Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-09-14
For the Democrat.

.lnsrfr 10 The argument that somsihiHg Is gam
ed By sending spsei, abroad, and supplying
lis place riih paper.
propose, IN tins communication, 10 examine
the only Argument 10 favor Of Paper Banking,
which IS now used by enlightened economists,
thal can lay claim to even the slightest degree Of
plausiblliiy. | allude to the argument that paper
is cheaper than specie, and that therefore some
thing is gained by using it, in part rs a substitute.
The argument was first used by Adam Smith, 10
his Wealth Of Nations, and afterwards by Mr..
Say, and more recently by Mr. Biddle, Mr. Gala
tin, and DR. Wayland When Smith wrote, the
notion prevailed TO a great extent, that nation,
SIMPLY by the issue of paper, could increase It's
wealth to almost any amount. lie dissipated this
illusion, but the preudlces in favor Of banking
were too strong at the time for him not TO feel
more OF less their influence hence he could not re-
slst the conclusion, that paper banking added
something to the wealth of nation, but his good
sense taught him that this gain was much less
than was generally believed.
His argument was, that any particular nation
could, by the issue Of paper, dispense with a
portion Of its specie, and introduce in It's place,
articles that would add TO the active wealth of
the nation aud that the gain would DO, the inter-
est or profit on the amount Of specie sent abroad.
II fifty millions sent, and IT'S place supplied
with paper, the gain would be the interest, or pro-
fit arising from the use Of this amount, or at SIX
per cent, three millions of DOLLAR
We should not consider this argument entitled
10 the least notice. II II were not still advocated
BY men who stand deseIyedly high IN public estl-
nation for IT must strike every one upon little
reflection, that The public gains nothing by paper
banking, but on the contrary, loses annually
sum which lis difficult to calculate.
We wiIINhrpose that a nation dispenses with
fifty millions Of lis specie, and issues to sup
ply Its place, fifty millions Of bank paper; the
gam, agreeably 10 the argument that we are con
sldering, would be, at the rate Of six per cent,
three millions Of dollars. This would be hand
some gam If il were real, and would well de-
nately for those Of US who are fond Of living
without labour, 1t is all mere Illusion. The bulld-
ing of bank houses, the payment Of bank officers,
and all other expenses incident TO banking, would
alone equn, if not overbOlance this sum of three
millions. Suppose we take into the account the
time, talents, aud money employed in egislating
upon this subject, ard the fact that hundreds and
thousands of men are taken from the ordinary
productive employments of society, TO attend to
banklng--and what must be our conclusion
Evidently that the expenses would greatly over
balance the profits. But this Is not all most of
the expenses which we have considered occur
annually--they form perpetual tax upon society,
a tax which has ruined thousands both in the u.
States aud Great Britain. few have been
made rich, but tho great mass are left to suffer
the dTc(u consequences Of hopeless poverty.
But again. upon the most favorable SUPPOSE
) ton for the argument, if all trading nations adopt
; the same plan, nothing is gained; for If we make
: out Of England, France and other nations, they
, will make as much out Of us, and so all will re-
l maui as before. This proceeds upon the ac-
. knowedged assumption, that banks do not create
i capital.
! But suppose That something is made by paper
n banking where does this come FRONT No one
+ contends that banking adds any thing to the
wealth Of the world. II any thing is made, then
It must be drawn from nations which have not
J, seen proper to adopt this plan of getting rich.
/ Is this IN accordance with the principles of ho-
u nes'y have we, or any one else, the right, by
e any scheme OF finance, TO get rich upon the
hard earnings of oilers The argument it seems
a to me, need only be stated to carry conviction to
: the mind OF every one
" Here will remark, that am surprised to find
= IN DR. Wayand's otherwise excellent work on
Political Economy, an argument Contemplating
l. such manifest injustice to others. as the one
u which We have been considering. II is not the
y doctrine OF christianity, which the Doctor SO ar
IDENTITY aud honestly advocates, but is the very
! essence OF scl6shness, Christianity regards all
mankind as brethren; 1t knows no exclusive pa.
$ nlotsm, but regards the whole human race, as
o connected together by the ludssoluble bonds OF
: justice, friendship aud kindness. 1t may be said,
!. that our conclusions do not legltmaely flow
ID from the Doctors argument as an equivalent is
rendered tor all that we purchase but r banks
re create no capital, as he acknowledges, and if
y something is gained by ISSUING paper aud sending
$ abroad specie, tins something must be r1ade out
q OF others, and IT must be without adequate com
y Pensanon from US. We have no Aladlns lamp
Ne with which to create wealth; it must be made by