University of Virginia Library

TO GEORGE McDUFFIE.[110]

I have recd. a copy of the late Report, on the
Bank of the U. S. and finding by the name on
the envelope, that I am indebted for the communication
to your politeness, I tender you my
thanks for it.[111] The document contains very interesting

& instructive views of the subject; particularly
of the objectionable features in the substitute
proposed for the existing Bank.

I am glad to find that the Report sanctions the
sufficiency of the course and character of the precedents
which I had regarded as overruling individual
judgments in expounding the Constitution. You are
not aware perhaps of a circumstance, weighing
against the plea that the chain of precedents was
broken by the negative on a Bank bill by the casting
vote of the President of the Senate, given expressly
on the ground that the Bill was not authorized by
the Constitution. The circumstance alluded to is
that the equality of votes which threw the casting
one on the Chair, was the result of a union of a
number of members who objected to the expediency
only of the Bill, with those who opposed it on
constitutional grounds. On a naked question of
constitutionality, it was understood that there would
have been a majority who made no objection on
that score, [the journal of the Senate may yet test
the fact.]

Will you permit me Sir to suggest for consideration
whether the Report (pg.–10) in the position
& reasoning applied to the effect of a change in the
quantity on the value of a currency, sufficiently
distinguishes between a special currency, and a currency
not convertible into specie. The latter being
of local circulation only, unless the local use for it increase
or diminish, with the increase or decrease of its
quantity, [will] be changeable in its value, as the

quantity of the currency changes. The metals on the
other hand, having a universal currency, would not
be equally affected by local changes in their circulating
amount, a surplus producing a proportional
depreciation at home, might bear the expense of
transportation, and avail itself of its current value
abroad.

If I have misconceived the meaning of the Report,
you will be good enough to pardon the error, and to
accept, with a repetition of my thanks, assurances of
my great & cordial respect.