Abridgment of the Debates of Congress, from 1789 to 1856.

286 ABRIDGMENT OF THE' SENATE.] Rechartering Bank United States. [MARcH, 1834. ure; and when mere expedients tend but to if that one million be reduced one-tenth part, distract, to divide and confound, and thereby that is to say, one hundred thousand dollars, to delay or defeat all relief; and such, viewed in the value of the rest will be reduced in like all its relations and bearing, I consider the pres- manner one-tenth part, that is, three millions ent; and that the Senator from Massachusetts of dollars. And here a very important fact has not also so considered it, I attribute to the discloses itself, which explains why the curfact that, of the two questions blended in the sub- rency should be touched with such delicacy, and ject under consideration, he has given an undue why stability and uniformity are such essential prominence to that which has by far the least qualities; I mean, that a small absolute reducrelative importance; I mean the questions of tion of the currency makes a great absolute the bank and of the currency. As a mere reduction of the value of the entire property of bank question, as viewed by the Senator, it would the community, as we see in the case supposed; be a matter of but little importance whether where a reduction of one hundred thousand the renewal should be for six years, or for a dollars in the currency reduces the aggrelongerperiod; and a preference might very prob- gate value of property three millions of dollars, ably be given to one or the other as it might be a sum thirty times greater than the reduction supposed most likely to succeed; but I must say, of the currency. From this results an imthat, in my opinion, in selecting the period of six portant consideration. If we suppose the enyears, he has taken that which will be much less tire currency to be in the hands of one portion likely to succeed than one of a reasonable and of the community, and the property in the proper duration. But had he turned his view to hands of the other portion, the former, by haythe other and more prominent question involv- ing the currency in their possession, might ed; had he regarded the question as a question control the value of all the property of the of currency, and that the great point was to community, and possess themselves of it at their give it uniformity, permanency, and safety; pleasure. Take the case already selected, and that in effecting these essential objects the bank suppose that those who hold the currency diis a mere subordinate agent, to be used or not minish it one-half by abstracting it from circuto be used, and to be modified as to its duration lation; the effect of which would be, to reduce and other provisions wholly in reference to the the circulation to five hundred thousand dollars; higher question of the currency, I cannot think the value of property would also be reduced he would ever have proposed the measure which one-half, that is, fifteen millions of dollars. Let he has brought forward, which leaves, as I have the process be reversed, and the money abalready said, every thing connected with the stracted gradually restored to circulation, and subject in a state of uncertainty and fluctuation. the value of the property would again be inAll feel that the currency is a delicate sub- creased to thirty millions. It must be obvious, ject, requiring to be touched with the utmost that by alternating these processes, and purcaution; but in order that it may be seen, as chasing at the point of the greatest depression well as felt, why it is so delicate, why slight when the circulation is the least, and selling at touches, either in depressing or elevating it, the point of the greatest elevation when it is agitate and convulse the whole community, I the fullest, the supposed moneyed class, who will pause to explain the cause. If we take could at pleasure increase or diminish the circuthe aggregate property of a community, that lation, by abstracting or restoring it, might also which forms the currency, constitutes, in value, a at pleasure control the entire property of the very small proportion of the whole. What country. Let it be ever borne in mind, that this proportion is in our country and other the exchangeable value of the circulating mecommercial and trading communities, is some- dium, compared with the property and the busiwhat uncertain. I speak conjecturally in fixing ness of the community, remains fixed, and can it as one to twenty-five or thirty, though I pre- never be diminished or increased by increasing sume that is not far from the truth; and yet or diminishing its quantity; while, on the conthis small proportion of the property of the trary, the exchangeable value of the property community regulates the value of all the rest, compared to the currency, must increase or and forms the medium of circulation by which decrease with every addition or diminution of all its exchanges are effected; bearing, in this the latter. It results from this that there is a respect, a striking similarity, considering the dangerous antagonist relation between those diversity of the subjects, to the blood in the who hold or command the currency and the human or animal system. rest of the community; but, fortunately for If we turn our attention to the laws which the country, the holders of property and of the govern the circulation, we shall find one of the currency are so blended as not to constitute most important to be, that, as the circulation separate classes. Yet, it is worthy of remarkis decreased or increased,. the rest of the prop- it deserves strongly to attract the attention of erty will, all other circumstances remaining the those who have charge of the public affairssamne, be decreased or increased in value ex- that under the operation of the banking sysactly in the same proportion. To illustrate: If tem, and that particular distribution of propa community should have an aggregate amount erty existing in the shape of credit or stocks, of property of thirty-one millions of dollars, of public and private, which so strikingly distinwhich one million constitutes its currency; guishes modern society from all that preceded it,

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Title: Abridgment of the Debates of Congress, from 1789 to 1856.
Author: United States. Congress.
Canvas: Page 286
Publication: New York, [etc.]: D. Appleton and company [etc.]; 1857-61.
Subject terms: United States -- Politics and government

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Abridgment of the Debates of Congress, from 1789 to 1856.

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