1838/0220

DATE: February 20, 1838

TOWN: Washington

SOURCE: The Globe

Bank Note Debate

EXCLUSIVE METALLIC CURRENCY "This miserable foolery about an exclusive metallic currency is quite as absurd as to discard the steamboats, and go back to poling up the Mississippi."

The above is a sentence from Mr. NICHOLAS BIDDLE'S letter to Mr. JOHN QUINCY ADAMS, in November, 1836, and in this sentence we see the origin of the calumny which has figured ever since in the attacks which the Federalists make upon the Republicans. Mr. Biddle started the fib, and his obsequious followers have kept it agoing ever since. Precisely in proportion to their knowledge of its untruth, is the pertinacity with which they reiterate it. The repeaters of the calumny all know it to be untrue; but what of that? BIDDLE has given out, and BIDDLE wields a moneyed power of one hundred and fifty millions of dollars; and the man who wields one hundred and fifty millions must be backed and supported by all his retainers. Doubtless, many of those who repeat this calumny are ashamed of it; doubtless, many of those who enter into grave discussions upon the ruinous effects of the imposition of an exclusive metallic currency upon the people of the States, are inwardly sorry for the gross violation which they are committing of the eighth commandment, "thou shalt not bear false witness against thy neighbor;" but the master of one hundred and fifty millions has said it first, and all who wish to receive any part of the aforesaid one hundred and fifty millions, either in fees, loans, or fair business transactions, must repeat it after him, or surrender all hope to any part of the contents of the "breeches pocket."

To persons at a distance, to the good citizens 500 or 1,000 miles off, who are intended to be duped and bamboozled with this fabrication, and terrified into the Federal ranks through the fear of seeing all debts collected in hard money, and all property reduced to the specie standard, it may be well to relieve all such from groundless apprehensions, by referring them to GENERAL JACKSON'S Messages, and Mr. VAN BUREN'S letter to SHERROD WILLIAMS, in which the gradual suppression of bank notes under twenty dollars is recommended, upon the double ground of furnishing a gold and silver currency for the common and ordinary dealings of the people, and also to save specie enough in the country to sustain a superstructure of large notes for large transactions. This is the extent of what they have recommended; and as for what has been recommended in Congress, it is nothing more nor less than the same thing. The following is the original resolution presented by Mr. BENTON on the subject about five years ago:

Resolved, That a committee be appointed on the part of the Senate, jointly with such committee as may be appointed on the part of the House of Representatives, to consider and report to the Senate and to the House respectively, what alteration, if any, are necessary to be made:

1. In the value of the gold coined at the mint of the United States, so as to check the exportation of that coin, and to restore it to circulation in the United States.

2. In the laws relative to foreign coins, so as to restore the gold and silver coin of foreign nations to their former circulation within the United States.

3. In the joint resolution of 1816, (for the better collection of the revenues,) so as to exclude all bank notes under twenty dollars from revenue payments after a given period, and to make the revenue system of the United States instrumental in the gradual suppression of the small note circulation, and the introduction of gold and silver for the common currency of the country.

This is the extent of the Executive recommendations, and of the legislative propositions on this subject. This is the nearest that they have come to the attempt to establish an exclusive metallic currency; and upon this meritorious effort to suppress bank notes under twenty dollars, and to introduce GOLD and SILVER for all payments under that sum, has this malignant fabrication of Mr. BIDDLE been erected.

We repeat, the executive messages of President JACKSON, the letter of Mr. VAN BUREN, and the legislative propositions of their friends, go thus far, and no farther; and we call upon any one who is disposed to take up the cudgels for Mr. BIDDLE, to show more.

The following is a paragraph from Mr. BENTON'S speech in favor of the twenty dollar limit:

"Mr. B. said that the proposed limit of twenty dollars for the minimum size of back notes, was not an arbitrary assumption, or fanciful designation, but was a limit ascertained by experience, and proven by results, to be the lowest that would suffice to accomplish the ends intended. These ends are, 1. To re-establish the gold currency; 2. To make gold and silver the common currency for all the small dealings of the country; 3. To extend and enlarge the specie basis of the paper circulation; 4. To save the laboring and small dealing part of the community from the effects of contractions and expansions from bank issues; 5. To save them from the impositions of counterfeiters from losses when banks fail, and from bearing the whole burden of the wear and tear of small notes; 6. To save hard money enough in the country to make it safe to have such paper currency as commerce and large dealings may require. These are the objects to be accomplished; and less than twenty dollars will have not adequate effect."

N. B.--From this is evident that the twenty dollar limit was the extent of his proposition, and its limit has now become one of the political landmarks of the Federalists and Republicans; the Federalists being for bank notes down to one dollar, and then for shin-plasters down to six and a quarter cents; while the Republicans are for half eagles, quarter eagles, and for silver dollars, half dollars, quarters, and ten and five cent pieces for all dealings and payments under twenty dollars.