Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1840-10-03
THE CURRENCY.

The wretched condition Of our currency fe
low. citizens, should command your most ser-
Gus consideration. The solemn lessons of
history are Taught in vain, unless we admit that
banks have ever proved the scourge and bane of
our Republic. The PROSTATE condition Of our
cities, the depressed state of trade, the hopeless
embarrassment in which many of the commercial
and specializing classes are DOW involved, can all
be traced directly or indirectly, 10 the operation Of
banks
Among European nations, where our system of
banking has not been introduced such pecuniary
distress as now surrounds US, attend alone upon
the rayages Of war. No foreign enemy nvades
our shores, no civil commo,ion disturbs our ma.
tional peace, all our possessions and means of in.
dustry remain undisturbed; the seasons have been
genial, LAID yields its accustomed product, labor
is recompensed with It's usual reward, and vet
distress and ruin pevade certain classes of socle-
ty That this is the effect of an inflated, depreci-
ated currency, all will admit and that such IS the
inevitable fruits of our banking system, We trust
! to demonstrate beyond the shadow Of doubt.
The history Of banks Of "circulalion, discount
| and deposit" throughout the world, is one of al
ternate expansions and contractions. No matter
under what government the experiment has been
tired, whether under monarchy or republic
whether connected with or independent of govern.
ment, the result of the system has always been
the same, for with laws as fixed as those Of ma :
ture, It reyolves IN the same circle. So long as
the paper issues Of banks are based upon actual
money-gold OF silver coin-so long will they
continue at par but whenever this is lost sight
of. and their circulation is based OH credit alone,
O., on mixture of coin aud credit, depreciation
Of their issues ensues so soon as the true charac.
Ter of the bank becomes dIvulged. One of the
greatest dangers Of the system arises from the
fact that all banks appear TO work well during the
process of expansions or while confidence in the
ability of banks to redeem their issues exists ;
but the moment this confidence is shaken they
are compelled to suspend specie payments or
commence rigid system of contraction, either Of
which alternatives is productive OF the most ruin
Gus consequences to the laboing classes, as they
are the first, as well as the last 10 feel the injurious
effects Of contraction Of the currency, suspen-
sion Of specie payments; or the total failure OF
banks. The evils which flow from this system
are dlffused through all the ramIfcations Of socle-
", while the benefits arising therefrom are con.
fined 10 the stockholders and officers of banks
and their immediate friends
In no State has the pernIceus effects Of bank
ing been more thoroughly illustrated than in Mis-
sissippi. Within few years, banks have been
chartered TO the enormous amount Of sixty mil.
lions Of dollars, and had il not been for The ener
getc measures Of our Executive 10 arresIlhe evil
; it would have progressed 10 sill more alarming
5 extent. Let US examine the effects produced b,
this bank charterrg mania. Did it not engende
e and feed spirit Of reckless speculation that per
J yaded all clsses Of society," Did il not nominal
E y enhance all kinds Of property to more thai
I twice It's real value Did il not seduce men from