, 1840-08-08

coin, and of bank.notes promising to pay coin. As
long as the banks can always pay the coin they prom
isc, they are useful. because, in a country where the
moneyed. capital is disproportioued to the means of
employing capital. the substitution of credits for
coins enables the nation to make its exchanges with
less coin; and, of course saves the expense of coin.
But this advantage has, by its side, a great danger.
Banks are often directed by needypersons, who borrow
too much, or by %sanguine persons, ANXIOUS only TO In
crease the profits, without mucn pecuRiury interestor-
personal responsibility in the administration. The CON
SLANT TENDENCY OF BaNxs, therefore, is to LEND
TOO MUCH and to PUT TOO MANY NOTES IN cIRcULA-
rIoS. Now, He addition Of many rotes, even while
they are as good as coin by being always exchange
able for coin, may be injurious because the inerease
Of The mir-d mass of money generally oeeasions q
rise IN The price Of all commodities. The conse-
quences is, that the high price of foreign prodnc-
lions tempts foreigners to send a large amount oftheir
commodities, while the high price Of domestic pro.
auctions pre- vents these foreigners from taking in ex-
change a large amount of our commodities. When,
therefore, you buy from foreigners more than hty buy
from you, as they cannot take the paper part of
your currency, they must take the coin part. IL this
is done to a considerable extent, the danger Is, that
the Banks will be obliged TO pay somuch of their
coin as not to leave them a sufficient quantity to an
swer the demand for It, in which case the banks
fail, and the community Is defrauded."
Thank you. Mr.. Biddle. This was well
and fairly and honestly said; and the lesson
it teaches us should never be forgotten. Let
US sum it up. Banks have a constant ten
dency to over-issue. They do over-issue.
That makes money appear plentiful. Wages
and prices rise rapidly. Foreign merchants.
as o as they hear Of it, crowd their goods,
by millions Of dollars worth, into our mar
kets. The spirit Of speculation is up, and
they are eagerly bought. But these for
eigners, finding every thing high, will not
purchase in return, except the indispensable
staples. They want their money. They
must be paid in gold and silver. They are
paid. They take our good money and leave
US rags which are no longer redeemabIe, be-
cause the specie basis on which they were
issued, is exported to Europe. And then
comes distress, suspension. bankruptcy, 4
disordered currency, relief laws, and the
thousand items of commercial embarraSs-
ment. which periodically blast the fair pros
poets OF our country.
Behold the short but faithful history OF
wild speculation, succeeded by hard times
That which was true in 1925 is true now.
But then, ut the close OF John Quincy Adj
ANS administration while the second can
vass was pending between him and Andrew
Jackson, there was no temptation for Il Wing
to charge the hard times on the government.
They were charged by Nicholas Biddle. and
truly charged. on the temptations oteredb by
Banks. operating on the Saaguine and orer-
enterprising spirit of our people.
In the same essay, Mr.. Biddie thus sums
up his arguments:
'The,c simple element, explain the present situation
of the country. It's disorder is, OVERLAPPING
brought on by OvER-BANKING. The remedy IS,
10 TRADE LESS and to BANK LESS"
There. as in a mirror, NAV we see the true
cause, plainly stated by a Wing and finan.
cier. of what is now charged to loco-foco ex-
periments. and the doings and projects OF the
administration
II remains TO be seen which of the two
political parties has, by fostering the cause,
increased the suffering.
Which party. the Wings or the Democrats,
especially favors banks and would add to
their privileges and extend the sphere of
their action. The very title of Henry Claws
speech made in the Senate of the United
States. February 18th, 1888, and published
by Gales and Seaton, charges the administra-
ton with deadly hostility to these %institu-
tons. The tille-page declares it to be a
speech of the Hon. Henry Clay Of Ken
lucky, establishing n deliberate design on the
part of the late and present executive. Jack
son and Van BUREN, to break dorm the uhole
banking system of the United States. com
mencing with the Bank of the United States
and terminating with the State Banks" &c.
No such design ever existed or now exists.
The policy of the present administratio on is,
TO let banks alone; neither to favor or rlisla-
vor them; but to decline all connexion with
them as dangerous and inexpedient. As
Commercial Agents, Van Buren,, in his mes
sage of 1889, expressly says, he "has never
doubted their utility. when properly man
aged" But yet, in the face Of such an ac-
c~usation as that made by Henry Clay, the
great chief and %favorite of the party, the
Wings will hardly contend that the Demo.
cratic party especially favor and foster
banks. That would be blowing hot and cold
from the same mouth.
Again, who desire to connect banks with
government, to grant to them the public de-
posites, and thus increase their opportunities
Of over banking' Not the Democrats GER
toinit-