Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1834-03-06

Of time,) the experiment will cost the
country more than two hundred millions
Of dollars.
] am aware that gentlemen natter
themselves that the prescnt state of things
II left TO itself, will find a remedy for it.
self, and that il will cure its own evils.
But how is thus possibei Look at
what has been the means Of our nnionaI
prosperity, and then look at what is 10 be
a substitute for those means, and say fit
be possible? What were those means,
We had national currency, really na-
tional-a currency that was gold and sill
yer, or its equivalent, all over this coun-
try: still better, currency that was gold
and silver on the Exchange of London,
in Paris, and all over Europe; a currcn-
cy that was gold and silver in Calcutta,
and all over India; a currency that was
gold and silver in Canton, and all over
China; currency that was gold and
silver with all the commercial world. -
And this confidence in this currency was
warranted and merited, by the solidity
OF its foundation and the prudence of its
management. This currency was the
cham, the golden chain, that bound in
dlss"luhly together all the parts of that
system which produced the national
prosperity, the facility OF exchanges, The
system Of credit, and the confidence of
the capital of the country in that system.
Now what is proposed as a substitute
for the means TO The same end? 1t is
admitted that national currency is in
dispensable; and currency that will
command the confidence of the capital
Of the country. What is proposed rs
such currency! Why, the local pa.
per Of local banks. The project is per-
iectly prepos'erous. 1t is an impossible
ity in the nature of things to make local
paper national currency. Local paper
Is "A local currency, and it can be moth
ing more. 1t is currency, within the
limited circle, of which the local bank is
the centre; but beyond that circle it is a
mere commodity of merchandise, and
must be so, and can be nothing else.
Talk Of ma ing local paper national
currency-you might as well make the
rags of which the paper is made a ma
tional currency.
You admit, then, that a national cur.
rency is indispensable, and such an one
as will command the confidence of the
capital of the country. 1t is evident
that local paper cannot be such cur
rency; and you propose no other. The
conclusion, then, is inevitable that you
leave the present state of things without
remedy, or the possibility Of remedy,
by its own operation.
| ! am aware also that some gentlemen
hold that the removal of the deposites
could not have produced the present
state Of things, and that it must have
been produced by other causes, or some
other cause. What other cause? If
we ask, they reply, by the L. S. Bank
calling in nine millions of its loans-
How Is it possible this operation could
have produced this state of things? BY
the by, they have called in no more than
they have paid out, or are liable to pay
out at any moment, and that moment un-
certain; but suppose they had not paid,
and were not to pay out dollar; how is
it possible that the abstraction of nine
millions from the circulation of this gre at
country could produce this state Of things.
! Recollect that there are four hundred
other Banks in the country, all of whom
have out loans; that there are vast
number of private bankers, all Of whom
have out loans; that there are thousands
upon thousands Of private money-len-
/ ders, all of whom have out loans; that
! England has a vast amount of capital in
this country, on loan; that all this goes
i to constitute the national circulation,
and TO swell its gross amount. Why,
that nine millions, II distracted from that
total circulation, would not amount to
one per cent thereof. Can such an abb
straction have produced such state Of
things? No, it is impossible.
\ Shall here be met with this question ?
If the taking by the United States Bank
of nine millions from the amount Of the
rational circulation, could not be the
cause, of this state of things, how could
the taking by the Executive of nine mil
lions from that Bank be the cause?
answer it, it was not the removal of the
deposites on the amount Of the national
circulation, that was the cause, but its
effect on the fears of the moneyed CAPT
tai of the country. Moneyed capital is,
in its nature, distrustlul and cautious, and
apprehensive, and easily alarmed. Al
ways acting on its own strong instinct TO
self preservation, it is always upon the
lookout for its own safety. 1t never
waits to be apprixed Of danger by the
danger itself, but sees il altar of, and
guards against i accordingly; it sees the
coming storm in its precursor, the troub-
led sky /; and il sees q troubled sky when