Portland gazette and Maine advertiser., 1815-01-30

on It's aoifity 70 rcdcem - MS IS tuc GU
" fate criterion. Very fpecial cafes may
perhaps furniih exceptions, but there il
Fla general no fecurity for the credit o.
paper, but the ability in thoic who emit
70 redeem it. Whenever bank notes arc
not convertible into gold and lilvcr at the
will of the holder, they become Of lei:
value than gold and FLYER. Ali expert
mcnts on this fnbiett have come to the
fame rcfult. Il is 70 clear, and has been
70 numerically admitted, that il would be
waite of time to dwell upon i. Inc de-
probation may not be ienGbly perceived
the 6rtt day or the trlt week il takes
place. 1t will frft be difcernsd in what
is called the rife of fpecic lit will,Lexl
be Teen in the mcrcafed Price OF all com
modiies.
The circulating medium of com
mercial community mutt be that which
is alto the circulating medium of other
commercial communities, or mutt BE- ca
pablc Of being converted into that me-
uium without lois lit mna be able, not
only TO PATS in payment aud receipts be-
tween individuals of the fame fociety OF
nation, but to adult and discharge the
balance ot exchanges between difere I
nallons. 1t mutt be fomething which
has value abroad, as well as at home !.
and BY which foreign as well as domef-
tic debts eau be iatlahed. The precious
metals alone aafwer thefc purpofes
they alone, therefore. are money, and
Whatever eIlr is 70 perform. the Offices
Of money, mutt be their repreIeatAtive,
and capable Of being turned into them
at will So long as Bank paper retains
this quality, it is lubltnute for r,oney
dlveit,d Of this, nothing can give il that
character.
No ioildlty Of funds. no Efficiency Of
ah-ts, no confidence in the iulvrrcy OF
banking lIliuutions has ever enabled
them 70 keep ny their paper to the value
Of gold aud hIver, any longer than they
paid gold and liiver for ii on demand
his will continue TO be the handard of
value aud the general circulating medium
among nations
A itriklng illultration of this common
principle is found in the early hlitory Of
The oank OF England. In the year 1897,
il had been 10 liberal in lis loans, thas il
was compelled 70 iuipcnd the paymens of
Its notes. Its paper Immediately tell TO
a diicount Of nesf 20 per cent. Yet
luch was the public opIsion OF Tie foils
dry u It's funds, that It's It OK then Told
!os 10 per cent although no mole tan
90 per cent. upon the tubtesipsioi4s had
bel paid ia ]:
Inc lame fate, as is well krlown, al 2
tended the paper u the banks Of ocot-
land when they Adopted the practice Of
inserting lii lhen noIes ciauie, giving
he Banks an option Of paying their notSs
on demand, or III Tx mouths alter de-
nanu, with interelt Paper OF this for.
was not convertible into ipeCic al tie
plraiurc OF the holder aud no conslc-
non Of the ability Of the Bank which il.
iued il, could prcserve It from depreci
alton.
The fufpenGon Of fpecie payment BY
the Bank OF England, III I7o7, and the
consequences wnilh tolloweu, ut1red no
argument to ovsrturn this general expe
rlenoe II Bauk OF England notes were
not Immediately deprecated on thar occa
non, depreciation nevertheless dld cniuc.
VSIy favourable cauies exlted 10 prevent
their iudden deplehion. II was an
old and rich initituuon. 1t was kacwn
10 be under the melt diicrcct and indc
pendent management. Government had
no conrroul over it, TO force II 10 make
loans againlt lis lutcreit q its will On
The contrary it compelled the government
TO pay, though with much Inconvenience
to tie very comfortable fun which
was due to it. lAe country enjoyed at
thar time ala exienliyc commerce, and .
revenue OF three hundred millions OF dol
lars was collected aud sii.rlouted through
tie Bank. Under all e advantages,
however, Tie difference OF price between
bank golcs and com became 70 great as
10 threaten at one time The mott DANGER
Gus consequences.
Suppolc the condition Of England 70
have been reverted. ouppotc, Thar in-
ltead Of q prolpsrcuS and lncrsaling com
mrrce, The had uttered the ruin OF her