The daily union. [volume] (Washington [D.C.]) 1845-1857, 1846-04-14
THE DAILY UNION
B. and their fancied profit Of $500 gone like snow in

thsw. -
Eastern lands are found TO be Of very little value
without timber upon themi western lands, thou
sand miles from any settlement, will not readily
sell; morus multicauls trees do not bear silk ready
manufactured for MARKET and copper mines are fur
Their of than even Lake Superior.
Mr. Webster well illustrates this same idea
"An imitation of currency would have raised the
prices of goods; this would lead TO oyer-importa-
ton and TO diminished exports. The result OF this
state of Things would have been a commercial and
monetary pressure, caused by demand for coin Of
the banks TO pay up balance against US Tor an ex-
cess OF importatlons"
| And Mr.. Caleb Gushing, as chairman Of select
committee on banking, gives correct sketch Of the
effect OF banking as il has been aud Is now conduct
ed
"Bank paper, if il stands on solid specie basis,
has circulation by reason Of its convenience; and if
the redemption OF its bills be constantly enforced,
and the prudence of its conduct necessarily tested
and secured, the operation Is useful one TO the
community, as well as profitable to the bank.
"But in this way the bank acquires the faculty,
not, indeed Of creating value, but OF creating at
will, that which commands value
"ltis tempted by cupidity to expand its issues.
The redeemsbity in coin set forth on the face of lis
paper comes to be fiction, or falsehood.
"lf the government Of the country see fit to per-
NIT this operation to go on the people inadyert-
emily acquesce in it, the gradual expansion Of the
currency stimulates 10 artificial excitement in
value, property rises in nominal value: 1t Is quickly
exchanged for that which has no intrinsic worth,
and everything wears the aspect Of high prosperity
until the bubble Of inflated paper circulation bursts
throwing all the currency into confusion, suddenly
reducing prices, arresting business, and filing the
community with bankruptcy and distress"
To every reflective mind these things must be APP
parent but the remedy is by no means 80 clear.
One party calls for United States bank another for
high tariff 10 increase smuggling, 70 lessen honest
trading, and consequently the revenue; a third for
banks founded upon State stocks; but these things
do not meet the difficulty. Constaat and rapid auc-
tations continue to exist, rendering investments OF
trust funds hazardous, and even the peaceful and
secure enjoyment of moderate competence some
what difficult.
Owing to the fact that each Of the United States
takes upon itself the power Of regulating It's
rency, and the right 10 charter and authorize banks
ofssue, it is difficult for Congress TO interfere in the
matter with much effect It's control is limited TO
its own funds.
But the Independent Treasury, as it is called if
carried out strictly aud at once will some extent
check the increasing tendency TO speculation and
over-Issues and continue the state Of prosperity OF
the past three years. Ii this measure is delayed
until speculative operations (as yet chiefly confined
10 the cuts and the manufacturing interests Of New
Engand) spread over the whole country, this sal
ulary check can only be put into operation at the
risk Of panic and difficulty. AS the effect Of this in
Aaton and speculation usually Is TO draw gradually
the specie from the country TO the Atlantic cities,
and place large part Of the basis Of the circulation
vi the country the banks of Boston or New York;
or as gentleman who is a keen observer Of
money affairs, said ito place the money of the
country upon the wharf ready for shipment, ="
il has been matter OF surprise that parties en-
gagged in the home manufacture Of any articles with
| Inch foreign goods come into competition, have
not seen the benefit this system would be to them
IN checking importatlons, and by giving timely
warning to the banks, Of restricting undue Of
paper, and preventing the export Of specie, by the
only method that can ever be of any practical utill-
ty; that is, by rendering the prices OF foreign goods
I such TO make 1t Improbable 10 import them.
As to the expectations of the effect of the sub
treasury system, quote from one who has had
great practical experience in banking and money
affairs; and although written TO meet another ext
gency Of the currency question, Is yet very appca-
Ole TO the present time. refer TO Mr.. Samuel
Jones Loyd's Thoughts upon the separation Of the
departments Of the Bank Of England"
ITO guard against commercial commissions, is
not the direct or real purpose Of the ball To sub
ject the paper issues TO such regulation shall
cure their conformity in amount and value with,
| and consequently their immediate conveTtIblty at
all times into metallic money, is the purpose 10
| which the provisions of the measure are ayowedly
directed; and if the bill further exerts any indirect
influence in restraining the oscillations of CONNER
cla excitement the fluctuations of prices, it can
only do this 10 the extent TO which Encouragement
of the circulation has hitherto, under the existing
sy stem, been the means Of originating or fomenting
these evils. II has, however, been urged AZ OBJ
lection to this measure, that it will not effectually
prevent the recurrence of commercial revulsions.
| The answer to this cannot be well given as in
the words Of one of the ablest supporters Of this
measure. Il anticl pate from the adoption Of this
measure, less huctuation in the amount OF the cir
culaton; less huctuation IN the range Of prices
| but am not so unreasonably sanguine as to sup
pose that it will put end TO all speculation and
to all miscacuauon in commercial matters. Prices
will necessarily vary, according to the relative sup
ply and demand for commodities at various times
| Spectators will make mistakes in their calculations
as to the amount of the supply and the urgency of
the demand. Prices may be unnaturally forced up,
and individuals may be ruined in the collapse All
this cannot be put an end to, so long competition
exists in trade, and hope of gain influences human
minds but ii Is no reason ,chy pe should not remedy
chat is po,oer, because cannot attain epery
thing. We can prevent additional stimulus be-
ing given to rise OF prices, and undue speculations
by the influence Of an ill-reguated currency; and
this it is the duty Of the legislature to attempt
| "Another objection has been stated that the bill
will unduy contract the circulation of the country
and deprive all classes of that accommodation,
which requisite for the prosperity of their respec
tive pursuits. Those who urge this objection, either
omit to state their real views, they object to the
measure on false grounds.
"lf they intend to object to that degree of contrac
ton of the circulation which, under any system Of
management, may be necessary for the security of
specie payments, and are prepared to abandon the
maintenance of our standard of value, let them at
once openly and explicitly avow their purpose.
The public mind, Ibeiieve, is made up that point,
and ,ciH not sanction their pie,os.
"The evil consequences of having once consented,
by suspending cash payments, to abandon our
fixed standard of value, and the almost insuPerabe
difficulty of ehfecting return to sound state, are
now well understood. Whilst the recollection Of
these remains fresh in the public mind, no proposal
for repetition of 80 fatal experiment will be
listened to.
"Hiiherto contraction Of circulation has usually been
delayed till the effect Of adverse exchanges has been long
in operation and the amount Qfbuion has been seriously
diminished This has been done, if, indeed, with any
definite purpose, in the hope, probably, that the
mere payment and export of bullion would prove
sufficient correct the exchanges, and to stop the
drain without any corresponding contraction OF
circulation. Abundant experience, however, has
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