Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1843-01-23
Che 1pnchbur9 Tirnintan.
MONDAY. Li.NU.lRY 90, Is43.
HARD llMEs-TIIE REMEDY.

p 'f'' '"ihht' anu NV consequent ItGuiilvl III InTEt e
every commodity. is as obvious as is he fac, itself II i
4 stated i'r example. Fat in the Sla..s, or Ohio. Keo.nc
Ky, 'ldlas,i, AM Illinois, the circulating medium har
C, IN threo years. reduced from fifteen to five millions
of dollars. Similar results would no doubt be shown b,
d The Bank statistics ofother States; and, to come ncaro
home. the comparative statements Of the condition of tn,
several Banks in Virginia. show II reduction of about tw,
millions Of dollars, within the last twelve months. And
il deserves tot c remarked. for the information, though
certainly not Tor the qualification of the hard nionev men
that this diminution of the paper currency has not beer
accompanied by an influx of "ihe hard. ~ TO supply tn
vacuum thereby GRATED in the channels of circulation
Notwithstanding their confident declarations, over ano
often reiterated, that the importing Of the one would be
a direct and inevitable consequence Of the withdrawal q
the other; for the same Bank statements show that Will,
their notes have been thus rapidly drawn in, their specie
has mol been poured ont, but that it has on the other hand
actually augmented IN their vaults.
That, then hare Tie people gained Ly Me rar upon n,
Ganhs-by compelling them prcInaturcly To resume
specie payments, aud by consequence to collect theif out
standing debts, and To contract their circulation with such
ruinous r|apidliy2 Offensive as their paper money bad
become 10 the nostrls Of 'thr democracy still il was
better than none; and to is sudden withdrawa from
circulation, wiihou, any substitute to supply its place, J.
10 be attributed first the languor and then the collapse
that have followed. 1t might. with as much reason, be
expected that the human system would retain its vieor.
and strength. after some theorialnp phlrboiumizer had
almost exhausted its unnalurally stimulated veins and or
ieries, as 10 suppose that the monetary system would not
be %deraoged. aud the pccuniary condition of the people
seriously affected, by a similar withdrawal from the
channels of trade Of that which is the vital principle OF
commerce. The things we SEQ and feel were foretold,
and, even in advance uf,hcir occurrence. were historical
~ ponrlrayed. Every man, of ordinary discernmeni.
ioresaw hat the resumption OF specie payments by the
Banks, while specie bore so small a proportion to their
circulation. aud while their outstanding debt was so large.
wotld compel these institutions, AS a necessary mcaure
Of sci defence, 10 ceutract with n rapiditv which niue.
BIZ felt not only in all the departments Of trade. r.; hy
all the varied interests aud classes Of s ..,n,v-,,d ,Ia,
It's ultimate Consequence must be universal s,apnation il
nisiness, a reduction of prices to correspond with the
new and reduced standard Of values, and the consequent
general embarrassment Of all classcs save The money
lender the debtor class being absolutely ruined by the
sudden llactuatlon, which in fact cunpels him to pay
Two or three doHars,-iur II will require two or three
Ines the amount Of property to meet his obligations as it
would have done lormerly-whcro he had contracted 10
pay only one! The sudden dimiuuiion of the circulating
medium then, by which money has been appreciated In
value, aud every species eff property. AS well as the wa
ges Of labor, have been correspondence reduced tina
dlminntlon Itself rendered inevitable by the war upon the
B%anhs-by The perpetual cutlery against them because
they did not reduce THEN discounts. and by the coerciyc
legislation which drove them into a premature resump
ton Of specie payments, when, AS was predicted, and as
the result has proved, the country was less prepared for
that measure than the Banks ,hcmsclvcs.-is the cause
of that universal pressure aud distress under which the
people groan.
The romcdy-and in our opinion. the only remedy,
except time, industry and economy, by the operation Of
which conformity the business of the country VIII become
necessarily adapted to the new order of tI,ings-is to re-
'face our STEPS, and, by lcgalizing the suspension OF
specie payments until the people shall bo relieved OF
their Indebtedness, To enable the Banks to pause in then
process of cnrtailmcnt, and to enlarge their line of dis.
connis-llereby re-supplying the arteries Of circulation,
and enabling the debtor class to liGuidate more easily
It oo"e'oonS, without a sacrifice Of property, by an
approximation to the standard of values existing at The
time OF their creation. While, however. we say that this
Is the remedy and in our opinion the only remedy, we
do not intend to propose or To advocate its adoption for,
clear as II seems 10 or own mind, we are well aware
that even suffering and impending ruin have not YET
aud perhaps they never will. counieract tho numerous.
%lnsidlons and plausible appeals to the ~prejudiccs and pas
sions oil the people, in reference to the Banking System,
and which render them lndjsposcd, even for the pur-
pose of mitigating the one aud averling the other. to tolc-
rate a proposition. which, on its face. benrs the impress
OF indulgence To those institutions, while in truth il is
A measure of substantial relief to themselves. Tho PEG
pie OF Buckingham county, indeed. last Spring, while
the bill enforcing specie payments by the Banks was be
Tore the Legislature. without distinction of party, anC
with a Sagaclous eye to the certain consequences of tina
measure, %inplored the iorbearance of that body, bur lhei
application not being in accordance with the approve,
standard of the profound Locoioco Political Economist
some OF whom, even nor, while the clamor of iii,
/ people for "relict" are laundering in their ears. asser
that the currency is still too much inflated, Gin othc
words, that there is yet too much money in circulation.
was derisively hootcd from the hall. At this time
Of Course, the Banks, from a motive proper in itself, and
well understood having anticipated The period fixed b,
law ion :he resumption OF specie payments, and hav
ing, by a vigorous process of collection and curtaiimCnt
and by bringing their discounts within the narrowes
possible limits, thus far sustained themselves, and avow
; ing that they have no apprehension for the fuiurc-a
i, this time, OF course, and under these circumstances. i
cannot be expected that u proposition inviting Them agar
10 lock up their vaults, and leaalizng suspension, how
J ever obviously beneficial its results would be. in allevia
ting the public distress, would fluid general favor anc
therefore, however wise that policy would be, in itsel
considered, it might be most unwise 10 resort to it in re