Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1838-04-19

lion 10 the government. The distribution OF
The surplus is over, because thcro is no lon
ger any surplus to distribute but the great
on the southern and western
frontiers operate as injuriopsly by requiring
the transfer Of so much revenue from the
points where il is collected. Lastly and main II
iy. the alarm about bank notes propagatec by Il
the government, has been deeply spread
the country, till what was at hrst
a passing outcry, has settled into an lmpiaca' !
BILE hostility. No man, think. can doubt tor
moment that the Executive Of the United
States seeks to maintain his power by exch'
ing popular passions against the credt sys'
ten--and that the whole influence ol tho go
vernment is employed to niuse INTO ,he
minds Of the people, distrust and hatred oi OIL
banks. For this purpose, the most INSANE
rawlings are addressed to the cupldity OF The
ignorant, who are taught that gold aud silver
are the only true riches, and above all, that
these shrewd metals would enable US to out.
wit the paper dulness Of England. "oir'
said lately one of these politicians III the Sc
nate of the United States, "Slr, man loses
all by any circumstance that but for that CIT
cumstance he would have made. Although
England is paper country, get u lre ictre er-
ciusiueiy metallic country zoe should m"ht
more out of our intercourse acih her. hno
why should We, because she chooses TO mann
herself by her paper system, follow her exam
pie ?" The government, 1t may be said, is
comparatively harmless, because It's expendit-
ures exceed its income. is regular income,
no doubt-but while it can pledge the public
credit for treasury notes at high rate OF IN
tcrest, by which every mans property Is
morlgaged and buy specie with them, there
can never be wanting the means OF "pPress-
ing the banks. There is therefore no one CIR
cumstance which occasloned the suspension,
sufficiently removed to justify change, al"
the most prominent cause remains WIN "
creased intensity. Accordingly
II. The credit system Of the United States,
and the exclusive metallic system, are now
fairly in the field, face to face with each o'''-
err One or the other must fall. There can
be no other issue. 1t is not question OF
correcting errors or reforming abuses, out oi
absolute destruction not which shall con-
quer, but which shall survive The present
struggle, too, must be final. If the banks re-
sumo, and are able, by sacriii ing the com,
munity. TO continue for few months, 1t will
be conclusively employed at the next cleo
tions,to show that the schemes Of the Execu-
tive arc not ms destructive as they will prove
hereafter. But if they resume and again arc
Jnice at this new triumph, and they will iai
in the midst of universal outcry against
their weakness. This is perfectly under
stood, and accordingly all the influence OF the
Executive is directed TO drive the banks, by
popular outrage and camor, into premature
resumption-not n business resumption, ge-
neral and permanent-but political ana
forced resumption. which may place them at
the mercy of those in power. Those who
have special charge of these interests, must
then beware of being decoyed from then
present pvsii;ioH. They are now safe and
strong and they should not venture beyond
their cntrenchmen,s while the enemy Is III
the plain before them. If they resume, one
of two ,hings will happen-their notes will
not be received by the government. or they
will be received. ifthey are not received
the government, to the extent Of the revenue
will force the holders OF the notes to draw
specie from the banks, 10 be deposited WITT
tho collectors of the revenue. For the dii
ference between the revenue and the ex
penses, the government will issue Treasur.
notes to be sold for bank notes, and convert
ed into specie, and as the disbursements arr
made al points on the frontiers, remote Iron
tie places Of collection, it will not return t
the banks issuing 1t except circnitonsly.-
as formerly be deposited in banks and draw
ont again SO as to enter into the circulation
leaving the public creditor his choice of spe
Gle or notes, but they will be left in specia
deposit with the receivers. When warrants
are drawn on these receivers they will cal
on the banks Cor specie 20 pay the favored
public creditor, selecting, of course, the bank
on7whom they will draw according 10 ITS ser
Witty or opposition 10 the Executive, ant
thus placing them all under his control. Now
under such circunsta nces, Is il wise Tor tht
banks To dsnrm themselves in presence o
their enemy?
III. The disorders Of the currency lie TOT
deep for superficial remedies, and these pal
liatives rritate without curing. Congress
aud Congress alone, can apply adequate re
lief What Mr. Madison said to Congress II
1916, is even more true in 1888. "For tn
interests of the community at large" sal
he, "as well as for the purposes Of The Frea
sury, it is essential that the nation shoul
possess a currency of equal value, credit an
use, wherever it may circulate. The Con
stitution has entrusted Congress eJrcinsirttJ
with the power Of creCting and regulating
currency of that description" The only re-
form in the currency which that body has
vet made, is the issue Of ten millions OF ire
dcemable paper money, and pr"posai foi
ten millions more. Is it worth while, them
so long as Congress fails to exercise its le'
gitimate powers, to waste the strength o.
the country in efforts to accomplish what We
all know to be unpracticable? To resume
now without some clear understanding will
the Government, seems TO be throwing ava!
the benefits Of experience, and the lessons O
misfortune. We have gone through all th'
modification and all the Inconvenience o
suspension. Let us cndeavor to profit b.
them; to fix the future on some solid basis
have some guarantee of the stability OF thu
currency, and not set every thing sfoat agaiI
without knowing where we may be drlfted.-
For
Nv. Compare the situation Of the banks a
the last resun ptioD and now. After sus
pension for nearly three years, Congress ap
piled all its powerto induce, TO persnade,an
~ assist the hanks in their efforts TO resume
They passed the resolution Of 1916, author
izing the receipt of the notes Of specie payin.
banks. But this alone was insufficient: en'
et the samo time they established the BanI
of the United States, with capital Of thirty
five millions. That Bank called a convention
of state baaks. and agreed that if they woul'
resume speeio payments, 1t would
4 Assi,iuo al their debts 70 the govern