Alexandria gazette & advertiser. [volume] (Alexandria [D.C.]) 1822-1824, 1824-04-29


an when. tls 5ans stock ,tselr was not
worth cent .Vnit could have ensued or
been expected TO have ensued; but the Ut
ter d. ssrace and confusion OF such cur
rency? What but speculalions. tricks,
frau Il, losses an l iislresses OF all SORTS
Are not all the consequences now pracu-
caIy before US 3? Have they not arisen IRON
the cunning devices. " The thong htless 'g-
uoIance OF osnk che eTs!
Credit aud nouo JJly, are the great
principles OF banking. These accrue 10
the banks from the governmental acts oil
incorporation The government authors
yes the bank 10 issue bills Tor the purpose
of currency upon this legalzcd credit.
Il also authorizes he oaDk 10 issue his oills
of ere II, To three times the amount OF lis
specie capital; of course, The bank, when
in tul business receives three times as
much interest, upon lis credit, as 1t does
upon lis money Individuals can only re
ce,ve interest upon their money. Hence
one great injustice, IN :he law, against IN
djyidua,s: and IrIi able oaru lity IN Ia
yor of banks. Bank credit consists. IN
written promises upon paper, 10 Inc nolu-
or of it, thai the bank will pay specie 10
discharge OF such PROMISE, whenever lne
paper snail be presented al the 0anR ior
that purpose. These written prom'ssory
notes are caiie1 bank pills. whenever Inc
hank can obtain the belief Of the holder,
that the promise made Ia the face OF the
hank bill, will be strictly complied with,
the credll OF the bill, and consequently OF
the bank become, Consunnated. II the
nank could not obtain this belief OF the
holder Of its bill, il would be without Gre
dit: and having 10 intrinsic value III itseii,
of course valueless Solv mt banks are al
ways enap ed 20 obtain this 9eiiel 10 Coh'
sequence of their Iegalzed charters OF in,
corporation. There is one iundamehtai
and essential difference IN the currency ~
paper bills. and OF goldlsnd silver ne
paper bills hay. no intrinsic value IN tne,h-
selves. L heir value is only rePresen awe
and arises altogether from the written I'M
nressi ms on the lace OF them. Gold ana
silver possess intrinsic value. Erase tbe
impression from the lace OF oans OIL
and the paper left, would not be worm a
cent. Ease the stamp or impression from
an eagle or dollar, and it will be worth
precisely as much as i, was before; except
90 far as the actual weight mightbe dimin'
i,bed by the erasure. The value OF the
one. is in tue idea Impressed upon It.
he value of the other, is in The thing Ihe
principal advantage to the bank. and mis-
chief TO the community, arises from Inc
authority gwen by law TO the bank 10 re
ceive SIX per cent upon lis credit IN ex'
change Tor The credit OF individuals T.
very issue of bank bills is founded upon
an exchange of credit with individuals.
LIE: the illustration OF this principle be
made, by taking a view OF practical
transaction at tb. bank. The usual opera
ton i. performed by an exchange OF credit
between the bank, and the individual deal
er with the bank. The individual dealer
offers bis bill of credit 10 The bank foI
dscounting The bank gives its bill o
credit in exchange; but upon very unequa
terms. The bank deducts from the dealers
bill OF credit, at the rate OF SIX per cent
per annum, Tor every sixty days; and make
this deduction too, at the time Of this ex'
change OF credit, aud not at the time oil
the completion OF the terms OF the ex
change. THIS still further enhances the
value of the exchange TO the bank. When
the dealer puts these bank bills OF credit
into circulation. they mu'. necessarily gt
into circulation, charged with this com
pound per centage; and must necessarily
act as an indirect tax upon the contributors
of this per ceDtage 1t this most unjust
and UNEQUAL traffic continue long; and .he
bank should be honestly and JudiclouSly
coniucted, will Iot The inevitable tenden
cy. and effect he, 20 make the stockhOld'
ers rrcn; AMI the contributors poor!
rhe act for establishing the first bank Of
the United States passed the 25th Februa'
ry 1891. Without stopping, al this time
to enquire, INTO the wisdom, or policy Of
this political scheme, al the time, and un'
der the circumstances at ITS adoption,
CONCEIVE, II mas certainly been most untor'
innate, and perncious in lis practical ope
ra,ious Its first indirect effect was, Il
lay he foundation for above tour hundred
other banks. The commencement OF the
French revolution preceded ITS adoption
And from the movements ct the legitimate:
IN consequence OF that event. there wa:
every reason TO anticipate bloody anC
exlermInatlDg war in Europe. This anti
cipstion was SOON realised in the war which
tollowed; AMI which, l, is believed, wa:
) resolved upon by the legltimstes, assem-
BLEED at Pilnitz, July FL, 1871. The u
ni,ed States moi only received at enormou:
high prices, the articles Of the first neces'
silly, but sooE became the carriers, tor all
The beIligerents. 1t in THIS propl'lou:
state of things they had been favored with
the g ,od fortune, to have escaped this
banking scheme, they would have been o
verAowed with gold and silver. These
we're IN a great degree kept out Ut the U
S. by the substitution OF the bank curren
-cy in their stead. Instead OF this banl
currency without intrinsic value, all abun
dant currency at intrinsic value would have
flowed into the S. Even the position
tina, the gold and slvei. II unimpeded
would have assumed 10 the Y. States