Liberty advocate., 1839-05-30

pressure come, and twenty millions would DC /,
poured out, not TO return until confidence was
restored And what, let me- ask, would De Inc
chance of a restoration ot.conhdcnce, with SO
awfiI d drain on the syStemS TINS you see
that this system would affect hebAks least
when the spirit Of speculation ALL Shcst; ana
would fall on them with an irreFPuDfe gravity
when the hour Of pressure came% EYafySnoK |
who knows any thing Of banking. mus ssRSpH
that this result is greatly TO be depsegatG. Y.
You may ask whether do hot coqAypA IN
all these evils would not flow FROM tFe'sPsctdf
deposjte sysiem2 answeEfhat1 do not right
ly comprehend that plan. lFtho deposlle Is to
be anae in the notes of specie paying banks
and Ws6 identical notes are again to be paid OUT
then, say that, MAbough the system would be
greatly preferable to the sub-ireasury, yet that
ii must be lraught with mischief, 1t would be
better than the other system, because you DIS
Ipense with the payment in specie, which forms
the lesser portion ofthe circulating medium at
the same time that it is the basis on which me
value OF the other portion is established. bdt
the sche,ue would labor under this dISadvan-
tage-t would produce all the mischief OF the
boarding scheme.--With a large surplus rev
Icnue it would produce the most tremendous os,
Iciations in the currency, and | think would
endangcr the whole banking system sup
pose YOU should have surplus, us We laleiy
had land insist on testing every scheme by
that state of things, which has thrown SO mlch
Iodium on the STATE bank systcmo inns ior'y
millions would have been pat on SPECIAL dcPo-
site. That being done, the banks, whose no'es
were thus boarded, must either stop their issues
! for fear of those boarded notes, or they woaII
lqo on to issue. II they stopped issuing there
would be an enormous deficiency IN the clrcu,
no,inc medium, aud, consequently, there would
I,a urea, many pressures. If they continued
ho issue. which would be the probable result,
JIihev might prevent the pressure Tor the pre-,
:, sent. by sup plying the deficiency occasioneo
'|bv the hoard. But the very first great dis
! Iburs,ment which should be made by The gov
= Iernment. would produce vastly rcdundah
dEcurrency, which would, IN the end, endanSo'
: the whole banking system. Now, all lheS'
Lewis are reduced to u minimum on the Sta''
Ibaul; deposite system; for, II you have ii smai
. revenue annually dlsbursel then there Is NJ
' Stimulus given to oyertrudlng. If your reyen
me becomes enormous. then, although the bank
! will he stimulated, yet the natural regulate
:
E mansion in proportion to the revenue. But o
70 The other two plans, the fluctuations VIII oe Gu
: trelv without the control of the natural regu
= I1ator; which, after al, is the only one that ca
"a regulate property the operations OF the banklh
- system. One OF the great objections have /
l. "a United States Bank Is, that 1t IS an artlhca
=, regulator, which may interfere to1 much wit
= the more wholesome operation OF the hatufa
, reoulator Now you will readily perceive iron
,, the view which have presented, that 1t neces
z sarily follows that the magAttHte Of the gov
,rIernment depostes, which most persons thIn
!, The source of danger in the ordinary deposit
.. system. is the very reason why that Sys'eI
= should be preferable to either OF the others
dIIn some respects, too, the great deposItors al
=. TO be preferred to the small ones. lhe gre
,dIdepositors have it in their power, 1t they VI
m only manage judiclousIy, TO steady the sys'el
;. Your little deposltors are always merclless
I1 q manic. The RolhschIlds and the Banngs
a Ithe men TO sustain the banks in CRISIS
~ m When the Bank of England was pressed
is hard in 1925, the company of Rohschllds
=, every thing TO sustain, while the little depo
y" tors and the little note holders were doing e'
he ry thing in their power TO Dreak II. - Nv
oh if the government Of the Unned States s"ou
,. withdraw its deposites injudclousIy, especial
net during money pressure, the eeYl MAJ,
~, m greatly augmented; but on the other hand,
~ iudicious management, it may greatly aIleVla
~, + There are some advantages which Cover
' hn nfent depositcs present for banking, yielded
~ ~ no others. They are made with regularity
~ Ilf | nut ten thousand dollars IN bank TO d'
" perhaps on the morrow, may make c'
.. tract. which may cause me to withdraw
W money But the withdrawal OF governm'
iii Idenosites may almost always be toreseen
40 lnrovided for The money is generally app
,no nriated by action Of Congress, or according
h;s a nrescribed system. Our treasurer OF
."a -" Asvlum here never finds difficulty in max
;, IIhis poyments although the appropriation
the Asylum is $4,000. And the reason
her he can ascertain IN advance win some pre-
,in. ion, the amount to be dIsbursed by num- ana
ForIk knows precisely when he is to recelvo Inc
The truth is, that one oI
'nG. greatest alyant ages of banks results from
,ot. fact, that they can bring into acton every
r. tion orthe capital OF country. has y $lo'
, IL which he will use one month hence; ne
,nI make no profit on the money himself IN
aa short lime, but if he depostcs it in bank, ho'
nks ing is prevented, and the codntfy reaPs
ted benefit. Let not then the government U
lnco United States. in this civilized age thls ae
n,n credit and commercial co activity, con es' II
~ nn,beto nike care of lis funds, on any OF
,,", ,rinc;nIn ,hnn lhe one which prevails aH
,or barbarians-that ofhoard'ng.
1,,, ASto the relative safety OF the lunns ~
i, s,h.,reosprv and in the banks, thlnK u
a ut,1