Cheraw gazette. [volume] (Cheraw, S.C.) 1835-1838, 1836-12-20

| SiSNtSN w SSiAiS S-NtStil Jul VI
stocks. Although this proposition was re
fused by direct vote of the convention
the object was afterwards in effect obtained
by its ingenious advocates, through strain
ed construction of tine constitution. I'M
debts Of the revolution we're funded, at prl
ces which formed no equivalent, compared
with the nominal amount of the stock, ant
under circumstances which exposed the
motives Of some of those who participated
in the passage Of the act, to distrust.
! The facts that the value Of the stock was
greatly enhanced by the creation of the
bank, that it was we'll understood that such
would be the case, and that some OF the
advocates Of the measure were largely ben
eftted by it, belong to the history OF the
times, and are well calculated to diminish
the respect which might otherwise have
been due to the action of the Congress
which created the institution.
On the establishment of a national bank,
it became the interest of its creditors tbsa
gold Should be superseded by the paper OF
the bank as general currency. A value
was soon attached 10 the gold coins which
made their expectation to foreign countries
as mercantile commodity, more profitable
than their retention and use at home as
money. 1t followed as matter OF course
fnot designed by those who established
the bank, that the bank became, in effect, a
substitute for the mint ofthe United States.
Such was the origin of national bank
currency, and such the beginning of those
difficulties which now appear in the exces.
sive issues of the banks incorporated by the
various States.
Although it may not be possible, by any
legislative means within our power, TO
change at once the system which has thus
been introduced, and has received the ac-
quiescence of all portions Of the country, 1t
is certainly our duty to do all that is consist.
ent with our constitutional obligations, in
preventing the mischiefs which are threat.
ened by its undue extension. That the ef-
forts of the fathers Of our Government to
guard against it by constitutional provis-
ion were founded on an intimate knowled &c
of the subject, has been frequently attes,ed
oy the better experience of the country.
The same causes which led them to refuse
their sanction to a power authorisng the
establishment ofincorporations for banking
purposes, now exist in much stronger de.
gree to urge us to exer: the utmost vigilance
in calling into action the means necessary
to correct the evils resulting from the un-
fortunate exercise fthe power, and it is to
be hoped that the opportunity for efecting
this great good will be improved before the
country witnesses new scenes of embarrass.
ment and distress.
Variableness must ever be the charac-
teristic of currency, of which the precious
metals are not the chief ingredients, or
which can be expanded or contracted with
out regard to the principles that regulate the
value Of those metals as standard IN the
general trade of the world. With us, bank
issues constitute such q currency, and must
ever do so until they are made dependent
on those Just proportions Of gold and silver,
as a circulating medium, which experience
has proved TO be necessary not only in this,
but in all other commercial countries.
Where those proportions are not infused
into the circulation, and do not control il, it
is manifest that prices must vary according
to the tide of bank issues, and the value and
stability Of property must stand exposed to
all the uncertainty which attends the admin
istraton of Institutions that arc constantly
liable to the temptation of an interes dis:
tinct from that of the community in which
thev are established.
The progress Of an expansion, or rather
depreciation of the currency by excessive
bank issues, is always attended by loss to
the laboring classes. This portion Of the
community have neither time nor opportu-
nifty to watch the ebbs and flows Of the
money market. Engaged from day 10 day
in their useful tolls, they do not perceive
that, although their wages are nomlnaly
the same, or even somewhat higher, they
are greatly reduced in fS"t. by the rapid
increase ola spurious currency, which, as
it appears to make money abound, they are
at first inclined to consider blessing. i
is not so with the speculator, by whom this
operation is better understood, and is made
to contribute to his advantage. 1t is no
until the prices ofthe neccssarcs oflite be-
come so dear that the laborng classes can
not supply their wants out of their wages
that the wages rise, and gradually reach {
Justly proportioned rate TO that of the pro
ducts oftheir labor. When thus, by tht
depreciation in consequence Of the quantity
of paper in circulation, wages as we'll a.
prices become exorbitant, it is soon fount
that the whole effect of the adulteration i:
tariff on our home industry for the benefi
of the countries where gold and silver cir
culate and maintain uniformity and mode
ration in prices. 1t is then perceived tha
the enhancement of the price Of land an'
labor produces a corresponding increas'
in the price ofproducts, until these product