Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1837-11-15

their course of dealing since the sus.
pension, eyinces the strongest purpose
to do 50, at the earliest practicable day.
The Secretary of the treasury tells us
in his report, that since the suspension
Of payments, "the policy pursued by
most of them, has been favorable to an
early discharge Of their engagements
to the Treasury, and TO a resumption
of specie payments" And again, in
proof of that position, he says, speak
ing Of the deposite banks, since the
1st Of May, their discounts as a whole,
have been reduced about $40, $685. ZIG
and their circulation, $4,99l, 79l -
and their public deposites, $15,607,
BIG, while their specie has been dimi-
nished less than $4,000, 000." Such is
the encouraging account which the Sc.
cretary himself gives us Of these insti-
tutions. We have already seen the
great reduction in exchange since our
session began, %evldencing the rapid ex-
tinguishment Of the foreign debt and
the effects manifested by the approach
ing market for the southern staples
Even the presentation of the bill for an
issue OF treasury paper had an effect
in bringing down exchange. Putting
all these things together, we may safe
ly argue, that the evil day is passing
by and all that urge upon you is to
keep hands off, and let very well alone.
The resolution of 1916, now in full
force, had the effect at that day o.
bringing about a general resumption oil
payment by the banks. 1t will do SO
again, if its operations be unaffected.
have shown you already the promise
under 1t. But the bill proposes to re-
peal that resolution, as the first step in
the policy of the new law. Then, the
attitude of the Government towards
these institutions, was one of C
agement and confidence. 1t offered in
ducements to them to resume, and in.
vited back the confidence of the com.
munity. The wisdom Of that policy
was manifested by the result. Now the
very reverse is to be attempted in lieu
OF confidence we present discredit-for
encouragement, menace Instruction.
| need not add, that the same end can.
not be obtained by such opposite means
But, again, sir, there IS in this bill
an entire departure, from the great 81
leading principles of the late admins
tratlon on the subject of the currency.
| looks no farther, thar to a supply of
specie for the Government and its de-
pendants. There is no account taken
OF the more important object of infu.
sing specie into circulation for the com.
NOR use of the people. Then the great
effort was, to enlarge the specie basis,
by the suppression of small notes.
Tho Government as the greatest cred.
ltor ofthe banks, sought to effect this
by the control incident to its large
deposite. The banks were encouraged
in every way to co-operate-and the
States were appealed to for their aid,
IN the common duty of a reform in the
currency.
Many Of them, where there was a
bank issue under five dollars, met the
appeal at once, by a direct prohibition
to that extent.
But the State of Virginia went far
Their. She had long since realized the
benefits of a specie circulation below
five dollars, by a prohibition OF all pa
per under that amount; and on the We.
r " n ROT n1oac,on u,hnr tho ,Lnrtor. af
her banks would be reached, so re-
Gently as during the last winter, the
prohibition vas extended to ten dollars,
and to take effect at an early Gay.
These were the measures then con.
templated for the improvement of the
currency, and begun to be carried out
by the powerful aid ofState legislation.
Why are they to be abandoned now ?
1t was admitted then, and is beyond all
question true, that specie either in gold
or silver, will not circulate blythe side Of
paper. lfcxperience ofthis were want.
ed IT is abundant in Virginiain reference
to small notes (; as soon as they were
expelled by her law, silver took their
place. And there is no doub, that If
her policy could be carried out, by the
expulsion Of all paper under twenty
dollars, that gold would flow at once,
into the yacan channels. All this can
yet be done, by a simple adherence to
the original plan. But your policy is
in utter disregard Of all such intent.
The great forcing process now in
contemplation will work the very re-
verse Of what was then so strenuously
urged. 1t will put allour golden dreams
10 flight, of the haIcyon days of hard
morey 4; and the States will be com.
PEELED from sheer necessity, to ~licence
once moro the very lowest issue of bank
paper. Seeing these things as | clear.
y do in prospect, under the operation
of the proposed law, | can have no
choice but to raise my voice against it.