Liberty advocate., 1839-05-30

cause we have no bank, but because we are en- Ic
gagged in trade altogether between farmer s
and merchant. Scotland had more banks than a
any country in Europe, in proportion to its pop "
uaton and wealth; and yet, where in thew
world shall you find greater stability in the
whole monetary systeml And why? Simply c
because The trade OF Scotland is altogether a c
safe trade~,.trade on limited scale. The Y
whole of Scotland exports only one fifth of what b
is exported from the single city Of Liverpool. Y
You have revulsions in LondoEI Liverpool, and ,
New York, not because OF the banks but be- /
ca,.N ofthe great and huctuating trSN Ne which '
they are carrying on. When the Sssake is I
great, you mast encounter great hA2ards --
When you are playing for the great rNlzes IN
the lottery, you must expect to draw OCCASION
al blanks You have, it is true, fewer revolu {
ltons 10 France, Spain, Italy, &c, The hard mon
en- countries, than you have in England and the
United States; but is not the difference owing
Ito the fact that England and America have so
far excelled all their competitors in the great
struggle for the International commerce OF the |
world? If it were possible to throw the i'm
mense trade Of London, Liverpool, and n. York
into IIavre, Cadiz, and Venice, you would soon
have occasional oycrtrading aud revuIson; but
| imagine those cities would thankfully recciveI
the boon, with all It's attendant evils.
| have made these general remarks on bank
ing. because it is impossible TO disguise lheI
| luct, that this subtreasury scheme IS nolhIng
more than Il declaration OF war upon The bank
Iinc system. The cry now, Is, for divorce oil
1.-The government from banks Such divorce
cannot take place without mischief. 10 put
down the banks is impossible, unless some
scheme is devised to ruin them all. That beng
the case. we are bound 10 act in u manner
which will best secure the interests and har-
mony of all. The sub-treasury scheme VIII
mot onswerthc purpose-hrsi, because II would,
as has been concluSlvely shown, make specie
merchantabIe commodity, 10y giving II a pre-
r MUM, and thus forever prevent the resumption
/ of specie payments, or keep the banks Ill con
Itinpcd insecurity, if they should ever again
: nav specie. Secondly, because believe the
j. sub-,reasury system would produce much gfeaL-
| or fluctuations in the currency than the bahK
. Idenosiie system. So far as the deposiies OF
e the General Government operate III producing
y fluctuations, it must arise from the stimulus
II given 10 the banks to expand the currency.--
e. Wba, is there 10 correct this tendency? EVi'
|. IDENTIFY. the great check which is the only true
d and safe regulator Of the banking system, the
y unfayorable influence on the EXCHANGES through
Q the operations of deprecated currency
C This produces demand for specie, and that
90 demand warns The banks of an over-lssue, and
/. of the necessity of curailment. Hence you
If canno; infer that the expansion Will always be
v in proportion 70 the magnitude OF the deposltes
e because the moment the banks oNer-iSsue' Inc
\. IunCnyorabe exchange will produce Il demand
al for specie; and that Will Immediately corfec'
,e the evil by forcing a contraction. II theh you
to have small revenue the deposHes IN the
s. banks will not stimulate an expansion 81 lfS'
81 because of the smallnesS OF the deposles; ahe
re secondly. because of the short time lhey re-
~. main with the banks. If the deposltes arc
to great. then they will stimulate to expansion
6ut under the restraint above designated f,ow
re lot ne look a moment at the operation oil th'
ot snb-,reasury scheme. If the revenue be smaI
,s- and disburscd regularly, the mischief oI INT
hoI evs,om will. of course, be at minimum Bu
he eycn in this state of things, the extra deman
,nt for co,d and silver will keep the currency IN
W. state of constant insecurity. But let US sup
,nI nose for moment, that the sub-treasur
80. scheme shalI ever be tested by what has a
,ot ready lappened to the banks, that is oy Il
',,o onormous surnlus revenue for time unaPpr(
rg nroted. Imagination can scarcely cohcelV
asS' ar,he caIamity that would then ensue. Ou
ith whole circulating medium, mean the none.
the both paper and specie, does not al ''is I'M t'n
es. much exceed Sl20 100000. Now II tnel M
ocI should be IA surplus revenue OF S4o'ooooV
,en Won would suddenly abstract onc-tnlru ., u
n,o whole Crora circulation Upon the pr'nciple
;ng sunpv and demand, prices would IaII one-lhIr
lie pnt when we take into consideration the shol
va, ,h,, would be given 10 confidence, the cons
md ouent distrust and stagnaton III trade ana !,
ole boarding that would take place throughout u
,en country, the consequence would DC awful
,tal There would be revolution IN the couh'f
EN-, surprising any thing which the eXagSeFu'
ereI GbIcs of lhe East have ascribed to Alaudll
il. llamn. debt of some thousands mlgh' efi
avs the millionaire to bankruptcy: and the iof
MS note few. who were in possession Of the lel
hni The mortgapcs, and deeds OF trust, or III
ra. readv cash. would Immediately become
icai lords of The ascendant. In the meantime, u
gh very depression would turn the tide OF the = :
ely, tails into the country, as VIC lato'y saw " a,
IIedIthe removal of the deposites; thls would MI
the vacuum; and then should there come an orc
$ TO from Government to disbnrse the hoard
tier treasure, you would have S40,0OO,ooo pour
! Suddenlylnlo circulation; when Woulu ms"
nav lv blow up the bubble Of speculation by 81
her den rise OF prices, TO be followed again by
hem other revulson.
fine Mr. Calhoun, in a speech on the sub-trea
oc- nv bill, affirmed that the re-esabshmen'
o il tic U. s. Bank would produce q demand