Indiana Palladium, Volume 10, Number 15, Lawrenceburg, Dearborn County, 26 April 1834 — Page 1

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Dy David V. Cullcy. Terms $3 PER YEAR 331 PER CEXT. D1SCOUXT MADE OX ADYAXCE, OR ICi OX HAW YEARLY PAYMEXTS. (5 A.) SATURDAY, APRIIL 28, 183-i.

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EXTRACT FROM THE REMARKS OF TJr. John . Calhoun, Delivered in the Senate of the United States, March 21, 1834, on the motion of Mr. Vfebster, for leave to introduce a bill to continue the charter of the Bank of the United States for six years after the expiration of tlie present charter. What, then is the currency of the United States? What ils present state and condition ? These are

the questions which I propose now lo consider, with a view of ascertaining what is what the remedy? and what the means of applying i: tint may be necessary to restore our currency to a sound condition? The legal currency of this country; that in which alone debts can be discharged according to law, are certain gold, silver, and copper coins, coined at the mint of the United States, and issued, by their authority, under an express provision of tho Constitution. Such i3 the law. What, now, are the facts? That the currency consists almost exclusively of bank notes; gold having entirely disappeared, and silver, in a great measure, expelled by banks instituted by twenty-five distinct and independent powers, and notes issued under the authority of the direction of those institutions. They are, in point of fact the mint of the United States. They coin the actual money, (for such we must call bank notes,) and regulate its issue, and consequently its value. If we inquire as to their number, the amount of their issue, and other circumstances calculated to show actual condition, vc shall find that so rapid has been their increase, find so various their changes, that no accurate information can be had. According to the latest and best that I have been able lo ascertain they number at least four hundred and fifty, with a capital of not less than one hundred and forty-five millions of dollars, with an issue exceeding seventy millions; and the wholoof this immense fabric standing upon a metallic currency of less than fifteen millions of dollars, of which the greater part is held by the Bank of the U. States. If we compare the notes in circulation with the metallic currency in their vaults, we shall find tho proportion about six to one, and if we compare the htter with the demands that may be made upon tho bank?, we shall find that the proportion is about one to eleven. If wc examine the tendency of the system at this moment, wc shall find that it is on the increase rapidly on the increase. There is now pending a project of a ten million bank before the Legislature of New York; but recently one of five millions was established in Kentucky ; within a short period, one of a largo capital was established in Tennessee, besides others in agitation in several of the other States. Here Mr. Porte:., of Louisiana, paid that one of eleven millions had just been es tablished in that State. This increase is not accidental. It may be laid down as a law, that where two currencies are permitted to circulate in any country, one of a cheap nnd the other of a dear material, the former necessarily tends to grow upon the latter, and will ulti mately expel it trom circulation, unless its tenden cy to increase be restrained by a powerful and efii cient check. Experience tests the truth of this remark, as the history of the banking system clearly illustrates. The Senator from Massachusetts truly said that the Bank of England was derived from that of Amsterdam, ns ours in turn are from that of England. Throughout its progress the truth of what I lwvc staled to be a law of the system is strongly evinced. The bank of Amsterdam was merely a bank of deposite; a store-house for the safekeeping of the bullion and precious metal brought into that commercial metropolis, through all the channels of its widely extended trade. It was placed under the custody of the city authorities; :ind,onthe deposite, a certificate was issued as evidence of tho fact, which was transferable, so ns to entitle the holder to demand the return. An important fact was soon disclosed; that a large portion of the depositcs might be withdrawn, and that the residue would be sufficient to meet the returning certificates; or, what is the same in effect, that certificates might be issued without making a deposite. This suggested the idea of a bank of discount as well as deposite. The fact thus disclosed full too much in with the genius of the system lobe lost, and, accordingly, when trans planted to England, it suggested the idea ofabankof . riiscountandot deposite; the very essence ot which ibrm of banking, that on which their profit depends, consists in issuing a greater amount of notes than it has of specie in its vaults. But thn system is regularly progressing under the impulse of the laws that govern it, from its present form to a mere paper machine a machine for fabricating and issuing notes, not convertible into specie. Already has it once reached this condition, both in England and the United States, and from which it has been forced back, in both to a redemption of its notes with great difficulty. This natural tendency of the system is accelerated in our country by peculiar causes, which greatly increased its progress. There are two powerful causes in operation. The one resulting from that rivalry which must ever lake place in States situated as ours are, under one general Government, and having a free and open commercial intercourse. 1 tie introduction ot the banking sys tern in one State ncccssari troduces it into all the others ' seen a striking illustratio and some of the sourthern cd, on principle, strong aversion to the system; yet they were compelled, alter a long and stubborn resistance, to yield their objections, or permit their circulation to bo furnished by the surrounding States, at the expense of their own capital and comrmrt . .. 1 1 .1 . merce. J ne same causu wmcu mus compels one State to imitate the example of another, in intro ducing the system from self-deienco, will compel the other States in like manner and from the same cause, to enlarge and give increased activity to the banking operation, whenever any one of the States cnlc ft.n nvtimnlo nf CrtibiilKr Oil itS. TTUt : and tllUS. ....j r , . 'j by mutual actum and reaction, the whole system i

is rapidly accelerated to the final destiny which have assigned.

This is strikingly exemplified in lho rapM progress of the system since ils first introduction into our country. At the adoption of our Constitution, n nnrind nf' fort V-fivf I'UQ ra ilr-n u-nrn Kill tlirilck .--.-j " iv-my iiit.ii; 1. 1 ij tiu iiiii. banks in the United States, the amount of whose i cap ital I do not now recollect, but it was very j small In t h a short smro thv I,n Innrcpd tn fbur hundred and fifty, with a ennital nf ono hnn -i - w y ii4 i u atiV'ivuwwva w

thr. ,t;c?idre(1 and forty-five millions as has already been !

siaieu an increase exceeding near v a hundred I eding nearly a hundred rcaso of our wealth "nd fold the proportion-no increase of our wealth and population, as great as they 1 v have been. j But it is not in numbers only that they have in creased; there has in the simo time been a rapid advance in the proportion which their notes in circulalion bear to the specie in their vaults. Some III twenty or thirty years ago it was not consi idered i safe for tho issues to exceed tho specie by more than two and a half or three for one; but now taking the whole, and including the Bank of the United States with the State banks, the proporlion is about six to one; and, excluding that bank, it would very greatly exceed that proportion. This increase of paper in proportion to metal, results from a cause which deserves much more notice than it has heretofore attracted. It originates mainly in the number of the banks. I will proceed to illustrate it. The Senator from Now York, (Mr. W kigiit,) in assigning his reasons for believing the Bank of the ! United Slates to be more dangerous than those of! flirt C2ninr -..-. Cl I I. .1 the States, said that one bank was more dan gerous than many. That, insorne respects, may be true; but, in one, and that a most important one, it is strikingly tho opposite; 1 mean in the tendency ot the system to increase. Where there is but one bank, the tendency to increase is near so strong as where there are many, as illustrated in England, where tho system" has advanced much ess rapidly, in proportion to the wealth and population of the kingdom, than in tho United States. But where there is no limitation as to their number, the increase will be inevitable, so long as banking continues to be amon the most certain eligible capital as is now the case. With these inducements, there must be constant appli- j cation lor new hanks, whenever there is the least prospect of profitable employment banks to be tounded mainly on nominal and fictitious capital, and adding but little to that already in existence and with our just and natural aversion to monopoly, it is difficult, on principles of equality and justice, to resist such application. The admission of a new hank tends to diminish the profits of the i i i .1. .i i , . oiu, ami oeiweeu uie aversion oi me old to reduce their income, and the desire of the new to acquiic profits, the result is an enlargement of discounts, affected by a mutual spirit of forbearance; an indisposition on the part of each to oppress the other; and finally, tho creation of a community of feeling to stigmatize &, oppose those, whether banks or individuals who demand specie in payment of their notes. This community of feeling which ultimately identifies the whole, as a peculiar and distinct interest in the community, increases and becomes more and more intense just in proportion as banks multiply; as they become, if I may use the expression, too populous, and from the pressure of increasing numbers, in maintaining their existence, there results a corresponding increase of issues, in proportion to their means; which explains the present extraordinary disproportion between specie and notes, in those Stales where banks have been multiplied; equal in some to sixteen to one. There results, from this state of things, some political considcrafons which demand tho profound attention of all who value the liberty and peace of tho country. While the banking system rests on a solid foun dation, there will be, on their part but littte de pendence on the Government, and but little means by which the Government can influence them, and as little disposition on tho part of tho banks to be connected with it; but in lho progress of the sys tem, when their number is greatly multiplied, and their issues, in proportion to their means, an? correspondingly increased, tho condition of tho banks becomes more and more critical. Every adverse event in the commercial world, or political movement that disturbs tho present state of things, agitates and endangers them. They become timid, and anxious for their safety, and necessarily court those in power, in order to secure their protection. Property is, in its nature, timid, and seeks for protection, and nothing is more grateful to Government than to become a protector. A union is the result ; and when that union takes place when the Government, in fact, becomes the bank direction, regulat . r 7 , , ..1 atmg its favors and accommodation, the down - r,..0. . A. , . , . ' ,- I liberty is at hand. Are there not indications J . . , .... r.t fall of that we are not fir removed from this state of things? om xuv f h"go CCT S(" ! 1 tl - an 1 o last lew montiis, ano Do we not behold in those deeply agitated us within the last , V of tins community, a strong tendency to dns union ii:lirli Ivi vn i n t rrrn r1 mi n 1 1 t hr m:;np4 f rn nTP.t fins on the part of one

department of th s Government, r " . T v rr.r r ,i I . . , . , j t ' ! quale remedy,! would havo remained silent. And i this power, then, some other 10 bankin" svstenW lias noli.1 .,-, s , A A, , i . , '. ,,,, 1 . ,. i u,um" - , ; here, (said Mr. Caltiolx,) let mo exnress the deep i with it. The most immediate ; if r-incTimmQl.-l in li e l iTres! x ...... . . !...

and a portion of tho :"!U,"U uuu"' m !;7u",wrr V UiC and most commercial of the States? What is tiie : 1 X.l !n ll.nl.rnnc-) safety fund system of New York but a union betuums; diiu iu uuuiu H!iu uiu unu.ui I . I A T 1 . C i .1 a 11 . . 1 (hat Slalc have actually put lltemselvcs under the ; ,mmed,atc protccluw , ol tho Oorernmo: lb 3; '2'. S i having not more than from one to two cents in sper - 11 ' . - ! c.ie to lhe dollar when compared with their circulation; and taking the asreaate, their average con dition will be found to be but little better. 1 care not (said Mr. C.) whether the present commission v ... ers are partizins of the present Stato administra tion or not; or whether the assertion of the Senator from '-u-VmL- rTr Wototit-n il.nt tho irovpn lro1" oik, (Mi. AN bight,, that the govern

iy, on this principle, m-1 . . . ... .. !. .k,.

, ot which wo have I . .. - -0 - . ,P

. .- . . linn nv nv ri t nil rnmniiim p ri i'c ill 1 1 1 1- :

n on tho part of Virginia i wm, xmi.ci i .no aimi.u ,

r. . ... . ! M!P 1(f !!(-- fll l')l!!l 13 tiV fVlPllll int'ir 11I1-

SMaies. winch entertain- J" - - eas

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ment of the State has not interfered in the control of these institutions, be correct. Whether it ins taken place or not, interference is inevitable. In such state of weakness, a feeling of dependence is unavoidable, and the control of the Government over (lie action of the banks, whenever that control ill , i l1 become necessary to subserve the ambition or ",0 ?x ?nf ot Ul0S0 m Pmver' js ce;,:iin' uuu 13 " ""g enuency oi our nanus 10 icr mi,lllc Vie,r e?reer ,a ,I,e Pper system m an open i susPons;on spacie payment, Whenever that j e.V w-c,rs, the progress to convulsion and revolu- j l'on e '"P'1'- 'I'bo currency will become lo-

. .7 . ' luv.uniunnun.nmn-u'iu-iwu

, Wl , be 'i', J h? cuency will become locat, and evch btate will have o powerful interest j in u-(h.luh: ns cuneury more rapiaiy man us s neighjor,astho mcans,atthe ssme time, of exemp- j ting itself from the taxes of tha Government and ' t - . . i . commerce ot the country to its ports, i ,lJ.s.slu,"s'J aiicrinc suspension ; of specie payment during the l ite war, when the I depreciation made the most rapid progress, till i checked by tho establishment of the present Bink j of the United Slates, and when tho foreign trade j

of tho United Slates, and when tho foreign trade j effectually arrested. There is no power any where father increase, but a bank the agency of w.Vch, of the country was as rapidly converging to the 1 but in this Government the j. iat agent of all th" in smo f.rm, or iindr some authority, i indisnoint of the greatest depreciation, with a view of States, and through which the concert id' lho actum ; pei;sabl Th country his been brought into the exemption from duties by paying in tho debased of tho whole c in be rtllcted, adequate to tills great 1 pres-nt disced sato of lho currency by b:ihW, currency of the place. task. The responsibility is upon us, and upon us ! nnd must bo extricated by their agency. Wo What, then, is the disease which afiiicts the sys- alone. The means, if "means thero be, must be, 1 must, in a word, uso a bank to unban?; tho banW', tern; what tho rarnedy; and what tho means of ; applied by our Innds, r n t applied at all tu an f xt. ut that may b: isrec ti tr to restore asafo applying it ? These are the questions which I next : a consideration, in so great an emergency, and in and stable ( uironcy just as we" apply snow to a shall proceed to consider. What I have already ; the presence of such imminent danger, c ilcul itcd, ! frozen limb in order to restore vital. ly and circula-

stated points out ot the disease. It consists in a great and growing disprop ortion between ihn metallic and paper circulation of the country, rtt'ected 1.1 1 . 1 ... i i ! through the instrumentality of the banks, a disnro-

portion daily and hourly increasing under the im- j be npplicd ? Cites of an exclusive specie circulation, must mako pulse of most powerful causes, w hich are rapidly I If tho entire banking system was under the im-' it a part of their system to tolerate tho banks for a accelerating the country to that stato of convulsion ; mediate control of the General Government, there J longer or shorter period. To suppress them at and revolution which I have indicated. The j would bo no difficulty in devising a safe and e fleet- once would, if it w ere jnissible, woik a greater revremedy is to arrest its future progress, and to di-! u d remedy to restoro the equilibrium, so desirablo j olution a greater change in lho relative condition minish the existing disproportion to increaso the ; between tho specie and tho piper which compose ; of the various cl asses of ihc community, than would metals and to diminish the paper advancing till J our currency. But the f;;cl is otherwise. With the conquest of tho country by a savage enemy. the currency shall be restored to a sound, safe, and j tho exception of tho bank of the United States, all I Wh it, then, must bo done ? I answer, a new and settled Condition. On these two noillts all must ' the oilier b;vnks owe lh;ir origin la tho anthoiilvof ! safo pvatcm must arsdnnllv irmw tin muti r nnd rn.

be a creed -There is no man of . i mnr. ,.C ... j ble of reflecting, and who will take the pains to in-j form himself, but must agree that our currency is i uuy imiiv w u-: in a dangerous condition, and that the danger is in-1 creasing; nor is there any ono who can doubt that ! the only safe and effectual remedy is to diminish j

uiu uisproporuonio wnscn i nave referred. ilere body, (.Mr. Kivks,) proposed to apply lho taxing l)anKing system.' And what hank is to bo seloctthe extremes unite the Senator from Missouri. 1 nower to sunnross tho circulation of small notes. 1 ed as lho reat ai!cnt of eflectint ties salntarv

(Mr. Benton,) who is tho open and avowed advo cate ot a pure metallic currency, and tho Senator from Massachusetts, (Mr. Webster.) who stands here as the ablo and strenuous advocate of the banking system, are on this point united, and must ' .. . ., r . . ' . . move irom it m the same direction, though it may be the design of tho ono to go through, and of the other to halt after a moderate advance. There is another point in which all must be agreed; that tho remedy must be gradual the change from the present to another and sounder condition, slow and cautious. Tho necessity for this results from that highly delicate nature of cur rency which I have already illustrated. Any sud-dr-n and great change from our present to even a sounder condition, would agitate and convulse so ciety to the centre. On another point thero can be but little disagreement. Whatever may be the different theoretical opinions of the members of the Senate, as to the extent to which the reformation of the currency should be carried, even those who think it may be carried practically and safely to the restoration of a metallic currency, to tho entire exclusion of paper, must agree that the restoration ought not, to be carried further than a cau tious and a slow experience shill prove that it can bo done, consistently with the prosperity of the country, in the existing fiscal and commercial condition of the world. .To go beyond tho point to which experience shall show it is proper to go, would be to sacrifice the public interest merely to a favorite conception. There may be ultimately a disagreement of opinion where tiiat point is, but since all must be agreed to move forward in j lho same direction, and at the same pace, let us

set out m the spirit ot harmony and peace, though j an efficient system oi measures, to correct lite indicate a preterence,) that the present hunu tescwe intend to stop at diiferent points It may be i present or repress the growing disorders of the cur-' h ctcd as the agi nt to effect the intended object.

that, enlightened by experience, those who in - tended to stop at the nearest point may bo disposed to advance farther, and that those who intendeded tho farthest, may halt on this side, so that finally all may agree lo terminate the journey together. This brings us to the question of how shall so salutary a change be effected? What tho means and tho mode of application ? A great and difficult question, on which some diversity of opinion may ho expected No one can be more sensible than I am of the responsibility that must be incurred in proposing , measures on questions 1 .... , t , i which, in so distracted a , 7 ... . . , 1 must eflect seriously grc ot so much magnitude, and a stale ot the nunac mind, ly great and influential interests. .... But this is no time to shun responsibility. The i danSer 's great and menacing, and delay bazari . .p v"i .; I.-. i,nu..-.i-nr I nvml.-l nni shun, I have not sought the responsibility. 1 have . , , . . . . - . , I .. ..... 1 reSrct which 1 fucl ,hal the niinistration, with all ; ., , . . be- 1 unuieiisu puiroiKigi , nau uoi , m : stead of the deposite nuestion. which has caused such agitation and distress, taken up the great sub- ... ' ct ot the currency; examined it gravely and de iberatcly in all its bearings; pointed out its dis ;d condition; designated the rrmedv, and pro loosen snmo ciiY. ,rr.,A, ,..! ,nn,f I Jill'. , J-I .iiu: I, tuu .llv.v.llliu lir-UUJ VJI applying i,. H.,d,l,at cour.o boon purged my zealms nJ co.operjtion ,!, nol 1,hvJ !jccn "'anting. IVr.nit L also express a ,imi. lar rei'ret. Hint flip ni mtnn nlinn linvint tnilnl m this great point of duty, the opposition, with all itsi weight and talents, headed on ibis question, by the j distinguished &l ablo Senator from Massachusetts. I U'lin la ai m nnl.U nrnn.n.1... .1: .1 I.: .? - j l IIS Uearmrrt;. Imfl nr! hrniinhl nriviri ltnJnr it.- mis.

pices some permanent system of measures, based j my opinion, a strong, if not an insuperable objecupon a deliberate and mature investigation into! tion against resorting to this measure, resulting

- ' V UULJlut-ulu a" mature mvesugauon mio , lhc cause of tho existing disease, and calculated to

remedy the disordered state of the currency. What might Invo been brought forward by them with such f ur prospects of success, has been thrown on more incompetent hands; unaided by patronage or influence, saving only that influence which truth, clearlv developed, and honestly and zealously advanced, may be supposed to possess; and on which I must wholly rely. Rut to return to the subject. Whatever diversi-

ty ol sentiment there may bo as to the mean?, on one point all must be agreed; nothing effectual uv-n (iu nun m h.-mm- m can be done ; no check interposed lo rest the progress of the system by the rest the progress of the system by the action of the j Mates. VUo reasons already assignrd to prove j inn nanKinf? iv one otate. conn pels all others to j bank, and that the excess et banking in one, inlke ' manner, comnels all others to 1 ke excess, t (uallv ! . ... .... T ctemenslrato mat it is impossible tor tho states, art- 1 jg separately, to interpose tiny moans to pi event the catastrophe .which cert liuly awaits the system and'porhaps the Government itself, unless'great j and growing danger to which I ref r ha tiiii'.ly anJ j effectually arrested. There is no power any where j Iv and I I would suppose, to disitoso all to co-operation, 1 and to all ly of lha least .... tvry party fell ig m th? hart cvon patriotic. , What means do wo posses?, and how can uVv : n .-- .1. I C.. I 1 . .1 I'..- ' iu several oiaie, aim are nnuer uieir uuiiieuiaie control, which presents the great difficulty rxpr-ri- j euced in devising the proper means ot etVecting the remedy, which all feel to be so desirable. Amon the means which have been su22sted,i j Senator from Virginia, not now a member of this ' with a view of diminishing tho paper, and increasing the specie circulation. The remedy would be simple and effective, but is liablo to great objection. The taxing power is odious under any circumstances; it would be doubly so when called into exercisa with an overflowing treasury; and still more so, with tho necessity of organizing an expensive body of officers to collect a single tax, and that on an inconsiderable subject. But thero is another, and of itself, a decisive objection. It would be unconstitutional palpably and dangerously so. All political powers, as 1 stated on ano 1 - -- --- , ther occasion, arc trust powers, and limited in their j exercise to the subject and object of tho grant. j Tho tax power w is granted to raise revenue for the solo purpose of supplying the necessary means

of carrying on the operations of the Government. ! to constitutional objection. It would, however, bo To pervert this power from tho object intended by ; wanting in candor on my part, not to dcclaro that tho Constitution, to that of repressing the ciicul i- my impression is, that a new bank of lho Uniled tion of bank notes, would be to convert it from a ' States, engrafted upon the old, will be found, under revenue into a penal power a power in its nature , all tho ciscumstunccs of lho case, to combine lho and object essentially different from that intended greatest advantages, and to be liable to the fewest to be granted in tho Constitution; nnd a power, J objections; but this impression is not so firmly fixwhich in its full extension, if once admitted, would i ed as lo be inconsistent with a calm review of tho be sufficient of itself, to give an entire control of. whole ground, or to prevent my yielding to tho this Government, over the property and the pursuits conviction of reason, should the result of such rc-

j of tho community, and thus concentrate and con - i solidale the entire power of the system in this Go- ! vermnrnt. ' j Rejecting, then, tho taxing power, tlu re remains i two obvious and direct means in noss ssitn of tho Government which may be brought into action to effect tho object intended, but neither of which, either separately or jointly, are of sufficient efiica - cy, however indispensable they may be cs a part of: ;rency; I mean tint provision in the constitution which empowers Congress to coin money, regulate

the value thereof, and ol foreign com, nnd thepow- : with the nw oi exciting me iCiK.ci.on ol those or of prohibiting any thing but the legal currency much morn familiar with banking operations than to be received either in whole or in part, in the dues 1 myself, and who, of course, are more competent to of lho Government. The mere power of coining ! form a correct judgment on their practical edict, and regulating the value of coins, of itself, and un-; Lot, then, the bank charter be renew ed for 1 sustained by any other measure, can exercise but a 1 years after the exp'rutit n of the present term, with limited control over the actual currency of the ' such modifications and limitations as may be judgcountry, and is inadequate to check excess or cor- cd prrper, and that, after thst p r'od, it shall itsuo

1 rect disorder, as is demonstrated by the prcsmt j diseased state of the currency. Congress has had, j Irom the beginning, laws upon the statute books to regulate the value ot the coins: and at an ear v nc-

... . . . . . t -

riod of the Government, the mint was erected, :tcd, and has been in active operation ever since; and yet, j of the immense amount which has been coined, a cmnll roM., i,n . . J' great body having been expel e j , . ,intll? cr. . great body having been expelled under the opera To ic ctlieaey must be combined and obvious, is that whichhas been suggested, of excludin: I . . . all but spc This mea - cio in me receipis oi me Liovernmenr. . sura would bn ptfertnl m n rrrtain extent: but

i with a declining income, which must take place uu - ! der the operation of the act of last session, to adjust - the tariff, and which must orcatlv reduce the vevc - ; nue, (a point of the utmost importance to the rctwr ..r "... f. te III 1111)11 lllll It "eiiei.lHUIl Ul Will HOHUHJl,l - ! elHcwy of ,!,e meosuro must bo cnrrrspoml'nglv ! dirni,,! !,o,l. F, ,l,e nature of tl,in3?1 ii cauno! ; neatly exceed ,!:e avcra, f.h3 Uovcmmcat .lc : luiolr,? .!. I ..nn mII lwr..rr m n - vnnrs Im reduced to the smallest possible amount, so as to prevent the possibility of lho recurrence of ihe shameful and danoerous state of things which now ll' 1 I - i . 1 l 1 .1vmcn nas oeen causeu oy .u : uninnn .r !.- .. - ll.,t . l.orr is in non agamsi resorting to this measure, re f.oin the fact that un exclusive receipt of gpecic

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in tho Treasury would, to givo it efficacy, and to prevent extensive sper. fraud, re quire an entire disconnection on c part of tho Government with tho banking system in all its forms, and a rcsorWTo the strong box as tho means of preserving and guarding its funds a means, if practicable at nl), in the present stato of things, li. bio to tho objection of being for less safe, economical, and efficient than the present.

V hitmen, air. I;, inquired, w list other means do wo possessof sufficient efficacy, in combination im mau iu wu.eu i nave referred, to arrest lh; farihcr progress an 1 correct tho disordered state of tho current) t This is tho deeply important unction, and lure some division of opinion must be expeeled, however united wo may be, as 1 trust wa are thus fir. on all other no'nts." I intn.l . . ' . . . ' " ' v this ru Mio I expl citly and dircctlv, without nsjrvutmiior coneealincnt. After a full survey of ths wind j sublet. I eo none. 1 can coni clure no means of evirie iiin ih.i country from its tvesrnt daie. r. to nrrrwt U tion, or hold up a burn to the tluno to extract lho influnation. AllinustscclhititUiinpossiblotosupivota tho binkuiL'sytm at once. It must contin ue fur a time. Its greatest enemies, and tho thoo es j -. . . - .1 .1 . .1 1 ?".. . .1 I oiicu ine oiu umiuiiu?. in inisres 'Ci. mo UCautiful process which w e sometimes see, of a wound ed or diseased part in a living organic body, cradu ally superseded by the healing process of nature. How is this to be effected! How is a bank to bo used as a means of correcting the excess of tho - ci c - - 0 J as change? I know, said Mr. C, that a diversity of opinion will be found as to lha agent to be selected, among those who agree on every other point, and w ho, in particular, agree on tho necessity of using some bank as the means of effecting the object intended; one preferring a simple rc-chartcr of tho existing bank another the charter of a new bank the Uniled States a third a new bank engrafted on tho old, and a fourth the use of lho Slate lhnks as tho agent. 1 wish (said Mr. C.) to leavo all theso as open questions, to be carefully surveyed and compared with each other; calmly and dispas- ' sionately, without prejudice to party feeling; and s that to be selected which, on tho whole, shall appear to be besl tho tnosl safe; lho most efficient; tho most prompt in application; and the least liable , view prove that any other is preferable. Among its peculiar recommendations may be ruikcd tho ! consideration, that while it would ailoid tho means ; of a pronq t and effectual application for mitigiting and finally removing the ex'sting distress, it would at the same time, open to the whole community, a fir opportunity of participation in the advantages ' of the institution, be they what they may. Uf t us then suppose, (in order to illustrate and What prois:ons w:Il to necessary i I will suggest ! thoso that hive occurred to me, mainly, however, ! no nulcs, tiiiuci ten dollars; llr-l Government fehall ; not receive in its dues, any sum less than ten dol- ; lars, exec pt in the b'gul coins ol the u nited ctaiea; that it shall not receive in us uucs mo uou soi any ; bank that issues notes ot a less denomination than ; five dollars; and that the United States Bank sliafl ! not receive in payment, or on deposite, lho notes of iim- l.ii.l- uhr.wn nnirs arn not receivable in tlit - ; dues of the Government; nor the notes of any bank .1 . r , , to, whieh may receive ine noics oi any oani; wnoso notes are not receivable by lho Government. At the expiration of six years from ibe commencement - 1 ol tho renewed charter, let ihe bank bo prohibited - ' from issuing any note under twenty dollars, and let i no sum under that bo received m the dues of the - Government, exc pi in specie; and let tho value ol ; gold le raised at least equal lo thai oi Stiver, o - ; lake efi". cl immediately, so thai the country may lo - j replenished with the coin, the lightest anu mc ui profitable in proportion to Us value, to take ino place of lho receding bank notes. It is unnecessary for me to state, thai at present the standard value of gold is several per cent, less than lhat of silver; the necessary etVect v( which has been to expel gold entirely from our ciicuhtion, and ihus to deprive us of a coin so well calculated for the cricululion of a country so great in extent, and having so vast an intciconrse. commercial, social, and political, between all its parts, as ours. As an additional recommendation to taise its relative value, fold has, of bte, become an important product ot ihrco considerable states of ihe Union Virginia,