Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1846-02-18

denly into being in the midst of prairies, or
in the depth of primeval forests. Thousands
awoke each morning and thought themselves
rich. The whole community was fevered.
All common methods of gain by commercial
industry were despised. Extravaganza, prod
igallty, and recklesness, marked the general
character. Benjamin Rathbufn built Buffalo.
A kindred spirit founded Cairo. Religious
speculated in sites for church
es and colleges, the fnanciers Of Europe has
tened to the new Ell Dorado. The world was
in motion. Suddenly there was collapse. In
MAY, 1887, the bubble burst. The first symp-
toms exhibited themselves at the South. The
disease soon reached New York, The heart of
the mighty system. Its pulsaton ceased. The
banks suspended, and speculation expired in
commissions. This was the close of the fourth
and last period in the history of American
paper money. It s true, the banks attempted
to resume in 1888; and suspended again in
1859, and afterwa! ds partially resumedin 1912.
But the system has not recovered from the
shock, Whether it will ever 80 recov er that
the paper money will flourish again as 1t has
in time past, we are not prophet enough to
foretell.
1t will be noticed that we have spoken of
four epochs in the history of paper money in
this country. The first, Of government incon.
vertible paper money, issued by the colonies;
the second Of government lnconvertible pa.
per money. issued by the confederationj the
third and fourth. of corporation convertible
paper money issued under the sanction of the
general and state government. The last two
have gone far towards satisfying the public
mind, that the convertiblity of paper into coin,
cannot be permanently insured by law.
1t seems certain tina: all the consequences
of debasement of the coinage follow in the
train of an expansion of the currency, even
though the paper representations of specie
continue to be convertible. When the cir
culation had swelled to the enormous sum of
l49 millions, the banks were still meeting all
the demands upon them in specie. After they
suspended, the circulation diminished and
prices fell, As the circulation Increased, it
became easier to contract new ones. Prices
advanced; property Of every description rose
in value. The Same consequence precisely,
attends the increase in the quantity of coin
age by debasing lis composition. 1t is clear,
therefore, that in such state of things it is
not the property that increases in value, but
The circulating medium that sinks in value.
And as there is no natural limits to progress,
in this direction, but actual suspension, it fol-
lows that specie may be actually driven out
of the country by depreciation of its value
here, below its value elewhere until there is
not enough left 10 provide for the demands
made upon the banks. Then comes the cas-
tastrophe. Can banking system be devised
which will guard against this catastrophe,
and against the decentralization which results
from it? In the opinion of many, the con-
venlences of paper representation OF specie
are so great, that it seems exceedingly desra.
BILE to retain their use. But If it cannot be done
except at such immense cost and moral dam
age as this country has hitherto suffered, in
consequence of its paper experiments, it is far
better TO give 1t up at once and forever. For
we cannot be persuaded thai all advantages of
the best paper system that can be devised,
enjoyed for century can compensate for the
moral evils of single years suspension of
specie payments.
Just look around you and see if you do not a.
gree with US. Notice the miserable expcdients
and evasions by which it is attempted to elude the
penalties of the law. See falsehood written on
every paper dollar you touch. Remembtr when
you are forced TO give currency 10 it, you are
forced to give currency to lie. Observe how
every promise is violated, because the banks
violate thors. 1 promise to pay you hundred
dollars This promise has definite meaning
you claim its flIflment. I offer you a hundred
dollars in the paper of some institution Of which
you know nothing, or nothing good. You do not
like to receive them; you do not like to refuse
them. assure that l just obtained them from
a bank. The next hour, perhaps, comes the ncws
that the bank is broken. Now, do fulfil my
promise when give you instead cfa hundred dol.
lars, hundred pieces of paper, for which you
could not possibly obtain a hundred dollars? Is
it right to force such paper as this into circula-
ton? Is il right either for brokers', or banks, or
individuals to aid in giving such paper crcula-
ton7 Is it morally honest for banks, which are
created for the express purpose of furnishing
sound circulating medium of paper, actually
equivalent TO specie, TO put anything else in
circulation We speak not now OF seasons of
emergency and overruling ncccssity,-thongh 1t
seems to us that such seasons would not overtake
a bank managed with stlict fidelity and principle,
but we speak OF ordinary times, and of acts
done not under the emergency ofmperous need,
but for the sake of gain. For ourself, we think
no system can permanently stand which is not
adjusted in accordance with the demands of moral
principles; and it remains to be seen whether such
a system can be instituted-all former experiments
having failed.
Society is fixing keener inspection than for>
merly upon many usages and institutions. The
great system of debt, by which one generation has
shifted its burdens upon its successors; by the aid
of which wars are carried on, empires purchased,
governments ovcrthrown and thrones sustained;
on which is ongraftcd tho system ofpaper curren-
cy, is to be examined in all Its aspects. Who can
anticipate the worlds judgment on this great
question: Who can antci"s...cc .ao 10 results and
consequence Of that Judgment The writer look
ing mercy at tne outside of things, and having
no time and little capacity for profoundes in,
vestigations, certainly cannot. But whatever
these results and consequences may be, they will
certainly involve the destinies ofall credit cur,
rcney. which in its birth, and life. and death, is
inseperabae from debt.
0Fin his speech on the Oregon ques.
tlon in the House of Representatives es
on the 10Th inst, Mr. Hamlin, of Maine,
who spoke in favor Of giving the notice
closed with the following eloquent and
patriotic peroration:
We could not be mistaken, he said,
if we looknd at the ncoraI nowor rs as. ..