Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-09-28

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Is expectation, md thereby enable the banks to
procure the necessary supply. Bypreyeutug the
over issues Of tie banks i VIII check speculation.
and prevent excessive impos;a'lous Of foreign
goods, which always produce distress, and an ex-
pouauon Of The precious metals Il mny check
.he hitherto gambling business of the banks, bot
wall add 10 their prosperity BY keeping them sound
and enhancing public confidence IN their stability.
Nor can specie ever accumulate ~ the subifeas-
uucs 50 Is 10 Cypress the banks There never
probably will be a greater accumulation al one
time, than three millions, and the measure itself
provides that when the surplus exceeds four mil
lions, Il shall be vested in state stocks, so il will
at once be emitted ont. There never can be any
surplus unless tho receipts Of the revenue exceed
the necessities Of the government.
The sub-rea-ury by preventing the too great
action Of tue banks, viii prevent over mpoTta-
whereas, national or state bank being the custo
dian Of the public money, has direct interest in
stimulating excessive Importation, that il may re-
ceiye and bank upon the revenue and the accumu
laliug surplus.
In every polEt ofylew, the influence Of the IN,
dependent treasury upon the local currency will
be much more salutay than that of National
Bank.
The argument Of "two currencles, one for the
people aud one for the government" Is too con-
tempiIblo 10 notice because, what is receWedb by
one hand is paid out by the other, aud goes at
once into general circulation. Besides, IT the
Argument has any force, 1t proves that The bank
paper ls too worthless for the purposes Of good
currency, and ought therefore to be eradlcaed.-
II bunk papcl be as its advocates assert, equya-
lent to the specie, then specie is not better cur
rency; on the other hand, IN be deprecated, aud
worth less than specie, then the government have
no right to pay II out to the detrmenl oil ITS credit
ots. And the state banks are vicious sys-
TEN, although the states have a right 10 use 1t
they see proper, and the federal government can
not infringe upon that right, nor correct the evils
Of state legislation, yet the federal government IL
self has no right to adopt 1t, 10 the oppression OF
the people.
Another advantage Of the constitutional cur
rency Of gold and silver furnished by the Sub
Treasury, is ts uniformity ~ every part Of the
country. This uniformity IS not possessed by the
notes Of the u. States Bank Their value fluc-
tuatcs, and the notes Of the branches are as much
local paF5r as the issues Of the State Banks This
proposition was uttered by the bank ITSELF In
1921, the bank presented memorial to Congress
praying several alterations in lis charter, which
contains the character Of its currency, described
az follows
"From the middle Of December to the middle
Of March or April, tic notes Of tho United States
Baul\ and tho Northern Offices will generally be
at discount in the South, And there will be
many other instances Of their being under their
nominal value They are, however, always only
II commodity where they ale not payable, aud
their price will depend on the quantity IN market
and the demand for them the demand for them
will depend on tho amount Of revenue payable III
the place where they are held, compared with
the quantity in the market They viii serve nt
purpose Of general currency against the cur
rent Of exchange nor viii they ever, under sncl
circumstances, serve the purposes OF currency
in n correct sense, where they are not payable
They will be at par, bear premium, or be below
par, according to circumstances. Even on tn
spot where they are issued, they will Eloquent,
' bear premium, unless they are freely issued
In Ohio, for example, they are said TO have CON
G mundcd fifty per cent. premium IN the curren
f money Of the State But tie overriding difficult
i will be that the bank in It's own Defence viii no
issue its notes who're they are to be used as
J. substitute lot exchange and il is only when the
can be thus advantogoously used that they al
!. supposed 10 serve the purpose Of general Gun
Is reNcy."
e The above extract, furnished by the bank ii
g self, proves lanr things
Isl. That the currency of that bank Is not uni
n form.
Q, ID That il is moi national, but local.
/. Sd. That the currency of the State banks wer
IN at discount of fifty per cent. during its coutint
l. ance, and that it did not therefore remedy III
rs evils Of the local currency.
y 4h That the notes of a United States Ban
cannot be substituted IN the place of cxchans
y without great inconvenience and loss.
l. II is one Of the besettng sins of federal poll
Guns, to set al naught the experience OF the pa:
Ondt deny the most familiar events Of hisIor
y Hence the assertion OF that party, that during 4
., existence Of United States Bank the count
:" had always sound currency, both State and n
" tiona. II would be difficult TO make an ASSERT
" more susceptible of relutation, by recurrence
the history of the country. In truth, during |
= whole existence Of that institution, the history
= our currency is history of revusions aud dep
" ', ciaied money. The years 1909, lsl9-2Q, Is.
- lS25-26, 1928 and 1892, were all years of co
F" mercial distress and of bank failures, although
9 National Bank was then in successful operuu,
u The failure and suspension Of the banks in s
II and 1890, aud Tie general bankruptcy which P
'e yadcd the country, were not surpassed by the $
pension OF 1887.
!, The United States Bank went into operat
~ in 1877. Ia 1919 the banks Of Tennessee s
III pended specie payments, and 1921 specie r
IS inr notes commanded from ID 10 IL per cent
nN the currency Of the State. In 1875 the pape
w the Tennessee banks was ut discount Of 25
rs cent. in Philadelphia. and the banks Of Nash'
'o did not resume specie payments until oes'em
les 1926. Such was tho condition Of the cure
X of Tennessee for series OF years, during
lf- | 4 60 a rauuiatOF.