Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1837-11-16


Thug more due from the banks TO the epnnnuniiy
than from the latter Ia the Turner. saw, III tins
reciprocal relation oi debt and credit, that the d-.
,nand et the banks the community WIS greater
than the amount OF rhcii notes IN circulation could
and absorb and that, consequently, so long rs
their debtors solvent and bound to pay nj short
periods, their notes could never fail 4" ! G
NJ near par with gold or silver. also saw that
their debtors were principally the merchants, they
would take bank notes TO meet their bank debts, and
that which the merchant and the Government,
! which ne thu great meme. dealers take, the
rest oftlie community would also take. Seeing
all this, clcl, perceived that ,cll-sust,nng prin-
cipr which poised and nupcllrh the system. self
h1aneed IN The midst OF the heavens. like some ce-
lciial body, with scarcely a pctcepthle deviation
from lis path from the concession !, had received
Shorty after tile termination oi the war, specie pay
nen,s cocreod with ms by the establishment of
a National Bank, aud few ye,r, at,twn's IN Great
Britain, by act Of Parliament, In both conutics
the restoration MS toowc by WIDE sprca1 DISTRESS
as /, always mnst when effected by coercion Tor the
! SIMPLE rcasoH thu banks cannot pay unless debtors
first pty; aud that To coeree the banks cempels
Them Ia coercr their debtor, before they have the
means to pay Ihen failure must be the consc-
queucc, aud tins involves the failure Of the banks
themselves, caiSins, III the consequences, universal
ds'frss. Hence AN opposed To all kinds ol cnet
ION, aud am IL favor Of leaving the disease 10 tnr,
With tn ae,ion OF public sentiment and the States,
10 which the banks alone responsible.
But 10 proceed with my narrative, Although
specie payments restored ia,d The system APP
pateully placed Whrrc it before the suspensions
the r'ea capacity proved 10 possess OF sustaining II
sell without specie payments was not forgotten BY
those who had its direction. The impressions that 1t
was indispensable To the circulation OF its notes tia,
they should represent the precious metals was obilc-
rated and Hcg rc2afdsd rdttfr restrictions
he licc and rQfubi, operation II He system Than as
The e,sans u ia security. Hence feeling oil opro
s,n to gold and SILVER gradually grew mp on the
/ a, ~ ed an, a
followed BY n moral resistance 10 specie pay.
mcnts, II may 81 express myself winch III tet sus
pended, IN great degree the conversion OF Then
notes INTO the precious metals long before the pre-
sent suspension. Wit, tln growth ri this iceue
banking business assumed holder character, aud
its profits proporlionHhly en,rped and with It
The tendency OF the system 10 increase kept pace.
'rae effect uih> displayed nsef in striking
manner, which was followed by very important eon-
sequences, which / shall next explain.
II so happened hai the charters OF the Bank of
England aud the late Bank nl the United States fN-
pred about the same tune. A. the period approached
feeling OF hostility, growing ont OF thr e1nscs Just
explained. which had excited sti1ug deste ia The
community, Who could NOT participate III the lrntis
of ihcsr two great monopes, to throw OH their re-
Siraint began to disclose Itself against buh insi-
lions la Great Britain II eruInntedln htcakiug The
exclusive monopoly The Bank ol England, aud
narrowing greatly the specie bisls OF the system.
by making the notes OF the Bank II England legal
tender IN all cases, except between II aud It's credit
ors. sudden and vast increase OF the sys'en, "nha
great iiminl ton oi the metallic basis ~ proportion
TO bnnbing transactions followed which have shnckcd
and wrake ned the stability ol thu system there
With ma the rpsn WAS different 1'ls bank fell nm
der the hostility. All restraint the system
removed, and banks shot up IN every direction al
mos, Instantly under the growing plulso which |
have explained, and which. wnh 1hc ciircs STAT
81 WHEN FIRST addressed The Scnar on ihi, aurs-
ton il tie cause of TIC present cAlaS,rophr
WITH II commences tIr fourth of the system.
which we harr inst en,cred--an era OF Struggle aud
conflict and changes, Tie system can al, incc no
further in ony country whotu great aud radical
chanpr,. II has ronr To \ stand The conflict be-
between metallic and bank currency, which have
show to be- Inherent ia the system las in the course
OF time aud with the prog rrss OF events become so
deadly tn, they must separate and Que OF the 9th
cr fall The DEGRADATION, of the value of the metals,
and their almost entire cypnl ION from teir ,,,pro-
pirate suh,,c A. the medium of exchange and The
standard OF value have conc so ft under the nee,
sarv oprration of the - M, that thy are no onrtr
suicirnt 10 form the hasls of the .ity extended
system OF banl nv. Fran the t,,t ilIa gri,iiat,on
%, The .ys,,n, h,. bc,u IN on, direction 10 Esstse
ujh ne use 81 lic metals and hrnre tn. descepi
FROM a bnuk nl ,Irpo,itc To one of discount and
hence from hem, the rcftc.,utaiy, thrir mates
have become the substitute Ion gold and silver aud
hence finally its present tendency to "A mere paref
engine totally Sep rated from tie metals one law
has steadily governed the y.tcn ,hfouelmnt-,he
enlargement OF us profits and influence and under
iiai oprr,ion tbyuuph vh,, metallic runcncy be-
car Insufficient for cirr ulai on IN, become IN It's
progress insufficient Tor the basis of banking opera
nous so much so ,hnt If sp,ce ta,ncnts wrrc RI
stored i, wnuld h. but nominal and the system
would IN a few wears on the FIRST Universe current
sink down again into TIA p,rsen helpless condition.