and less liable to tile disasters from wbl^h At has suffered under our extravagant and iJl-oiganizetf system of papeMssuet. It wiH,r^der investments in banking coíápanies entirely safe and secure I0 the holders, /and afford them the almost absolute certainty o^ a reasonable profit, without endangering ihe capital invdsted in it. For this reason, it ia neither piracflcable nor desirable to discountenance the confiiiuance of the State Banks. They arc convenient and useful also for the pur-•pfi^sbf commerce. Nocommcfcial or manufac-' tun|og community could coi^uctits business to any ad/untage without a liberal system of credit, and a 'facifilysi^f obtaining money on loan when the exigencies d&heir busines9\iuay require it. This cannot be obtsiai4jSÍÍiiíliLydie aid of *a paper circulation founded on credit. It is therefore not the interest of this c.yitntry to put down the piper cur-tency altogether. ‘ The great object should be to give to ifSl foundation on which it wiü safely stand. A circulating medium composed ol paper and gold mid silver in just proportions, would not he liable to be constantly disordered by the accidental-embarrdssments or imprudence of trade—nor by ,a combination of the moneyed interest for ¡Kililical purposes. The value ot tho metals in circulation woRld remain the same, whether there was a panic or not, and the pro[)ortii)n- of*paper being less, the credit of the Banks could not be so readily impaired or endSh-gercd. The stato of the currency then, wiiich is proposed in the foregoing observations, wofild provide silver and gold for ordinary domestic purposes, and tho smaller payments—and the Banks of the dif-ferqnt Statfes would easily be able to furnish exchanges between dislant places Recording to the wants of commerce. There cannot, therefore, be any necessity for a paper cq-culation of general credit tlirougliout the country. Funds are more conveniently and ^fely transferred from place to place h^rafts an¿( bills of excliange than by bank notes, rlie immense operations between different parts of the United States, arc now chiefly carried on by this moans, and it is only in parl^lar places and for comparatively small amounts, tnatVAiPS are used; and the local insl^utions would, without doubt, in ar viJry short time liia1|^arrangemenls a-niorig thcjastlves to furnish thi^xchanges which commerce ■’requires, and the coijUaetition among many would reduce the rate of exchange to its pro-per'level. Besides, they would find Tt their interest to make agreements among themselves to honor each others’ notes to a certain extent, and thus furnish, as far as might bo necessary, a paper currency of gcnorSl circulation, in such places aqvvould bo likely, from their intercourse with each omTti', to require such a convenience. But tho.establisliment of such a paper currency ougiit not to have any •lid, direct or incidental, by legislative provisions. While it rests upon mutual arrangements among the Banks themselves, they will keep the issuesrof eachotlicr within proper bounds. But when they aro able to extend thoir credit by any legal provisions, in fiivorof their notes, the temptation is constantly presented to avail themselves of this advantage; and ovcr-issues and over-trading are the necessary consequences, if, however, a different policy sliould bo deemed advisable, the advantages now given by law to the Bank of the United Stales might easily be extended to the notes of the depository Banks, and if their notes weie made receivable in payment of all debts to the government, their currency and general credit would be quite equal to that 110^ enjoyed by the Bank of the United States. Believing, however, that such a provision would be calculated to increase the issues of paper, I cannot recommend it. The chief object of the plan I pro-¡xise is to increase the proportion of the metallic currency without dimiiiisliing inconveniently the general mass of the circulating modium and any provision tending to enlarge the proportion of paper beyond what tlic public éuuvenience requires, should be studiously avoided. The advantages of tho proposed plan over the present currency, will not bcj^nfincd to the superior stability qf the pap.er circulation. The laboring classes of,the community are now paid tlieij: daily, or weekly wages, in Bank notes of tlie smaller denominations, ailtkif there are any in circulation of doubtfql value and depreciated in public estimation, they are too often used in payments to the poorer and more helpless classes of society. They are not always ju^cs of the value or genuineness of the notes/^lcred to them; and, consequently, arc often imposed uixm, and (their small earnings still more diminished, by tl^iflcprcciatcd charactcyor entire worthlessness of paper in which they ait/paid. If the alteration suggested should be adopted, the smaller notes would soon be banished from circulation every where, anfl the laborers would, therefore, he paid in gold and silver, and that i>ortion of society which is most apt to suffer from worthless or depreciated paper, and who are least able to hear the loss, would be guarded from imposition and injustice. It is time that the just ^aTh» of this portion pf society should be regarded in our legislation in relation to the currency. So f.r we have beenjdoviding facilities forAjiose employed iife-xTcnsíve coinmerce, and have left the mechanic and the laborer to all the Irazards of an insecure and unstable circulating medium. It may be objected to this plan, that in giving to the Executive Dep.artmcnt, the power of selecting these fiscal agents from among the State Banks, an undue influence may be exercised over them, and the |K)wer bo used for improper and corrupt pur|X)-ses. Tho answer to ft appuars to bo a plain one. Tlig^tatcs in which these institutions are situated, can at all times control them, and would effectually interpose to prevent such abuses of power. Besides, with the diminished revenue whicli will hereafter bo collected, on tho reduced tariff of duties, it is itiqiussihlc to imagine that the gains to be derived from tJie public deposites, when distributed, as they must be, among so miny Banks, and among so many stockholders in each Bank, can ever be sufficiently imporlunt to tcmj^t them to swcrvg from their duty, or to iuflu' iicc, in any respect, their conduct or opinions. ^ But it is proper, no doubt, in all cases, to restrict political power within certain and defined limits, .anil it will bo advisable, therefore, to regulate the selection in such a inannnr, as to remove all apprehensions of its abuse. The following are respectfully snggcsled foCtonsideration; It the danger of abuse is considered by Congress us one uf any magnitude, and as likely to produce improper influence, it may be cffectiilnty removed, by making it tho duty of the Secretary of the Treasury to divido the depositcimmung |I1 the incorporated specie-paying Banks of tho place where the revenue is collected,» in proportion to their respective capitals actually paid in, provided they are all willing to receive them upon the terms prescribed by law; and if they are not willing, then ainengso many us would ngrec to take them. Every danger uf abuse in the selection will, by this modo, bo taken away; and the safety of the money could bo secured, by authorizing the Secretary of the Treasury to demand security from any of these Banks, when, in his judgment, the pubjjc iiitoiest required it; and tliero might also be a pro. hibitiun against removing the money to any place, cxc#pt where it was iininodiiaciy necessary for the ptirimse of disbursoinent. ^ This muda would sumowlW coiimlicato the operations of tho Department. Yc^ildo not perceive that it wuuki produce any serious in^iivonioncc to tho public service. It might, and pn^bly would, make it necessary to employ one or two niinre.Clerks in the Departiiioiit. But tliut would be but a small consideration, if it bo doemod advisable to lake from the Executive ill discretion over the subject. If, however, Cungross should agree with mo in; , and t supposing that the danger apprehended frum lliisj discretion is more imaginary than real, I would tBea respectfully propose tfic folbwing regulations: 1. That the Secretary of the Treasury should animtlly, at the beginning of each session, report^ to Uoftgress the Banks which had been used by him , during the year, as the depositories of the public' money. 2. That the Banks once selected os the deposit lories of the public money, should be continued as s uch, unless, in the judgment df the Secretary of tlie Treasury, the public interest required the depository to be changed; in whichStoe, he should report to Congress, at its next session, the reason of the change. 3. /That, in fill esses where there were two or more Banks at the same place where the revenue is to be deposited, at least two should be employed as the depositories of the money of the Unked States if they are willing to receive it, and give the security that' may be required. 4. iVherc there shall bo no Banks at the places where the revenue is received, tho money shall be deposited In such places as the Secretary shall direct, subject .to the same obligation to report to Congress. \ , 9. No Bank to be selected as a depository of the pubfic money, or continued as such, which shall ^al in any slocks, except those of the State in winch it is situated, or of the United States. 0. After the third of March, eighteen hundred and thirty-six, no Bank to be used as the depository ; of the public money, which shall issue or pay out notes below five dollars, and the notes of no bank to be received in payment of debts due to the United States, which shall issue or pay out notes of a less denominath^ than that above mentioned, after iliu time aftmréaid, nor shall any Bank be a depo^iiury of puldfc money which does not pay specie o.i do-mand for its' notes. 7. Each Bank selected for the deposite of the public money shall return a statement of its affairs to the Secretary of the Treasury, once a month, or oftcner, if required. Such statement sllall show the aggrcgrate amount loaned to its own officers and directors, and also the amount loaned on its own stock. With these limitations it is believed that the pub-li^oney will be safe—and that even tlie possibili-*ty pf abuse will be taken away. In submitting this view of the currency and the plan of improving it, I have endeavored to provide against the danger of a too sudden contraction of the present circulating medium. I am not prepared to say that the amount in circulation is at tbis moment greater, or even so groat, as tlie convenience of the country requires. I think it is not. For it has been rapidly and injuriously diminished—and it is to be regretted tliat the pains taken to destroy confidence in the great mass of the circulating me-, dium, has so far snccecded as to bring upon the community, the inconvenience and suffering which a rapid reduction ot the circulating medium unavoidably occasions. Tlie great object now in view is to terminate forever the evil of the piesent system, and to place the currency on a foundation so stable that it cannot again be shaken. If a broad and sure foundation of gold and silver is provided for our system of paper credits, we need not hereafter apprehend those alternate seasons of abundance and scarcity of money suddenly succeed- , ing each other, which has so far marked our histoif,i and irreparably injured so many of our citizens. a These remarks are respectfully submitted for theT consideration of the committee. I have the honor to be,'sir, very respectfully, your ob’t serv’t. R. B. TANEY. Secretary of the Treasury. Hon. James K. Polk, Chairman of the Committee of Ways and Means, House of Representatives. CI]\CIJV]¥ATI: THURSDAY ^••••••sssssss ..MAY I, 1834. (^A communication fróm Samuel relative to the late appointment of County has been received, and will appear to-morrow. Ú II. Gldii Dounly Clerk, Our countr)' friends need not be alarmed at the portentous demonstrations of the Cincinnati Wigi. Their violent struggles of die Wigs, just now, are only indicative of the laat^goj^. Juat let our good, honest, democratic farmers, vWhm they come in from work in the evening, lake up a copy of President Jackaon’a Protest, and read it aloud to their ions, and, our word for it, they, nor we, nor any one else, neo.l be aftaid of the Wigs__ We have printed ten thousand copiei of the Protest, and have, already, distributed more than a thousand in th% county. The “bone and sinew" read it with exultation. THE YOUNG WIG MEETING. We had a Meeting of old Wigs on Saturday: on Tuesday evening the young wigs were called out. Ther* was abundance of oralpry. TUs little boy wiga explaltr-lUed in great agony. We pttonded, along with aomo other Jackson men, and occasionally gave tho political tyros a thunder of applause, just to rouse their spirits and keep them in countenance. Theae young wiga ar* precQróua geniuses. They read off set speeches with more grace than on* would expect. Instead of the old, worn out “You’d scarce expect one of my age ' “To speak in public on the rtige.’ our young wiga drove pell mell into the very sanctum sanctorum of eloquence. Tyrant, Deapot, feitchen Cabinet, Scullion, el cetera, garnished the orations of these perspiring young Demostheneses in splendid profusion. There were some resolutions passed, which, as they only repeat the old story of Andrew Jackeon’a rascality» would not be particularly interesting to the readera of th* Republican. The young Wiga will, therefore, excuso us for not publishing their proceedings more particularly. Tlie friends of the Administration hove lost but |two votes—Caro* line, by iiiisinnnaxeincnt, and Kanawha—and they have yaincd 11 votes (eoiintln(^ttaway) In the Legislature, making 18 clear rotes, in to counties. There |s now no longer any doubt of the election. In Virginia, of • decided Jacksou I.etislature. The re election of Kives to Iho U. S. Senate, next winter, cannot, ha prevciitod by any thing but his death or voluntary delelnallon. The "Fcoplcatid Ballot Boxet”are stubborn things. The Gazette will not publislj the Protest, although wo offered to furnish its conductnrs with tho typo, ready act, fróm our office. The editor of that print exhibits a pe-oiiliar aensitiveness in regard to tho “nondeaoript" doo-umant, as bo is pleasad to term it. If it is such as ho ■ayi it is, why not publish it to the world? Ths people sre certainly discriminating enougli to detect its rascality. For a man who vaunts his indepondeneo In suoh loud alrains as he of tho Oaiette does, this supprsssion of s public document has a somewhat suspicious appearance. The young Wiga who assembleiiat the. Court House on Tuasday Evening, had not tho advantage of reading tho Protest in either of ths daily Wig papers of the city; and yet (hey passed a eondamnation upon it. They are bright Youngslors. They would denounce ths bibis, if the Qaiatts should tell (hem to do so. The B.ink mon are crying “great victory” over the New York election. Tho Flessiana at tho battle of Trenton should have done the game; they had as good reason.—Trenton Emporium. The Nullifiors and Ibinkites bad a groat hurra meeting, ou Wodnosduy last, in Philudelpliia, Col. i Preston, of tho Senate, and Dull'Green, of the Tol-cgmph, wore tli': lions.—Ib. The bill introduced into the Senate of PcriTisyU vania, to abolish militia (raining in that-sUte, wtf negatived, on Wednesday last. Yeas JO, nays J7Í A bill has |««jMcd the legialatiiro of MassachuBOt liiiu but otioo a calling out tnili lor iaspoction.—/6. year, aud then

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