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

The answer to the Two first inquire,
Is very simple. Specie will continue
70 be merchandise, so long as there eg.
lists any demand for il greater than that
which would invite or retain il in cir
culation. 1t was driven out of circu-
lation by the demand for expectation,
after the business cf the country had
realized the fact, that, our exports
were insufficient to pay for our imports.
The balance must be met, and the pre-
cious metals were called out of circu-
lation to answer this new demand. Ii
is a necessary and fundamental law OF
currency that where you have two me.
d,a, Of which either answers all the
purposes of exchange. and one ofthem,
besides those purposes, win answer
another purpose rs a subject Of trade,
the latter will fly at once 10 meet the
new demand, and leave the duties of
currency exclusively to its fellow.
So it was between the paper and the
specie, when, by the ~cxigencies of trado
the latter was suddenly called off to
meet the new demand created by tho
necessity il commerce, of extiuguish-
ing the balances against our importers.
There is no mystery in all this. Im-
ports are to be paid Tor from two SOU
ces alone. BY the produce and labor
oil the importing nation, or by gold and
silver; and whenever the former is
found inadequate, the precious metals
must make up the deficiency.
Thus stood the country when the
banks suspended payment of specie
They had an agency, and a large agen-
cy, ! grant you, in bringing that ne
cesslty about; pampering, as they did,
the pride OF commerce. They met all
It's demands, honored all its drafts, as
well IN the rage for importation, as ia
those extravagant spesulaiionsto which
the apparent prosperity ofthe age gave
immediate birth.
But the banks are not alone 10 blame
in this. Ii is due to the occasion, and
will aid US in searching u the true
remedy against a recurrence, to admit
candidly and fairly, that the Govern
ment itself saw as little the mischiefs
that would follow from the extension Of
their credit, as the banks did them
selves. II is a part OF the history of
the times, and should be recorded on
the same page, that hen the dcposites
were given to the State banks, they
were expressly instructed 10 make them
the basis Of new incentives to CONNER
cial enterprise.
! do mo-, speak this at all, sir, in tho
spirit Of rebuke-far, very far, from it.
| adducc il only to show, that the Go.
%verninent itself against whom, as some
have said, the banks have committed
the objectionable sin, was itself active
~ insiigatlng them To that very extern
sion, now so ~zealously condemned
How far the banks might have gone in
extending their discounts, upon the i'm
monse deposite thus cast upon them,
without this authoritative hint, none can
easily tell. But il is fair and reasona-
BILE TO infer that this license in advance,
did not pass unimprcyod.
Having stated thus the actual condi-
lion Of the currency, and briefly troeea
tho causes which have led TO il, let US
inquire next what will be the probable
operation Of a law, that takes no &C.
count Of its enft ebled state, but pc.
rcmrtorily demands, after a given day,
that the entire revenue, amounting 10
some twenty millions Of dollars per ap-
shall be paid up in gold and sill
yer. One necessary consequence, in
my apprehension, would be, offectually
to place toul Of the power fthe banks
10 resume the payment Of specie within
any reasonable time. dow can il BIO
otherwise. They suspended payment,
because of the new demand for coin.
created by the exigencies of trade
They have DOT yet resumed, because
although that demand has certainly di.
diminished, as shown by the rate of for
eign exchange, yet there is still de-
mand enough 10 warn them Of the con-
sequences Of an attempted resumption,
before the trade Of the country is in q
fit condition to bear it. Sir, the coun-
try is recovering fast from the violent
and sudden commissions into which il
has been lately thrown. Ii cannot 9TH
erwise be, when we consider the I'M
mense of this vast continent,
welded, as they are by a people, whose
industry and enterprise acknowledge
no other limit than the bounds of the
earth. But the Government must keep
its hands ofT,-time must be allowed for
the system TO react, before any new or
| additional pressure can be borne.
If the necessities of circulation aye
not strong enough now to bring specie
into general use as part Of the curren-
cy, because of the existing collateral
demand in trade, does it not necessari-
ly follow, that any new demand will
- - nc 1917 49,