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H. OF R.

The Tariff Bill.

[Jan. 26, 1833.

Sir, can such a nation ever grow old, and cease “ to brought into the market. In years of fair importation, if be mighty in power?" Can any other nation escape the the domestic consumption of woollens be seventy millions, influence of that power, and stand independent of its the domestic production supplies more than nine-tenths controlling arm? No; unless, by a countervailing system part of it. If the cotton consumption be sixty-three milof policy, that other nation, like the first Congress of the lions, the domestic production supplies eight out of nine United States, call into employment all its own labor; parts of the whole. It may be difficult to ascertain, so as perfect the skill of that labor; and place in its hands all to state with exactness, what parts of the whole iron and the aids of the artificial and physical agents of production. steel, consumed in the United States, are produced and

What then was our great countervailing system, found- placed in our market by domestic labor; but we know ed by that Congress, on the law of 1789, and, since that that the iron, in 1830, amounted to nearly $14,000,000. time, built up, and carried on towards a perfect struc- A few more years, under our great system, with its printure, by so many other laws, made for the encourage- ciple fully sustained by our legislation, will render the ment and protection of our own labor, and so many American people, both in peace and war, independent of enactments in every branch of legislation, designed to foreign nations for every other necessary fabric, as they promote the general welfare, under the great policy of now are for ships to transport their commerce, or to de. that system?

fend that commerce on the highway of nations. Sir, that system, which though it shall exist nowhere The effects of our great system of encouraging and proelse, will live in history; that system was a great scheme tecting policy on the manufacturing industry of our of burdens and benefits; Government, supported by bur-country, may be seen by examining the reports made by dens imposed on the labors of the people, and the people, various committees appointed by a convention of the in return, benefited by the labors of Government. friends of that industry, assembled at New York on the

If, benceforth, the Government cease from such labors, 21st of October, 1831. These reports refer to the year and the future bring nothing worthy of national gratitude, 1830, and are, in their fidelity and detail, equalled by indulge me, I pray of you, sir, while I recount a few of nothing of this kind in our country. In these reports, those labors; for “ we cannot but remember that such perfect accuracy cannot be attained; but all who examine things were, and were most precious to us."

ihem will find an approximation to that point sufficiently If the system was one which, as the gentleman from near for all the fair purposes of debate, and all the aids of New York [Mr. CAMBRELENG] says, no statesman would honest legislation. have adopted, he should remember that Hamilton, and the amount of fixed capital employed for Ellsworth, and Madison had not the benefit of his counsel. manufacturing cotton in the United States For though in esse in 1789, he was thought much less of was, in 1830, equal to

$44,014,924 then, if possible, than at this time.

The circulating capital equal to

14,712,000 In 1789, all the young interests of our country were in their infancy; and the Government, like a most kind Being equal to three-fifths of the amount of parent, took them by the hand, and cherished them with the expenditure annually made for raw care and solicitude. From that day up to July 14, 1832, materials and wages, which is equal to when the last law regulating duties upon imported mer. $24,522,000, and making the total capichandise was approved, the records of congressional la. tal,

- $58,726,924 bors are covered with statutes made for either the direct or incidental encouragement and protection of all these The total product, in that year, was • 32,036,760 interests. On this great question, the Executive recom- The expenditure for wages was mendations to Congress are full of demonstration; the equal to

12,155,723 votes of the Senate are full; the votes of this House are The amount paid for raw matefull; and the debates in both Houses are full, and abun rials,

12,366,277 dantly show the extent, the confirmation, and, until with- Deterioration and repairs of fixin a few years, the universality of this great system of tures, say one-half of fixed policy. You have extended the principle of encouragement capital, at five per cent. per and protection to your manufactures, your agriculture, annum, is equal to

1,100,000 your fisheries, your navigation, your commerce, as well The annual deterioration and re. foreign as among the States and with the Indian tribes; pairs of the other half, being and you have made the regulations of coin and currency, the machinery, at ten per cent. the national defence, both by sea and on the land, the dis is equal to

2,200,000 position of the public domain, the payment of the national debt, parts of this great system of encouraging, and pro- Total expenditure,

27,822,000 tecting, and employing the whole labor and skill of this nation, and bringing into their use all those agents of Amount left after deducting total expendiproduction which nature may have bestowed or art might ture from total production, is

$4,214,760 devise to facilitate the efforts of that labor in all parts of the country.

This balance, if no other charge be made on the annual The encouragement to manufacturing and mechanic production of this manufacture, is equal to seven per cent. labor has been so persevering and efficient, that, in several and a small fraction. departments of production, the labor and skill of our It should not be forgotten that this whole statement reown country do abundantly supply the domestic market; fers to the year 1830, a year of light importation, not and in these departments that labor and skill are effec- much over seventy millions in all commodities: of cottons, tively protected. Among these may be found shipbuild- not exceeding seven and a half millions, with an export ing, the manufacture of cut nails and spikes, of carriages of those fabrics equal to $1,500,000; and of domestic and parts of carriages, of glass and glassware, of jewel- cottons equal to 1,300,000 dollars. In this uncrowded lery and plated ware, cabinet furniture, saddlery, shoes, market, profit rose to seven per cent. What must it boots, and hats. The manufacture of cotton and woollen have been in 1831, when over 103,000,000 dollars, in all cloths, of iron, hardware, and cutlery, has been greatly commodities, were imported, and of that amount upwards encouraged, and has increased with astonishing rapidity, of 16 millions were cottons ? Price and profits in our cotand to a vast amount, whether we regard the capital in- ton productions, like all others, depend on demand and vested, the labor employed, or the amount of production supply. In this year, nine millions over the supply of the

Jan. 26, 1833.]
The Tariff Bill.

[H. Or R. preceding year were thrown into the market, and must capital used in all these different classes of production. have been grievously felt by that arm of our industry in Wages equal to $20,415,000 are yearly earned by these our country

people; and their annual production, after paying these I have made no account here of the effects on manufac- wages, and all disbursements for raw materials, together turers produced by the advancement of skill and the per- with repairs and deterioration of capital, leaves a surplus fecting of instruments in the manufacture of machinery of about 7,265,000 dollars, being, also, like the cotton and itself. It is admitted that this progress has, in the last ten woollen production, a fraction over seven per cent. profit years, reduced the cost of machinery fifty per cent. Here for the year. is a loss of five per cent. per annum on one-half of the To all these may properly be added the labor employed, fixed capital invested in the cotton production throughout and the land and capital used, in raising wool: because the United States. If Southern planters now commence these are absolutely necessary for the woollen manufac. this manufacture, they will find that the 1,246,503 spin- ture. Twenty millions of sheep, in the United States, dles which, with their preparation, have cost the North worth at least 40,000,000 dollars, are fed on the grass, twenty-one millions of dollars, would, at this time, cost hay, corn, raised on six million five hundred thousand them not more than fourteen millions.

acres of land, worth ten dollars per acre, and equal in It is seen that the amountof wages paid by the manu- amount to 65,000,000 dollars. The culture of this land, facturers of cotton equals $12,155,723; and that this and the care of these sheep, will employ one hundred amount is annually distributed among one hundred and and ninety-four thousand men, for such a part of the year, thirty-five thousand people, men, women, and children, as that their wages, they furnishing their own subsistbeing about $89 annually to each person. Of thus amount, ence, will equal about eighty-nine dollars each; and it is believed that these working people do, by their un amount, in the whole, to about 17,266,000 annually. wearied economy, save, annually, not less than one-fourth The product, in wool and increase, may amount, on an part, or more than $3,000,000. The remainder is con. average of years, to 25,000,000 dollars. This leaves a sumed on their annual support. About one-ninth part, profit of 7,734,000, or nearly seven per cent. annually on or one million, secures to them the benefits of shelter and the capital. lodging, three-ninths, or three millions, furnishes their It is thus seen that the progress of this great system of clothing, and five-ninths, or five millions, supplies their food. policy has, since its commencement, gathered into all the

The capital employed in the manufacture of woollen various classes of mechanic and manufacturing employcloths is not less than the amount employed on cottons, ment, not less than seven hundred and twenty-three thouwhich, as it has been stated, equals $58,726,924. The sand working people. If you add to these the builders details of this manufacture are diverse, and quite variant of houses, and the builders of ships, you may leave unfrom those of cotton; but, in many respects, so alike, that counted the women and children employed in lighter mano injustice will be done in the great question of employ- nufacturing labor, and still number more than seven hunment, wages, production, and profits, by regarding the dred thousand working men-men who earn wages, and cotton, in many respects, as a basis for calculations on the support families of not less than four persons each. Here woollen manufacture.

are two million eight hundred and seventy-two thousand People employed are one hundred and sixty-two thou- people, the vigor and strength of the nation, made prossand.

perous by the operation of our great system of encourageWool consumed, worth

$26,000,000 ment and protection. Other raw materials,

11,000,000 These people keep in useful and productive employWages paid,

14,418,000 ment, as capital, not less than 312,453,848 dollars. They Annual expenditure for repairs and deteri

furnish, in various fabrics, a yearly mass of production, of oration,

3,300,000 a value equal to 160,969,520 dollars; give to the owners

of the capital so used by them a return of profits amount

54,718,000 ing, annually, to 23,428,520 dollars; and earn for themTotal value of annual production, - 58,932,760 selves 61,284,723 dollars, as the wages of their annual la

bors. This has been effected, under this cherished sys. Balance of production, over and above ex

tem of policy, in the short space of forty-four years from penditure,

$4,214,760 and after its first establishment. This, sir, 1 say, this

has been done almost exclusively in mechanic and maThis gives a profit of seven per cent on the capital of nufacturing industry; but, at the same time, encourageabout 58,000,000 dollars employed in the woollen manu- ment, extended to agriculture, has given to labor a wonfacture.

derful impulse in that great department of industry. DisThese two great employments of labor, operating by tant from other countries, and abounding in cheap and two hundred and ninety-seven thousand people, using fertile lands, a small impost excludes the agricultural pro$117,453,848 of capital, paying more than $26,000,000 ducts of other nations from our markets. Excludeci, as in wages, working up of raw materials nearly $50,000,000, the breadstuffs and provisions of America always must be, and annually producing fabrics worth at least $87,000,000, from Europe, either by laws or intervening distance, noto be distributed for consumption to the whole nation in thing could so much increase their production as the openall parts of the country, are still but a part of the great ing of a great manufacturers' market for them in this employments of such lahor, now operating in our coun- country. That market is supplied, exclusively, by the try, under one great system of encouragement and pro-agricultural labor, using the agricultural capital of our own tection. Other classes of manufacturing labor use capital nation. The amount of this labor and capital may be esin other kinds of production. It will be found that such stimated by the amount of this supply; and this supply labor employs not less than 7,000,000 dollars as capital, must be commensurate with the efficient demand made in making salt; 20,000,000 in hats; 10,000,000 in shoes and in this market, by that manufacturing labor of our counboots; 10,000,000 in manufacture of leather; 5,000,000 try, which earns wages, and purchases with those wain that of glass; 7,000,000 in cabinet ware; 6,000,000 ges household accommodation, clothing, and food, for all in carriages; 20,000,000 in iron and steel, and manufac- who depend on that labor for shelter, dress, and sub. tures of each; 5,000,000 in saddlery; and 10,000,000 in sistence. jewellery and plated ware. Not less than two hundred It has been seen that the annual amount of wages earnand thirty-two thousand people are annually at work with ed by mechanic and manufacturing labor is somewhat ihis 100,000,000 dollars vested in all the various kinils of more than sixty-four millions of dollars. If one-fourtha

H. OF R.]
The Tariff Bill.

[Jan. 26, 1833. part of that amount be annually saved, still forty-eight The shipbuilding trade of the United States was earlimillions will be left for consumption. If one-ninth part est among the labors of the country cherished by our of that amount be required for shelter and lodging, and great system of encouragement. By the law of July 20, three-ninth parts for needful clothing, then five-ninth 1789, all vessels thereafter built and owned by foreigners parts, or nearly twenty-seven millions of dollars, will re- shall, on the entry at any port of the United States, pay a main for the annual purchase of food. Here, then, is a duty on their tonnage equal to fifty cents per ton; while clear effective demand, within our own country, for food, vessels thus owned and built in the United States shall amounting to twenty-seven millions of dollars annually. pay thirty cents only per ton. This discriminating tonnage This demand has been created by the encouragement of duty has, from that time to the present, operated as permanufacturing labor; and this demand has encouraged, fect protection to the whole trade of American shipbuildand does encourage, agricultural labor so to extend its ing, and totally excluded foreign built vessels from the production as to supply this demand, and realize this ship market of the United States. What has been the whole twenty-seven millions of dollars annually, as a pro-effect? Precisely what the founders of the system must fit on the capital employed to effect that production. have foreseen. Not monopoly of profits to American shipWhat amount of labor and capital must go into operation builders; not a monopoly condition of their work when to effect this purpose? What quantity of land, and of finished; not a monopoly price for their fabric to the what value; what instruments of cultivation, and of what American navigator. No, sir, in this, as in all other cost; what number of men, and at what expenditure for branches of protected industry, every thing is performed their wages, have been, and now are, called into employ- under the exciting and perfecting spirit of competition. ment, to feed this manufacturing labor, and realize this The ship market of our country, supplied exclusively by annual profit of twenty-seven millions of dollars? We American industry-a market every way and entirely dohave seen that manufacturing industry realizes annually mestic, is supplied at a cheaper rate per ton than any about twenty-three millions of dollars as the profits on other ship market in the world. Is the work well done? capital. To effect this, the capital used exceeds three Are the models skilfully designed? Ask the mariners of hundred millions of dollars; the labor employed is more every sea. They will tell you whose ships can hold the than seven hundred thousand hands; and more than sixty- toughest and most successful controversy with the winds four millions of dollars are annually paid in wages. Does and the waves of every ocean-whose ships transport the the agriculture of our country annually realize a profit of most burdensome freights, and whose ships win their twenty-seven millions of dollars, by feeching the manufac- passages with the speediest expedition. Who, in marine turing labor of our country? Then that agriculture does architecture, has surpassed the American model? What use for that purpose more than three hundred and sixty- nation sends out on the ocean her maritime commerce, or six millions of dollars as capital, and employs more than her naval warfare, in ships of finer form or more successeight hundred and ninety-two thousand persons in all the ful movement, than those of our own country? various labors of the field, and pays to them, in wages, The whole navigating interest of the United States has, more than seventy-nine millions of dollars annually. These in like manner, by provisions made in the same law, been agricultural working men feed themselves and their own cherished and carried forward under our great system of families; and not less than four persons are subsisted, encouragement and protection. All vessels, neither built clothed, sheltered, and lodged, by the effective labor of nor owned in the United States, must pay fifty cents, each one of them. Here are three millions and a half of while all vessels, American built, and owned by Ameripeople employed in all the honest and wholesome vo- can citizens, pay but six cents a ton on their entry at any cations of husbandry, and, by our great encouraging sys. port of the United States. In the coasting trade and tem, sustained in a condition of existence, both moral and fisheries, this duty was, by American vessels, paid but physical, far more prosperous than that of any other agri- once a year; while foreign ships and vessels paid the cultural people in any other region of this earth. same duty on every entry. A liigher rate of duty, paid

Is it not a great and a glorious system which has produc- on mercliandise, when imported in foreign vessels, gave ed such effects? Were not they statesmen who laid the another encouragement to American navigation. In all foundation of this system? And they, too, were they not these several ways, the navigating interest has been cheworthy of all praise, who have, piece by piece, built up rished and encouraged under our great protecting systhe whole superstructure, and thereby peopled our land tem; and, although, under certain treaties, and by a rewith so much labor and skill, furnished so much mutual peal of certain parts of the law laying tonnage duties on employment for that skill and labor, aided, as they are, vessels of the United States, some foreign vessels may enby so many instruments of toil and agents of production? ter into our ports without paying duty, yet such vessels What a market is here, in our own country, supplied by can import no merchandise of the produce of countries this system, from the labors of our own lands and work- other than their own, nor take any share in the coasting shops, with all the nourishing fruits of the earth, and all trade of the United States. Notwithstanding these sevethe needful fabrics of human skill!

ral relaxations in favor of foreigners, American navigation Nor is this all. Our great system of encouragement is now perfectly protected, and, under that protection, comprehends every class of labor, and every source of has continued to fourish, beyond all parallel in other wealth. The seas teem with abundance, and no prudent countries, or in former times. nations have ever neglected the encouragement of their Commerce, no less than navigation, has been embraced fisheries. England and Holland have encouraged and within the fostering principles of our national system of protected them, both as a source of wealth and as a nur- encouragement and protection. Whatever could be done sery of seamen. The United States adopted this policy by regulations, in aid of foreign commerce, has been efas a part of their great system, commenced by the law fected. To secure the transportation of that commerce of July 4, 1799. I shall quote none of the laws enacted from country to country, you have given the ship master for that purpose, but merely call on the committee to a control over the persons of all mariners who may enter look out on the ocean, and view their countrymen strain- into any written contract with him to perform any voying at the line, or hurling the harpoon, on every sea, and age. You have, in return, provided for the subsistence, under every latitude. The bare tonnage floating these the health, and the compensation of such mariners. You sojourners of the deep around the world, has cost more have inscribed a character of nationality on all your ships, than ten millions of dollars; and they, by their ceaseless and so regulated their lading that their cargoes shall acand perilous labors, draw five millions annually from the quire a like character; and, when the American flag is rich chambers of the ocean.

hoisted over them, all nations are informed that the United

Jax. 26, 1833.]

The Tariff Bill.

(H. OF R.

commerce.

commerce.

States are the guardians of whatever floats under that are forever put to silence. Congress has the same power broad ensign. You have further protected their com- “ to regulate commerce," either with foreign nations, or merce, by sending out consuls and commercial agents to among the several States, or “with the Indian tribes." all the maritime nations of the earth. Nor is this enough. The law “to regulate trade and intercourse with the The diplomatic relations established between the United Indian tribes," made and approved March 30, 1802, has States and so many other nations have no purpose more erected a wall of brass around the whole territory of those important than the protection and security of American tribes lying within the territory of the United States, and

Sir, that commerce is guarded in every sea, has excluded every citizen thereof from all commercial and the great highway of nations, covered with your go- intercourse with any of the people of those tribes, unless ing out and returning commerce, is thus secured from under a license for that purpose granted, and after bonds every port in our own country, to every harbor of every given not to abuse the power granted by such license. other country, by the guns, or the fag, or the fame of All merchandise transported into this protected Indian your navy.

territory without such license, is liable to forfeiture; and This commerce is moved, in all its exchanges, by an all persons unlicensed, found within the same, are liable immense capital. Not less than eighty-five millions of to punishment. dollars are continually employed in all its operations. If The power of Congress to enact this law has never been prosperous in the outward as well as homeward voyage, questioned. Congress has received, by the constitution, it may, in each, realize ten per cent. on the capital; and the same power, “to regulate commerce with foreign nathis, after supplying a revenue annually to those concern- tions," and "to regulate commerce with the Indian tribes." ed in the trade, equal to eight million five hundred thou-Congress can, therefore, under the power granted by the sand dollars, adds an equal amount to their capital, to be constitution, place the same restrictions on the one which invested in that, or some other employment of the labor it can place on the other. The whole system of commerof our country.

cial regulations, whether in respect to foreign nations or Commerce among the several States was not forgotten the several States, or the Indian tribes, are alike derived when a system was to be established for the encourage- from the same grant of power; and all have the same great ment of all the labor of the American people. This com- ultimate object--the promotion of the general welfare. merce moves every where, and in all directions, by roads, Thus, sir, has our great system of encouragement and railways, rivers, canals, and coastwise from end to end of protection, commenced in July, 1789, raised up and carour country. All your appropriations for surveys, during ried on towards perfection the manufactures, the agriculthe last ten years, have been made to encourage this turé, the fisheries, the navigation, and the commerce of

All subscriptions to canals had the same our country. Legislation in aid of all these might, nevergreat object. Why liave you, at such cost, dredged the theless, have been useless; it would certainly have been Ohio, the Mississippi, and other rivers? To encourage much less efficacious, had not Congress, at the same time, and secure the movements of commerce among the States. exercised its great constitutional control over the national For what other purpose have harbors been improved, medium of exchange. channels marked out, breakwaters erected ? Not only to Congress have power “to coin money, to regulate the direct the mariner returning from foreign regions, but to value of that money, and of all foreign coins used in the show to him his way from port, and conduct your coasting country.” Literally speaking, Congress could, in regutrade from one State to another, has your whole mari-lating the value of money, merely enact what quantity of time frontier been lighted up, from east to west ; and the silver, and of what fineness, should constitute the money same beacons, for a like purpose, are now beginning to unit, the silver dollar of the United States; that the dol. blaze along the rivers, and on the shores of the great lakes lar should contain four hundred and sixteen grains of sil. of our country.

ver, twenty-two parts pure, and two parts alloy; that The amount of this commerce is immense. It compre- gold should be fifteen times as valuable, being of equal hends not only all the surplus production collected from weight and fineness, as silver; and that two hundred and all parts of the country to be sent abroad, together with seventy grains of gold, twenty-two parts fine, and two all commodities imported in return, and distributed, in like parts alloy, should be coined into our eagle, and be of manner, for consumption, but it likewise compreliends all equal value with ten silver dollars. This regulation of those various products which are moved in all directions, the value of money could have relation to nothing but from the producer to the consumer in all parts of the the purity and separation into parts of the metallic mocountry. The amount cannot be less than ten times the ney of the country. The commercial value of money amount of all our domestic productions exported to foreign would, after all, depend on the quantity in market, comcountries., That may be annually equal to about sixty-pared with the demand for it. five millions; and, if so, the commerce among the States When our Government first went into operation, and cannot be, annually, less than six hundred and fifty mil. ever since that time, money, that is coin, has not been the lions of dollars. The encouragement of this commerce medium of exchange, but merely the basis of that mediconsists in lightening, by every possible means, the cost um. Unless Congress could control that medium so as to of its transportation. This can be done by internal im- make it, at all times, convertible into money, the basis provement alone; that is, in roads, railways, canals, and of it, a power to regulate coins or money, would be userivers, freed of all obstructions, either permanent or ac- less, because the medium of exchange would not be recidental. This has been the great system of encourage- gulated in its value by those coins or that money: ment extended to commerce among the States, under the What, then, is the medium of exchange, and how may great constitutional grant of power to regulate that com- that be regulated by Congress? This medium is that inerce, and to expend money for its encouragement and which circulates from hand to hand, and is used, with a protection; on the same principle that money, in immense small quantity of metallic money, for change, to bay and sums, is annually expended to encourage and protect sell all the commodities of the country; it is the currency, commerce, under a like grant of power to regulate that and consists of all those written promises to pay money,

either on demand or at a time, which may be transferred The constitutional grant of power, made to Congress, by delivery or endorsement, or in any other way suffi"to regulate commerce," has nowhere been so perfectly ciently facile for the purposes of commerce. It may be explained by unquestioned legislation, under the grant, divided into four classes: bank bills; promissory notes, as by the law made to regulate commerce with the In- payable on time; bills of exchange accepted, but not pay. dian tribes." Here the claims of the free trade school labie; bonds; and, last of all, certificates of stocks.

Vol. IX.-87

commerce.

H. of R.)

The Tarif Bill.

[Jan. 26, 1833.

The debts of individuals and corporations thus make rious productions. In the one case, the currency of the the currency of the country'; that currency will be sound Government, created for revenue purposes only, may be if all parts of it may, at the pleasure of those who hold a surplus added to the national currency; and, by its them, be converted into money. If it cannot be so con- abundance, reduce the value of the whole. In the other verted, then that currency will be depreciated. If banks case, the Government and the labor of the country will issue more bank bills than they can, in the ordinary course bave but one currency; and the total amount of it, inof business, redeem, bank bills will cease to be converti- creased or diminished, from day to day, throughout the ble into money, and will depreciate in their market value. year, will, at all times, be equal, and no more than equal, This will, more or less, affect the soundness of all other to the demand daily made for so much currency as will parts of the currency, and depreciate its value. Money satisfy all demands for payment, and enable the whole having ceased to be the basis of the currency, cannot re- buying and selling community to make all their daily exgulate its value. Congress will have utterly lost, for changes of all the products of labor, land, and capital every useful purpose, the power to regulate the value of throughout the whole country. money, as a medium of exchange, or as the basis of that The Bank of the United States has been such an instimedium.

tution. It has enabled Congress so to regulate the value of Before the currency shall, by the overissues of banks, "money” in the United States, as that such money has have become so abundan: as that those banks can no been as a basis of the currency of one uniform value in all longer redeem their bills on demand, that abundance will parts of the country; and the issues of bills in that bank, have greatly reduced the value of the whole currency. and all its branches, have been so regulated, and that reIf, from any cause, at any time, banks add one-twentieth, gulation has to controlled the issues of bills, in all other one-tenth, or one-fifth part to the amount of their bills in banks, in all the States, that neither the abundance noy circulation, the value of those bills, and of the whole cur- scarcity of the currency has, at any time, materially afrency, whether in gold and silver, promissory notes, bills fected the market value of that currency: that currency of exchange, bonds, or stocks, will fall in value five, ten, has been of equal value, at different times, and in distant or twenty per cent. The basis of that currency, the places; and the value, the commercial level of our circucoined money of the country, will be found in the same lating medium, has been very nearly on a level with that condition--reduced in value by the reduced valve of that of the great commercial world. representative of it, which, at any time, may be dollar for The revenue of the nation has been collected and disdollar exchanged for it. For so long as the circulating bursed in all parts of the country; and this has been done, bank bills of ihe country may be exchanged dollar for not only without loss to the public, but in a currency so dollar for any of the promissory notes, or bills of exchange, uniform in value both in different places and at different or bonds, or stocks, or silver dollars, or gold eagles in the times in the fiscal year, that every two men who have market, so long will they all be of one equal, uniform paid or received each an equal number of dollars and value. That value will not depend on the quantity or cents, have each paid or received an amount of money fineness of the silver in a dollar, or gold in an eagle, but precisely equal in value. The cost and risk of transupon the abundance or scarcity of those dollars, or ea- porting gold and silver from a place where they are not gles, or of bills which may be exchanged for them in the wanted to a place where they are wanted, is, in the commarket of the country.

mercial world, denominated exchange. This exchange Little benefit would, therefore, have been derived to the has been, beyond all expectation, in amount, reduced by trade of our country from the power of Congress to coin the operations of this bank and its branches. If a man, money, or to regulate the value thereof, either in the fine- in Providence, wished to place ten thousand dollars, in ness or quantity of silver or gold in dollars or eagles, un- silver coin, in the hands of his correspondent in New Ornless some other power, given by the constitution, might leans, he must, thirty years ago, have put it on shipboard, enable that Congress to place some limit to the power of and paid freight, insurance, and charges for the transissuing bank bills, and thereby controlling the value of portation of it from one of these cities to the other. At such coined money. The founders of our great system this time, he merely delivers his ten thousand silver dolof policy soon foresaw these things, and discovered that lars to the cashier of the branch bank in Providence, and Congress, to regulate the value of money," and render receives the draft of the President on the branch bank it a circulating medium, or the basis of such a medium, of New Orleans, in favor of his correspondent, and remits must-institute some establishment by which the issue of it to hiin to be paid in dollars in that city. For this accombank bills might be so controlled as not only to rendermodation, the cost is probably less than the insurance them, at all times, convertible into “money," at the plea- would have been, had he shipped the silver money, and sure of the holders, but also to adjust the supply of those sent it thither by water transportation. bills, by the amount issued, so exactly to the commercial Such are the arrangements of the bank and its branchdemand for currency in the market, that no abundance es, so perfect is their system, and so exactly can the offi. or scarcity of that currency could, at any time, either so cers of the institution, from their knowledge of all the raise or so lower the value of it in our market as to affect, business of the country, ascertain where gold and silver injuriously, the labor and capital of the country in any of will be wanted, when and in what quantities it will be the great branches of national industry.

wanted, that not a dollar is ever transported uselessly For these great purposes, Congress very early esta- from once place to another. Much transportation is saved, blished the Bank of the United States as a branch of the and what must be done, at the smallest possible cost. Gold great encouraging and protecting system. It was neces- and silver, under their operations, seem to have obtained sary to render this institution not a treasury institution, a kind of commercial ubiquity, and orders for transmitestablished merely to create, from time to time, a medium ting, from man to man, immense amounts of value, are for the payment of the revenue, but a part of the great sent by the mail from city to city, without the risk of robsystem of labor in the country, established to regulate the bery.' The wisdom of these provisions has superseded value of that coin and currency by which all the products all the cunning of human transgression; and he who now of that labor must be measured and exchanged. As a plunders the mail will earn for himself the peril and the treasury institution, its issues of bills must be controlled infamy of the crime, but no booty other than a few scraps by the demands of Government for revenue; but, as a of paper, useless to all men except their lawful owner. part of the institutions of the country, formed in aid of Nor are the operations of this great branch of our nalabor, its issues of bills would be adjusted to the demands tional system of encouragement and protection confined of that labor for a currency by which to exchange its va- to the currency and exchanges of our own country. Our

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