Liberty advocate., 1839-05-30


"Tnons u"I with the following very able letter
soa, one of the most profound and distinguish
~ nolrica economists in she South, 10 mem
paiPor the Legislature of one of the Southern
S,a,os Sy, q, on the subject of the Sub-rrcasury-
The letter, we deem it proper to say, was not
written with the remotest view to publication
his dated ~
FEBRUARY 8, 1885,
npor Sir: Yours Of the 4th instant, was du-
!, receiyed | feel highly fatterod by the
,o,ms in which You have asked my opinion on
6, ,,bipc, which consider of vital Importance,
md which has already engaged so much OF
,be attention of our most distinguished states
men. Upon the great principle upon whch
,bat subject must be settled, agree with your
calf and Mr., Rives. consider what is called
tbe sub-,rcaSury scheme as iraughI with the
most (ormida bIe evils. | consider 1t most de-
cdedly at war with the civilization OF the age
in which we liye-as threatening the over
throw of that great system oil credit, Which IS
one Of the characterzng features ol the nlne-I
,eenlh century. 1t seems TO me 10 be a noS'
decided movement backwards towards the ages
Of barbarism. look al this question with the
mare soIicitude. because know hat the people,
whose votes will ultimately decide the matter,
are pecuIiarly liable TO take wrong views OF
the whole sub bject. The great mass oil mankind
Judge by appearances; ana the sagaciouS i0'
mark of David Hume is strictly true, that 'heIe
is no subject in the world IN when hrst"lr
pearances are oGtener false, than IN po''''ea
economy. Ii will be long time before lne
peope will be familiarity acquainted win me
areat subiec, Of credit; and until they are 'hcg
will be liable TO many abuses lhe system o'
credit. with its manifold advantages, is liable
nevertheless TO occasional commercial re'u',
sions which ever produce the most Pro'ouhu
distress These revulsions, no matter now
rare, strike The imaginatlons OF men, ana are
regarded by the unrehectng multitude as the
cboracterising phenomena Of the SYSTEM
Whenever they take place, the people wall al,
wavs look exclusively to the prominent parts Oh
,hn, system, and charge the whole calamity
anon them, although these may be the mere
oxnoriments, and not the cause. Hence, do
rino The middle ages, whenever commercial
distress nrose, the poor Jews, who were th'
orcot money dealears of Europe, we're sure i
o. the waU In London, ill banks were es
lablished, Lombard street, was made resPons'
ble. In the hard-money countries, they ar
thn Rothschilds, the Latittes, and the IorIam
ias-the great private bankers, who have L
bear the sin OF every commercial reVu'Sloh'-
In countries like England and our own, whef
the progress OF civilization has reared ina
great enpine of improvement--the credit sy'
tem-and sustained and developed 1t by IN
operation OF banking companies, the pailN
must of necessity become the most promlnel
parts of the system; hence we are not 10 "o'
der that with us an indscrminatlng trlDuh'
should charge the whole evil oil commercial r
wilson's unon the banks When men came
nav their debts, they arc very apt 10 chaIt
their ruin unon their creditors. In bankll
country. hanks will Of course be the large
creditors. and therefore, will be charged WI
most of the sin. The popular cIamor IN Il
countrv AGAINST all banks, since the late pre-
surn seems to me to be perfect Illustration
this gencral remark. few years ago, wht
4he cradit system was stretched TO It's eXtren
limits. and The country seemed to be enloylI
nnparalleed prosperity, there were those WI
could look on and stimulate the banks to y
greater expansions; and the moment they hi
thus oyersirained the system, till the who
Soners,ructure was overthrown, could tht
came forward and calmly recommend u tot
disconnec,ion Of the government with the
bora,sa &C the mischief which the latter we
supposed to have produced. Now, the fact
tbsi The rage for speculation almost alwa
Drecedes that for banking The effect IS N
taken for the cause. 1t IS true, however, u
the cfFec, in time becomes powerfully op,
,irp cause. as is frequently the case IN Po'lu'
economy. Tooke, in his great WORK oii y,
and low prices, has shown most concius.a9 asI,
that in almost every case, OF wha' IS eau
oyer,ralng, the great propelllng cause ~
first instance. has been entirely er,faac1"@
the banking system; the operation OF 'he "a Ia'
being exered secondarily AND der"a'lVe'y'
do not pretend to deny but that the banks y Y
often carry the spirit Of speculation 'afa
than it would otherwise go; but TO charge "
with the whole evil is most Unfair. One OF
most terrible revulslons in trade, when mas
curred for the last fifty years, took pace
Hamburg, in 1899, where there was mol
gle bank Of circulation, nor a single BANK
passiflg from hand TO hand
Wherever the credit system is erecien'
the trade is great, and part Of II ha2aru'
there you will have occasional revhlslons'U W
or no banks. Wherever the trade Is be'W
The merchant and farmer, with little or non
that hazardous branch which may realize
lions to-day and sink them tomorrow, "
You h,lve bat few revulsons ~ trade, whe'