exactly in proportion to the extent of that demand, and thus supply all the exigencies of commerce and currency. If the demand for sugar, rice, or coffee should be multiplied twenty fold, in one year, such demand could not be answered; but if the same increase of demand should gradually arise in a period of twenty years, the supply would keep pace with the demand, and there would be no scarcity of those articles. So in regard to gold-allow the requisite time, and the supply will equal the demand, or there is no truth in the science of political economy.

Of all the popular arguments in favor of paper currency, the most True, it plausable is, "that paper is cheaper than metallic currency. is furnished without industry, but as industry is the only source of wealth, the legitimate deduction would be, therefore, it is worthless. But it is cheaper for the government, that is to say, for the privilege of robbing the people, and exercising a portion of sovereign power, a national bank will transact the fiscal affairs of the government without charge ; and, for the same privileges, a state bank will give you a bonus.

These supposed advantages are based upon the false notion, that the people are to become subservient to the interests of the government, whereas the true principle is, that governments are instituted solely for the benefit of the people. Should the large sums belonging to the treasury of the United States now in the banks be eventually lost in this universal bankruptcy, (which probably may happen) our government will find, that of all modes of conducting its fiscal concerns, that by bank agency is most expensive.

The late national bank was chartered under the pretence that it was necessary to restrain or prevent excessive issues of the state banks.. It was a total failure. It did not in any degree restrain them, as the amount of their circulation, at the expiration of its charter, incontestably proves. It could not restrain them. It could not even sustain itself, without the support of the national treasury. When that bank expanded, the state banks expanded, when it was forced to contract, the state banks followed suit, and hence the pressures and panics, the sacrifices and sufferings, which were brought upon the people under its malign auspices. Mr. Biddle himself admits that the constant tendency of banks is to over-issues. And over issues must necessarily be followed by contractions, or insolvency, either of which brings disastrous embarrassments upon the people. The great pressure and panic of 1819 was thus generated by the United States Bank, within eighteen months after its incorporation, when it reduced its circulation in three months and ten days, four and a half millions in four cities, to wit: Philadelphia, Baltimore, Richmond, and Norfolk.

This pressure convulsed the country to its centre, and ruined thousands of the industrious classes. The bank itself was greatly alarmed, in the fear that its weakness should become apparent, and its friends held a meeting to discuss the propriety of petitioning congress to save it from expected bankruptcy, by making its bills a legal tender in payment of debts. The bank, however, saved itself by its violent contractions, and the consequent ruin of vast numbers of the people.

Such was the extreme severity of this pressure, produced by this great regulator of the currency, that all the governors of the states noticed it

VOL. V.

2E

in their annual messages, and nearly all the legislatures appointed committees to inquire into its causes. About this time a committee of con gress reported that the bank had forfeited its charter, but forty members of congress were stockholders, and the resolution to institute proceedings against it was negatived. It then had more than eight millions of public deposits, and all the aid which government could give. Such, so weak and feeble, was the institution, which we are gravely told was the great balance wheel of our prosperity.

As a necessary consequence of the paper system, alternate expansions and contractions continued during the existence of the United States Bank, and a succession of pressures and panics cruelly punished the industrious classes, for their easy credulity in listening to the sophistry of bankism.

There was a pressure in 1822, followed by the great and dis tressing pressure of 1825, which was so peculiarly severe, that the friends and directors of the United States Bank discoursed publicly of the expediency of stopping specie payments. The president acknowl edged his fears for the fate of the bank, and admitted, that she was saved only by his begging as a special favor, of a New York bank, that it would receive a bill of exchange instead of specie. Had the New York bank been stubborn, the catastrophe of 1837, would, must, have occurred in 1825. Then came the ruinous pressure of 1828, and again the paralizing pressure and panic of 1832, the pressure of 1835-6, and the explo sion of 1837, are of course, fresh in the recollection of all.

No less than six severe pressures, during the life, under the auspices of, and originating in the late national bank. With these recorded facts before us, can any man be so perversely mad as to recommend a new national bank as a remedy for existing evils? As, then, it is out of the power of the general government to furnish an adequate remedy, is it not the duty of this convention to prohibit or discourage the incorporation of state banks in all time to come to forbid the legislature relieving the present banks from the effects of forfeiture, unless upon the condition of immediate resumption of specie payments, and a provision making the private property of stockholders liable for the debts of the corporate institu

tions.

These charters expire at different periods, and, of course, under a judicious system, paper would gradually disappear, and thus create a demand for the constitutional currency; an influx of gold would neces sarily occur, and, in a few years, we should be relieved from this paper nuisance-this deepest, direst curse that ever paralized the ener gies of a nation.

Mr. PURVIANCE moved to amend the amendment, by adding to the end thereof the following words: "in proportion to their stock held therein," which motion was disagreed to.

On motion of Mr. WOODWARD, the committee then rose and reported. The President having resumed the chair, a motion was made that the

committee sit to-morrow.

On this motion Mr. DICKEY called for the yeas ordered, and were-yeas 28, nays 74, as follows:

YEAS--Messrs. Baldwin, Brown, of Philadelphia, Butler, Chauncey, Cleavinger Cochran, Cope, Cunningham, Denny, Doran, Dunlop, Fleming, Foulkrod, Gamble Hastings, Helffenstein, Hopkinson, Ingersoll, Long, Lyons, Martin, M'Cahen, M'Sherry, Merrill, Porter, of Lancaster, Reigart, Scott, Woodward--28.

NAYS-Messrs. Agnew, Ayers, Banks, Barndollar, Bigelow, Bonham, Chambers, Chandler, of Chester, Clapp, Clarke, of Beaver, Clark, of Dauphin, Clarke, of Indiana, Cline, Cox, Craig, Crain, Crawford, Crum, Cummin, Curll, Darrah, Dickey, Donagan, Donnell, Earle, Fry, Fuller, Gilmore, Grenell, Harris, Hayhurst, Hays, Henderson, of Allegheny, Henderson, of Dauphin, Hiester, High, Houpt, Hyde, Jenks, Keim, Kennedy, Kerr, Konigmacher, Krebs, Maclay, Magee, Mann, M'Call, M'Dowell, Meredith, Merkel, Miller, Montgomery, Overfield, Pennypacker, Pollock, Purviance, Read, Ritter, Russell, Saeger, Scheetz, Sellers, Serrill, Sill, Smith, Smyth, Snively, Stickel, Taggart, Thomas, Weidman, White, Young, Sergeant, President-74.

Mr. M'CAHEN moved that the convention adjourn. Lost.

Mr. HIESTER asked leave to make a motion that the convention take a recess until three o'clock.

On this motion Mr. M'DOWELL called for the yeas and nays, which were ordered, and were-yeas 68, nays 31, as follows:

YEAS-Messrs. Ayres, Baldwin, Banks, Bonham, Chandler, of Chester, Clark, of Dauphin, Clarke, of Indiana, Cleavenger, Cline, Cochran, Cox, Craig, Crain, Crawford, Crum, Cunningham, Curll, Darrah, Denny, Donnell, Dun'op, Earle, Fleming, Foulkrod, Fry, Fuller, Gilmore, Hayhurst, Hays, Helffenstein, Henderson, of Allegheny, Henderson, of Dauphin. Hiester, High, Hopkinson, Hyde, Ingersoll, Jenks, Kennedy, Kerr, Krebs, Long, Lyons, Mann, Martin, M'Call, M'Dowell, M'Sherry, Merrill, Merkel, Miller, Montgomery, Pennypacker, Pollock, Porter, of Lancaster, Saeger, Scheetz, Sellers, Serrill, Smith, Smyth Snively, Stickel, Thomas, White, Woodward, Young, Sergeant, President-68.

NAYS-Messrs. Agnew, Barndollar, Bigelow, Brown, of Philadelphia, Butler, Clapp, Clarke, of Beaver, Cummin, Dickey, Donagan, Doran, Gamble, Harris, Has tings, Houpt, Keim, Konigmacher, Maclay, Magee, M'Cahen, Meredith, Overfekt, Purviance, Reigart, Read, Ritter, Russell, Scott, Taggart, Weidman―31.

So the question was determined in the affirmative.

Mr. HIESTER, then moved that the Convention take a recess unul three o'clock.

Mr. DORAN called for the yeas and nays.

The hour of one o'clock having arrived, the convention took the usual recess until three o'clock.

FRIDAY AFTERNOON, NOVEMBER 17, 1837.

Agrecably to leave given,

The convention again resolved itself into a committee of the whole, Mr. REIGART in the chair, on the report of the committee, to whom was referred the seventh article of the constitution :

The pending question being on the amendment of Mr. READ,

Mr. CLARKE, of Indiana, demanded the yeas and nays on the adoption

of the same.

Mr. MARTIN, would inquire of the Chair, whether this was intended as an amendment to the fourth section of the seventh article, as reported by the committee?

The CHAIR said, that it was an amendment to the report of the committee on the third section of the seventh article, which report declared it inexpedient to make any amendment to that section.

Mr. MARTIN said, he was scarcely prepared to say any thing; for he did not exactly understand the nature of the amendment, and of the report now before the committee. The committee having reported no amendment to the third section of the article, the subject of corporations would, he should suppose, come up on the report of the minority of the committee, to whom the article had been referred. Of this he was not certain. He merely asked for information, that he might know how the report of the minority of the committee, which was now on our files in relation to corporations, would be affected by this amendment?

The CHAIR said, that the report of the minority of the committee on the seventh article, had not yet been before the committee of the whole. And the question on the amendment was then taken, and decided in the negative as follows:

YEAS-Messrs. Banks, Bigelow, Bonham, Clapp, Carke, of Indiana, Crain, Crawford, Cummin, Curl, Darrah. Dillinger, Donagan, Donnell, Fleming, Foulkrod, Fry, Fuller, Gamb'e, Gilmo e, Grenell, Hastings, Hayhurst, High, Hyde, Ingersoll, Keim, Kennedy, Krebs, Magee, Mann, Martin, M'Cahen, Miller, Myers, Overfield, Read, Ritter. Rogers, Scheetz. Sellers, Shellito, Smith, Smyth, Stickel, Taggart, Weaver, White, Woodward-48.

NAYS-Messrs. Agnew. Ayres, Baldwin, Barndollar, Chambers, Chandler, of Ches ter, Chauncey, Clarke, of Beaver, Clark, of Dauphin, Cline, Cochran, Cope, Craig. Crum. Cunningham, Denny, Dickey, Doran, Earle, Farrelly, Forward, Haris, Hays, Helffenstein, Henderson, of Allegheny, Henderson, of Dauphin, Hiester, Hopkin-on. Houpt, Jenks, Kerr. Konigmacher, Long, Lyons, Maclay, M'Call, M'Sherry, Mere dith, Merrill, Merkel, Montgomery, Pennypacker, Pollock, Porter, of Lancaster, Porter, of Northampton, Reigart, Russell, Saeger, Scott, Serril!, Snively, Thomas, Weadman, Young, Sergeant, President-55.

So the amendment was rejected.

After some conversation on a question of order,

A motion was made by Mr. READ, to amend so much of the report of the committee, to whom was referred the seventh article of the con

stitution, as declares it inexpedient to amend the same, by inserting the following in lieu thereof:

"SECT. 3. No bank shall issue any bill, check, promissary note, or paper credit of a less denomination than ten dollars, nor after the fourth day of July, 1842, of a less denomination than twenty dollars."

Mr. FORWARD said, that it would be a benefit to the members of the convention, if this proposition could be laid on the table, in order that it might be printed. It was a momentous subject, and he was not prepared to act upon it, until farther consideration. It would not, he said, be doing justice either to the subject, to ourselves, or to the people of He would, therefore, move that the commonwealth, to act thus hastily.

the committee now rise,

Which motion was agreed to.

And the Convention having risen,

Mr. INGERSOLL moved that the Convention resolve itself into a committee of the whole, on the ninth article of the constitution.

Which motion was rejected, yeas 39, noes 46; and,

On motion of Mr. FRY,

The Convention adjourned.

SATURDAY, NOVEMBER 18, 1837.

Mr. COPE, from the committee of accounts, reported the following res olutions, which were read a second time, considered, and agreed to:

Resolved, That the President draw his warrant on the state treasurer, in favor of Packer, Barrett & Parke, printers of the English Debates, for the sum of three thousand five hundred dollars, to be by them accounted for in the settlement of their

accounts.

Resolved, That the President draw his warrant on the state treasurer, in favor of Samuel Shoch, secretary, for the sum of one thousand five hundred dollars, to be accounted for in the settlement of his accounts.

Mr. COPE, from the committee on accounts, made the following report,

viz :

That they have had the accounts of the following officers and persons in the service of the convention, under consideration, and find them to be as follows, viz :

Samuel Shoch, secretary, 42 days, at $8 per day,

106 miles at 15 cts. per mile,

George L. Fauss, assistant secretary, 42 days, at $7,
132 miles, at 15 cts. per mile,

Joseph Williams, assistant secretary, 42 days, at $7,
227 miles, at 15 cents per mile,

}

$351 90

313 80

328 05