Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-04-30

| this aud growing county. with millions ON mil
lions u! lands o the best qualify, still lying nn'"
proved; with vast schemes ot improvements con
stantly requiring capital with the immense demand
for labor tor every branch obusness, the last ques
ton ever expected to hear asked is that propoun
by the Senator. had supposed one difficulty was
10 find capital, and not how to dispose OF H. and that
tins dllc nlty had been OF the man reasons US
signed IN favor OF the banking system,
Tho next benefit he attributes TO the system was
the vast amount OF lands. which had passed ont o
the hands OF the Public into that OF individuals ol
late, which he estimated, dntua the last three yeats nj
tbiy millions ot acres. forming surface equal IN
extent 10 England, aud which lac stated wsuld rise III
value greatly, IN consequence ol their passing into
private hands. That tins immense transfer has
been effected by the banks admit but that II Is To
be considered an advantage Ia the county, Get
talnly expected to hear uttered any where, cs-
peelally on this floor aud by intelligent the
Senator, | had supposed 1t was infinitely better
for the community at large, aud particularly Tor
those not in atuent circumstances, that the public
lands should remain IN possession of the Govern.
ment than al Spectators I'LL wanted for settlement
aud that one of the decided objections 10 our
banking system ~, that II becomes the instrument of
making such Immense transfers, whenever the cur
iency bee ONES excessive. This point not with
out interest, and | must ask the Senate 10 bear
with me, While pause lot a few moments 10 explain
il.
The effect of an expanding currency is to RAISE
prices, aud Ia put speculation IN motion. lie who
buys III short time sccmsto realize u fortune and
every one is on the look out To make successful IN
vcstncnts aud thus prices receive constant upward
impulse, with the exception Of the public lands the
prlee OF which is fixed At Il IS, excepting such
sold n public auction The rise o other landed prop
city soon creates new demand for the public lands
and spcculation commences It's giant operations IN
that quarter Vast purchases arc made, and the rev
Government
the increased sales. The payment IL made IN bank
notes aud these pass from the land Offices to the de
posc banks. aud constitute large surplus FOR new
banking facilities and accommodations. Applicants
nom all quarters press IN To partake OF the rich
harvest, aud the notes rcpass INTO the hands Of
spectators To be rcinvestcd IN the purchase OF
public lands They again pass through the hands
olreccIvcrs, aud thence 10 tho banks aud AGAIN to
the spectators, and every revolution ot the wheel
increases the swelling tidr, which sweeps away mil
lions OF the choicest acres from the Government to
the monopoIlhers Tor bank notes, winch IN the end
prove AS worthless rs the paper on which they
written. Had tins process not been arrested, by
the deposic act ol 1896, and had the banks avoi-
ded an explosion IN shon time the whole OF the
public donau the precious inheritance OF the Pco-
pie ofihs Union aud their descendants, would have
passed through the process with the tlrly SIX
millions OF acres which the Senator 50 highly com
mends. What took place then will again take place
at the very next swell of the paper ilJe unless in
deed, this bin should become II law, winch would
prove an cicctual check against its recsrrence
The Senate next attributes our extraordinary adj
vance in Improvement aud prosperity TO the banking
system. lie puts down rs nothing our free institu
TONS the security in which the People enjoy their
rights the vast extent o our county aud the Ter
tillty of its SOIL aud the energy, industry, aud enter
PRISE Of the stock from winch we are descended
All these. il seems, as dust. The banks are CIV
erything, and without them we would have been
but little advanced in imDroyement prOsDeTtv
II Is much more easy to assign Our prosperity to the
banking system than to prove IT, That IN ITS early
stagesn contributed to give an impulse to indus
try and improvement do not deny; but that, IN ITS
present excess, impedes rather than promotes ell
Their, hold TO be certain. That we are not indebted
TO ii for our extraordinary advance aud improve
mens, wholly manly there ~ an argument which
regard az decisive. Before The Revolution, we
had no banks aud yet our Improvement and pros
prrlty, all things considered were rs great anterior TO
1t, since, whether regard The increase Of pop
ulatIon wealth. AT that Time, not a bank note was
to be SEEM and the whole circulation consisted either
of gold an1 silver, the colonial paper money,
which all now aud especially the SENATOR considers
$ worthless. Had the Senator lived during that
period he might. with equal plausibiliy have aitfb-
uted all the improvement and prosperity OF the coun-
try The old colonial paper money, az he now does
to the banks; and have denounced any attempt TO
change improve II, as an overthrow oi the credit
system as warmly as he now does the separation of
the Government from the banks. tell the Senator
that the time is coming, when his present defence
OF the banking SYSTEM as II IS now organized, VIII
be considered as extraordinary as We now would re-
gard defence OF the old and exploded system Of
colonial paper money. lie seems not to see that
the system has reached po,nt, where great chan
ges unavoidable and without which, the whole
will explode. The state OF It's manhood and yigor
has passed. and ii is far advanced III that OF de-
crcpudc. The whole system must be reformed
thoroughly reformed, OF II must perish IN the natu
raj Of events The first step towards It's rem
ovation Is ,c measure he denonhces IN such unnea-
sured-ter,ns the separation from the Government !;
and the next separation between discount aud CIR
culation. The Two incompatible and 50 long as
they united, those frequent vci,si,udes OF con
fractions aud expansions, TO which bank circulation Is
subject, and which is rapidly bringing 1t INTO uis-
credit must continue to increase III frequency ana
intensity, I'LL it shall become rs completely dscredi-
ed rs continental money.
The Senator seems not TO be entirely unaware OF
the danger to which the system Is exposed from It's
frequent vibrations and catastrophes. He tells US,
by way OF apology, that had 1t not been for The
splcie circular the pres mt catastrophe would not
have occurred. That it FASTENED 1t, do not in the
least doubt but that we should have escaped with
out II, | wholly deny. The causes OF the explo-
sion lay dcep-iar beneath the circular, and nothing
but the most efficient measures, during the session
immcd aey after the removal of the depositcs, could
have prevented II. That the crisis, winch ha-
wing passed without doing any thing, what has since
followed was inevitable. But admitting What he says
be true, what pi cture OF the sytem does II cxhIb-
i'll How frai, how unstable must il be, when a
single act Of the Executive could bring it 10 the
ground, and spread ruin the country Aud
shall we again renew our COnDeXion with such sys-
tenn liable from the slightest cause TO such disas-
tiers! Does ltnot concuslsely show that there is