The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-05-28

would agree to it, for two good substantial reasons
The first 10, the one who had the power, would be
somewhat more than human, if he did not break
| down the other and the other, so soon as he rid
himself of competition, would raise the price Of
freight and passage. This would be natural enough
| all will agree.
Now, would ask the committee il il il wise
just 10 build system OF credit that will necessarily
place the credit nay, fortunes, Of those out Of the
bank directly under the control Of men IN the same
| business and 10 composition with theml To say
| they would not Use the power, would argue want
OF experience, common sense, or common honesty;
for all must believe IL, say what they may.
And, sir, when the banks are called on for specie
owing three times as much az thsy can pay, and
the cry is, "Pay up, pay uP"-who do they call on
first, ask in ali csndoT Does not every gentleman
on this floor know that the small merchant, who
has but few friends, will be compelled to nay, com
msneing always with the weakest and poorest
The strongest, from their power and influence, will
get their notes renewed.
Let US say, that the demand for specie is heavy,
and threatens a suspension. The question comes
up, Shall these merchants, wkD manage The bank,
their notes, themselves lot the bank
pend, and throw the loss on the people by the de-
probation Of their paper or ruin themselves TO sus-
tain the bank Which would they prefer The
choice is in their hands Say, sir, they do their
duty, ruin themselves, and save the people; which,
however, Is not very probable.
Now these men managing the banks, however
disposed they may be TO favor the debtors Of the
bank, do not have il in their power; for the mer-
chants owe them, and they owe the people, who
hold their notes. One of two things 10 inevitable
they have no alternatives they either have TO break
the merchants and save the bank, or save the
merchants by u renewal OF their paper, letting the
bank suspend and throw the loss on the people.
Now sir, under our paper-credit system, even
when managed by honest men, this will always be
the result at every pressure i'm the money market.
Our small merchants, who are struggling to make
comfortable living for their families, will always
be sacrIhced-the very men that should be pro-
ed.
Let US see, Mr.. Chairman, how different would
be the result under a specie system. Say that real
money was loaned out, and that there was a de-
mand, either foreign or domestic, for money. The
bankers who loaned ont the specie would renew the
notes Of the merchants, because, unlike our paper
banks, they would owe nothing. Hence IL is
that specie banks can always save the merchants,
while our paper banks cannot And this is the
son why there are more merchants ruined in the
United States than in all the of the commercial
world. One system has the power to save, and II
is its interest to do 1t, while the other is certain de-
struction. Were we to consult the happiness and
safety of those concerned, and the stability of COM
merOe, all unpreudiced minds must admit the spe-
Gle system is infinitely the best.
will now examine the accommodation endorse
ment system which is part and parcel OF our paper
system; and, in my opinion, no part Of 1t has
tel more OlSueSs. ASK the banks why tney ask
endorsements, and they will tell you II is TO make
the paper safe. This is false, sir 1t is a blind to
throw dust into the eyes OF the public. IL is de-
vice of these cunning spectators, who manage
the banks to borrow large amounts Of money so
| as to monopolize business Let one of these spec
ulators borrow (say) two hundred thousand dol
lars, and the complaint be made that he had Dor
WED too much for the safety of the bank and ten
times much as in justice he should have had; he
would show ten other names that were bound for
his paper, which would seem pretty fair, while In
reality they would make it much worse, each one
Of these ten, by endorsing for each other, got ten
times as much as they should have had. And there is
no telling, when one large house fails, where it will
end. merchant not only jeopards his own
business but Of oil others connected with him, by
this deceptive thing, endorsement The people AZ.
ALL sir are the real endorsers, and run all the
risk, as they hold the notes Of the bank. As to the
safety Of endorsement, as a system, it is all hum
bug Ii is rotten chain, connecting hundreds to-
gether-break one link and all are gone. 1t is
worse gambling, and the risk greater, than the faro
table.
Mr.. Chairman, under a specie system, endorse
ments would soon 60 out of use, it would be
safer without them. As for tho lender, they would
be lending out their own money, and would not
any risk. They could always find out what man
owed himself; but it is impossible TO find out what
he would owe for others, and for their safety they
would not encourage endorsements. 1t is a crea-
ture of our paper-credt system, devised by artfu
men to cover their frauds. The whole system Is
as uni ust az 1t is unWlse. Ii gives few the
power of celnlng money, and Of borrowing from
and lending to themselves, which is wholly incom
patble, it leaves check to their avarce or am
bition
1t is unjust to Others it breaks down all fair
competition; not only allowing those in bank to coin
| all the money they want to monopoze business;
but gives them the control Of the credit Of those in
the same business, out of the bank. And above
/ Obi tn fha
these spectators, of putting the property and labor
of the people up and down, as they please and when
they please
object to this paper system the main
Of our over-trading; giving spectators the power
to buy much they please, and always at the
peoples risk as shall endeavor to show When
these cunning, bad men, wish to speculate on the
country and break down all competition, they will
gradually press their paper credit, and stimulate
every avenue Of trade, until, to those who are not
initiated into the mysteries of this system the
| country would seem to smile with prosperity; peo-
pie are persuaded to go into debt buy themselves
rich, and live without work.
These spectators send their orders TO Europe
for millions of goods, at four six months credit
and the manufacturer will send them Immediately
with positive knowledge that these notes will not
be paid when due; for he well knows our seeming
prosperity is all speculation-the bubble will soon
burst.
He sends the goods, Mr.. Chairman, at six
months, but he does not give the credit, as it seems
he does; it is own people that do 1.-THE people
who hold the bank notes-they are the real securi-
ty for the spectators As soon as the goods
rive the notes given for them discounted in
bank; the manufacturer takes the bank notes and
buys our pork -four, and cotton, taking the sub
| stance and leaving people the bank notes. the
shadow, to hold. The bank, merchants, nor manu-
facturers, do not lopeI but our people who had no
interest in the matter do.
Ind he 10 broo h.
cry will be, "Pay up, pay up" The small un.
friended merchants fall by hundreds, in despair and
ruin, iniurng all connected with them in bust.
ness, and putting down the price Of property and
labor.
would ask who 10 benefited by this' 1t might
be said, and will be said, by those who have not ex-
amned the system, that all are injured. Not so,
however. These men, coming the paper money,
are benefited by ii, They have swept of hundreds
Of merchants whose business falls into their hands.
They buy up property and produce at low prices,
and so soon as the country RECEIVERS little, they
III bnir rails nd