THE PROVINCIAL LAND BANK. 5X 



that it would have succeeded in spite of ail obstacles had it not 

 been for the exertion of "the transcendent power of Parliament." 

 Where is the bank of these degenerate days that has shown any- 

 thing like the same power of endurance? Someof the existing banks 

 find it diflBcult to live with the power of government exerted in 

 their favor! 



The attempt of the Land-Bank Company to republicanize gold 

 and silver, and to make all commodities circulate as ready money 

 was, without question, premature. But our author misapprehends 

 the matter, mistaking a transformation of the circulating medium for 

 a mercantile scheme. The "vote of the company whereby the direc- 

 tors became traders," was an act for transforming the currency. 

 We do not justify it altogether; for it put the welfare of the cause 

 at too great hazard; but it was, nevertheless, not totally out of 

 harmony with the general system. We remark in conclusion, that 

 the depreciation in the provincial currency was occasioned, not by 

 "land-bank," that is, by mutual paper— which the Parliament 

 forced the issuers, by an arbitrary, vindictive, and tyrannical law, 

 to redeem with interest — but it was occasioned by government 

 paper, "professing to be ultimately redeemable in gold and silver."* 

 All arguments, therefore, against mutual money, derived from the 

 colonial currency, are foreign to the purpose. 



The main objections against mutual banking are as follows: 1. 

 It is a novelty, and therefore a chimera of the inventor's brain; 2. 

 It is an old story, borrowed from provincial history, and therefore 

 of no account! 



How would you have us answer objections like these? Things 

 new or old may be either good or evil. Every financial scheme 

 should stand or fall by its own intrinsic merits, and not be judged 

 from extraneous considerations. 



*"We are told that there is no instance of a government paper that 

 did not depreciate. In reply I affirm that there is none assumiusthe 

 form I propose (notes receivable by government in payment of dues) 

 that ever did depreciate. Whenever a paper roroivable in the dues of 

 government had anything like a fair trial, it has succeeded. Instance 

 the case of North Carolina referred to in my opening remarks. The 

 drafts of the treasury at this moment, with all their incumbrance, are 

 nearly at par with gold and silver; and I migiit add the Instance 

 alluded to by the distinguished senator from Kentucky, in which he 

 admits, that as soon as tiio excess of the issues of tlie t'ommonwealth 

 Bank of Kentucky were reduced to the proper point, its notes rose to par. 

 The case of Russia might also be mentioned. In 1827 she had a fixed 

 paper-circulation in the form of bank-notes, but which were Incon- 

 vertible, of upward of S120,000,000, estimated in the metallic ruble, and 

 which liad for years remained witliout fluctuation; having notliingto 

 sustain it but that it was received in tlio dues of government, and 

 that, too, with a revenue of only about S".)0,000,000 annually."— .Tohn C. 

 Calhoun: Speech on his amendment to separate the government from 

 the banks, Oct. 3, 1837. 



