The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1840-04-28
FOR PRESIDENT,
VIM. Henry Harrison,
OF OHIO.
FOR VICE PRESIDENT,
John XyIer,
OF VIRGINIA.
THE TINES THE TINES

The Locofoco clamor against banks as being the
cause OF hard times has nearly ceased, and many Of
those who aided that clamor are now candidly
seeking foi the cause of the depression we have
experienced for the last six months. This augurs
we'll That The times ''sadly out Of Joint" la.
mcnabie experience compes us all to admit. Let
us then in proper spirit ofenqury cast about for
the cause that gives to The "body of the times
their form and pressure"
Eve can discover two powers equally capable
of producing like effects and one of those powers
is benefited, and the other injured by effects so
produced, the ready and natural Inference is that
the power benefited, and not the power injured,
causes these effects. Well, let us The object
of bank is to loan money. In proportion to its
loans are its gains. If it cannot loan dollar in
twelve months it cannot make a dollar in the same
time Instead of gaining it looses. lis losses are
in The interest on the capital in its vaults, the sala
nv paid to Its officers The real estate it holds, &c
In the last six months we know the Banks could
not, with safety TO themselves the community,
extend their loans Furthermore, for the same
reason we know that they obliged to contract,
to call in a portion of their issues that out,
they were drawing Wdo on o Mhsa
to do in consequence of the change in The times.
Evidently then they were the injured power. Let
us look furhe-. Merchants in ports are
trading with foreign na.ions-buyng foreign goods.
These goods must be paid for. The capital of our
Banks is small, and though the bills good here,
the Banks not known abroad, in foreign coun-
tries, and their Bills arc not current there. The
foreign manufacturer must be paid. We import
more than we export and the balance must be paid
in specie. This creates demand for specie to
send abroad, the demand adds TO its nominal vane,
and has been sold in New York for ten per cent
premium, that is s 900 in specie would bring
S 100 in Bills. Yet S geo in these Bills would
buy just much land, stock, or produce in Yer
mont equal amount in specie. The President
says under his Sub Treasury scheme, the Govern
ment officials shall be paid in specie. Are they
the benefited power? Let us see. The PRESIDENT
salary is 1926, 900 He draw it in specie, send
that specie TO New York and sell it for per cent
premium-ten per cent then gives him profit OF
So, 500. Let look further Specie being the
foundation of Bank issues its scarcity compels a
contraction of Bank issues, and a contraction OF
Bank issues produces scarcity OF paper money
Money is like any commodity. The scarcer it is
the it is worth, and the higher the rate of in
terest AT the rate of sixty per cent year on SIX
months credit has been paid in New York for in
terest on paper money-Bank Bills, Suppose when
the Presidents Agent converts his specie into bill.
he loans The Bills at only twenty five per cent
year interest. That would make the interest or
r 1927, 500 for year $6,875, which added to the
r ten per cent on the specie makes The Presidents
salary which is fixed by law at $25, 900, worth te
him $34, 375 year. In proportion to their salaries
all other officers under him gain. They Their
are the benefited power Let candid and keer
sighted people determine whether they produce
the present condition of things. Do they no
'laugh at calamiies, and mock when our fea
comsth?" Yea, yea, they do. SUFFERER.