Daily Richmond Whig. [volume] (Richmond, Va.) 1828-1831, 1830-04-30

should oe increased to one hundred million. This rise la the
price OF commode' dcpec in the value uf money
compared with them would be owing TO the wan, 81
composed IL would exist ,housh these bills were Of undoub,
ell credit and convertible into specie pleasure hold.
or ana would result simply tom the redundancy oftoir guam.
tW rs important oa just understanding of the subject
that the relative depreciation OF bank paper different p,
'e as compared with specie should not hc conioupdcd with
S "''' depreciation at the entire mass ot the circulating
UNi including specie Though ely allied both IN the
cNsrs and effects they separately considered
HE evils resulting hon the relative depreciation bank
racr AZ different places easily traced To cir causes
more Par1e IN their nature and consequently ccneray
the evils resulting from the general depreciation of the whole
expositrou.
very srrios evil already limited NJ, which crew out Of tho
relative depreciation OF bank paper NJ the different points Of
was It's eVhahe tendency to nw all the hnpOr
td'ons OF foreign merchandise the where the drrrca
ton was greatest ana divert them from those where the
cy comparatively Ifle Bank of the United States
had been established anh government had been r
without any alternative hut to receive deprecated local
currency, difficult imagine the extent which the cyn
OF the laws would carried Every State
sond have had an interest encourage excessive issues
OF us BANKS and increase the degradation OF s currency, with
view to attract foreign Even in the condition
the currency had reached 1916 Boston, and New York.
-; ""uu nave i2und II advantageous To derive
'hen supplies OF foreign merchandise through Baltimore aud
net the Currency been corrected To avoid this ipiurous d.
version Of tore'Gn imports, Massachusetts New York and
South Carola, would have been driven. by all motives of
self defence and sell interest degrade their respective cur
fencie at least to par with the currency Of Baltimore; and
thus rivalry IN tine career OF appreciation would have spun.
up wch no % can he assigned AS the tendency ofhis
state oi things would have been largest portion
We revenue 10 De collected az lew places the de-
Peccd OF me local currency It would have followed that
very small part OF that revenue would been discussed Al
the points where it collected The government wouij
consequently have been compelled heavy loss upon
the Transfer "i ITS funds TO the POINTS of expenditure The
uuaI loss winch would have resulted from these alone
cannot be estimated at less than millions of dol
lars.
But the principal loss VIII h resulted from the relative depo
cation OF bank paper at different places and its gene
raj credit was that sustained by the community the great
operations OF commercial exchange The extent otese opera
tons annually, may be safely estimated at sixty millions of
pen TINS sum the loss sustained by the merchants
and planters and farmers and manufacturers proa-
bly, less than average per cent being excess tie
rare Of exchange beyond in sound state OF
reduced % the operations OF t. Bank of the Cncd states
VIII be thus perceived, that annual six millions of
~ the large moneyed capitalists cites who
we're engaged in the business brokerage varousy su.c
GATED currency, and iuctuana the exchanges omen
wide and abundant harvest the money broker:
not Therefore surprising that they should opposed to an m
mnny rom the enormous stated has deprived of
the enormous profits which they derived scculnus in
Inc business o exchange In addition the losses
by the community in the great operations Of exchange excn
Ve losses were suffered throughout country
Gnud,cn, y,iG ill., b s '." nS'ous ctea,t ny
To ensure the redemption of their bills
But no adequate conception be .med of the evil Of
lrca'ed cuueGcy without ookl5 beyond the relative de
probation at ercnt places to the general depreciation ohe
te mass II appears ION the report OF MT Crawford, the
Secretary of the Treasury 1920 that during the general
pension OF specie payments by the local banks the years
1919 anu 1916 the circulating medium of the United States
had reached the aggregate of hundred mil
10 toryye millions OF dollars being reduction Of fifty nine
per cent IN the short period of four years The committee are
inclined to the opinion that the and distressing opera
IONS OF restoring vicious currency to sound state, by the
calling IN OF bank paper and the cuament bank discounts
ad carried the reduction of the currency, l8l9 10 point
Iower IMAM was consistent with the just requirements
OF the community for circulating medium, that bank
discounts have been gradually enlarged time,
that the circulating medium Of tive United been Ny
rage.
Even upon this assumption will follow that tic national
currency has been one HUNDRED per valuable for
last ten Than 1916 In words two dollars
would purchase no more OF any commodity in 1876
dollar mas been capa'e OF purchasing any time since 1919
IS obvious Therefore Ihat the depreciation Of the paper
partcu ar banks, at any particular time compared will,
specie furnishes no criterion by which general
depreciation of the whole currency including specie as com
paref with The value Of that currency different period
specie dollar m 1918 would purchase than hIf
| much as a paper dollar will purchase az present
Having endeavored to explain, thus briefly, tie general dc
now proceed 10 point injurious canseuuen.
Gcs which have resulted from great changes the sta
daTd Of value, winch unayolaLly TTol-d M the
l correction Of the redundancy.
An individual who borrowed sum Of money in Iarf and
PAD IN 1870, evidently returned the lender double the
value received from hn and who paid debt IN 1890
which he had contracted IN 1876 evidently PAID double tic
amount IN money IT is in tins way fluctuations in the
quantity and value Of the currency interfere,
| dnd injurious manner, between debtor and creditor
And when banks have power suspendng specie pay
mens and of arbitrarily contracting and expanding their IS
sues without any general CONTROL more dancer.
Gus ana Hespotc power the property community
than was ever eSercised by the absolute government, In
property at the mercy Of money making corporations which
have decided interest To abuse their power
By course OF liberal discounts excessive ups Tor
few years, followed Ivy sudden calling ~ Of their debts and
continuation OF their Issues they would have the power
transferring the property Of their debtors themselves amos
without limit Debts contracted when discounts yey,
liberal and tie currency Of dcprecacd would boz col
ecied when their discounts almost suspended and thu
currency Of unnaWraly apprecated IN this wa,
The property of the community might pass under the hammer
from us Tshul owners TO the banks Tor less than half
intrinsic value IL the had greatly mistaken
the matter there IS Of history than Of speculation IN ha
they have here presented TO the consideration The House
II ~ impossible form any thing like accurate estimate
81 the injuries and losses y conmunty i'm va
ways 10y the disorders and Of the cnTrsnc
n the period which interviewed between the expiration oil
bank charter and the establishment Of tire present bank
some tocaJe notion may be fpuued tie losses sustained
by the Government, rs fiscal operations, during th
war
The committee have gwen this pat Of the subject an alter
Ave and careful examination, and they cannot estimate
Pccunay losses Of the Government exclusively
the of sound currency and clicn system Of finance
az sum less than forty millions OF dollars they sa
make this apparent the House will have sOmgng Ike stan
dafd for estimating the individual losses community
The government borrowed, during the period Of th
eighty millions Of dollars, average hstec