The Columbia Democrat. [volume] (Bloomsburg, Pa.) 1837-1850, 1842-05-21
THE CURRENCY.

ne harrisburg hepoftor gifes uS VIC
condition of the Banks in PcnnsJ lvania,
aud makes the following remarks which
is fully justified by the facts set forth, viz
sThe real, active circulation of the banks
including demand notes, certificates and
pos, notes, does not EQUAL the specie and
specie funds in their ga uts, or if the circu-
ation does exceed tho specie funds, il must
be by very slight difference. Such being
the case. what becomes, that specie can
not do the business Of the couniry--.here
not being sufficiency Of fit--when here we
have business going on with proper regu-
arity, and more real money locked up,
than there are paper dollars in circulation.
Now, if all the Banks were annihilated
and the specie in their vaults thrown into
circulation, ,instead of their present promise
to pay, there would be greater sircula-
tion than at present. This is very extra
ordinary state Of affairs, and we think,
demolishes the argument that Banks are
absolute necessaries -luxuries they are
not
We deem it very proable, that over half
the Union, if the Banks were annihllated
there would be in one month a greater a.
mount of currency than there is now; and
we Go not doubt, that a resumption of specie
payments aOould greatly increase it. The
people would have as much paper currency
as they have now. and milliens of dollars
in specie would be brought out from their
hiding place nearly doubling he amount.
We believe the perceap'ible improvement IN
business now going en- is attributable mainly
to the progress Of resumption
Our readers may remember cemmen-
iary made use of in the message Of Gov
Letcher, of Kentucky, at the meeting OF the
Legislature last winter, in which he COM
planned of the high rate Of exchange, ,at the
same time recommending that the Banks
should be permitted TO remain in state of
suspension though fully able to resume. We
endeavored to show, that there was not
the least apology for suffering the Banks
to refuse paymen, any longer, aud that re-
sumption by them would Immediately re-
duce exchanges to reasonable rate, max
ing, the inierposilion of the General Gov
ernment wholly unnecessary. The Legis
Iature adinnrned wiihnui any siaps tn onsroA
the Banks, ydt the frames Of the Ohio De.
mocraoy in compelling their Banks to re
sume, had its effect on ths surrounding
States. The Kentucky Banks fixed the
18th June for resumption, and have since
commenced paying their small notes in
specie. Behold the consequences Of when
partiql resumption The Kentucky
Yeoman published Frankfort, says: !
'The banks in this Stale are paying out
specie on their small noies, and while
has already caused their paper to appreciate
in value almost to the specie standard, and
exchanges to decrease 10 two or three per
cent, on specie paying points, there is not
only no disposition Of a ron manifested, but
very little is said about it. We shall be
greatly mistaken if in a few months after a
full resumption, the banks do net go on TO
discount as in ordinary good times and thes
the country with the aid of the specie that
will be brought from its hidden Iecesses
will be greatly relieved Of its present en-
barrassment. 1t is astonishing how blind
the people have been to their own interest
in suffering The Banks TO continue suspen.
ded so long--nearly eighteen months Of
that time, in defiance OF law, at any period
of which time it was the duty of the officers
of the State 10 have commpelled them TO
resume, or show cause why they shevld
not be deprived OF their charter privileges
Union. Democrat.