Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1839-04-25

o'phs oi an oyer-issuc, and OF the necessity OF curtail-
ment. Hence you cannot infer that the evanston
WIZ always be in proportion To the magnitude of the
uePosiles, because the moment the banks ovcr-issue.
me nnlayotable exchange will produce "A demand
Tor specie; aud that will Immediately correct the
eVl by forcing a contraction. Ii then YOU have
n small revenue, the dcpositss in the banks will not
stimulate m expansion First, because of the
smallness Of the dcposites and secondly, because
OF tho short time they remain with the banks. II
the deposites are great. then they will stimulate To
expansion. but under the restraint above designated.
Now. let MS look n moment nj the operation of the
sub treasury scheme. 1.-THE revenue be small aud
discussed regularly, the mischief OF the system will,
o, course, be nj u minimum. But even IN this state
"'n'ngs' tho extra demand ief soid ana SILVER Will
keep the currency IN n state OF constant insecurity.
ou' lei us suppose, Tor n moment. that the sub lfea-
,"'y s'he'he shalI ever be tested by what has altea-
ny happened to The banks, that Is by IN enormous
surplus revenue for a time unappfopiiatcd. lima
c'nation can scarcely conceive OF the calamity that
would 'hen ensne. Our whole circulating madlum,
mean tue money, both paper aud specie, does not
~ NV ~, "'"'" oN.eea Si'o'ooo'uoo' Now II
,"'. s''a p' u surplus revenue o, $4,000, 600,
" w s''''"1' "os'''e' one 'nto o' 'o "lo'e
= W 'roh Tue pfinelple ct supply atd
I"'"' '''ees "'"l" 'a' one. iiiIin. Out wlen we
Wv NV ~ u Shoeh 'na' "o"lu DC CIV
anto .o"' ' we consequent o's''uS' ana stag
""'o" ~ ''"' W Nv ho''"ine ,'a' would take
pace 'h'ooghou' Ine country, tho consequence
~
u county SURPRISING an, thing winch the cNae-
I,",eu 'ao'es o 'he Fast nave aseflbed to Alad-
~ y amp u "eo' " so'he thousands n''ghi bfiig
'We "'Hf'natfe 10 bankruptcy and The fortunate lew.
II were III possession OF me iens' the mortgages.
'"u ueeus o 'ns'' OF y nttle ready chsh, would IN
H''o'''e'y become tue 'oids oil the asccndant. In
~ 'nean''he' ms very Impression would turn the
~ " '"e ''''' ~ ~ county M we ''e'y saw
'"., NC 's"''"' u, "" urPosiies' ,hs wo"Iu III
up 'he vacuum ahu 'hen should there come an or
utI HUH NtbttinlntnI 10 1AnllS IA III
''"so'e, you would nave Sao'ooo .ooo poured sudden
'n'o e',enld''oh "''c', "oaia instantly dow up
Nv oupuie - sPe'u'a''o" ny II su'iden rise Oh prices,
10 D q 'o"o"eo again ny another le'nis'on'
Nh. Calhoun, IN a speech ON the sub-trcasury bill.
affirmed that the Re establishment of the u. $. h ,nk
would produce n demand Tor $50, 900 900 in specie
which would probably break the whole banking sys-
TEN ot the United states. II ~ astonishing that he
should not have reflected, how powerfully that as
sertion mnst initiate against the sub-treasuiy
scheme. During the late crisis, II the sub lteasu-
ry had been in operation there would have been a
demand Tor forty millions oil dollars TO be boarded IN
the shape Of specie II requires no sage 10 tell how
completely the banking system would have been
Frustrated by such demand. Tins IS a view oil Tie
SUBJECT, winch very lew OF the snbtfeasufy anso-
Gates whom | nave met with, can look jHu IN me fdet.
They cry out instantly that the administration plan
IS TO guard against a surplus hen may we moi
TAX '"ei' WIN h'os' una" oeanhg III 'n'. argument
""e" ~. 60 "H''"' NJ 80 49, '""" VI
',e 'ys'.'"' 'ee""so ,''"' VI ""'' Is o'''eu
u Pe'-o'"" ,''' "''"o"s" ~ s''n'es
VI VI : Wv" ",'"' wy ""'""'"''"'y
experiment. '"' ""o u u ~ ~" e"o'"'o"s
surplus ,esen"1' ""en ! w Nv 's",' !" say
ing w"n'o' !" III ~ treasury !" u' oPe,a'on'
n''' ,",''e'e" " "o",'" u" !. oo'y P'"'S' nv +"
"uu'' p''e '.1""o" NV 'ns' 'ne "S"o"' VI :"
p''e' s'"''"'o" W "e".' =" Nv W" VI
MS '"'', e"Poo' ''"''S' o'''"e .N",",
p''Fo''o">' ~ ~ s'.'"
ery ,,'en'e ''''''r, "'' u 81 " s"''s
Oh Puo''' ANUS ",us ""o'ua'e' 'na 'h'' 700 pe'"een
"'"e's separate" ','""s' w 'ooA W 'e "s'o'y ~
our revenue U nc ~ wv" II nv Year, We
n''e see" = ''e d" '" 'o"''' "'''' P'o'"o'''
men u Vastly 'e""cc" 'e'eo"" 'leh co''c d 'e'n'-
VI co,'",'oe' u sources u ""' revenue are
s"uue''y o''o" up, ana even tue accumulated feVe-
nuc ''se,, seems he '"e o''' unoet inc J"eg,e' soup
W nave disappeared d. ny ehc'ial'h'eh'' "u" eNcne-
!"et o''.s mus NC ssueo u" o'seh''s" "e Puo,e
o"s'' -" '"ese "'"''"'"ous hu''u"''o"' =" wv
'''e""e' ! :" 'o"'''' u "o se,o'"e 81 We" u"
cu'''eo 10 NeeP ~ currency Oh 'ie country VI "n
tefha' sec Sa~ d > u s"o-'fe"sofy pan. ! WIZ ne
co"c "so'' VI "ot"S Po'"S S4ste"' WIG" W." P'o
"u.o s""roe, 'e'"'"''o"' W " 'o"'''''" "' wv"
ersnP u II property u ~ county
| have some idea oil writing on tins subject and
OF trying 10 snow Tue enect winch The hoatdlhg oil
specie in the ancient world, aud during the ieudal
ages Of Europe. has produced. have no question
but the strong box system has been one cause OF the
frequency of wars among the ancients, ana among
half civilized nations. tof boarding IN tune OF
peace, on the principle / have just explained, would
produce d most lntoletable pressure, which wal
would relieve by lis rapid disbursements OF the boar
ded treasure. The effect produced during wars, by
spending boarded treasure and by borrowing money
TO pay troops and procure all the instruments oil
war, generates a decciiinl kind OF prosperity, which
M a q "A. y a p N a IN q n nnpG rial 4 mare 1IS1EtTDng.i