5619. NATIONAL CURRENCY, Bank paper and.—
The question will be asked
and ought to be looked at, what is to be the
resource if loans cannot be obtained? There
is but one, “Carthago delenda est”. Bank
paper must be suppressed, and the circulating
medium must be restored to the nation to
whom it belongs. It is the only fund on
which they can rely for loans; it is the only
resource which can never fail them and it is
an abundant one for every necessary purpose.
Treasury bills, bottomed on taxes, bearing
or not bearing interest, as may be found
necessary, thrown into circulation will take
the place of so much gold and silver, which
last, when crowded, will find an efflux into
other countries, and thus keep the quantum
of medium at its salutary level. Let banks
continue if they please, but let them discount
for cash alone or for treasury notes. They
discount for cash alone in every other country
on earth except Great Britain, and her
too often unfortunate copyist, the United
States. If taken in time, they may be rectified
by degrees, and without injustice, but if
let alone till the alternative forces itself on
us, of submitting to the enemy for want of
funds, or the suppression of bank paper,
either by law or by convulsion, we cannot
foresee how it will end.—
To J. W. Eppes. Washington ed. vi, 199.
Ford ed., ix, 399.
(P.F.,,
Sep. 1813)
