The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1837-12-20
POLITiC.AL.
THE DIVORCE BlLL.-NO. s.
o The Editor ef the Penasyiranian:

naue 'he hasls of bank loans, IN lis direct
operation on the community, and have en-
deavoref 10 show that il not only stimulates
an undue aud mischieyous spirit of specu-
laiion, hut inevitably producers reactioii and
general prosira,ion. In fact, the system
is one under which it is impossible for val
ues of amy sort To remain uniform. Its di-
rect and necessary cfiec, is To keep the
measure of value constantly on the change /;
at one period increasing the quantity of
money with progressive rapidly, aud IN
ducing corresponding rise IN the price
of commodities; at the next, torcihly with
drawing large amounts from circulation,
aud bringing down prices by taking away
the meuns of purchasing, aud increasing
he necessity for sales. Yet, strange ne it
may seem, 1t is the operation of this sys-
TEN ON commercial enierprIze which has
gained for ii its most influential advocates
Looking only at its first effects, or referring
those which inlluw in their train To uncon-
nected and accidental causes, they mistake
the excitement of fever for the elasticity of
unbroken health, and give the name ut dis
ease only to the debility which precedes re-
covcry.
But we are not 10 observe the system in
us bearings on the community alone. The
primary object is tho safe Keeping Of the
Government funds, aud the consequent sup
port of public credit: all besides is Dci-
jental. We have seen that in the custody
of the banks under the Deposit system the
moneys are most safe when leas, wanted |:
let us emigine case IN which they would
be wanted suddenly, aud Ia large amounts.
IL Is but ahont two years ago that dur
ing the interruption of our relations with
France, accounts reached us through the
newspapers that large fleet had sailed
from Brest, bound in tho first instance 10
the West Indies, hut with an ulterior dcs-
tination tn the coas, of the United States
Let ms suppose that this feet had really
made it's npprnrauec in hostile character
before New York. We can have no diff
Guilty IN experimenting the Instant effect a
such an occurrence on all the pursuits an,
energies OF the naiion-ibc gathering 0l
troops IN every quartcr--ile Iiasiy accumu.
laiion of all the means of war--the buslIe
of our dock yards aud hrsenals-ihe EN-
barge Of our por,s-ihe impressnl-nt oi
vessels for the transport scrvicc--ihe np-
preparation to public use for the time ol
every steambont and railrond car-ihe
wasiefulness of general alarm, where Doil,-
ing had been prepared for defence, aud
every thing was to he made ready at what
ever cost, without system or fnrethought
Let us regard all this rs only The beginning
.l Issf In ,nI
slider the position Of the funds, on which
The Government must rely To meet the high
emergencies of the time.
To withdraw them from the banks, WIN
had dispersed them ia discounts through
the community, nj the moment when the
country was buckling on its armour, and
all the engagements of peaceful enterprise
were suspended and disregarded, would
have been obviously impossible. The las
effect of u hastily contracting currency
would have come ut once; individual credi
prostraied, and the banks forced to suspend
their payment after the first effort to sustain
themselves.
Thus denied the use of its accumulated
means, the Government might seek re-
would be impraciicuble for the means o
lending would bc gone in the general con-
traction Of the currency. With Treasury
Ioadedby The commercial aud speculative
excesses Of years. and without dollnr al
national debt, we should then present the
spectacle Of a nation brggared by It's very
abundance, and with its resources untouch-
ed, yet destitute Of credit.
! IL amy one doubts the correctness nj
these opinions, ] would call his aItrniior
to the existing circumstances of our coun
ty. They present happily a less ipjuriou
result Of the Deposit system, but one e
qanlIy marked aud full Of admonition
We have seen the dcposi, banks unable, IL
spite Of the most strenuous and honest ex
erlioo, to pay over the public moheys nfic
ample notice, and acceB'ing n, the hand
Of Congress heightened credl. on the bal
auces winch they owe. To enable then
to 90 on curailing their discounts wiibou
utterly prostraiiog their debtors, we bnv
found it necessary TO suspend the collection
Of the duty bonds, md virtually to revers
the order in which debts TO the Covernmcii
aud To others have hitherto been paid. Il
a word, we have heen compeIledio to dispens
, with nIl the revenues Of the government
The past, because they were in the hands q
the banks who could not restore them
the present, because they could not be col
lecied without confirming the insolvency q
the banks ms we'll as Of their debtors; WI
are actually issuing Treasury notes, an
cog sging as Nation to pay our debts at
dsisn, time, when, but for the conseqsen
ces of the recently exploded system. the.
nigh. be liqnIdated nj once from the nc
cruing revenue, without drawing on ou
accumulated depcsites.
Such has been the result Of the latest ez
pertinent in the safe keeping of the p.bi'
moneys; and IL is 10 this that Mr.. Rive
.,d Mr Tsin,ndg~ is.ifr the r-n~p~d 4,