Vandalia Whig and Illinois intelligencer. [volume] (Vandalia, Ill.) 1832-183?, 1834-04-24

discounts. HIS plan, therefore, was 10
compel reduction forthwith by removing
the deposites. This is demonstrably
plain. 1t admits of no doubt " natever.
The extent of reduction necessary toI
produce this effect, was consequently
the very extent Of reduction which the
secretary meant to force upon the bank,
and by reduction short Of it less than
he intended. Now, it is equally clear
that nothing could call in the whole cir
culation, but calling in all the discounts
and closing the bank. With the first
discount the first bank note went OUT
The last note may be expected to come
in with the last loan that shall be repaid.
The secretary's plan to take all the
notes out of circulation before the Sd
Of March, 1886, was therefore plan TO
call in all the discounts before the same
day; and in what way sixty-four millions
ofdiscounts, the amount in August, 1888
could be called in, in thirty-one months
at less rate than two millions per
month, remains to be shown. 1t is i'm
possible to show it. The bank has not,
in fact, called in ten millions in six
months; and more than what she has
called in has been taken away from her
by public and private dep"sitors. The
rate Of reduction has been less. consc-
quently, than the secretary's plan requi-
red, and there must be more reduction
if the bank does not mean to defeat the
plan Of the secretary.
One alternative only is then present
ed to those who object to the reductions
Of the hank. Either the bank has not
yet reduced enough, for she has not
been able to reduce her circulation at
all, or the whole scheme is exploded
the instant it is subjected to practice.
1t is obvious that the only measure
which the secretary deemed repugnant
to the interests of the country was the
extension of discounts by the bank, or
the continuance of their amount as it
stood at the time Of the removal. Re
duction was ths agent and the only a
| gen. that he intended to use. If the
plan Of the secretary is TO be defended
and maintained, complaints OF rcduc
ton by the bank, far greater than she
has ordered, will be without color of Jus
tification, since far greater reduction:
will be necessary to effect his plan. If
on the contrary the plan is to be aban
doned because it is utterly impractical
HE, it ought 10 be wholly abandoned
and the path Of wisdom as well as o
Justice will then be found in return tc
the point of departure. The fact IN
quesionably is, that the removal of. the
Ideposltes, the reduction Of discounts
and the consequent reduction Of the
hank circulation, have been considered
without the slightest reference to the
complex state Of peculiarly relations
existing in the country. The whole
process has been regarded as mechan-
cal affair, of which all the details would
quietly come out as necessary results OIL
the first measure. No allowance has
been made for the consequences of con-
fdence broken up, Of the interrup,,or
Of that regular series of receipts and
payments, by which the resources Of the
creditor and debtor are alternately re.
paired, Of exposing to trial or even te
suspicion, the fragile virtue ofthosc state
banks that are able to live upon theiI
reputation merely because it is not ques
toned, and of attempting TO take out q
powerful machine, while it is in full op.
GRAFTON, the wheel that balances, and
regulates the whole. No allowance has
been made for any Of these consequen.
ces, by those who have led to their &C.
currence; and now when we are sur.
rounded by them, and cannot escape
from them, eventhe plan which has eau
sed them is forgotten in the censurc @:
the bank for conforming to it. The
bank is but travelling in the path which
The secretary prescribed, and to which
the removal Of the deposites, and the
collection of the revenue through other
hanks, must inevitably conGne her,
Her resources for general relief have
been taken away, and given to those
who cannot use them. Her ability t.
secure the return of what she lends il,
the sound currency in which she lends il
is also gone. The whole country per
ceives that what is wanted is security
for the future; and while the plan Of
the secretary shall be prosecuted in any
of its parts. the people will not believe
that single day Of the future is secure.
This universal distrust and apprehen.
sion, and not the operations of the bank,
will he received hv th., d;a,.,,;.