The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-10-19
POLITICS OF THE DAY.
LETTER OF PROFESSOR DEW

LETTER OF PKOFESSOR DEWs
We comply with the request ola subscriber
in giving the letter Of professor Dew, in relation
to the Sub-treasury, alluded to in the late
speech Of Mr.. Rves at Louisa Court House
This document was published in this paper
last spring, and at that time supposed to have
been from the pen of Langdon Cheves, Esq.
1t is a document so excellent in itself that it
will well bear republication.
FFom The Alabama State Latelligeneer.
THE sUB-TREASURY.
We have been politely permitted, in compliance
with our earnest solicitations, TO grace our columns
wi the following very able letter from one OF the
most profound and distinguished political econo-
mists in the South 10 member of the Legislature
OF one of the Southern States on the subject of the
Sub treasury. The letter. we deem it proper TO saw
was not written with the reniotes view to publica-
ton. II is dated,
FEBRUARY Q, 1885,
Dear Sir:-Yours of the 4th instant was duly re-
ceived feel highly hatered by the terms in which
you have asked my opinion on subject which
consider OF vital importance, and which has already
engaged much of the attention Of our most distin-
'guished statesmen. Upon the great principle upon
which that subject mus be settled agree with your
self and Mr. RiSes. consider what is called the
SuD-tTedSuTY SCHeme dS IIduSUt Win the most Tor
midable evils. ! consider it most decidedly at war
with LIBERALIZATION of the age in which we live
threatening The overthrow of that great system Of
credit, which is one of the characerzng features of
the nineteenth century II seems TO me 10 be most
decided movement backwards towards the ages of
barbarism. look al this question with the more
solici,ude, because | know that the people, whose
votes will ultimately decide the matter, are pecu-
liarly liable 10 lake wrong views of the whole sub
Ject; The great mass OF mankind Judge by appear
ance: and the sagacous remark OF David Hume Is
strictly true that there is subject in the world in
which first appearances are oftener false than in
political economy It will be long time before the
people will be Familiarity acquainted with the great
subject of credit: and until they are they will be
liable to abuses. The system of credit with its ma
nfod advantages is liable nevertheless to occasion
al commercial revulsions, which ever produce the
most profound distress. These revulsions no mat.
ter how rare, strike the imaginaons Of men. and
are regarded by the unrefecting multitude as the
characterizing phenomena OF the system. When
ever they take place, the people will always look
ercinstrsy 10 the prominent parts of that system and
charge the whole calamity upon them, although
these may be the mere exponenls and not the cause
Hence, during the middle age, wherever CONNER
cial distress arose, the poor Jews, who were the
great money dealers in Europe, were sure to 90 10
the rail. In London till banks were established
Lombard street, The great moneyed street. was made
responsible. In the rdmoney countries, they are
the Rothchids the Laieltes, and the Torlanias--the
great private bankers, who have TO bear the sin of
land and our own, where the progress of civiliza-
ton has reared that great engine OF Improvement
the credit system-and sustained and deveoped il
by the operation OF banking companies The banks
must OF necessity become the most prominent parts
oil The system; hence we not to wonder that with
us an undiscriminating tribunal should charge the
whole evil Of commercial revusions upon the banks
when men cannot pay their debts they are very apt
70 chlrge their ruin upon their creditors Ina bank
ing country, banks will Of course be the largest
credilor and therefore, will be charged with most
oil the sin. The popular clamor in our country
against all banks, since the late pressure seems 10
me 10 De perfect illustration Of this general re-
marx. lew years ago. when the credit system
was sIe.ched 10 It's extreme limits and the country
seemed 10 De enjoying unparalleled prosperity there
were those who could look on and stimni,,e ,hs
oankS 10 yet greater expansions; and the ,nomerft
they had thus overstrained the system iii m =
superslfuc'ure was overlhrown, could then come
forward and calmly recommend n tota, 5;a.. oo
ton of the Government with them beanss s e,
mischief which the latter were supnosea !, u sne
produced. Now the fact is, that the raoo fr nave
lation almost always precedes that for BANKING tn
effect is mistaken for the cause. Il is true howev
that the effect in time becomes powerfully onora
ing cause, as Is frequently the case in political eco
nomy Tooke, in bis great work on high and low
prices, has shown most conclusivey that in almos,
every case Of what Is called overriding the great
propelng cause in the first instance, has been en-
tirey c6tFaRe0us to The banking system, the onera
ton Of the latter being exerted secondariy and de-
relatively. do not pretend TO deny, but that the
banks may often carry the spirit of Speculation far
ther than II would otherwise go but TO charge them
with the whole evil Is most unfair One of the most
terrible reusions in trade, which has occurred for
the last fry years, took place IN Hamburg in I7go
where there was not single bank Of circulation
nor single bank note passing from hand IA hand
Whenever The credit system is erected and the
trade is great and part Of it hazardous there you