Southport telegraph. [volume] (Southport, W.T. [i.e. Kenosha, Wis.]) 1840-1850, 1847-03-31

admitted the necessity of some reform in it. 1t is
composed almost exclusively of very small bills
and as a general rule have no large bills and no
specie except the denominations less than dollar.
In other words we have Just specie enough to fill
the channels of trade less than dollar the circu-
lation of the dollar bill virtually drives out all spe-
Gle of that or higher value.
Banks to the eastward make regular business
of inhicting upon US an unredeemed and lrredeem-
able circulation of small bills. Ii they sent out
large bills, these would answer our merchants as
remittances and find their way back in the course
of trade but their western circulation is almost ex-
cusiyely OF small bills, mich of course are much
more slow in finding their way back, and which
have replaced and are replacing the specie clrcula
ton which year by year comes and came here from
abroad, but is absorbed by the banks in lieu OF their
paper. An exchange full of profit Tor the banks,
and full OF loss for us.
There is no year passes over our heads which
does not witness the failure of one or more banks
whose issues have been recently paid for the pro-
duce OF our Territory. These losses fall almost
exclusively on the producing classes,
The merchant who handles much money who has
his correspondence and other sources OF financial
intelligence, who knows the banks in their various
gradations OF responsibility, who is constantly ad
yised of what banks are good, what doubtful, what
bad who has hourly the opportunity TO retain the
better and throw Oft the worse OF his paper funds
the merchant, trader specuator suffers little by
the breaNage OF banks. 1t is the farmer, the iner
chanic the laborer the producer generally that the
weight OF loss falls. Handling comparatively little
money, having from the very nature and necessities
OF his vocation little minute acquaintance with the
infinite and constant fluctuations of bank paper
the laborer can not ioresee the storm and II falls
upon his head unprepared and unannounced; the
shrewder and better informed dealer has escaped at
his expense
Take an example Not long ago, st. Clair mo-
ney was paid out on this lake board Tor wheat until
and it is believed, after the actual failure OF
the bank in Detroit. Who lost? The spectators
who exchanged this worthless fraud lor the valuable
production OF the farmer! Not dollar; they fore
saw the crash and stood from under the loss fell
upon the thousands OF farmers pockets through all
our grain counties.
Another noticeable effect of the circulation OF
small bills. is this there is no converhbihty into
specie in trade TO sufficient extent to test the com
parative soundness of the paper circulation. When
men have only to change larger paper INTO smaller
paper, and there can virtually be IN all ordinary
dealings no exchange OF paper IN specie, there is no
criterion of depreciation. merchant viii now
change bill, which he knows to be doubtful and
be eues to be worthless because he exchanges it for
similar trash.
These xieyys arc neither original nor ultra; and
in the very bible of the bankers, the very work on
political economy, on which they found their whole
theory the principle of the 9th section is to be found
admitted and affirmed. Ii Joplm's history of the
currency question: he gives an analysis Of Adam
Smiths views Of banking,as laid down in the Wealth
Of Nations. There we find the following PROPOSE
ton:
That he would prefer the circulation between
Il 10 4 +l.n
tire circulation, to be metallic; but that he thought
it great advantage torthe circulation between dea-
Ter ana cs-stes taa- a3e paper.
The very principle OF the 9th section; the ave-
rage 0. the dealings OF the nOn-cOmnerclal classes
amongst us are under $50, often however reaching
and exceeding that amount; the average Transactions
between dealers is OF much larger amount The
9th section would gradual through period OF three
years exclude the circulation OF paper money under
$40 thus filing all the channels OF trade below that
sum with specie, on Adam Smiths precise principle
The action of this exclusion would be found III
driving out Of circulation the present chaos OF small
bills eastern and western, good, bad and indifferent
and replacing it in such proportions as the laws OF
trade would require, partly with specie and partly
with urge bills.
This would be an ample protection Of the pro-
ducing classes. and the trading classes can always
protect themselves. 1t would also have tins excel
lent effect it would not only restore specie to the
smaller channels of trade, but it would correct the
paper circulation in the larger channels of trade
Bills Of $50 and over would then be exchanged
not in small bills, but in specie: and the same ru-
nous facility of taking and passing worthless paper
could no longer be sustained the "dolatrous Ialth,
as a great man called it, in every engraved promise
to paw would disappear; and the best only OF pa
Der money of any denomination could circulate.
But the very men who argue that paper convertible
into specie is good as specie itself, tell us that
if we Danish paper, we shall have no money Nom
sense if such paper as we get IS as good as specie
snecie can come instead for its goodness depends
tLat-that YOU get the specie for It'll It be not as
good that is-i the specie cannot be got tor IT. It's
a fraud on our rights OF property to BRING 1t a.
uonest us at all But whenever there IS property
Of commercial value in market for sale, currency
will there come to purchase 1t; the laws OF trace
inmutabe and certain, fix that II the seller Wlli
receive deprecated paper, such viii he get II he
refuse that. the laws Of trade VIII ensure a good
currency paper specie, or part BON, just as the
seller requires We raise no more wheat tan theTe
are mouths to consume and purchasers to purchase;
we will always be abc to sell it; II we take small
bills. small bills only will we get II we take all
paper paper only will we get; II we insist on spe-
re in whole or in part such also viii we assuTedly
receive So long as our produce IL OF certain com
nercaI value, 50 long viii currency find 1t out
but we will always receive the worst currency OF
which we will accept.
What will ultimately pay for cur present crop
The millions OF specie daily arriving at the sea-boald
from Ealope. What viii we get without the 6th
section Ohio, Michigan, Indiana and western New
York bills. Why so? Because the New York Ban m,
kers. knowing that we are willing to be duped, will
retain the specie sent to purchase our crops, and
eend rs the most worthless currency of which we
are willing to accept. Ii our laws inform them that
this fraud cannot be practiced upou Us, the specie
sent to them for the express purpose OF purchasing
our crops, win be forthcoming to purchase them
and the only difference will be that the New ! OK
b,nters will not make fraudulent profit out OF our
blind idolatry of paper money,
II we had adopted this provision four years ago,