Lincoln telegraph. [volume] (Bath, Me.) 1836-1846, 1838-04-05

OF p47o ,oOO, 600, would still exist, in the
shape of private loans. The Senator from
S. q. might as well collect the aggregate
amount of all the mortgages. bonds and
notes which have been executed in tho
United States for loans, and assert that the
interest upon the total sum constituted
tax levied uponthe 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 as much difficulty as the Senator seems
to apprehend From The mass Of debts
due to the banksare to be deducted, first,
tho account OF subscriptions which consti-
tute their capitals; secondly,the amount Of
deposltes to the credit of individuals in
their custody and, thirdly, the amount Of
their notes IN circulation easily
will these mutual debts nuetralize each 9TH
er! The same person, in numberless in
stances, will combine in himself the rela-
lions both Of creditor and debtor.
The only general operation thanks be-
yond their discounts and depostes, which
pervades the whole community is that Of
furnishing circulation in redeemable pa-
per, beyond the amount of specie TO re-
deem it in their vaults And con II be
doubted that this additional supply of mon
ey furnishes powerful stimulus to industry
and production. fully compromising any
casual nconveniences, which sometimes
though rarely, occur? Banks reduce the
rate of interest, and repress inordinate us,.
ry. The salUtary influence of banking opc
rations IS demonstrated in countries and
sections of country where they prevail.
when consrasted with those in which they
are,not found. In the former all is hustle. ac-
tiyity, general prosperity. The country is
beantlfied and adorned by the noble works
OF internal improvement; the cities are fill
ed with noble edifces, and the wharyes
covered with the rich productions Of our
own or of foreign climates. In the latter,
all IS sluggishness. slothfllness aud mac
tivIty. England, in modern times, illus
trates the great advantages of banks, of
credit, and Of stimulated Industry. Con-
trast her with Spain, destitute of all those
advantages Tn ancient times, Athens
would present an image Of full and active
employment Of all the energies of man, car
ried to the highest point of civilization,
whilst her neighbo,, Sparta with her iron
money, affords another Of the boosted ben
eits of metallic circulation.
The Senator from South Carolina world
do the banks no harm; but they are deem
ed by him highly injurious 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 swoln
prices produced by a paper medium. Nov,
must dissent altogether from the Sena-
tors statement Of the case. - England, the
principal customer Of :l,e pIantcr.-;s gu te
as muc il not more,sa paper country than
ours Aud the paper money prices Of The
one country are ncutraIized by the paper
money prices Of the other county.
1t the argument were true, that a paper
money country trades disadvantag eously
with hard money country, we ought to
continue to employ paper medium, to
counterbaance the paper medium Of Eng.
land. And if we were 10 Danish our paper,
aud substitute altogether metallic cnrren-
cy, we should be exposed TO the very ine-
quality which has been insisted upon. But
there is nothing in that view of The matter
which is presented by the Senator from
South Carolina. If. as he asserts, prices
were always inflated in this country, be-
you'd their standard in England, the rate
of exchange would be constantly against
us. As examination. however, into The ac-
| tual state Of exchange between the Two
countries, for long series Of years, evn-
ces that it has generally been in our favor.
In the direct trade between England and
this country, have no doubt, that there is
large annual balance against us; but that
Balance is adjusted and liquidated by bal
ances in our favor in other branches of OUT
foreig trade, which have finally concen-
tratcd in England, as The great centre Of
the commercial world
/ Ofihe interests and branches Of industry
in this country, none has profited more BY
the use and employment of credit and capt.
tai derived from banks and other sources,
than the planting interest. 1t habtually
employs credit in all countries where
planting agriculture prevails. The States
of Alabama. Mississippi, Arkansas and
Louisiana, have almost sprung into exist
ence, as it were, by magic, or at least,
have been vastly improved and extended
under the. influence of the credit system
Lands. slaves, utensils, beasts of burden
and other supplies, have been constantly
bought, and still continue to be purchased
upon credit; and bank agency is all essen
tial TO give the most beneficial operations
to those credits ssss.S fsss
But the argument of the Senator from
i South Carolina which am COMBATING