The Whig standard. [volume] (Washington, D.C.) 1843-1844, 1844-07-22

L III buOulQ De Remembered lt"s So'iASo a. : 80"
was consenting to this "wise political movement
he justified and defended it, and does so to this
day. Dallas, we presume, was at the time oppos-
ed TO il, being the advocate of the Bank; bat now
that the Bank is no more, he will doubtless chime
in with Mr.. Polk in approving all that Gen. Jack
son did to destroy the Monster Mr.. Dallas wor-
shipped the living Monster with as much devotion
of spirit as Nick Biddle himself, but the dead
Monster he turns from as from fostering carcass.
| Considering the accurate and extensive infor-
nation of the editor of The Republic in financial
matters, and his political bias for the Locofocos,
we regard his admission in reference tn General
Jackson's agency in bringngrun upon the coun-
try, as worthy of particular note. The Wings
have thousand times demonstrated that such
was the case, and we are glad to see that persons
who are at least neutral as TO men, and decidedly
Locofoco as to measures, acquescing in what
will unquestonably be the verdict of posterty.
We have seen in late number of the West
minister Review an article of masterly ability
upon the subject of currency, which takes view
entirely new to us, of the causes which produce
revulsons of trade, undue expansions of currency,
and the evils which generally ensue upon over
trading. The common opinion is, that such evils
result from the tendency of banks to over-issue,
thereby creating an abundance of money, which
| causes rise in prices, and generates spirit of
speculation. This is the view taken of the sub
ject by Sir Robert Peel, and upon which he
| grounds his new banking scheme. He proposes,
as check to overissuing, to separate the depart
ments Of issue and banking, SO that the strong,
though unwise selfishness of banks may not be
able to produce those fluctuations in the amount
of currency which result in such calamites to
the trade and business of the country. The plan
of Sir Robert Peel is to fix the limit of bank Sc
curites to particular amount, and to let the
currency contract or expand only by the exchange
check Of convertibility is thought to operate too
slowly, and can only act as security against per-
manent depreciation.
The opposite theory, which is attributed to Mr..
looke, the economist, asserts that excessive bank
issues, where the limit of sound credit is not ex-
ceeded, cannot generate spirit of speculation, but
is the consequence of that spirit. The spirit of
speculation is produced by the prospect which
capitalists see, or think they see, Of rise in
prices, resulting from limit in the supply, or an
increase in the demand This spirit of specula-
ton may be INDUCED in. it is contended by Mr..
Tooke and the reviewers, without the use Of bank
paper at all, and will be, in the same degree as
heretofore, if any hindrance is placed in the way
of bank issues. They contend that the issue Of
bank paper is the effect, not the cause and they
contend further, that where the issues are based
upon solid credit the worst effect of over-issuing
can only be temporary expectation of specie,
which would Immediately find its check in the de-
fensve measures which banks resort to in such
cases, OF curtang their issues, and drawing in
their paper The tendency TO the expectation Of
specie which follows everlasting, is caused by
the cheapening Of money in the country where
it occurs, in comparison with other countries.
Mr.. Tnoke contends that Sir Robert Peel's plan
will only serve to embarrass the banks without
having the desired effect. His reasoning upon this
not necessary to be stated here. His remedy for
everlasting is convertibility.
| He makes an exception to his theory in regard
to the origin of over-tradng in the of baek
. capital and paper founded upon fictitious basis
Of vane--where the paperrepresents il-founded
credit; and consequently where it is not substan-
TALLY convertible. In such case a fictitious
value will be given to property, which must pre-
sently fall, with the explosion Of the paper bub-
BILE, and bring ruin upon the community. This
exception to the theory of Mr.. Tooke will pre-
cisely cover the of our country in 1887, when
millions of bank capital and paper were created
npon fictitious basis of credit, by the advice of
Gen. Jackson to the State banks The reviewer
adverts to our financial difficulties which he attr
butes to this source
So that, whether Mr.. Tooke or Sir Robert Peel
be right in assigning the causes of commercial
commissions, in either case, the Wings have right
y attributed our disasters TO the misrule of Gen.
| Jackson.