Charles Sumner: his complete works, volume 08 (of 20)Sumner, Charles
History
Charles Sumner: his complete works, volume 08 (of 20)
Sumner, Charles
Slavery -- United States; Speeches, addresses, etc., American
In courts of law, experts are summoned to testify on questions of
science or art within their special knowledge. If, on this occasion,
experts in finance or currency were summoned, I do not know that we
should be much enlightened; for, according to my observation, there
are such differences among them, and, as the Senator from Maine [Mr.
FESSENDEN] has pleasantly told us, such differences even in the same
person, one day and the day after, that it is difficult to place
reliance in their counsels. Some tell us that making Treasury notes
a tender will be most beneficent; others insist that it will be
dishonorable and pernicious. On each side strong words are employed.
Which shall we follow?
Crossing the sea, we find similar differences, not, of course, with
regard to the present proposition, which is not yet known there, but
with regard to the principles entering into this debate. In England
the general subject has occupied much attention. As late as 1857 it
was brought before a distinguished Parliamentary Committee, and their
Report is remarkable for the testimony of numerous witnesses whose
experience and knowledge give authority to their opinions. The Report
is a financial monument. But among these witnesses are some who were
little disturbed by an inconvertible currency, although the weight of
testimony was the other way.
Nobody was more positive than Nathaniel Alexander, Esq., head of
the firm of Alexander & Co., India merchants. His attention being
called to the proper means against the effects of panic on the Bank
of England, he proposed, as an assistance to the Bank, another
currency, inconvertible, and a tender for Government dues, under Act
of Parliament. From its inconvertible character, such a currency, he
said, would not be reached by panic, and would therefore contribute to
the security of the Bank.[183] This testimony seems to maintain the
principle of the present proposition; and I quote it, as showing that
the proposition is not entirely without practical authority.
John Twells, Esq., a London banker for upwards of fifty years, also
testified in favor of an inconvertible note under sanction of
Government, and a legal tender. Here are his answers to two questions.
“What do you conceive to be the advantage of an inconvertible
note of that kind over a convertible note payable to bearer
on demand?--It would prevent a drain of bullion, when it is
required for foreign trade; and it would give us, what is so
very essential, a domestic currency which is not influenced by
any foreign transactions whatever. If France or America wants a
quantity of gold, it ought not to interfere with our domestic
currency. Our merchants and all our trade surely should not
suffer because America wants gold.
Public-domain text, read in full here on John Shaqi.
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