The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1840-05-15

Again hear Webster in the same year on the same
subject.
"TnE PAPER SYSTEM of England had certainly commu.
ncaed artificial value to property II had encouraged
speculation and excited OUertrdding. When the shock,
therefore, came and this violent pressure for money acted
at the moment on the continent and in England
Inflated and unnatural prices could be kept up no longer
reduction took place. which has been estimated to have
been ut least equal to fall OF thirty not forty per cent
The depression unipersa and the change felt in
the Uaed States severely though not equally in every
part of them There those, am aware who maintain
that the events to which have alluded did not the
great fall of prices but that fall natural and inevitable, from
the previously existing state Of things the abundance OF
COMMODITIES, and the want Of demand hut that would
only prove that the effect was produced in another
rather than by another II these great and sudden
calls for money did reduce prices but prices FELL
themselves to their natural state still the result the
for We preceive that after these new calls for money
prices could not be kept longer al unnatural height
About the time of these foreign events. banking
system Underwent change and all these causes in my
pewpf the subject coneurred to produce the sre@ shock
irhich took place in commercial cities and many parts
ofMe country. The year 1919 was year of numerous
failures, and very considerable distress, and would have
furnished far better grounds than exists at present Tor that
gloomy representation Of our condition which has been
presented Mr. Speaker has alluded TO the strong nCna-
ton which exists, has existed, in various parts of the
country to issue paper money rs proof of great existing
difficulties regard II rather ms very productive
of those difficulties and the committee will not fail To
observe that is at this moment much the oudest complaint
of distress precisely where there has been the greatest at
the other hand content prosperity and happiness most
observable in those parts of the country, where there has
been the least endeavor to administer relief by law In
truth, nothing so baae utterly runOus to all
industry, interfering with legal value OF money, At
tempting, raise artificial standards to supply its place
Such remedies suit well the spirit of exravagan specula
on but they sap the very foundation Of all honest acqu
son"
That Mr. Jefferson the father of the Independent,
Treasury plan the following extract from his letter to Mr.
Gallan, in 1903 will prove. lie says:
"But, in order to he able to meet general combination
of the Banks against u.s. in critical emergency, could
not make beginning towards AN INDEPENDENT USE OF
our OWN MONEY towards holding our bank In all the
depOsites where II is received and letting the Treasurer
give his draft note for payment at any particular place
which, well conducted government, ought TO have as
much credit any private dra bank note, hill, and
would give the facilities which derive from
banks"
The banks the of there being so little specie in
the country. Hear mr. Webster in 1916
"Why have small amount Of specie in circulation
Certainly the only reason is because do not require
more We have but to ask It's presence, and II will re-
turn but voluntarily Danish by the great amount
small bank In most Of the States the banks issue
notes Of low denominations, down even To single dollar
How is II possible, under such circumstances, To retain
specie in circulation All experience shows to he mpos
sibe The paper will take the place Of gold aud silver.
The evil then is the issuing Of small notes by State banks
or these notes that is to say Of notes under five dollars
the amount now IN circulation is doubtless eight ten
millions of dollars" Can these notes he withdrawn
they can, their place will be Immediately supplied by spe
Gle circulation of equal amount The subject Is great
one is connected with the safety and stability OF the
currency and will justify serious reflection the means
of accomplishing IT, is but for other States fol-
low the good example Ofthose which have propbted then
and the work Is done We must hope that all notes under
five dollars may be entirely withdrawn from circulation"