The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-08-24
New YoRK, August %, ls4t
To the Editor ofhe Union:

To The Editor Of The Union:
By inspecting the comparative returns Of the
banks of this State, made on the LIST May and Isl
August, 1886, you will find that the said banks
have, within those dates reduced their cash liabi-
ties from hftyseven million dollars TO forty-nine mil
lion dollars, which is equal to a contraction Of the
psper-D,oney currency furnished by them Of eight
million dollars, near ID per cent. Men who I'M
derstand the action of paper-money currency, be-
lieve the said banks will be compelled 10 continue
redeemlng their cash liabilities for the next twelve
months, or until they may be superseded by new
class Of bankers lending specie for years to prudent
borrowers at less than per cent. per year. That
class of the citizens exchanging promlssory notes
for credits the ledgers of the banks called dis
counts will for the future be unable to receive such
facilities from the existing banks, and be compelled to
withdraw their cash liabilities, and TO reduce their
amount TO avoid suspension Of specie payments, as
well as to increase the ratio Of specie to bank notes
and depostes On the LIST August, 1886 the cash
liabilities Of the banks was forty millions OF
dollars, to pay which sum they possessed eight
million dollars specie-say II per cent. Ii is
proper for the public TO know that the managers OF
the banks are making great effort to reduce their
paper issues to about thirty million dollars say
50 per cent. less than il the LIST May, 1876.
All men know that this is the periodical effort at
contraction, happening every succeeding ten years
after an expansion, and is therefore, Independent of
the action Of Congress by tariffs, wars, or subtreas
uries, which the bank managers publish in their
newspapers TO the masses the Of the exist
ing refusal on their part to discount, is termed
in trade. c. hire paper moaey. Those who have
received the advance in the prices of all property
they have sold for some years, should not lament
over the decline in prices which is now following
the contraction for such results they know in
herent in the paper-money currency system, no
matter whether patronized in republics or monar-
chies.
Having observed the conflict existing in the Uni
ted States between expansion and contraction the
part of banks issuing currency and the patriotic ef
fort, commenced by Andrew Jackson in December,
1929 to arrest the power of expansion, it appears
that the public have not yet had sufficient strength
to triumph on this point in their Legislative halls.
The State convention has had its attention called to
our paper currency by Mr. Cambreleng, and if il
desires to cure the evil Of contraction it should pro-
hbt all corporations from charging over per cent
per year fora loan of their credits declaring that any
person may hire specie for as much ratio per year
as they may see proper; thus forever aboshing the
usury laws with respect to loans Of specie. Give
banks per cent per year, now, for issuing their
credit for fifty million dollars and it amounts to
bonus for expansion. Mr.. Polk and Mr.. Walker
innocent Of the existing disorders of our State
paper-money currency, and all the destruction tina
may attend its progress to rectifcaton or suspen
sion. As the friend of this federal administration
now is the time to enlghten the public the paper
money crisis.
A SENTINEL.