Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-10-13

moe ratio strstion has prescribed, is openly
and plainly ayowed. Whatever has been the course
OF events heretofore the administration Pr0pos-
es 90 collect the revenue in the constitutional csr
rency, and TO pay II away under appropriations by
act OF congress in the same currency; and IN the
mean time to keep il in she public treasury, under
officers responsible TO the laws of the Union, and to
have no connection with banking, or any other
branch OF but leave that solely to the
people. Such is the financial policy OF the adm'-
nstraton. The Wings, closely AS they have endea-
vored to keep their designs with view to preserve
harmony in their ranks un il they have displaced
their adversares have these alternatives only -ls
To deposite the revenue in State banks In be bank
ed upon; II, to maintain the Independent Treasury
Or lastly, 10 create at once Bank OF the Unit
ed States, and there place The revenue be banked
upon The first scheme they have reviled so much
that they have not the face TO adop; it. The second
is the very test Of the present adminis and
ii that 10 their object there is not the least need Of
any changeso that the last is in truth and in TACT
the true and only aim Of all this vast and mighty
movement To disguise il is folly--to say that Ge-
neral Harrison is not pledged 10 it, is weakness it
Is his destny-he could not avoid it if he would;
and Just so sure as he is elected, his party must
either be gui ty of the excessive OF adopt
ing the rejected and reviled measures OF the Gtno-
cratic administration, or they must boldly ester up
on an experiment which will do more to convnlse
the trade and business Of this country, taan all and
every change which has yet come Every
state bank would be prostyated, merchants would be
pressed, capital withdrawn to the amount Of fifty
millions, to he loaned out to other individuals ard
the dawning prosperity of our country, which is
rising higher and higher to the perfect day will
be clouded with misfortnnes, rent with such con
hict of elements, will leave behind devastation
and RUM. The people have been misled By beng
told that the licy of the country has Frustrated
trade, reduced the prices OF labor and the prOduc
tons Of agriculture. l will first prove that there
are other causes enough TO account for all the de-
raDs cments which exist, aud show the true Of
the presen price Of agricultural productions.
The banks south Of New York, especially the
great United States Bank, are in n state Of suspcn
sion; and the excess Of our importa ions, from 1882
to 1885, one hundred and forty. four millions Of
dollars Since 1920, the states have created stocks
some judiciously, but many was efuly in, ested to
the amount of one hundred and seventy-four mil
lions Most of these found their way to Europe,
and with the exception of about ftty-fve millions
in specie, this vast amount has been brought in
British manufactures, Cutting our markets and pros
tratins our manufactures. This vast importation
was nat wanted, but the people we're induced 10
porting merchant sold on extensive credit, and
has books was getting rich; he accordingly moved
up town, got splendid furnitnre, and Jared sumptu
ously. This country liant had eight and tw Give
months credit took his goods home to his village or
settlement, ana finding .. excellent opportu ity to
make fortune by this borrowed means, he soon sold
out at reduced prices and urged his goods upon the
consumers by every temptation; thus he became
possessed Of means tn operate upon MadAcss ruled
the hour. Instead of the sturdy hus with his
axe, the surveyor and platter went into the wilder
ness; at every confluence Of two streams, q city
was Autographed, laid out in streets and squares,
and ready for sale Lots were rising every day,
and the proceeds Of the merchants goods were ha-
zarded the peeulstion. At last, like all popular
delusiops, the veil suddenly was lifted up and these
fairy fortunes vanished. The country merchant had
only town lots in the woods, to pay the town mer-
chant; these would not pay his engagements, and
suspension and ruin followed. Their customers
could not pay them; and the banks too suspended.
From that time forward, men have been collecting
together the scattered fragments II their fortunes
and orins to retrace their steps back TO the
old and time honored walks Of sober business
Whoever 10 to blame for this, one thing is certain
that had the revenue continued in the United States
Bank il would have been loaned out; the dc poet in
state banks only changed the board Of Directors
II was common infatuation, and instead Of mutual
recriuinstons, good sense teaches to look the
failure. ] have brought this matter to your view
merely TO show that at least IL not the IndePen
dent Treasury which caused the mischief Let rs
tarD, then, to the present question. contend that
from its very nature, bank paper is not and cannot
be currency. IL ia only q substitute for il. Mr.
Webster says that the government is bound to fur
nsh the country with a sound currency Her
COT. ttution has dorc so and now claim Of that
gentle man. who is lawyer, and great one too, 10
adhere to the issue. wish to pin him to the ques
tion what is currencyl i take il that curren-
cy, from its very nature must be that species OF
erchandise, that. being itself nrinscally valua-
BILE, has been adopted by universal consent as the
measure Of all other proserty; and call on
chants, practical merchants, TO follow me through
the argument They have been my associates through
life. NV walks have been on the rialto" where
merchants copgregate-men who are in the habit Of
calculating voyages, and planning exchanges; and to
them say, that regards foreign comnerc prices
here are regulated by prices in the market Of the
world and that in that market, but currency is
knewn-that OF gold and silver; and fer the planes
reason-i is property in itself; and is property and
the Of all other property in every quarter
Of the globe. And IL 10 that which alone in the
nature Of things pay debts. Debt is u,ually con-
tracted by one placing his property in another's
hands; one becomes the debtor, the other the cred
tor; and the debter Of course promises to repay
Bat that is not payment The property must be re-
turned; If not In kind. in other property; and gold
and silver is that property. Thus il merchant in
New-York wishes To sh -four 10 France Eng
land, what are the elements OF his calculation He
first ascertans the price there in gold aud silver;
Tor whatever may be the local currency, the mer-
chant reduces IL to coin as the only safe criterion
He then decides on the probability OF the price
tinuing the freight, in uranee, expenses cf ship
ment, &c and then he ascertains jast how much
specie he afford TO give the fsrmer for his hoEr,
50 as to leave the merchant fair profit his adj.
ventore. Ifhe pays the farmer in specie, he pays
the exact sum; but IL he pays him paper Of a sus-
pended bank, he pays so muck more az will enable
the farmer TO realize the exact amount Of specie.
These calculations subject of course To the dis
turbing innueaces which alice trade, but substan-
italy they are the basis Of all foreiea trade. Gold
and silver then being the money OF the world, or the
currency Of the world and all foreign commerce be-
ing regulated by it, let examine its practical ef
feet upon the price Of flour as example At pre-
sent, -four is low, asd the wings lay il Ill tie
government; as though the government, the demo-
cratic government is responsible for that good Pro-
vidsnee which has blessed the lsbors of the hus-
handosn not oaly n our own sailing land, but both
in England ard the continent Of Earope. If -four
was worth $40 barrel in England, do you believe il
would be dull Of sale here at fvs' would not the
merehast at once buv II up' and competition would
fx the price 81 -four at its Just value in proper
tion 10 its specie price in the market of the world
bat the great whir eSpousdcr said TO the people of
Patehogue, T" You s,nd the surplas OF your produce
TO market Remember. only the surplus Ifprices
are high, tina, affects only the surplus Tf prices
are low, still IL Is only the surplus that is affected
And IL prices are down one-half, only the surplus
feels that fall.
bat IL rs not with the cotton ofthe south. The
planter cant eat IT, nor he can't drink IL, ror he