Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1840-02-20

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sibe lot this evil The corn laws of England The
alns during the harvest of ls35 aud 80 aud the pc
cuiatitits OF our cotton tradr-these arc The itue
causes. The operations OF the banks are but their
eNponens, aHd he who would propose to remedy
these evils, by striking the banks alone seem. TO
me 10 reason With 10 more wisdom than The
phllanihropist who would propose tomed, all The
evils OF wars by abolshing the use Of gnnpowicr.
As The abolition ot gnnpowder would only lead To
other and mor, disastrous modes OF killing snoh
et; so the abolition of banks would only lead To
some other agency in bringing about these CONNER
/ c'h results, which would be much more tuinous in
! the end 10 nations Suppose, SIR, there had MOI
been abank IN England or America whilst precise
| " the same events had happened III the Two coun-
tres, do you suppose, for moment, that ENGLAND
would then have been enabled 10 continue her former
prices Tor cotton, while Size WAS paving high fur
1 bteadsuhs certainly NOT. The action of nade
would have been somewhat different The impor-
tatlon OF breadsIuils would have produced tho same
favorable balance against England. The abstrnc-
ton OF currency, 10 satisfy the demand produced by
this balance, would have left diminished amount
Tor Other purposes aud, consequently, prices would
have ldllen; ihtt 81 cotton among the f,s-So that
work the problem rs you will, similar results must
always follow from similar causes. No ONE, who
understands this matter, can blame the Bank ol Eng
land iof her system OF contraction, he
datirs spun towards her customers that course ul
conduct hasbeeo forced upon her ~ the events OF
the tunes, aud whilst the Law OF self peselvaflou
thus urges her TO this action, why she u.s. in fact
acting rs the guardian of public interest, and pufsu-
ihg the only course " ch could conduct tho cuunty
safely through the Impending storm.-GIcni Britain
has been forced b, the deciees Of providence, make
an extra purchase Of millions of dollars worth of
hreadstutl,, and neither the wisdom OF The philaso-
pher, nor The juggling OF the politician can settle The
account without making the natiou feel 1t. Aud II
this misfortune Of FL gland has, in utu inflicted ca
amlty on ~. II is through tho Influence Of The cot
ton trade that the effect is 10 be explained. II is
u al ua1p upI mr. han Llno wi, 1,
has hung up the barometer Of American credit at the I
British exchange.
will now, sir close with Few remarks upon the I
general conclusion which The President d Avs from
tic present cisls IN favor Of his cherished system
The Sub Treasury scheme. The country is now
plunged III great commercial disln IS, an unparalcl
ed pressure exists IN the money matkst-the banks
south OF New lotk have almos, all suspended spc-
cue payments general gloom hangs he future.
The President has, with more ingenuity ihsn plo
sophy seized on these circumstances for the purpose
of throwing the popular odium ON the banking sys
ien and enforcing HE policy OF the Sub Treasury.
Now, sir, onthc contrary, II does seem 10 that
the PRESENT crisis, when properly understood eNhl-
bits the dangerous tendency Of The Sun reusur, IN
light which should make the palrol shnddct al,ts
csiablishuent. Ifthe explanation which | have
given o, cotton trade be eoIret II SHOWS that,
under the most favorable ncums ianct :. we shall
be liable TO the visitation 81 The most se,eic com
mcrcill fcyulsons aud the Bluish corn laws, as
long hey stand nnfepenlea. viii Increase this liza
hIlIy and aegtavate The lesn. The President ad-
mits that, ia county SO commercial ours. nks,
in some form, vii pr1bably always exist. II, lhen,
always TO have banks. will be readily admit
ted that should If possible, In NIL financial ar
ragemens, adopt such policy VIII enable lhcm
20 operate with most advantage 10 tie country, and.
At the same time preserve them in those limits both
OF expansion aud contraction, Which may insure the
greatest uniformity and stability our currency
amid all the yIeissurns OF our commerce. We
li1 All m " will
spare em III then seasuns oil prosperity and lall on
them with irresistible gravity IN adversely. The
operation Of the State debts. explained by The
President, will most apmopi a'ely illustrate this POI
sillon. Tie STATES Of tins Union have, within
few years past, principally for purposes ii lnlerna
improvement, borrow ed capital TO The amount of ~
bout $500 600 600. large portion of this money
has been borrowed 10 England, aad, in most cases,
under an obligation 10 Pay The interests nspecle.
Now, the President informs US that, III ordinary
times when the flow OF credit between the two tonn.
tries is undstutbrd, this 81 ece stipulation has
nnfayaiable influence on the banks but, soon
II is checked by any hesitation abroad, or by an
inability to IN Ike payment there III productions,
the evils of The system are disclosed. The paper
currency, VIII ch might for domestic purposes,
is useless TO pay the debt due IN Europe F.; gold
and silver arr, therefore, drawn IN exchange lo Their
notes from tie banks. Iok eep up their supply OF
coin these institutions obliged 10 call upon triI
own debtors, Tho pdy lhem pincipely in their own
notes which are Us unavailable TO them as they are
to the merchants TO meet the foreign demand. The
calls Of the baIks, therefore, IN such emergencies
of nccessi exceed thai demand, aud produce . cor
responding taimeu OF tlIeir ccommud atoms and
Of the currency at the very moment when the state
ui made renders II most announcement to be borne" /
These very Just remarks of The President constitute
a most important admissions, and furnish IN hs up
ppnents, III nay opinion, an invinclble argument IA
gainst the Sub Treasury policy.
1t must be perfectly evident 10 every mind upon
the sIg htesl reflection, that the operation OF our
State debts on the banking system Is precisely sun
lar to that OF Snb-leasuty, wiib the exception that
in times Of difficulty aud pressure II viii be Infip-
ely mare harsh. llis evident, 10 use the express /
sion ui The Pr sldeul, that when The flow Of efedI
is undisturbsd" ihc specie clause III tic Sub-tieasu
~ will produce the best posSJie cBtct the banks
Il will produce necessary dram from stllcm, II is /
lruc. Bul the President says the money is not To
be boarded If Hen Is sp, ut as fast draw n, the
general confidence and prosperity will bIUg it back
a hundred li!tle streams, not necessary to be
pointed out, TO tue vaults OF the banks which viii
make the whole rciaG very nearly equal TO The clar.
few yrafs ii uuuer ulted operaiions Of his hiud,
will enable all The banks enlarge theIr operations
almost as great an extent as If ~ Sub-treasuly
was in existence. fai they would that the steam
Of the precious mctHls flowing out generally i
compensated by that flowing IN. Let us nuw sup
pnsc a sudden commercial revulson iall upon the
country general confidence is deslro, ed disirusl
prevails every where: Is not certain At such pc
nod that dollar 81 specie which your sub
treasury draws from the banks, goes NOT 40 he
retrined utiIi confidence Is rescued Eyeiy body
boards ms spfcie ~ such crlsIs because OF ts
uinsic value. Your Snb-treasGiy, tirn, k, cps ur
J