dollar of it in the United States Bank, not even of their original subscription of seven millions of the stock. The whole seven millions was paid by the government in certificates of the public debt, bearing an interest of five per cent. Not a farthing was paid in coin.

Specie, as a circulating medium, is expensive and inconvenient, for large transactions. The annual loss, by mere use, that is, by actual wear and friction, has been shewn to be very great, though scarcely noticed by the public, and ten, twenty or thirty per cent, loss in value, on an article of constant demand, becomes a very serious affair.

Again, suppose I wished to purchase in New Orleans, five thousand bales of cotton, which are probably worth two hundred and fifty thousand dollars. It would take a month, perhaps, to convey the money to that city. There would besides, be the hazard of accidents and robbery, by the way. Against these, I might insure, but not without paying a premium. Supposing, after all risks had been incurred, the price of cotton should have risen so high, as to render a purchase imprudent. I must, in that case, travel back with my load, at the same cost and risk, which I incurred in the outward journey, with the loss of interest in the bargain. Suppose on the other hand, instead of taking specie, I simply write to my correspondent, directing him to make the purchase, and draw on me for the amount. Whether he succeed or not, I lose no tinie, and I incur neither hazard nor expense. But, could not this be done, if we had no banks?—yes, doubtless-but either I must do as I have stated, or I must pay somebody else for doing it; for without some system of paper exchange, the transportation of coin could not be avoided. This might further be exemplified; but, I will waste no more of your time on so plain a matter. I may, however, observe, that if the specie in the case supposed, should never reach New Orleans, I should entirely forego my purchase, and all advantages connected with it, for before I could recover from the underwriters, the season might pass away, and my object in the purchase be frustrated.

The all powerful love, the people! The dear people! How patriotic thus openly to profess it. Many seem to love them so ardently, as to be willing to do almost every thing to serve themselves, out of this pure love. Marat loved the people. Robespiere loved the people. Napoleon loved the people-and may I say it? Andrew Jackson loved the people. They all in turn professed a reverence for republicanism, and it would be curious to trace their manner of shewing it. I will not attempt that. Don't you remember the caption of the first consul's edicts?

"French republic, one and indivisible."

"Liberty, equality, fraternity."

"I, Napoleon Buonaparte, decree.”

Our form is more simple

"I, Andrew Jackson, take upon me the responsibility."

We, of the convention, have a different mode of expressing our love and confidence, for and in the dear people. We proclaim aloud, as on the house top, that we are willing to trust the people with all power,

while we actually seek to bind them, neck and foot, with constitutional restrictions, on their free will. O, but it is only the legislature, we want to bind !—and, what is the legislature, but the assembled people, in the only capacity, in which it is possible for a people to be heard, and to declare their sovereign will, by the enactment of laws? I heed not what is said to be the will of the people, when spoken in taverns, in this, or in that county. It must be declared through their chosen representatives, to be of legal effect, or binding on the community.

I will now proceed to shew the absolute folly and impracticability of the attempt to force on the community, an exclusive metallic currency. This shall not occupy much of your time, as my hour-glass is nearly exhausted. I have looked over Secretary Woodbury's last annual report, and shall endeavor to draw such deductions from it, as ought to satisfy the most credulous of the disciples of this new school.

1. Secretary Woodbury estimates the yearly value of the bread stuffs consumed in our families, at

2. Taking the value of all our other family expenditures, at five times the value of bread, it gives us

3. The secretary states the balance in the treasury, 15th January, 1836, as

$124,000,000

620,000,000

$26,700,000

The yearly average may be assumed in round numbers, as

100,000,000

4. The annual receipts and payments of all the state governments, may be assumed as

100,000,000

5. The secretary states the imports of 1837, being fortynine millions less than 1836, as

140,000,000

And the exports of 1837, being eleven millions less than
in 1836, as
Total,

116,000,000

$1200,000,000

No. 1. Some portion of No. 1, but what portion I cannot tell, is consumed by the growers, but the difference is made up by the value of inferior grains for horse feed, &c. sold by the growers, to non-cultivators.

No. 2. There is no certain rule by which to test the accuracy of this item. Some think it much too low, and that it might be safely assumed at ten times the value of bread, being designed to include provisions of all

kinds-with the exception of bread-clothing, servants, wages, house rent, and in short, every species of household expense. I have, therefore, probably assumed an estimate sufficiently moderate.

No. 3. It may be objected that this item, so far as regards the balances in the treasury, should be here omitted. But, if those balances are drawn out, then is the amount thrown into circulation. If retained in the treasury, then there are so many millions locked up and taken from the currency of the country, which, in the views, and for the object I have proposed to myself, must greatly embarrass the business of the community, and add to the general distress.

No. 4. This is meant to include, not only the civil lists, of the several states, but canals, rail roads, turnpikes, &c., &c. It will not, therefore, be considered as too high.

No. 5. As to what these items may be, in future, I am ignorant. The presumption is, that when commerce shall again flourish, they will be greatly enhanced.

We have then, the very considerable sum in these several items alone, of twelve hundred millions of dollars, to be put in motion, by a hard money currency, assumed to be eighty millions. But this is not all. We have yet to provide for our factories, workshops, merchandise-wholesale and retail-our daily receipts and payments, not comprehended in either of the above items. The receipts and payments at our banks, &c. will oblige us to add at least another twelve hundred millions to our list. For the purpose of shewing that this last estimate is not over charged, permit me to add, that the daily average receipts and payments from the counter of the Bank of the United States, for six months, and, at a dull time, has been $690,249. It is not pretended that the business of any other of our numerous banks will be of the same magnitude, but then according to Secretary Woodbury, there are seven hundred and ninetyfour banks in the United States, and according to more recent accounts, eight hundred and twenty-three. I may also mention, that in 1837, the value of merchandise, sent from Philadelphia to Pittsburg, to supply the western trade, was computed at seventeen millions of dollars, and in 1818, at twenty millions.

I think you will now be prepared to say with me, that the attempt to force on this community, an exclusive metallic currency, is about as wise, and about as practicable, as that of the negro slave, who attempted to measure the quantity of water in the Chesapeake Bay, with a tin cup !

[Mr. STERIGEREE's remarks which it was found necessary to send to him for revision, were not returned in time for their insertion in the proper place. They will appear in the APPENDIX.]

Mr. CHAUNCEY, of Philadelphia, rose to address the convention, but gave way to Mr. BIDDLE, who moved that the convention now rise: Which motion was agreed to.

And, after some desultory conversation on an incidental point of order, The committee rose, reported progress, and obtained leave to sit again. And the convention took the usual recess.

WEDNESDAY AFTERNOON, DECEMBER 27, 1837.

SEVENTH ARTICLE.

The convention again resolved itself into a committee of the whole, Mr. REIGART in the chair, on the report of the committee to whom was referred the seventh article of the constitution.

The question being on the motion of Mr. FULLER, of Fayette, to amend the amendment offered by Mr. READ, as modified by him, by adding thereto the words following, viz:

"No bank shall issue any bill, check, or paper credit, of a less denomination than ten dollars."

Mr. CHAUNCEY, of Philadelphia, said he was opposed to the amendment under consideration, offered by the gentleman from Fayette, to the modified amendment of the gentleman from Susquehanna. It consisted of provisions for the restriction of the issues of notes of a less denomination than ten dollars. He was opposed to the provision by itself; and, he was also opposed to it in connexion with the proposition of the gentleman from Susquehanna, and in connexion with other propositions which had been offered of similar import to this. He was opposed to the system which was submitted to the consideration of the committee; a system, as it had been avowed, of hostility to the banking institutions of the state. If this system was carred into effect, there was an end to the bank. ing system; and, it was scarcely more than necessary to refer to the amendment to see that no other consequence could follow. It proposed to reduce the whole capital of the banks to thirty millions, to denominate the number of banks, to compel a limitation of the profits to seven per cent; to provide for the individual liability of stockholders; and, it farther placed these institutions at the will of the legislature. Was he not right, therefore, in supposing such a system-a system which reduces the capital of the institutions, limits the profits, makes the stockholders liable, and places them at the will of the legislature, a measure of hostility against the banks? These are declared to be wholesome restrictions, offered in friendship, and for the purpose of preserving them in existence. But, when we had seen the axe put to the root of the tree; when we had seen the attempt to place these institutions, not on the footing of the law or the constitution, but at the will of the legislature, this was not the kind of friendship which the banks wished to receive. For his single self, he could not doubt that the certain operation of the system would be the total destruction of the banking system.

What should we say to the policy of this system? The gentlemen on the other side of the question had deprecated the introduction of party feelings into this discussion. They wish to leave all party feelings out of the question; and, to bury all political considerations. But, it appeared to him that this appeal was not made in sincerity. No man could deprecate more than himself, that party feeling which destroys all

freedom of action and reflection, and reduced men to mere machines. If he understood it, this was a question of political economy, in relation to which different views are entertained by the different parties which divide the community. No matter if the subject is discussed on party grounds or not, because the question is essentially a party question. It is insisted that restrictions shall be imposed, which will be destructive of the banking system. This is evident from the tone of the various propositions themselves from the course of argument in the committee; and, from the avowed policy of the general government, with which all these movements are in perfect harmony. By the reduction of capital, and of the number of banks; by subjecting the stockholders to personal liability; and, making the banks dependent on the legislative will, this result is made most clear. The course of argument which has been pursued here is not to be reconciled with any principle but that of the destruction of the banks, the whole argument goes on the supposition that the banks are corrupt and under a system of wicked administration. It takes it for granted that this is the fact; that, from their very nature, they must be productive of evil to the mass of the community; and, that they have built up, and continued to sustain a moneyed aristocracy in the country. If gentlemen are sincere in these statements; if they believe the evils to be such as they represent them to be, they must come to the conclusion that the system ought to be destroyed. This was clear in the whole of the argument of the gentleman from Susquehanna, on every page of his speech; therefore, there could be no doubt that his proposition to restrict, looked to the destruction of the system.

ter.

If gentlemen contemplate the destruction of the banks, it is idle, worse than idle, to talk of alleviating the existing evils by restrictions. Let them come forward and state that the system should be for ever abandoned, because restrictions can never cure the existing evils. A more efficient remedy must be found, in order to cure the great evils of which they complain, if these evils really exist. Therefore, he contended that the gentlemen on the other side must be intent on the destruction of the banking system. But, their arguments are also in accordance with the open and avowed course of the administration of the general government, which he took to be avowed hostility to the banks. Let us (said Mr. C.) take a view of the policy of the general government in reference to this matIt may throw some light on the subject. The policy, which is now pursued, commenced in the cabinet of the late president of the United States. Previous to that, the whole policy of the government had been favorable to the banking system. When the late president came into office, that system was in full operation, all minds had become shaped to it. The credit system was incorporated with it. When General Jackson came into office he found the country in a prosperous condition, and the people happy. The whole page of history, from the fall of man to the present hour, never exhibited a more perfect scene of national happiness than was exhibited here. This was not an overcharged description. Such was the condition of the country, when General Jackson came into office. What was the picture? The prosperity in every situation of life was unexampled. The currency flowed in an even stream, and performed its office. It performed the office of a currency more perfectly than had ever been known in any age or country.