Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1837-03-03

the Secretary oil the treasury, tnut the "
mount Of bank capital has increased, since
the veto onthe bank charter, from two hun
bred millions to three hundred millions~-an
increase Of fifty PER cent and that the CIR
cuation has increased in the same ratio,
viz from eighty millions 10 one hundred and
twenty millions
concur with the Senator from Virginia
in the position, that no state of things is more
calamiious than that which accompanies a
decline in the circulating medium of the
country: and the degree OF distress is in
proportion to the rapidly OF such decrease
while, on the other hand, the prosperity Of a
country is never at least apparently greater
than while the amount of its currency is on
the increase. But does any man suppose
that this can continued Can any rejecting
man persuade himselft that twenty-six distinct
and independent States, looking each one TO
its own separate interest, will exercise such
forbearance as not TO add bank to bank, and
increase the paper circulation within its lin
its, till the country will be involved in the
danger Of some great calamity2 greatly
fear it, When or how il shall come, no one
can exactly foresee; but we can all imagine
that, if there should occur great failure, OF
a great reduction in the price Of the Southern
staple, or (what is now threatened) a general
return Of American stocks which have been
sent to Europe on foreign demand, from
any cause, of large amount of the specie in
the United States. the necessary consequence
would be such run upon the banks as may
cause general suspension OF specie pay
ments, if not the bankruptcy Of many of the
banks. What is their present condition e.
,,,fhonf nj
mutual confidence. The moment there is a
great and sudden demand 10 meet cores
bonding demand abroad there must ensue
general panic throughoutthec country. Each
bank being necessarily unabeto measure the
exact extent of the demand, will, Of course,
call on its old debtors, and the same thing.
for similar reason. taking place in all the
other banks. there will probably be gener-
al sioppage Of payments and universal bank
ruptcy Was not all this foreseen2 Was
it not foretold? Were gentlemen not warn
ed, again and again, not to destroy the only
means on which we could with safety rely2
Between the system ofthe gentleman from
Virginia and the hard money system, | am
far from being sure that the latter is not
more efficacious remedy than any voluntary
action OF the States and of the banks. The
hard money system proposes that. in all col
lections and disbursements OF the revenues OF
the Government, specie alone shall be re-
ceived, and all paper of every description
entirely excluded. The object Of both sys-
tens is to retain certain amount of specie
within the nation, by the creation of neces-
sity for its use. and thus to prevent its expor-
tation: for if the Government shall decide
TO receive nothing but specie in payment of
its dues, the consequence would be the me-
cessity ofretainng sufficient amount of the
hard metals for the collection and dsburse-
ment Of the revenue. 1t might not, indeed,
be necessary to retain the whole amount OF
thirty millions. assuming that to be the an
nual revenue, since one dollar in specie
might be made to pay two dollars in revenue
But certain amount, bearing considera-
Bile proportion to the revenue, would be re-
tanned in'the country The process OF get
ting at such a result is of necessity extreme.
ly difficult and would create much practical
Inconvenience.
If specie should become very scarce the
collectors Of the Government might from me-
cessity be forced 10 receive portion of the
revenue in notes Of good banks; but il you
receive this revenue in specie only, you i'm
mediately and unavoidably elevate the rela-
tive value Of specie above other parts Of the
currency, because, while hard money would
perform all the Offices of other media of cir
culation. it would then discharge one other
Office which they could not The result
must be to create demand for specie, and
thereby render it marketable commodity
A man would not then. as now, be as ready
to receive debt in good notes as in specie
He will always want the specie, because it
would command premium Does not the
Senator perceive that gold and silver must
then cease to become circulating medium,
and converted into merchandise 1t would
be sold at an advance, and would be boarded
for that end. Yet am far from being GER
tain, if the object in view be to retain a GER
tain amount of hard money in the country,
that the remedy which suggests the exclu-
sive use of specie has not certainty of sue
cess, which cannot be produced BY relying
on the patriotism of the voluntary action Of a
thousand banks and twenty-six independent
sovereigntles My word for it, ia fifteen or
twenty years after the system OF the Senator
from Virginia shall have gone into effect al
though the same identical banks NAV not
continue to issue notes of small denomina.
ton, yet the aggregate amount of such notes
in actual circulation will not be less than it
was at the commencement of the expert
ment
But we are told by the honorable Senator,
that Great Britain and several other coun-
tries of Europe, having become enlightened
by the example of America, are disposed 10
initiate it. He told us further, that the peo