Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1840-04-21

opinion, that may be best answered
after settling what agency, if any, the
Banks had in causing the existing wide
spread confusion and embarrassment
and, therefore, it was that l veutured
to express my opinion upon the causes
of the present distress.
Proceeding to consider briefly this
question, ! remark in the first place,
that the currency Of the State has been
greatly reduced. The circulation of
this Bank was less on the 1st of Janu-
airy by about 500, 900 than it was on
the 1st Of January preceding, and it
has not increased since the beginning
of the year. The circulation of the
other Banks has been reduced in an
equal, if not greater degree. 1t may
be safely assumed that the entire cur
rency has been diminished one-fourth
OF Its whole amount within twelve
months, and | am not sure the reduce
ton should not be put at one-third.-
Would it be polite, or even just to
cause farther reduction9 Ought it
to be effected by course Of legisla-
ton The well known effects of a
contracted currency are to putbusiness
and employments of all kinds upon a
diminished scale; to reduce prices
and greatly to aggravate the burdens of
all those who contracted bebts when
the currency was more enlarged. |
apprehend then, that in the present
condition Of the currency, it would be
highly inexpedient to require of the
Banks still farther to reduce their cir
culation, orto attempt to regulate it by
law.
Iremark in the second place, that
the amount of specie in circulation
bears smaller proportion to the entire
currency than is generally supposed.
My opinion is, the amount which en-
tiers into the actual currency of this
State, exclusive, Of course, Of what is
in the Banks, is below million of
dollars; and is, perhaps, as great as the
average specie currency of the other
states. 1t may be said, if the quantity
be so small, it is time steps were taken
to introduces larger amount into cir
culation; for that the estimate leaves
our system of credit without a specie
basis sufficiently broad to sustain it,
But it may be asked in reply, where
is it to be obtained, and what shall be
given in return for it. To get specie
we must have the commodities to ex-
change for it and the whole amount
of the commodities which can be APP
piled to that end, is the balance in our
favor upon our external trade. That
balance as to us, rs on the wrong side;
and the question is, whether the coun-
try shall suffer the inconvenIences of
a restricted currency, to the discour-
agement and injury of all the pursuits
by which the wealth of State is rear
ed and sustained, until diminished
consumption (for in the case supposed
augmented production is not to be ex-
pected) shall provide the means for
importing specie.
The truth is, the commodities ofthe
world, the fruits of agricultural and
manufacturing industry have increased
immensely, and in a ratio out Of all
proportion to the increase of specie.
The subjects ofmercantile traffic have
multiplied MANIFOLD within the last
forty years. Within a period not
mu III beyond that time cotton, now of
such enormous value, "was new Gre
ation." But whilst the products of
manufactures and the productions OF
the land have been in a course Of rapid
augmentation, there has been a falling
off in the produce ofthe South Amer
lean mines, so that including the sup
plies from other quarters, the increase
ofthe precious meals has been great
ly less than it was in former years.
Credit has become, by reason of the
vast disproportion between the liz
crease Of productions and trade, and
the accession of the precious metals,
not from choice but necessity, the rep
resentative to large extent of the mass
of property. 1t is not possible to dis
pense with it, or to have currency OF
which it will not be principal compo-
nent part, and the only question of a
practical nature which can arise, re-
lates to the form in which credit shall
be used. Thanks Differentiation were
put down, we should still have a cur.
rency replete with notes; differing
from those now in use by being les:
safe, not SO generally current, anc
more readily made the instruments O.
imposition.
Entertaining these opinions, anC
satisfied of the utility of Banks for 9TH
er reasons, l apprehend it would be
to the last degree mischieveous to de,
prive them ofthe privileges they have
hitherto enjoyed; and that this Of al
periods would be the most unfavoura,
BILE for such an experiment.
| l had occasion to submit my view.
to the stockholders at their meeting il
January, on such of the provisions O
the banking law as considered tn,
most impolitic; and l beg to refer yol