Liberty advocate., 1839-05-30

is collected at New York, while not one twet-
tieth ofthe disbursements take place there
The sub-treasurers must then draw and redraw
on each other. These checks and drafts will
be thrown into the circulation, and will infu-
ence the currency. This is banking More
over, gold and silver will be eiernally on the
road or on the waves, first seeking the po'hls
of collection. the sea-board towns, then travel
ling back tothe points of disbursement. Now
every one, who knows any thing ofthe nature
ofcommerce in a county like ours, knows tha,
the system works best when the.specie is in
state Of comparative repose. Specie, in
country full OF banks, is like balhstfn ship;
it must be kept fixed and steady When you
place il loose, near the top, and it begins to
move and roll TO and fro with the rocking ofthe
vessel, you may expect to be capsized w the
very first blast that blows. This sySieinwi
have tendency towards specie pleth6rGO the
points Of expenditure, and depletion at The
points of collection. And this very fact wil
make the taxes the most oppressive possible,
because Of the difficulty Of paying them when
specie is deficient and it would push the expen-
ses Of tho government always TO a maximum,
because of the redundancy at the places ofex.
penditure. And this consider an argument
ofno little weight. The Florida campaign has
cost $lo,Oo0,oO0. Suppose you had sent your
strong boxes filled with gold and silver, and
had poured this amount into the circulation
there; could you wonder at sack Of corn sci.
ling for 500 or $50, and a barrel Of flour for
$75, and steamboat being chartered for three
or four weeks at a cost which would pay for its
construction! The nations of antiquity cvoi.
6ed this evil IN great measure, by collecting
aarge amount Of the revenue in Kind, and by
leyying heavy contributions in provisions wher-
ever their armies marched.
In conclusion, will make remark or two on
what is called the Pet Bank System, and its late
supposed failure. In the first place, sir, am
very far from thinking the banks the sole cause,
or even the main cause, of the mania for spec
ulalion which we have recently had, and the |
consequent disastrous revulsions, terminating
in the suspension ofspecie payments. The i'm
pulse was undoubtedly first communicated by
the rise in the price OF cotton, thing wholly
extraneous TO our banking system. That las {
ted for several years, during which time wes-
tern lands, negroes, and almost every species S
Of agricultural product felt the influence of the t
steady demand for cotton. Then came the i'll
dependence of Texas, which intoxicated thou L
ands with dreams Of wealth and aggrandize- L
nent in that iancied Ell Dorado. Then our t
Whole population got upon the move; almost the I
'hole OF lower Virginia at one time was in The q
larket. The tide set in with an overwhelming
npetus towards the cotton country. Every
ian who could have reasoned at all, might have G
zen that most tremendous pressure must come c'
pom the engine, if ever the price OF cotton. "
hlch was the great Atlas, uphoIding the whole o.
lperstructure, should fall. In the mean time. j;
r, must say, that in this critical condition of I'll
hngs, man, who, whatever might be his
eneral merits posterily will be found to con-
ss great financial quack, was placed at the
cad OF government. II is the case with such
enerally, that their confidence in themselves
nd reckiessncss Of consequences, are exalted 4,
proportion to their want of knowledge and -,
'resight. Can we then wonder at the conse- -
lences, under these circumstances? Afterall. y;
40 not consider the suspension Of specie pay. ~,
ents as proof Of failure. This is an occa "
onal event incidental to the credit system.- 80
'e are all even now, we'll content with bank oC oC
'tes, and so would the government creditors y !;
ave been, but for this hue and cry about hard ~ =,
oney; and under all circumstances, | douht w
neither the government will loose above n few
'ousand dollars. Is it fair to say, then, ,ha,
e experiment proves the incompeencv od
le banks TO keep In safety the public depos,
es! | find that am entirely too late for the i
ali this evening, in consequence of the un
'ntemPlated length to which my letter has =,
itended. 81
With high respect, am, dear sir, sc
Your obedent servant l"t