1. As to its authority over the currency;

2. As to its power to encourage domestic industry by discrimination in laying duties on articles of manufacture imported from abroad.

And first, as to the currency. All agree that Congress possesses the power to regulate commerce, for that provision is found in the Constitution in terms; and that it has the power to coin money, for those words are also found in the Constitution. But there is a wide difference of opinion as to what duties are or are not fairly inferable from these grants of power. In regard to this matter, which has so long divided the country, and which will continue to agitate it till it shall be effectually settled, I must begin by a reference to some general principles and leading facts.

Congress possesses the commercial power, that is, the power of regulating commerce, and the power of coining money; and it may issue its own bills of credit. No State can either coin money, regulate commerce, or emit its own bills of credit. But, right or wrong, banking corporations are established under State authority, and issue bills; and these bills form, in fact, the mass of the circulating medium of the country. And now, since the use of these bills has become almost, if not wholly, universal, the question arises, On what government devolves the power of regulating the paper currency? Now, Gentlemen, in my opinion, which I have entertained for many years, the general government is bound to take care of the currency of the country; I think that it has a duty beyond merely coining money and fixing its value; that the power to regulate commerce gives Congress authority over that great instrument and means of commerce, the actual circulating medium of the country; and that if paper is to take the place of coin, Congress is bound to see that it is safe paper, and such as is not likely to defraud and oppress the people, to become base in character, or run to exOn these topics my opinions have been frequently expressed, and are well known.*

As I have observed already, Gentlemen, I have very little * In the original pamphlet edition of this speech, large extracts were here made from speeches in the Senate of the 28th of September, 1837, and the 12th of March, 1838, which will be found in a subsequent volume of this collection; and from the speech in Faneuil Hall, of the 24th of July, 1838, in Volume I. p. 417.

that is new to say on these points. The ground I have ever taken, and to which I adhere to this day, is, that if Congress is bound to furnish a currency for the people, as well as for the government, then something beyond a sub-treasury, something more than a vault, or series of vaults, where the public money can be collected, and whence it can be distributed, is necessary; on the other hand, if Congress is not bound to do this, then it may resort to any scheme it may deem proper for the collection and disbursement of revenue; although, even for that purpose, it is quite idle and ridiculous, in my opinion, to talk about vaults, and safes, and bolts, and locks.

· Now, Gentlemen, there are three propositions which I would gladly submit to every candid man in every part of the country; because it is my wish to establish the principles I espouse, in the minds of men, by convincing them that they are honest, just, and will tend to the benefit of community. These propo

1st. That paper, in the present state and condition of society, will, and must, constitute the greater part of the currency,the mass of the circulation.

All the humbug about a specie currency, a hard-money system, is altogether unworthy of a man of sense. We know that we must, from some source or other, have paper for circulation, and for the greater part of the circulation. Is there a man here, is there a man anywhere, who will say without a blush, that he expects an exclusive specie currency? Can any sensible man so say, without feeling his cheek burn with shame? There is none such. Well, then, is there any one not satisfied,

2d. That a part, at least, of this paper currency, should be in every part of the country of equal value, and that value equivalent to specie?

Is it not highly desirable that we should have a circulating medium of universal receivability, if I may use such a word? The inhabitants of Maine, Georgia, the valley of the Mississippi,

is it not to be wished that they all may have some paper which every body will take? All candid men must admit that it is. It is an object of high importance that the people of Illinois, Indiana, Alabama, should have something which they can remit, without loss, to pay the manufacturers of Essex for their goods; it is as great an object to the Essex manufacturers that

1. As to its authority over the currency;

2. As to its power to encourage domestic industry by discrimination in laying duties on articles of manufacture imported from abroad.

And first, as to the currency. All agree that Congress possesses the power to regulate commerce, for that provision is found in the Constitution in terms; and that it has the power to coin money, for those words are also found in the Constitution. But there is a wide difference of opinion as to what duties are or are not fairly inferable from these grants of power. In regard to this matter, which has so long divided the country, and which will continue to agitate it till it shall be effectually settled, I must begin by a reference to some general principles and leading facts.

Congress possesses the commercial power, that is, the power of regulating commerce, and the power of coining money; and it may issue its own bills of credit. No State can either coin money, regulate commerce, or emit its own bills of credit. But, right or wrong, banking corporations are established under State authority, and issue bills; and these bills form, in fact, the mass of the circulating medium of the country. And now, since the use of these bills has become almost, if not wholly, universal, the question arises, On what government devolves the power of regulating the paper currency? Now, Gentlemen, in my opinion, which I have entertained for many years, the general government is bound to take care of the currency of the country; I think that it has a duty beyond merely coining money and fixing its value; that the power to regulate commerce gives Congress authority over that great instrument and means of commerce, the actual circulating medium of the country; and that if paper is to take the place of coin, Congress is bound to see that it is safe paper, and such as is not likely to defraud and oppress the people, to become base in character, or run to excess. On these topics my opinions have been frequently expressed, and are well known.*

As I have observed already, Gentlemen, I have very little

* In the original pamphlet edition of this speech, large extracts were here made from speeches in the Senate of the 28th of September, 1837, and the 12th of March, 1838, which will be found in a subsequent volume of this collection; and from the speech in Faneuil Hall, of the 24th of July, 1838, in Volume I. p. 417.

that is new to say on these points. The ground I have ever taken, and to which I adhere to this day, is, that if Congress is bound to furnish a currency for the people, as well as for the government, then something beyond a sub-treasury, something more than a vault, or series of vaults, where the public money can be collected, and whence it can be distributed, is necessary; on the other hand, if Congress is not bound to do this, then it may resort to any scheme it may deem proper for the collection and disbursement of revenue; although, even for that purpose, it is quite idle and ridiculous, in my opinion, to talk about vaults, and safes, and bolts, and locks.

Now, Gentlemen, there are three propositions which I would gladly submit to every candid man in every part of the country; because it is my wish to establish the principles I espouse, in the minds of men, by convincing them that they are honest, just, and will tend to the benefit of community. These propo

sitions are,

1st. That paper, in the present state and condition of society, will, and must, constitute the greater part of the currency,the mass of the circulation.

All the humbug about a specie currency, a hard-money system, is altogether unworthy of a man of sense. We know that we must, from some source or other, have paper for circulation, and for the greater part of the circulation. Is there a man here, is there a man anywhere, who will say without a blush, that he expects an exclusive specie currency? Can any sensible man so say, without feeling his cheek burn with shame? There is none such. Well, then, is there any one not satisfied,—

2d. That a part, at least, of this paper currency, should be in every part of the country of equal value, and that value equivalent to specie?

Is it not highly desirable that we should have a circulating medium of universal receivability, if I may use such a word? The inhabitants of Maine, Georgia, the valley of the Mississippi,

is it not to be wished that they all may have some paper which every body will take? All candid men must admit that it is. It is an object of high importance that the people of Illinois, Indiana, Alabama, should have something which they can remit, without loss, to pay the manufacturers of Essex for their goods; it is as great an object to the Essex manufacturers that

1. As to its authority over the currency;

2. As to its power to encourage domestic industry by discrimination in laying duties on articles of manufacture imported from abroad.

And first, as to the currency. All agree that Congress possesses the power to regulate commerce, for that provision is found in the Constitution in terms; and that it has the power to coin money, for those words are also found in the Constitution. But there is a wide difference of opinion as to what duties are or are not fairly inferable from these grants of power. In regard to this matter, which has so long divided the country, and which will continue to agitate it till it shall be effectually settled, I must begin by a reference to some general principles and leading facts.

Congress possesses the commercial power, that is, the power of regulating commerce, and the power of coining money; and it may issue its own bills of credit. No State can either coin money, regulate commerce, or emit its own bills of credit. But, right or wrong, banking corporations are established under State authority, and issue bills; and these bills form, in fact, the mass of the circulating medium of the country. And now, since the use of these bills has become almost, if not wholly, universal, the question arises, On what government devolves the power of regulating the paper currency? Now, Gentlemen, in my opinion, which I have entertained for many years, the general government is bound to take care of the currency of the country; I think that it has a duty beyond merely coining money and fixing its value; that the power to regulate commerce gives Congress authority over that great instrument and means of commerce, the actual circulating medium of the country; and that if paper is to take the place of coin, Congress is bound to see that it is safe paper, and such as is not likely to defraud and oppress the people, to become base in character, or run to excess. On these topics my opinions have been frequently expressed, and are well known.*

As I have observed already, Gentlemen, I have very little

*In the original pamphlet edition of this speech, large extracts were here made from speeches in the Senate of the 28th of September, 1837, and the 12th of March, 1838, which will be found in a subsequent volume of this collection; and from the speech in Faneuil Hall, of the 24th of July, 1838, in Volume I. p. 417.