Western Sun & General Advertiser, Volume 11, Number 22, Vincennes, Knox County, 27 May 1820 — Page 2

yo 1 1 the supply, increases the pric? tn lie t ii j dmi led, aid "nuncto t.i j mvcstaie.it of additional capiral in its muduciioa. lilt , vhentu' aiiicde domanied i to b produced iiO"i a material, vvuich n i.nestm m. oi ctprtii , ) apmicjlio.i of skul c m augment, tha o.iiy effect of suo.i in v .ii Mt a i.l application, U lo pro-du-.v the in ast winch the materiai ir-i tm; capacity furnish, men, i i i U Imo ( ise ol g ihl ari 1 sievar

ton ".v ich they arc

lii.i C! 1 il

i u niied nt qua, d.'y, wn.icu

i' r.har c.p.'.a o r .ni can au. Miioiit.

1 1 is pr nc.

in m r. i ry . ami th-an of refming, wdi b t . ; u ; i e r o i an ed hv the c.Y hmviori of the mmcs or the dihacul-

.fiailcuk In both cases, instead of be f ensue

li;U I nc improvements

K is l?

Vf:.

u ( ' e :

lor 'V

them an-dug from the c.;t oi their e xcav alma. j possible, li. it the deii pr eriods metals, foi

arid J.n

iog uied as a mean of supplying a cneap and stable currency, invariably emulated by the demand, for efTect- ; ii tiie exchanges required by the .vants aad covcniencc of society, it a is been employed as a financial re

source, or made the instrument ofJ

'im entrained cupidity. In no case lias any attempt oeen made to determine the primipk-s upon which such i t urroncy, to ha stable, must be founded. Instead of salutary restraints .icing imposed upon the monied institutions which have been employed, the ital principle of whose beingis gain, they have not simply been left to the guidance of their own cupidity, hut h.ive been stimulated to excessive issues, to supply deficiencies in the public revenue. This is known to have been the case, in an err.inent decree, in the experiment which has

manufactures, may been attended with mo?.C success.

e nronuctio i oftha :u'mo. ! Tde issues of the bank of England,

Ih e i si v t entering upon the ' on account of the government, were knme.ba; c. dr-cus-i u ot the practica- i fi equently so great as to destroy the bk.tv ei s,,b s hint' ; a paper for a me-' demand for discounts by individuals t ... . ! i t is prop, r to dncrvc, i In consequence of tnese excessive is

sues, the in. crests oi money fell bc-

,n (. i i ; ) - e

i c nai t oi toe

oi y c. v.5 uj e.hich h.is been ior five percent, the ia'e at which ) t: tc m, froni the ; ncrid the b: nk di.coir.ited ; the demand for

n -':..( ! i . i z Ll

t; . ei as the st etlud of Value. S i . ;i i i'-.v erase to be ut i fjr tiiut

"i:io-e l'-.-.e i

r. e'lie.ted, I'.'.vO all fiiher 'e ; tides, by t he nhmumd lor them, eomj) a. ed with tlie so, p:v in any ehvn mat ki t. It is pr. , t oe 1 t Milt il ihev b!inUl ca use

states to mp'ioy

i.L-y c'int lie ome more -a-t.. '.r aloe, and woe id he

ubmnn., at tin bank, therefore ceas

ed. It 5s. indeed, not surprising, that

no svyiematic ( ffoi t has bec n miule to i i s' mill eixCtss'ne issues. In tl-c case

i.'t banks, the exptiimcnts which have

been m. de w ere intended to be tem-

pmaiy; tiu were the result ofireat

and sudden 'piessme, winch lelt bin

3. It might, however, be saved from such destruction by a well grounded confidence in the justice and

intelligence of the government, which

should su cccd that which had been

overthrown. The history of modern

times furnishes examples that are calculated to inspire this confidence. In France, during the revolution which

has just terminated, the public debt was reduced to one third ot its a-

4. When the currcr.cy is metallic, no addition can be made to it without giving an equivalent. It is indispensable that this condition should be annexed to the acquisition of the paper currency, preliminary to its entering into circulation. If it can be put in circulation, only on paying its nominal amount in that which has a general and fixed value, determined by the consent ot othei nation?, it w id con

tinue to preserve that aluc duiini;

mount. . The some rule was applied the time it ciiculates. unless the re

to the public debt of the Dutch re- lation w hich it bore at the time of its pubiic, when it fell under French do- issue, to the quantity ol aitich s the initiation. In the successive political exchanges of which it is destined to

changes to which France lias, since pcrfoi m, shall be. vaiicd

that period, been subjected, thepub-j 5. As a paper currency is issued

he debt and the public engagenu nts t upon the national credit, the whole have been maintained with the strict-' property of the natiwn is pledged for c:t good faith. In Holland, that por-! its redemption, whenever, by any tion (if the public debt, which had . circumstance, it mav become the in-

pu;

been abolished by the French government, has been restored. In the

teiest ot the community that it should

be redeemed. It is, therefore mani-

expense, for the purpose of bclr. exchanged. Whilst specie formed the basis of the operations ofbanks, its importation could not fail to ba productive of loss Each importation not only produced the necessity of additional importations, but of an increased expense But, when importations shall be made for the purpose ol being exchanged for the currency, the exportation of the specie thus imported, viiir.ot affect the operation of the barks. It is enly when the fundi;. : ol the currency shall c :n-

ia v.; a f. C.'d 1 ev w

nutc leisure tor the examination ot

ape;, c d as the s'amku d d" al- ' a subject so abstruse. The employ -ev "; ;! stairs, their uniformity tmntofa paper circulation converti- : iv 'bd be i.j some deface af- hie into specie, the favorite system of n t only in those stites where; modern stalo, haing, as has been "e eoiisides-ed as mere c ommo- attempted to b shew n in a previous

:iti '-s. but in t!:ose w h.ti e still em- pai t of this report, the inevitable tenp. 'vcd :ts cu'Tccy Whenever, as dency to oio.iucc the necessity of rci o'lunoost es, t tee shou'd i i sc in val-; sortine,. in ci ry national emergency, in', a dram wr;u:d take p ace fi om to paper, not so con et tible, impo;-es the eurrercy td other states ; and upon those who are called toadminw hen they should fail in value, as is'er the afi'aii s of nations ttie duty of ceninur.ht'.es, they should seek em- throughly examining the subject, p jyuienr as currency, and render, in it i a view-, if practicable, to avoid

o;ie (i('!m-; i. re: ;n int. t hi1 rnni'nrr tlmt nirissnv. it the. r v n miiiMiion

does not result in the establishment of a paper currency, unconnected with specie, it may lead to the imposition of salutary checks against excessive issues, when the n "c-ssity of suspending payment may occur It ha already been said, that cvei attempt w hich has been made to introduce a paper cun ency has fadeti It may also lie said, that of all the sy? terns, which during the discussion n lais "mtcrestin-- subject, both in Fu rope and the United Mates, winc

es ( f oaiiiiu i ee as aie eniirrl di -pfnecM op at il i rn. A coi.si v r;.bh; denmivl fur "old and silv er bv tiu- :oy-etnnn-tit. t.i meet its fnr'i'emei.ts,

tne states where they areemp'ove i. After making due allowance for i'ne d- preci alio a of haul; notes in Fng- ! aid. f; o!i the ti.ne of thefba .k res-

t. ;cii ;i, m I7h7 to tht: nresent peri-

p::ce of e, "id and silver in

, M

. 1 I I 11

inai rou:rti is ne'.ieveu to have varied ni-n c thm at my firmer p;-riod. Their pi ice when comp il ed with ban v notes, from the year I7'7 lo !8i, showed btr a siiir decree ol !! i f iiiio'i ; copsuiCiWbly less, in all hum . pvo'tiaboiu , ttian rctua'ly cx-i-vd During taat .lvervaU the de-

in ' " ' 1 r 'nose m

1 . :.v ! to the mi n reopiired tor man-uta.-tureri It is hie-hlv nrob ihl j ,

lave o.-3 en proposed, none are nee

tals was limited in I from obi actions. H is poiblc that

na svstem can be devised, which wib be eniirelv freefiom objec tions. T"

ttrrt n the fprmtity of the paper cir-! ensure the possibility of employing rn a'a t uad he'n re luced to the a-' sucii a currency with advantage, it is in "int the currency in circulation necr.is.irv : at ' ' 'i ne, or for one ve v before ine : l. That th.e porcr of the government

.ctivin, me pi ic : of bu! .ioa would over the currency be absolutely so-

mer.ee, that they will be admonished to desist from further impel taticr.s. Individuals and banks would iikcwivj txchange public stock at the rate-: presciibed by the system for the paper cun ency. Whenever the remand for currency should be such as to raise ti t interests of morcy ro: siderably ab. c that procure l y ti c public stock, it would. I v 1 ru ks ar d

opinion of well informed men, how-j itst, that it should not issue upon the - individuals, be iven in exchan-c for ever, the conditions connected with j credit of any individual, or assr-cia-. the current v. But the Lhciihv, v. I.icir that restoration were so onerous as to tion of individuals. A part can nev- the existence ol a public dib: fuinishremler it almost nominal. Indeed, ; er be equal to the whole. The cied-1 cs in prccur.n the paper ciurricy. the public debt in mat country had j it of any individual, or association of ( is counteihakmctd by the d fhcully of become so disproportionate to the individuals- cannot be cquhaltnt to complying N.i'.h the public ete.;: demeans of the nation w hen deprived gf, that of the nation, of v. i.ich they lot m ' mentlo discharge such debt in a methe resources it enjoyed when the! a part. But, it may le said, that id- tallic run ei:y. After a pr.;er thdebi was contracted, that the l eduction; though the credit "f individuals is not cu.ath n shall i e sulxtitutetl lor s;.hl which it underwent v Idle the country I equivalent to thecied.it ofihe na!in, ' and silver, they will he four; in wis annexed to the Trench cmpii e, ' yet an equivalent for a pat licuiar por- count: y oi.lv in tHe quantity ih n::.i' d was not generally considered an evil, i tion )f that credit, ma; be found in .for manufactures, and for such !.i : it h-

I he i eduction of the national debt of j tire pledge ormoitgae of properly of France during the revolution was per-: equal or greater vaiue, than the curhaps equally indispensible. If theliency issued upon it. l ids may be intelligence of the age, and the ii flu- true ; but the value of properly has

ence ol public opinion, even in states been continually fluctuating : it wi: pieriuus'v contracted, wouhl rai-e w here th.e reign of law was hut im- coniiuue to iluctuate, after giving to their price in the ma' kct, ami rei h r perfectly established, have been snfii- the advocates of a paper cun ency full the obligation to disrhaie thosr t ncient to induce the governmens which credit for the supei in alubiiiiy which,' L,aeer.rei:ls, in the piiciotis lur'ijs, have alternately succeeded each oth- they suppose, v id attend its substi-! i.ot on! v extreme v (i erotis, but pes - er for the lat twenty five years in tution for iokl and silver as the atar.d- haps somctirnes impracucr.b'e. !:i France &Holland,to respect the public ard ol value. But this i; not the on- such a state, a compi omise with t! e engagements which had been previ- ly objection tJ the acceptance of public crcditm s v. ould nan. io Li' : ously cor.trarttd, well grounded ex- property as a pledge for the payment, preliminaiy measi.ie. This, under pectations may be cherished that the by individuals of an cquiv alent for the ' any ci; cumst.mces would be a meaaptriod is rapid!) passing away when paper currency which may bead-' in e ol gia at delicacy and dimcuity, tin public faith ot nations can be viu- vmccd upon 'such pledge. Frauds and, in some cas.s. wr.u'.d piobabiy lated with impunity will be practised by pledging prop- be uttci iy iir.practir able. 11 public engagements, under such etty which is encumbeicd, which it f. Wlinnvcr from any ciis. the citcunistanc.es, have been considered wouid be extremely dilhcult to detect, currencv should become reoniKlant, obiigatoiv upon those who have sue- The government will be involved in the icmme.amy may be iuiah d at a eessiveiv administered the affairs of endless litigation with individuals rate of interest, a fraction below ike those nations, a resonable confidence w ho are interested in the incum- rate ot legal interest, m ey be reposed in the fulfilment ofthc bfances, In which its rights to the In ik tei mining the t ate at wl.irh bugations which may be contracted property pledged iscmban a-sed. In it nuiV be fmde(l, due rt guidslnuhl O) existing governments, where the such contests, the interest f t i.c gov- be pain to the t ate of intei est puviieign ot law is firmly established, ci nment is aiwav s endangered even otisij exis'ing in tl e st.Me. The rule k is not denied that a p iper currency wnere right is on its s:de. It is not ot in'erest, it is cMueived, ouahtiu;: urmshes strong temptations to abuse, qualified o nter into such iitigations, to depend, and. w hmea metallic cur!i i'mns may be issued in a few days ; with sn ecpial' chance of success, umcy pre vuih. dm s not depend solemU the dt fluencies in the revenue The feelings of the community aic ly upen t! e anu tint of cun ency nr momptly supplied, if the condition of always, except in flagrant cases ot cessa v to pei f a m, with facility, the receiving an cquiva ent is abandoned fraud, upon the side of an .divieual, exi bar ges i -oniied bv tic want The moment the currency shall be supposed to be struggling w ith the convei iei c d sreietv, in a law issued as financial re.ou'ce, deprcci- ovc whelming inllutin. e of authority o m ti v, vvh.ere tin ie is but a slial -il". till - - -.. J

at ion win tooow, and all the relations neiues, m all contests ol this natti re, accumulation of raivna', tlemie-c

ii society win ne uistuibeci. it the sometl mg ol the icspcet lor the gov- id ii'oney will be high, netv.itns'aiaigovet nment of the nation in which a erument, w Inch ( tight to be chcii.di- iiag there m:v be evm a rerim hare

piper currency has been established, etlhy the citizens, especially of a free

shall be deeply imptessed vuih this state, will be lost. The situation is

ruth, will it not be restrained from invidious, and ought not voluntarily

h; - i !;el .v t i - mi.it mice. On eiign

tn th

. o -a-.arvj in tire year !Sh when ; 2 Fhat its stability be above suspie ip o', ment of a ibiiish force in j eion :

; hi created a sudden dem.md fo-. 3 That its justice, morality, and in-

speiie, thr d .'pna i aii n nf baiik notes, ! telii'ence be unquestionable : in .iirate .1 ! . t!ie pi i- e id imiiion, was j 4. That the issue- of the currency be o-.hah' - a t'et than that wliieh re-! made not onlv to depend upon the deal'' rt .-.'. ! uvand for it, but that an couivaient be

a t!.e year I S ! -l af'er the treaty of j actually received:

tie. iv ic 'd Ivih

on, esti-ua'ed ' 5 That an equivalent can only be

t a.mh paper, w is not abov e the mint found in the delivery of an equal ;ice; w .bib.t. in toe si;: eeeding- year, j am umt of gold or silver or of public

lo move tli iu ! a ; .:! pc cent. ! stock :

V io

ve !:rt v n e ; the a noiu t of j ink , f. That, whenever, from any cause

a.,

ii. cu..un oi te.c ! oi aoei , ex- it mav become icmmclant, it mav be ie, a s nail de.;i e, tnat of the founded at an interest a fraction below

n-.rid. I: is imp sMb.e tnat iii.it which was surrendered at its isv tn ii'oin i i the ptjro .i g.ful ; sue

Fhis proposition needs no clo

th' oina

... : . . '. ...

d one

u. e. i he enMiaay c rare-rat) e to fit ition

O' (i e ialiiiti -a binna:'s. ' he i tion of

l:o' --s, '( e e 1 veei 1 r ,e

ana -live

rrtVct whi: !i thee vavntino-ho a great co ii oi e rcK.l state, whete uee preeimts le-ea's were consi-k red inU as cotnni -inn's, -.eie ca'c.Ialed to produce

u.Mon the ctni.nrv of tiu nei;;!doi - ! gi c theiierht to establish a papn i'..; :rn'. ;,as not. P.eeo a ses twined. currency. The pov er to establish, i 'u onvu.sions i w h'u h most of-such a i u l ei cv night not only to br t hc-ra s-.-tcs w ei e subjert dining thnt in oueti'viah!e, but unquestioned p-hh o iv aeeou a fir the wan! rf Am doubt of the legaiity of the ex-

ge, aval the reeula-

mo rey, have, in ail nation:-.

been considered, one of the highest acts of sov ere ignty. It miv well be doubled, however, whether sovci'rign p wer over the coinage necissaii'v

the sub

rr.ih M ot data to elucid.de

pel. I' isho'".cer. i i.jhlv inj

be th; t t'aave fie luatims were not sen ih v kit bv t em.

eicise of sm h an authority could nei f.il to mar am' system wh.iefi humai: in. rruitv could ih vie. k2. A meta'lic cut rencv. havintr an

i im:

)t;de

1 t!a natue at-.d inti insie value, kih pendent of tha

cVi nt of tin- va-i ei.us in value, to wi.ieb is given it bv the sovereign au-

me'a.bic

mhji ct.

cm eicy is nc- i' -;i;y, dues not depend upon the stall remains to ex- b 'i'v of the i-ovei nment for its value

il is practie di-e lo de- . Uco:irhm mav ari-e ; insurrecti g. whic h a paper cur- may men . ce the existence of tin

v ; i' a a cc-Nvi: il v

an.u; e. w -el n. V '. S a s i s 1 1 : V

ren v nav he i inploved as the stand- govcnmeir ; a met.Uie currency ris-

1 i' t MdVuhent scuntv es in . am no ler such cii eums'anccs:

o- e in is valur, and it becomes ueeo va'uabb'. conqinte'

.l O O i

."ill , a

;u;-i n

Ul ' I'- - one reilAmtv ol Us recov-,nth every s;ecies ot property.

!;" 'hit xane wtieo, nom any whethe- in viable or immov cable, ii 'ii-e sin! 'n;ni')is sViil have been i proportion to the mstabihtv ofthc 1' 'n ima-d. I. is dismic'lv ad o'tteu, government Not so with a pipei tiit. i ' . . ,

1 -o s-; f n per currency n is e er currencv ; us eteoit depends, m a

' ' ' h 'he e the exneruu' tH h.vs ' gre d degree, q mi the confuh nee t e c'nMl'' duae'lv by go i-rnment, ; p.ised in the stability jf the authority e - hiv e . sie h iv e piit h y ( -'.stnal by whieh it m as issued, hooid the ;- ' '' ' 1 ia-'on h is bet n t!,e imme- authority be oviit rown. hyforciei.

' "ciM''iU'M('... Win re ti eep. net !i keen :e. u, ,v th.iugh the agency of banks, it has iuv aiiabfv

fotce or intestine roprnoti'in, ar im mediate in pn eiation if not an ibo

lute annihilation, of its vaiue, womd

of cuiifivV b voi:d vv!;at is r.cces-a-ry to i f ct iis exr! :v gcs. In vcit

a ci me.i v, a!', the ob'p cis upon v !t

the apprehended abuse? . uircncy to be assumed by a gov eminent jeal- capital may be cmpb ed, except those ol every kind is liable to great;, buses, ous of its dignity and pu: ity of char- of th.e most simphj kind arc uocctiThe history of the coinage of every actcr. It is, thctefote, believed that pied. The cun cnv necesatv to T-

uatiun who e annais arc known, is lit- a national currency cannot be issued feet the exchanges of its p:' p sH-,

tie more than the detail of the frauds withsaf. tv, with a rcasomb'c m s- moveable and imti o eaTde. will be ? n-

which have been practised by govern- pect of Miccess, and wim iidhcient tirc'v insullirient 10 satisfy tl c (la

ments upon the people; until the sccuikv against redundancy, but in mand for those objects ifitshouh twentieth year ol the reign ol Edward cxclemge for gold and silv er of a de- be multiplied, so as to eoeal that de-

the III. of England, a pound tiny of definite standard, oi for the public mand il v.ouhl exceed the demand silver of standaid fineness, and a stock at certain fixed tates W hen for the ncn ssia v exchanges of sn im

pound sterling, were svnonymous issued in exchange tor them, ai d lor tv, ai d, consrf.iu nil v, deptrri terms; twenty shillings sterling be- the. m ah ne, there is, though not the Such in fret, it iv believed, would be ing, in fact, a pound troy of standard same, yet perhaps an equal security the coj.sf rpo nre of sumg the ce--silvcr. Change followed change in against redundancy as in the cae cf tent v upon iiuiiv idnal ci edit, oi prapid succession, until, in the reign a metallic currency. V. hen it is is- on '! c pledge of pr.per'y, rd a i: ot Elizabeth, a ponnd-troy of stand- sued in exchange for public stock, cf interest bi-low that which prtviaul silver was diiectcd to be coined commanding, previously to the ex- nusiv kted in ti-.c sai-. Arv into sixty two shillings. This im- change, its par value in coin, th.e par- chr.nge of tl r ii.tcrrM ofmrriy Iv niense change in the value of the cur- ty who acquires tire cuncniy parts htw, loevieus to its lavhg Kd.cn reney was eilectcd in the vjiae of a- with that which wa. equal to specie pbre in indivicitral trriiM.cti( i.s, i;i bout two centuries. In other mod- and is deprived o! the annual inteust tnpc"ui rrc of tl e acc un ulat'a n (i ein states, during the same pciiod, which it produced Unless the in- : crpind, v.ouhl be un jus!, ar.d ciubi changes not less important occurred tcivst of the cunenrv . resulting from ! j f,t f.'jl to priduce m liens i; c mi in the coinage. I'i eirientlv, these its scarcity shouid exceed th d titiid ' Irnrf. m tb s -,.tov Af't.'nib r

1 - - - l , ii ii' twii'v von i u o i i

t-he i ate of interc., in a slate

to make the e vei ioirnt. t be (

ihanges were effected hy deteiiota- upon the stock, it would not be doting the standard fineness of th.e coin, manded in exchange for the stea k.

For more than a century past, the In either case, the danger of reduu- r( T,t. iVU c r,itaet i v ! oubl be i ,-

li "mage of the civilzcd wo. Id has un- dancy is extremely remote. Hv j sued only in ( xcl anpe for specie or dcrgone no material change with a the exchange of specie for cm rency, j six per f cut stock or other su ck review to the practice of fraud upon the activ e capital of the country vmII i rorditq1-to that ratir 1 f I he cur: err -the people. Whether this forbear- be increased to the amount of the cur-! Cy should, when, bv any mean, n ar.ee is to be attiibuted to nn improva - rency; and the capucitv of the nation r drnvhancv txi-rcd,' be fm ('able al ment in the morality of modern gov- to redeem it, w henever it shall, by a- fr c- and a half per cent irti i est. iho et ntnents, or to a mot e correct under- ny cii cumstanrc v h tever, become ' utmost depreci dif u. to v ! i h i' cm. hi standing of the pt i;;c iples ot curren- expedient will be unquestionable. j be subject would be ckaht ard a cy and of the consequences that must Hut, it may be doubted vvhctlui , tl.it 1 percent. Bot it is probvbh: result tiom every t bange by w'ich under such conditions, a paper cur- that ti c real dept eskn in its va'tiLr the relations of the society are effect- rency ever c.n be put in cii dilation, j w culd ro, al any time, be morel! an eil, it furnishes just giound of ex- Under a government firmly establish-, half that amount. Before fm cieg po tation that they will not hereafter ed eon. luctccl by upright an l i niight-Uvou'd conumi ce. the public slick be attempted Nothing more is nc- ened councils, and possessing abso- j rcceivcable in exchange for the i acissaryto secure an unalterable ad- lute pou er over the currency, it is be- I tional currency, would be above the Inrence to the maxims upon which it lieved thcie is no just reason to ap- j tates at which it vtas receivable. Its

is mandestlv necessary that a paper prebend a dimculty ot that mime, currency must be founded in order to If, in such a gov ci nment. banks cxpreservc an uniformity of value, than istcd deriving their powers from it, he same morality and the same intel-j the specie in their possession would

lig nee. Without assuming the orint ipieof the pei fectihility of human attue the hope may be indulged at the neture of currency will toninue to command the attention of dalesmen, and that the abuses which ive resulted Ire in impoper -hinges hi the currency, w ill not again occur n the suine degree.

be gradually exchanged for the paper currency which would become the basis of their opeiat'ons. Not onlv 'he specie which they poesscd would be thus exchanged, butexfttions would, from tin.i to time, be made to acquire the sun s necessary ii support their banking oihm ations Specie w ould be imported, even t an

n-sur upon the exchange of strck would, theiefoie, have ceased. 'I I etc arc in every community capitalists who would prefer lending to the government at 5 per cent than to it dividualsat six The funding of tie currrrcy would, thercfoie, begin before the ledtmdancv would c-P.er anv ireneial inducement to that mode ot redming it. The vai'ution to which its value would I e subject, would therefoie 1 e less tl an eiiTi n tlrird rcr cent. It would be the ir.tticst