True American. [volume] (New Orleans [La.]) 1835-18??, 1837-03-11

LlVeTpoOl, Zee. ou lOoO.
TO THE EDITOR OF THE ALBION.
Dear Sir,-In my letter, in explanation of ga
Prospectus OF the United Danksof England" which
appeared in your paper OF the 28th November, to
save your columns and the patience OF your ren-
ders, i was obliged to omit some remarks wish
ed 10 make on the sPrincipe of Currency adopted
by the Bank of England, and the much debated
subject ola demand for gold for expor,niion-the
latter, tho acknowledged of ,nnumerabc
losses to the commercial and trading classes of the
community.
Demand FIR Gold for Erportation.-I shall en-
deavour TO explain my IDEAS of its natural Effects
of its effects resulting from an artificial system OF
credit-how these effects mil llt be nritigatcd by
powerful body commanding and regulating the
circulating medum--and how these effects ag-
gravated for evil Ly the system Of policy adopted
by the Bank of England. shall also endeavour
to show, that in the application OF. her principle
of Currency to practice, the Bank Of England vIo-
lates the fundamental and most valuable essential
Of that principle, which is, 'rhat the public shall
have cause Of complaint. by finding that some
pernicious feet shall attach to the issuing of nptes
that would not have occurred had the currency been
cor fined to god
Surprising there was no paper money, no bills
of exchange, nor mercantile credit, and we were
a nation trading with so millions OF soverei gns,the
natural effect of The large and continued expert
ton of sovcrcigns would DO a reduction in prices.
AS no man would owe anything, tue principle that
would check an immediate or sudden reduction OF
price, would be, that man would part, at loss,
with any commodity he held, unless from pecu-
liaf Circumstances, such as for immediate subss-
tencc, the article pers!lahe, the expense
| OF keeping would exceed the present loss, or he
Could import II cheaper, or he was obliged TO be
continually producing more, and must Keep his
works aud machinery going. This is the CASE
with owners of mines +
| M man would be imme diauly compelled to part
with any commodity 10 meet his cnga gements, hi
would have no engagements 10 meet; prices would
from the scarcity OF money, inbiy loweri inn
ports would be lessened; lower prices would IN
vito foreigners buy and increase exports; and in
the end, no doubt, sufficient quantity oil, sover
eigns would return to put US ON par, as to abun
dance Of circulating medium and prices, with ,ha
commercial world generally, and especially Eu
| rope.
| The fleets produced upon prices by contrac
ton OF the circulating medium, under an nrtihcia
system OF credit, is greater and much more rapid
! In addition TO all The motives for selling suggested
above, aud the necessity OF tnkiag lower price
| from the fact Of there being less money to bu
with, there would exist this stulating aud power
full motive for selling, the necessity tor meetin!
engagements. This urges men to sell, at what
ever The price, rather than stop payment. Tm
| artificial state nccelrraes the fall OF prices, an
the larger the stock OF commodities, the create
the amount Of aceeptances outstanding, the NOR
| rapid, the greater WILDE the fall.
Al ttlis sidlc VI tnIngs3 VoSCbS WIZ oh't
from necessity, for immediate Use or consumption
the amount Of transactions will be diminished
fewer inland bills, Of less amount. will be drawn
imports will be diminished, flor the price of for
eign comm oddities will nc, fall abroad in the sam
ratio they fall in England, forthe same circu'n
stances will not exist) and the trading capital D
credit, existing in the shape Of bills of exchange
will, in the course Of two or three months be fear
fully diminished to an amount tar greater than til
diminuion Of circulating medium occasioned b
the exportation Of gold. This diminutien, in til
a much greater proportion Of .wha, previously g,
listed, than the proportion of sovereigns expnr,e
bear TO the sovereigns previously in circulation
The reduction in prices will be far greater undo
this artificial sy stem than under the system Of a
sovereigns, and no bills nor credit. Sucha lin
is the harvest for moneyed men to step in, an
buy, commodities at very low price, th cir gain
sure, time only is wanted.
TO be continued)