Piney Woods planter., 1839-05-18


United States. That is the great ar.
gument urged in favor of a national
bank. 1t is, that it furnishes uniform
currency, circulating at par in all the
States, with which to hquidato debts or
balances in any one State, to the resi-
dents of all other States, and thus dis
penses with the demand for specie up
on the State banks. In this state Of
things, the State banks being restrain
ed or curtailed in their Issues by no
demand upon them for specie TO settle
these debts and balances due abroad,
issue and maintain in circulation large
amounts of bank paper, and this too
with bat very little gold or silver in
their vaults. fany Of our citizens
doubt this, as an illustration Of the. truth
Of the general position, let them rccur
to the period when the Bank of the
United States was in the climax Of its
powerin Natchez, and they will rcpea-
tedly find our State banks with very
enlarged circulation and very little
specie in their vaults. In those days,
it was fashionable here to designate
specie as dead capital, rs though it
were useless article, there being no
demand for it, and the entire amount
ofspecie taken from one OF our banks
with large circulation is believed to
have been less than thirty-6ye hundred
dollars; nor does the Bank ofthe Uni
ted States, in settling balances with
the State banks, call upon them for
specie, but these balances here were
liquidated by the transfer to the branch
here of the national bank. of the ac-
ceptances ofNew Orleans commission
merchants, or other satisfactory securi-
ties Of the State banks, with their en-
dorsement of this paper, and this pa
per, SO far as not paid at maturity, was
met by redrafts and other credit oper-
ations. 1t is urged by the friends of a
national bank, chat its withdrawal pro-
duces the suspension of specie pay
ments by the State banks. Conced-
ing this to be true, for the sake of al
gument, what does it prove, except
that State banks cannot maintain a
large circulation in the absence of a
Bank Of the United State, and having
issued such circulation during the
existence of the national bank, are
compelled upon its withdrawal to sus-
pend specie payment. on account of
the new demand upon them for the
precious metals, arising from the abb
sence Of a national bank and the dis
appearance of its paper from circula-
tions If 1t be contended that more
State banks have been created since
the refusal by Congress to recharter
the national bank. is it not plain, that
it was based upon the mistaken calcul-
alton that such banks, in the absence
of general bank, could keep out a
large circulation and make large pro-
fits and dividends. But lift be demon
strable by fair argument, and now be-
ing proved by experience, that in the
absence of such an institution State
banks can keep out but small circul-
alton, and realize but little profit, the
interpretations of new banks will be
discontinued, and much the greater
number of those already chartered
will disappear, and bank paper circul-
alton will be vastly reduced in amount.
This will be the undoubtcd result, if it
is adopted as the permanent settled
policy Of the country that no Bank of
the United States will be created; and
exactly in propoI ton as American
bank paper circulation diminishes in
amount, will the cotton growing States
increase in prosperity. They will, as
we have cen, receive the same price
for their cotton, that being governed
by the European market and for pro-
visions, for all that they purchase, the
price will be greatly diminished. In
this manner, the expehses of cotton
planting, which are now equal to one
half the gross product; will be vastly
curtailed, whilst the price of our staple
remains the same, and the meet profit
of the planter will be greatly incfcas-
ed. 1t is by the nett profits Of cotton
growing that we must pay our debts,
relieve the embarrassments of the peo-
pie, and establish the permanent pros
perity Of Mississippi. Borrowing from
banks will not pay our debts. it only
changes the creditor, and although this
change may be beneficial in some ca
ses, to avoid an immediate sacrifice of
property, yet il can constitute no argu-
mcnt in favor OF an expanded circula-
tion. as the permanent settled policy
Of Mississippi; and those very debtors'