William Gouge

Background

William M. Gouge was born on November 10, 1796, in Philadelphia, Pennsylvania.

Career

In 1823, Gouge and Stevenson Smith became proprietors and editors of the Philadelphia Gazette, but in a few years, Gouge retired. He reported the debates of the Delaware Convention for revising the constitution of the state, printed in 1831, and in 1833, published A Short History of Money and Banking in the United States, Including an Account of the Provincial and Continental Paper Money, to Which Is Prefixed an Inquiry into the Principles of the System with Considerations of Its Effects on Morals and Happiness, a second edition of which was issued in 1835.

With an introduction by William Cobbett, it was reprinted in London under the title, The Curse of Paper-Money and Banking (1833), the history of colonial and continental currency being omitted. An abridgment also appeared in La Revue Universelle, Brussels.

During the secretaryship of Levi Woodbury, 1834-41, he was appointed clerk in the Treasury Department and remained connected with it for many years, compiling some of the most valuable reports which up to that time the Department had issued. He also wrote An Inquiry into the Expediency of Dispensing with Bank Agency and Bank Paper in Fiscal Concerns of the United States (1837).

In 1841, he was editor of the Journal of Banking, published in Philadelphia, which suspended operations, however, after one year. In this was again reprinted A Short History of Paper Money and Banking in the United States.

In 1852, he published Fiscal History of Texas, Embracing an Account of the Revenues, Debts and Currency from 1834 to 1851-52, with Remarks on American Debts. In May 1854, James Guthrie secretary of the treasury, appointed him special agent “to examine the books, accounts, and money on hand in the offices of all the assistant treasurers of the United States, except at San Francisco, and designated depositories. ”

In his “Report on the Public Depositories” he approved the independent treasury system whereby fiscal operations of the government would be separated from banks.

In 1857-58, he was one of the two accountants of the state banks of Arkansas, the other being A. H. Rutherford, and in 1858, was published Report of the Accountants of the State Bank of Arkansas.

Gouge died in Trenton, New Jersey, in his sixty-seventh year.

Achievements

• William M. Gouge is known for his writings, which was written in support of hard money were influential during the debate over the rechartering of the Second Bank of the United States.

Works

More photos

• book

  • The Curse Of Paper Money And Banking: A Short History Of Banking In The United States Of America (1833)

    (This scarce antiquarian book is a facsimile reprint of th...)

  • A short history of paper money and banking in the United States

Views

Gouge was an uncompromising opponent of banks, paper money, and corporations. Banking, he affirmed, simply takes loanable money out of the hands of the owners and places it under control of irresponsible corporations. The History is of value, however, because of the detailed description, it gives of the organization of state banks and the abuses associated with their management.

In contributions to the Journal of Banking his opposition to banks was somewhat modified, and he apparently took the position that notes issued against real commercial paper could not be overissued. Bank issues over and above this demand, however, he believed would inflate the currency and thus raise prices and lead to an unfavorable balance of trade.