The Cecil Whig. [volume] (Elkton, Md.) 1841-current, 1842-01-08

quence might be, that instead OF encOur
aging each other to resume, they would
enter into general combination 10 pre-
vent it.
1t has been frequently remarked, tina
the people owe the banks, and the bank.
owe the people; and that If the first will
pay, the latter will do the same. Indi
viduals, and not the people, are indebted
to the banks, and are often accommoda.
ted and INDUCED at the expense of the
whole community. The great mass o.
the people, especially in the county, dc
not apply for bank loans, and could not
obtain them if they did; but they all have
an interest in the value of the paper which
is daily passing through their hands. The
reason, generally assigned by the banks
for not rcsuming, is, that ltcannot be done
without serious injury to the community
individuals might give the same reason
for not paving their debts, that is, that
they could not collect the money which
they had loaned out, without putting their
debtors to Inconvenience. This excuse
might be urged at all times, and If su1i-
cient, would justify perpetual suspcn-
sion. 1t has also been urged, as reason
for not reslming, that the exchanges are
too much in favour Of the eastern cities.
Baltimore notes are at discount Of three
or four per cent. in New Y ork, because
they are not paid in specie This is not
the rate Of exchange between the two
cities, but difference Of value between
the paper Of tl!cir respective banks. And
it is hardly necessary to add, that the de-
probation in the paper Of our banks, hay
irg been caused by theirrctusal to redeem
it, ought not to be urged as arcason for
their continued suspensions.
1t is supposed that the banks of this
State find it more difficult to redeem their
Taper, because they arc not permitted,
like those of New \ York, to issue notes
Of Il less denomination than five dollars,
and thus the failure to comply with their
promises is suggested as reason for en-
lending their privileges. They would
gain by the destruction Of the small notes,
in proportion tc the loss Of the public,
and this is the only advantage they could
derive from their issue. ii an inferior
currency had not already banishcd specie
from circulation, the banks might succeed
in drawing it from the pockets of the peo-
pie by means of their one dollar bills.
But if they kept it in their vaults, they
woulG gain nothing by the operations; and
if they parted with ii, their Liabilities
would be increased in proportion to the
amount of their new IssucS.-I'hc risk of
suspension would be increased in a much
greater proportion; because the small notes
would pass into the hands Of grealsr
number Of that class Of persons, who sui
Ter most from such issues, and who, for
that reason, are more likely TO make
run upon Me banks.
Admitting however, that the privilege
of issuing small bills might be CONVEX
lent to the banks, the proper enquiry is,
it would be OF any advantage to
the community. The people are already
tired Of small notes, and that is their prn
cipal reason for wishing Il resumption Of
specie payments. hey wish to bring
into circulation as much silver coin as
will serve for change, and for the small
purchases and payments which cannot be
made without it, But pa
per and coin of the same denominations
can never circulate together; ard it is in
vain to expect any material benefit from a
resumption OF specie payments, While cor
porations and individuals are permitted
to issue and circulate every description o!
small notes. To restore the currency OF
the State to its proper condition, 1t is ne
cessary to compel the banks to resume,
if they will not do it of their own accord;
to prevent them from issuing, or paying
out, any notes Of a less denomination than
five dollars; to prohibit other corporations,
as well as individuals, from issuing paper
of any kind for circulation; and TO get rid
of the Rail Road orders, which the pco-
pic are daily receiving i'll exchange for
their property and labor.
These orders are fast reaching the point
of depression, at which they will cease
to be a currency, and it has been propos-
ed to raise their value, by throwing upon
the banks the responsibility of redeemng
them 1t is well to consider, whether the
banks have a right TO adopt the issues Of
the Rail Road Company, and what would
be the effect of such an arrangement on
the general currency Of the State. They
were authorised, by an act Of last session,
to receive and pay ont these orders, which
they could not previously do without vio-
lating the laws. But they were not au-
thor ised to adopt them as their own cur
rency, or to become answerabe for their
redemption, or to make good the losses
which might be sustained by their depre =
citation. If they have right to use their
funds in this manner for the purpose oil
raising the value of the Rail Road orders,
they have equal authority to enter into an
arrangement with the city of Phlladelphla
for redeeming the notes OF the United
States Bank
But the banks could not assume the