Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1838-01-11

4
rangement. large addition was made 10 IN,
money which they held on depos,e. TIL,
question occurs, whether the SUSPENSION o.
specie payments be not referable TO cause.
winch The Banks had no necessary agenc,
IN creating and whether il be not in The
reach OF pru ent legislation 10 guard against
'he recurrence o! the evil, without impairins
The capacity OF Banks 10 be useful. And at.
! Ter all, whether II be not better 10 incur the
| FISK OF occasional inconvenience from mis-
management, Or indiscretion, on the part o
the Banks, than submit 10 the greater and
inevitable inconvenience thai must attend
their overthrow. Ii is by 10 means peculiar
10 Banks, but on the contrary, is a property
common 10 all the inventions of man. for
conferences which are in the main benefi>
cal, 10 be now and then the occasion ofmis
chief or confusion aid il is the part of WIS,
dom not TO abandon such as are generally
useful, but 10 apply itself 10 the work of iu.
diclous improv enent
IL IS OF The nature of credit, MS implied in
'he objection, TO present temptations TO spec
ulatIon, and 10 encourage demands for. and
hence TO raise the price Of whatever is COW
eied as an objec, OF property. But are these.
regarded as evils, 10 warrant am attempt 10
annlhIlate all credit? tits the characteristic
OF man, and ofno people more than our own,
ana regulated by prudent forecast, no dis>
position Is more commen6abe TO anticipate
coming events, aud risk the present upon the
realization Of their hopes. This is specula.
t,on and The American people will have lost
,heir energy and enterprise when il ceases to
oea predicate OF them. Speculation will
exist as we'll without Banks az with Them &
10 either case, the issue will be sometimes
hos
an enterprise by the event, will arrasp the
prudence OF the adventures. But. what is
more 10 the point 10 remark is, that, as with
out Banks there will be speculation and
speculation in which large numbers will be
emoarkeu, SO, when the result is unpropi-
lious, there WILDE complaints of artificial
prices and disturbed currency as well in a
community in which there are no Banks. as
wheIe they exist! is not in the bower of
legislation 10 guard effectively against pecu.
mary Vicissitudes, and 10 attempt 10 prevent
'heir occurrence by shutting up the Banks,
"ouid aud Immensely 10 the burihens of ali
prohtaoie industry, without the recompenss
proposed In security agsius, reverses.
among Inc causes of the recent cenyul-
SION, certain measures of the General Gov.
eminent must he regarded as not the least
inneentlal.-The measures alluded 10 were,
doubtless, expected 10 answer valuable and
important ends; and their disturbing influ-
ence la other respects was not designed or
anticipated. The Executive Order, com.
monty known as the Specie Circular, how
ever saiutary, considered in reference 10 its
immediate objects, had The effect 10 transfer
specie from points where ii had accumulated
oy me ordinary course OF trade, TO points
wheFe II was not wanted for the current bu.
=.
Oh DIS turbance to the currency resulting from
The indirect influence OF the measures Of the
General Government. Another instance i.
10 be found in the distribution of the SURPLUS
revenue among the States, performing the
operation too suddenly, instead of making il
as gradual as possible. Here again the &C,
OF The Government came in conflict with the
operations OF trade, and bad the effect OF dis
tnroing The equilibrium which had resulted
| from the general course of business If TO
lhese be added the inducements held out 10
such OF The banks as were selected as depos.
i.ories, 10 exercise the power of discounling
literally, we shall scarcely iE view of these
extrInslc and potent causes, feel ourselves
Jns'iiied 10 imputing the evil in question, 10
The ordinary and natural operation of the
banking system
The large funds which the Commonwealth
mas dedicated TO the invaluable Objects T In.
'ernal Improvements, are invested in the
stocks OF our Banks. The notes oftbese In.
siltutlons have long performed amongst us
me functions OF money, and constituted and
yer constitute, large portion OF our curren,
cy. Until recently, with sin gle exception
me banks have met their engagements with
punctuality, and their notes have been con>
Vertiole at will into coin. For The suspen.
sion OF payments in 1914, the excepted in.
stance, an excuse was admitted 10 exist in
me emoarrassmenis resulting from war in
which our country was engaged. whilst the
valuable services rendered TO the Govern
Inent by The liberal use of their credit con-
cIiIated friends. The ready sale Of orr pro-
uuce, al prices which remunerate the labour
employed IN their production has been and
sun continues 10 he effected through the a.
gency Of banks. The value of property, the
wages OF industry, the profits el every occu-
ga"on whatsoever, are adjusted under the in,
loehce OF The banking policy, and its infu-
ence is alike beneficial TO all To renounce
MS PoiIcy and attempt 10 obtain currency
exclusively metallic, would he attended by
consequences extensively, fatally miscbiey-
s 0us' NDSerVe IT'S operation uuDD debtors.
ne REDUCTION OF the circulating medium
wouiG OF course reduce the price ofproperty:
me erect OF which would he relatively In
augment me debt 10 I've paid And thus a
ueD'oT, whose engagements were considered
ln.Sut "neb They were contracted, migh,
i Inv nIs whoie means had become inadequate,
W eietoiu'ion ~ The currency, to the pay
'"e"t VI MS debts. The citizen in the case
ssuPPCosen, might well arraign the justice Of
his Government, that, by its incons,ancv
had produced his rnjn T'bis - b.,