Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1838-01-10

I, ded az evils 10 warrant an attempt to
| annihilate all credit IL 10 the char
acteristic of man, and of no people
more than our own, and regulated oy
a prudent forecast, no disposition Is
more commendable to anticipate CO.
ming events, and risk the present upon
the realization of their hopes. This Is
speculation and the American people
will have lost their energy and enter
prise when it ceases to be a predicate
of them. Speculation will exist as
we'll without Bank. as with them, and
in either case, the issue will be some
times unfortunate ; and then those VINO
4 decide upon an enterprise by the event,
will arraign the prudence oil the ad'
yenturers. But, what IS moro TO the
point to remark, is, that, as without
Banks there will be speculation, and
speculation in which large numbers
will be embarked, so, when the result
is unpropitious, there will be complaints
Of artificial prices aud disturbed ur-
rency as well in a community in which
there are no Banks, as where they ex.
list. 1t is not in the power of legisla-
ton to guard effectively against pecu-
mary vicissitudes, and to attempt to
prevent their occurrence by shutting
up the Banks, would add immensely to
the burihens Of all profitable industry,
without the recompense proposed in
security against reyerses.
Among the causes Of the recent con.
yulsion, certain measures of the Gene.
raj Government must be regarded ds
not the least influential. The e
sures alluded to were, doubtless, ex-
pected to answer valuable and impor-
tant ends and their disturbing inAu-
ence in other respects was not design.
ed or anticipated. The Executive
Order, commonly known as the Specie
Circular, however salutary, consider
ed in reference to its immediate objects,
had the effect to transfer specie from
points where it had accumulated by
the ordinary course OF trade, to points
where it was not wanted for the cur-
rent business Of the country. This is
one instance of disturbance to the cur.
rency, resulting from tho indirect in
huence Of the measures of the General
Government. Another instance is to
be found in the distribution Of the sur.
plus revenue among the States, perfor.
ming the operation too suddenly, in.
stead Of making it as gradual as posi-.
bic. Here again the act of the Co.
| vernment came in conflict with the op.
| erations Of trade, and had the effect Of
disturbing the equilibrium which had
resulted from the general course Of
business. If to these be added the
inducements held out to such Of the
banks as were selected as de oositorics,
to exercise the power of ~discounting
literally, we shall scarcely in view Of
these extrinsic and potent causes, feel
ourselves justified in Imputing the evil
in question, to the ordinary and natu-
raj operation Of the banking sys EN-.
The large funds which the Common
wealth has dedicated to the invaluable
objects of Internal improvements, are
invested in the stocks Of our Banks.
The notes Of these Institutions have
long performed amongst us the func.
tons Of money, and constituted, and
yet constitute, a large portion of our
currency. Until recently, with a sin.
gle exception, the banks have met their
engagements with p~unctuality, and
their notes have been convertible at
will into coin. For the suspension OF
payments in 1914, the excepted in
stance, an excuse was admitted to ex-
ist in the embarrassments resulting
from a war IN which our country was
engaged, whilst the valuable services
rendered to tho Government by the
liberal use of their credit conciliated
/, friends. The ready sale Of our pro.
duce, at prices which remunerate the
labour employed in their production,
has been and still continues to be CT
: fected through the agency of banks.
The value Of property, the wages OF
, industry, the profits Of every occupa.
ton whatsoever, are adjusted under the
influence of the banking policy, and
its influence is alike beneficial to all.
To o this policy and attempt
3 to obtain a currency exclusively metal.
lie, would be attended by consequences
extensively, fatally mischievous. Oh.
serve its operation upon debtors. The
reduction of the circulating medium
would of course reduce the price OF
property /; the effect of which would
} be relatively 10 augment the debt to be
! paid. And thus a debtor, whose en-.
gagements were considered light when
they were contracted, might find his
whole means had become inadequate,
by a revolution in the currency, to the
payment Of his debts. The citizen in
the case supposed, might well arraign
the Justice of his Government. that. by