Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1838-04-05

drive every dollar OF IL out oi Sirc uiulioh u""
out of existence. When this work is accom-
plished, then, to be sure, specie wili cease 10
be at a premium in the market, will then re-
turn to circulation as a currency, and will be
the only currency. Then will come the times
so devoutly prayed for by the hard'money
party-the reign Of their constitutional cur
renew. But here let me advise that party 10 II
indulge oil their transports now,and IN ahtlci-
patton of that happy reign, lest, when those
times do come, they should witness scenes
very little calculated to enkindle those trans |
ports. feel myself the better authorized TO /
give this caution, as am old enough to nave
messed such times. OF such times,l VIII on
ly saw at present that have no desire TO see
them rene ewed. Aud beg to assure these
hard. money gentry, that those times were
very far from inspiring transports into any
who did witness them but on the contrary
that the sufferings Of the country were then
such as to bring somo degree OF discredit up
on the Revolution itself; and that such then
wns the general distress, that freedom itself
bepan to lose its value. IL was not an unu
sual query then with the people, whether tue
Revolution had, on the whole, proved bless
ing to the country.
How will this policy, by keeping specie at
premium in the market, as 1t muSi, destroy
the paper currency3 Why, by making II
impossible for the banks to resume ana 10
continue specie payments, and 10 continue
20 do further business as banks OF dlscount--
yes. impossible. know the banks are an2-
ious to resume think they can resume, and
can maintain themselves ~ the teeth of this
policy. But they arc mistaken; the thing Is
impossible. For | ask whether any bank can
o get Oh as a bank who cannot keep their bills
In circulation for a day? And ] ask, who
would keep their bills on hand for a day,wheh
no could return them to the bank, take the
specie, 90 into the market with that, and make
a profit TO himself? If bank cannot Keep
It's bills in circulation for day, can that banH
do any further business as bank OF discount
Why, every further discount would III ehec'
bo a loan in specie. In that sltuatloil,ho DahR
can make discount. What, then, is the
condition of all the banks in the country, and
in what dilemma do they stand !? II they re,
sumo specie payments they have to meet all
their bills at once to 60 on redeemng so
long as thcy have specie to redeem WIN, ahi
TO suspend all further discounts and TINS
would make an end of them On Tie other
hand, if they do not resume specie payments
they forfeit their charters; and this forfeiture
must. in the end, be enforced against them
For no State would tolerate, as settled
thing. a bank To issue irred, enable paper, ol
redeemable only at the will of The bank ana
this would make an end OF them. lhis Poii-
cy, then, if adopted, and fastened upon the
country, will be death warrant to all the
banks in the country. When all oanhs VI
the country are thus destroyed, OF course
there will no longer be any paper currency
Then will be accomplished the end Intended
by this policy the end not avowed, indeed
but hardly disguised but, whether INTENDED
or moi. that end will be accomplished, name
~. the destruction Of all the paper currency
Of the country. How will this affect the ou'
sincss of the country? Why, all that por.
ton of the business which has been crea'eo
= and sustained by the banking system, vii
fall with the system; as all that portion o.
the medium of exchange, created by tha
system, will then be distracted from the pu
siness of the country, and gone, For the
business Of every country VIII ADJUST tsei
and proportion itself to the medium OF OK
change, Of the standard commercial value
which il possesses aud may command IN bu
sincss. Ii is so in theory it is found to be
SO in fact. Go to what country you will' an'
Won will find its business corresponding II
amount to its amount of such medium
Now, what proportion OF the business
the country has been created and sustalnc'
by the banking system? have stated, ant
| think not less than nine parts IN ten.
In order TO throw dscredit upon th'
banking system, the honorable gentleman
from South Carolina, Mr.. CALHoUN,l an'
the honorable gentleman from Connecticut
near me, Mr.. NrLEs, have both tod us o
the enormous disproporion between 'he CIT
culatiug credits of the banks, nnd INC Specie
j.; ;hcr vaults; the one little less than hV'
hundred millions, and the specie not one
tenth of that amount. In this view OF the
subject and with their view, the honoraoi'
gentlemen have not done Justice to their owr
argument. For, they might have added, Tho
immense amount of bank credits which neVc
appear in circulation, which appear only OF
the books of the bank, but which make par
of bank credits, and as much so as their o,I
in circulation. mean the transfer Of credits
on the books of the bank, founded on depo
. sites, and these made up Of discounts. In al
our great commercial cities these transfer
probably exceed in amount the amount o
bills in circulation there. While arrayins
before US, and arraIgnng the sins OF the bank
ign system, (which seem 10 consist III ex
tending the business OF tho country,) these
honorable gentlemen might have put anothe
criminal charge into their bill of indictment
II is this. That part of the business OF tho
country, which is to be placed to the credi
Of the specie portion Of The currency, Is more
than doubled by means of the banks. For
without banks, a great part OF the specie OF
the country would be dead stock, lying idle
in private Golfers and that POI OF 1t IN
the hands of business men would be idle much
Of the time for it must be accumulated be.
forchand, and kept on hand to meet engage
ments But, with banks, oil the specie OF tho
country is kept in activity-cons,ant activity
When these honorable gentlemen revise ant
republish their criminal calender against tho
banks, 1 hope they will not omit, then, t'
place these two offences in the criminal list
Let them put all the bank crimes together
their bills in circulation beyond their specie
their transfer credits which are not in clrcu
lation, the augmented activity and operation
given by them to specie, and have no doub
they will prove the banks guilty OF having
created and sustained, at least, nine parts IL
ten of the whole business ef tho country
Their task, admit, would have been still ca
sicr TO make manifest this enormous guilt o
the banking system, if VIC still had nationa
bank existing. For then they might add u
the criminal account all that business whici
bad been dcstroycd by DESTROYING that bank