Western courier. [volume] (Ravenna, Ohio) 1837-1838, 1837-06-29

Extracts from Mr.. INERsoLL's report
in the Pennsylvania Convention on the
currency, corporations &c.
The effort 10 coin money out of paper,
is as absurd as all alchymy. Nothing
can make a promise on paper TO pay
dollar equal 10 the actual payment of a
dollar, and whenever the promise is by
law made equal to the fact, the promiser,
thus privileged, unjusiIy gains at the ex.
pense OF all others not SO privileged
Great commercial operations are doubtless
accommodated by the use of paper, as the
substitute Of coin, and the credit system,
as 1t is called, hasils commercial conven"
iences. But all paper not Immediately
convertible into coin, is Of no value, and
its credit is merely fictitious.
The reason now much urged against
hard money since paper has been s,rv-
ing to supplant il, that there is not enough
for circulating medium, is the very rea~
son for its being the exclusive standard.
1t is their scarcity that renders gold and
silver the only true money. Iron is more
valuable for the useful arts than either of
them; because it is too plentiful, therefore
is no, standard land so whenever
money is so plentiful as TO deprecia,e, it
becomes an evil.
Gold is better than silver; silver than
copper, and copper than paper. because
of this relative scarcity, so thai no scar
city of gold and silver affords any reason
Tor superceding them by paper circula-
ton.
Panic and politics exagerate the suffer-
ing; but there Is no doubt much of it,
many deserving better fortune, are inS
volved in the iuin of those, who without
either property or industry, gambled on
borrowed credit, aud are now the most
clamorous, as they are the least deserving
to be relieved. Instead of impuling their
difficulties 10 false credit, they charge
them TO the government, whose only mis-,
conduct has been, that both the states and
the United States did not sooner interfere,
and more strenuously urge the restoration
Of the metallic currency.
For the tho calami,ies and the COM
plants Of 1919 were just like the present;
and those of 1925 much the same; and
so they will continue while ever the SOW
eregnty is shared with a few interested
individuals, whether sole or Incorporated,
enjoying the power Of substituting paper
for coin, and making any thing plenty or
scarce, as such individuals choose;
No law can create capital at stroke,
which is the slow growing offspring Of n-
dustry and liberty alone. But discount
banks counterfeit capital, the stimulant of
morbid and mischieyous spoculatons.
The bank Of Scotland has nourshed
for one hundred and forty years on The
charter Of, FIRST, the responsibility Of every
stockholder for all the liabilities of the
bank; not merely personal responsibility,
but also process Of attachments; sacondly.
interests paid ON deposites; thirdly, allow.
ing deposites to be over-drawn on pay.
men, Of interest; and fourthly, giving cred
its on cash accounts. On such charter,
the bank Of Scotland has maintained its
credit unlmpared, upon the more respona
sible, prudent, and therefore safer basis,
while that Of England, chartered about
the same time, and banking with all the
advantages Of the government deposiles;
without individual responsibility, has been
often in jeapordy, seldom, if ever, able to