Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1843-07-20

IN the vaults Of all the banks moro than fifteen millions
of dollars Hence the oi the depreciation Of bank
Mates the excess Of paper IN circulation b, yonl that Of
snec,e in thar vnulls This excess visible to tho
EYE mud almost audible 10 tho familiar WAS the
fact that this paper enphacay called trds rdgJ
According Ia estimation. also, he said there were IN cir
cnlaon. the same date, within tho United States. two
hundred millions uf dollars oh,nk notes, cfcd bank
pan.r IN one shape other Surprising thirty millions Of
these be of tho banks hemsclves there
pcthaps ono hundred aud seventy millions actually
IN cifcul1lnn or which tho banks draw interest
lhe prop rtion between the demand and the supply
which cr0ales the price of Thug. regulates also
the vauo Of this uapor. IN proportion tho ISSUE is
lens,ye II depfeelaos IN value and no wonder. Whrn
since Is 10 nr ISL the mannt oI paper IN circulation
had Increased rom eighty OF ninety h two bundled mil
hans. Nit 1. here examined the nPnian entertained ny
.afpe gentlemen that bank paper had not drprrea,cd
hut that gold aad silver had appreciated position he
denied by Arguments anpded un the Portability Of gold
an1 SILVER. Which would equalze their value IN every
rat at the nifed States, and the lafs that gold and
silver coin had l0creasod Gquany instead Of diminish
iaa and thai the exchange with Great Britain hal been
cat gold and silver vaue) or sumo ne past in hyor Ut
he lnled States Yet. he said, gold and silver were
having shuros. IN ict, we have degraded the
al'ie currency I'VE have Geatud II with iddlehil} II
leaves us, ana sechs asy un Greisn shales Let
II hreomc aean the basis Of bank TRANSACTIONS and il will
revisit us Having established Il. hr esncolved III the
eanrse o his femafhs tint the al paper .sues was
The tue aud only cause o the depreciation OF paper
enfffh'N' Nit.' '""'o NV "'"'loa IL we rahef ~
Which thlt excess had been produced. II was intimate
y enno''ea WIN we Suspension ~ specie pnSmehla :
they stood The and effect. First the excessive -
su.s caused the suspcnslon Of specie payment and al
vantage had hcen taken Of that suspension 10 issue s
greater nmds oi II. Ihe banks mad undertaken IL do
new business. uncongen'a' WIN ,he nature OF .oeh IN
slttnons they nhdc' nA 10 make long loans 10 Hofen
ment not as brokers' but As s'"chhodels-a practice
wholly Inconsistent with the 81 stem n specie payments
Alls ,hoV lnY the III ference h'tNprD the ordinary bus
neas OF bank III discounts aNi Vie making isaha ipt
twelve years, Mr. sad, indspnlably the latter pfle
ce grua aud lcajing cause OF hc suspension Of
speelr payments oi tins species III property {fnhlic
slotk) h"bahks IN the United States held. oh The 3oh
day al September a'' abnl 'rhl'rh ad hall milnnS,
atid ncadY equal amount OF "eseiy notes besidos
stuck tot onR i'nns nude Ia lla State 'nyefnmebia
Iamennuns altogether II wl'hln small am1nnt of
ify mlIlnns, beng large proportion oi then
actual capital inns. ho sad, WIS the great cause
nj the sasne15'n oi specie payments. He'd the
banks (ho nov discussed he qrettio) ihe capacity To
ieenne specie payh'nsf II 'ry have nc disposition.
afad, they my resume sparle laymenlSf he banks
hl' not nsolVeni, he said 'hey he'ef were more sol
vth. II ~. the term 'sell implies that. II ltmo ho al
luMtd lhom they may before long DO IN a condition tn
Resume payment OF specie u the banks would regular
" md cnasenan'ousy begin To dsNse Of Their stock
10 ra ~ Their notes Tor ta l'easufy votes they hayh
and moderately cnfa'l ihef private discounts u they
would act III concert IN th's manner lhoy might resume
Of part only ri iholr stock and treasury notes twenty
five ml'ons OF ihriI notes 'I'n circulation. the rosi
would be- appreciated Ia par Z" nearly and thhY would
s have hiieen m'l''"ns 81 stock dsl~@1le 10 setd 10
tntupc for Specie, &c. Nti thirty miiiong n tfcir
eaults and 50 much o Their paper Withdrawn from cir
euiai1H, lh'y would ne VI condition 10 resume pay
mrnls IN specie. he only dm'uf, that oi producing
concert Vas one witch II belonged IL congress Ia sur
mount The lndisp1slion f' the haaks, f'n motives OF
mefcs, obviously 4fWinF ooi The wall profits m bt OF
them nave iaieiy realized, by which the Stockholders
have realized from Twelve To twenty per cent on their
stock, would he, he showed, the greatest obstacle.-
What. he asked, was bankl An institution, under
present ns,s. 10 make money WHAT "as the instinct
Of such m institution tsn, gam, noh'rg bti galr
atd they would hot willingly Trnqnish ihelf gnin rom
the present slae III thinas which Wis pfohabe 10 them.
acting ms they ana without restraint aud without hazard
lhose who believed that the present state ol lhings
wonld over cure ll'r'' WI " SAID nn'' hileVe "hst
IS lmp''Ihe banks must chan%n 'he'f nl'nfe lay a
side IAN nsnei. before they VIII AID IN dong "ha II
!. nj lhrir interest y" 90 by ms PROFESS "'r"asonng,
he eamo to the conclusion that rested with Congress
h make Item return 10 specie payments ny making It
thor interest T. a. ~ 'hin inrodnce' ms sagec' OF
the N9'ionr' rnh
a naional BANK ne said paying ffoe'e soli would
have tendency % MAKE specie payments general as
well hy ''H lhllRcc as ny ~ example u WI DO I'M
interest d" lhe ha'i'"a nahN 10 produce ms sd'e ct
lhRs becaPte ",p'I"'se' ls Operations VI" " greatly
rlit9m'''Iotd' n " must "'y o'' sffRe =" N',i9o'i
panh n"",' III, nr W'Su''' one Vi e'e ",7 'ofs 81
slfh hlh "nau Ne u lho 'nc "''es u no DaA Mn'h
Nhleh dl1 NJ lhy '" pold anu H'Vef Na'"'a DAM
Z" h} ave ll'ionS WIN '''e $40 81 nose o''h7 when
are ~ ".''e 49, !" ~ s,'9'' "'r' l''u"'e P'"
cfol elect I'll over the Mon Further National