Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1838-03-24

a
debt Of S575 900 900 dollars would still exist, in
the snape Of private loans. The senator from
South Carolina might well collect the afgre-
gate amount Of all the mortgages, bonds, and
notes which have been executed in the United
States for loans, and assert that the interest paid
upon the total sum constituted a tax levied upon
the community.
In the liquidation Of the debt due to the banks
from the community, and from the banks to the
community, there would not be rs much difficulty
rs the Senator seems to apprehend. From the
Of debts due to the banks are to be deducted,
first, the amount Ut subscriptions which nsttute
their capitals; secondly, the amount Of dcposites
to the credit Of individuals in their custody and,
thirdly, the amount Of their notes in circulation.
How easily will these mutual debts ncutralize
cach other! The same person. in numberIess in
stances. will combine in himself the relations both
Of creditor and debtor.
The only general operations OF banks beyond
their discounts and dcpositcs. which porv AIDES the
whole community, is that Of furnishing circula-
ton in rcdecnatIc paper, beyond the amount Of
specie TO redeem il in their vaults. And can it
be doubted thu; this additional supply Of money
furnishes a powerful stimulus industry and
production, fully compensating any casual incon-
venencics, which sometimes though rarely, occur!
inks reduce the rate Of interest, and repress inor
din,te usurv The salutary influence Of banking
operations is demonstrated in countries and Sec
iions of country where they prevail, when con-
tra=ted with those in which they are not found
La the former, all is hustle, activity general pros
perity. The country is beautitied and adorned by
the noble works Of internal improvements, the
cities filled with splendid cdi6ces, and the
wharvcs covered with the rich productions Of our
own o OF foreign climates. In the latter, all is
suggishncss, sothfulness, and ina" tivity. Eng
land, modern times illustrates the great advan-
tagcs OF banks Of credit, and Of stimulated indus
try. Contrast her with Spain, destitute Of all
o Ael~~
/ present al image Of full and active employ mt
Of all the energies of man, carried the highest
point Of civilization, whilst her neighbour Sparta,
with her iron money, affords another Of the boas-
ted benefi,s Of metallic circulation.
The Senrtor from South Carolina would do the
blnks no harm but they arc deemed by him high
! Iy mi irous to the planting interest! According
TO him, they initiate prices, and the poor planter
sells his productions for hard money, and has to
purchase his supplies at the swollen prices pro-
d,ced by Il paper medium. Now, must dissent
altogether from the Senator's statement Of the
case. England, the principal customer Of the
planter, IS quite as mich, If not more, a paper
country than ours. And the paper money prices
Of the country are neatraIized by the paper
money prices Of the other country. If the argu-
men: true, that q paper money country
trades disadvantages ,sly with u hard money coun-
try, we ought 10 continue to employ a paper me-
dunn, to counterha ance the paper medium OF Eng
substitute altogether a metallic currency, VIC
should be exposed to every inequality which has
been insisted upon But there is nothing in tina,
view Of tbs matter which is presented by the Sen
atos from South Carolina. II, as he asserts, pri
ces wore always inflated in this country, bcyont
their standard in England, the rate Of exchang.
would be constantly against US. An examination
!? however, into tho actual state Of exchange be
the two countries for long series Of years
+; evnccs that it has generally been j" our favor
n In the direct trade between England and thi
, country, have no doubt there is a large annua
balance against us; but that bala.ce is adjuste,
' and iiquidated by balances in our favor in othe
branches Of our foreign trade, which hive finally
, concentrated in England, as tho great centre Q
the commercial world.
OF all the interest. and branches Of industry i,
2 this country, mono has profitcd more by the us
and employment If credit and capital derived fron
1 banks and other sources, than the planting inter
est. 1t habituallv employs credit in all countrie
J. whore planting agriculture prevails. The State
Of Alabama, Mississippi, Arkansas, and Louisiana
have almost sprung into existence, as it were, b.
, magic, at least have been vastly imp-ov ed An
IS extended under the influence Of tho credit system
d Lands, slaves, utensils, beasts Of BURDEN and 9th
er supplies have been constantly bought, and sti
e continue to bo purchased, upon credit; and ban
" agency is still essential to give the most benef
IS ciel operation to these credits.
- But the argument Of the Senator from Sout
=. Carolina, which am combating, would not
d, correct, ii it wcrc true that have initiate
r. prices on this side Of the Atlantic, without a COZ
~ responding imitation Of price the other side; h
Of cause the planter generally selling at home,
" buying home, the proceeds ofh sale, whateve
r they may be, constitute the means by which he .
j. fects his purchase, and consequently neutraliz
~ each other In what do we Of the West receiv
ul payment for the immense quantity Of live stoc
" and other produce u our industry, which We Al
lie nualy sell to the South and Southwest, but tn;
~ paper medium now much decred and denoun
ce ed! The Senator from South Carolina is ver
10 fond Of the State Banks; but he thinks there is
sc legitimate currency except that Of the constit
e. ton. He contends that the power which the 60
Sc crnment possesses to impose taxes restricts it
ct their payment, to the receipt Of the precious
nd ais. But the constitution does not saw 90. IT
th power is given in broad and unrestricted term
ID and the government is left at liberty to collect Il
re, taxes in whatever medium commodity, fro
Ks. tho cxigencies Of the case. it collect them-
": 1t is doubtless muc, the most convenient to c,
ed lect them in money, because that represents,
,ly can command, every thing, the want Of which
try m;,,ieA by the power of taxation R,,1 spnn,