The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1846-05-14
From Facts for the People.
THE DESTRUCTION of BANKS DOES
NOT DIMINISH THE AMOUNT OF
CIRCULATION.

NOT DIMINISH THE AMOUNT OF
CIRCULATION.
The great statesman, Andrew Jackson, in
his letter to Moses Dawson, says: Shut
out from circulation all paper, and specie
,uiU 1lov in upon US as the tide; but mill nerer
fow to any country that has a paper curen-
Gu, Which ,viU alpays deprecated
In proof of this assertion, we will adduce
few facts and authorities drawn at random
from the history of the past. In the celeb
rated report of the Hon. G. P. White, made
TO Congress in 1884, we find this principle
ably proven and illustrated. 'The only meas
ure necessary for "increasing the specie cir
culation ofthe country,"is is to make room for
| it. All experience in this matteris in accor-
dance with that of France in l795, and Of
England since the return ofpeace. The des-
truction of the assignat [paper currency, oc-
casioned every channel Of circulation in
France to be filled Immediately with its ap-
propriate supply of gold and silver con.-
The resumption of specie payments in 1921,
and the banks being restrained in April, 1929,
from emitting notes under five pounds, had
the like salutary effect in England, establish
ing, to the conviction of all unpreiudiced
minds, that the operations of commerce will
distribute to every nation its useful supply Oi
the precious metals, if unobstructed by local
regulations
The following beautiful contrast between
France under her assignat or paper curren-
cy, and France under hard money sys-
TEN, is from the pen of Madame de Stael, a
contemporary of the events which she mar
rates.
"The Directory cauld hardly get table
on which to write their orders; and there
was not one hundred thousand francs Given.
ty thousand dollars) in specie, in the public
treasury. Civil war ragiug in the South, de-
feated armies on the northern frontiers, con.
fusion, distrust, devastation, all but dismay
every where--,uere the fruits Of attempting 10
pay public obligations in paper PROMISES
WITHIN ONE MONTH ALL WAS CHANGED AS BY
ENcHANTMENT. In the course of twelve
months, France triumpbed abroad, Became
Hourshng at home, Victory was said to be
Organized, and PAPER MONEY DISAPPEARED
ALMOST AS FAST AS IT HAD EXPELLED COIN.
Ever since that wonderful restoration, the
PRECIOUS INITIALS HAVE ABoUNDED IN THAT
COUNTRY, ,chile its prosperity hds advanced
suith an increase Of population, notwthstand,
ing un-exampled wars, revolutions, troubles,
conquests, and the worst Of all, royal restor'
ations, more than any republican cenvulsons
With incomplete equality and imperfect lib.
erty, with the best distribution of property
France stands firm on the basis of hard mo-
ney, heavily taxed, considerably indebted
but never disturbed by difficulties of curren-
cy.''''
The eteft alluded to in the above extract
is thus ably commented upon in the report
just referred to!
"The Correctness of the principle, thai
money will find its level in the great sea o!
commerce, unless obstructed by artificial
mounds erected by Legislative Or local regu.
latons, was fortibly illustrated in the case ol
France in l704..a5.