The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1840-09-15
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UESDAY SEPTE nj Il f. X 10, IS ~.
FOR PRESIDENT,
WIN. Henry Harrison,
OF OHIO.
FOR VICE PRESIDENT,
John Tyler,
OF VIRGINIA.
WHY DON II THE BANKS DISCOUNT.

WUY DON II THE BANKS DISCOUNT.
We received the following communication too
late for publication before election, but as the
main subject Of it has not lost any of its interest,
give it placer
PAUL DILLINGHAM;, in. ESQ, SlR:-Your name
having been placed before the public as candid
ate for the highest office in the gift of tho people
Of this State and you having broken in upon the
modest Republican usages of your predecessors by
mounting the stump'Gl eiectioneering frorn town to
town IL from county to county, for yourse.f there
is a seeming propriety in addressing you thus pub
Iicly in relation to subjects which you have public
iy discussed and which pluced before the
people by The newspapers which support you.
You have in your public speeches descended to the
often exploded humbug, that the Wing leaders are
acting in concert with the Banks TO produce pres
sure and a scarcity in the money market, for the
purpose Of infuenc the electi ous and in your
peculiar sophstical manner you have implicated
in this conspiracy the convention at Harrisburg
which nominated Gen. Harrison for the Presiden-
cy.
In tho Van Buren, papers throughout the Stateyou
are backed up in your position by table showing
that the Banks in this State have Withdrawn from,
circulation during the year past than a
show from this fact that the Screws are applied for
elecilone erng purposes.
/: is worthy oS note that the state ofthings which,
now exists in relation TO the circulation of Bank
bills, is just what yonr own political friends who
brought forward the Sub Treasury bill declared to
be in tended by the friends Of that bill.
In support of the resolutions which you advoca-
ted in the last Vermont Legislature relative to the
InF nfaNt A
ard others of your associates that if this bill conld
become a law it would put it out of tho power OF
the Banks to flood the country with their "pnper
rags"
Mr. Buchanan says in his speech in the u. s.
Senate, "This bill Qhe sub,reasury) will make
the banking interest the grealest eco nnmis in the
country. Any surplus which may remain in flu
ture will be locked up in gold and silver in the
vaults of on, repositories, and in proportion to its
amount wW dep,ire The hunks of.o mach Of their
Spcoia." This reasoning was correct. Your favor
ito sub treasury system has become the law of the
land and your own predictions about The Banks are
verified, and now when the people complain. YOU
turn about and condem the Banks for doing what
You by the snb treasury law have com pelled then,
to do-and what you declared beforehand YOU in
tended 10 COMPEL them to do.
But how is it with the Banks?
Those in This State, as YOU sir, ye,y we'll know
controlled by directors belonging to both of ,be
political parties. You know that there exists lot a
single partisan Bank in Vermont But your no.
Etical papers attempt To humbng the people with
the contrary belief, and because their circulation
ia less than their capital stock, make it plausible
that they are voluntarily Withholding accommoda.
lions from the people.
Now sir,you know that the amount of cjrculation
has nothing to do with the state of the discounts
According to the statement published in the Bur.
'ington Sentinel, the North Star and other papers
the circulation in 1889 was 81 s7I ,sl2 6s-and in
lS4O 1t is reduced to 1871 900 co. have no time
to examine the correctness of this statement. but
will presume it is correct.
The facts, then, are simply these.-In 1889 the
banks discounted notes which are well secured
to the amount of S. ,90n,0 co. for which they
paid ont their bills, which put in circulation.
since that time there has been no market for pro :
duce Our great staple wool, remains unsola, d
no money is brought from our cities for the pur
chase OF any commodity upon which our people
VINO took Bank accommodations relied 10 meet
their Bank debts. The Banks can make no col
ecuons, and all their capital stock, and more also
Is lied mp III the shape of country well secur
ed To force collections would distress the neo.
pie Mean time their bills have been GRADUALLY
hnding their way into Boston--and have been re-
turned for redemption until their presen, clrcula
ton is only about 100000, and still they have no
power to make further discounts before thew can
collect their country notes. Their funds in Bos.
ton are all exhausted and the little amount of spe
cie IN their vaults must be sent to Boston TO redeem
their remaining circulation unless there is shortly
some change to enable them to make collections.
This is the ,rpe state of the csse, and We, Won