Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1849-09-26
- [BY REeuEsT.l
Ftom the South Carolinian.
THE RANK X-AN0THER FAIJAC

Ffem the South Carolinian.
THE BANK-ANOTHER FALLACY
But an6rher fal!acy which led to the es-
Iahlishment Of This institution was, that as
lines wersshard and money scarce, Bank
must be created to furnish circulating
medium.
The crention of the Bank may have
afforded some relief 10 many persons di>
rcctly, and dsindircclly to many more. But
the potionsof a necessity for increasing the
circulating -nedium is entirely erroneous.
Under condition of things, the circulation
10 every community will bear certain
natural relation 10 life business to be trans
acIed; and!ii passes legislative sagacity to
delermineihal relation and il has invara-
bly, been found that, when governments
have undertaken to prescribe that relation,
mischief has ensued. Initiation in all bran-
ches OF business is the uniform result.
High nomilnl prices for every thing, that
for time dslude all parties with The SEM
blance of prosperity only to make, them
feel with greater poignancy the bitterness
Of disappoiutment-a condition of things
very advantageous to those who haYe
time and opportunity and sagaciy enough
to profit bythe blunders Of others, but dis
astrous lolhe community at large. The
fact is tha.jlhe amount Of circulating medi-
um required by each community will be
regulated by the laws of trade; laws more
potent Than any legislative enactmenls.
Legislative enactments can only affect the
nominal amount; they cannot determine
the real value of the currency. And it
would he quite as sensible to try 10 regu-
late the aggregate value Of the corn, wine,
and oil to be used, as to ix that Of the
calculating medium. The whole notion
belongs lothe economy Of The sixteenth
century, and is quite unworthy the con-
sidcration Of grown men Of the Dineteeth.
1t is no part OF The duty Of government to
furnish circulating medium; it does all
that il car legitimale!y do when it coins
money and regulate the valne thereof,
just as il determines upon the weights and
measures by which articles may be sold.
Ii fixes thus the standard for exchanges,
and thus promotes convenience and equity
in COMMERCIAL transactions.
I, maSseem puerile al this time Of day
to be making these statements which be-
long to the harm book Of economical SCI
cncc; hut. as their truth is practically de-
MED by The friends Of the recharter-. at The
present day. as ii was by the advocates Of,
the eIsaasaF ffhhin1y=seren years ago, We must
be indulged in repetition of the A, B, c..
This idea Of its being palt Of the duty
Of The State Government 10 furnish cur
rency is OF piece with The notion so much
insisted on eight or ten years ago, that II
was indispensable 10 the commerce Of the
States that the Government Of the States
should furnish means Of eflecting ex-
changes; and the friends Of The Unilcd
States Bank rang the changes upon il with
such perseverance, that even The most
scepical on The other side were almost in
cIncd to believe that there must be some
Thing in it. Thanks 10 the triumph Of the
Democratic principles, even the Wings
(the decided, il no! The uitra) mus, begin
to see that there is nothing in it.
In the United States Bank controversy
the true position was taken by the people
of this State. 1t was in substance that
the United States Government was The
agent Of the States for certain purposes
only. That as it could not Of right be
ship owner, (exceplins ships for delence,)
or merchant, or aSrculturisl, or manufac-
turer, or engage in any Of the industrial
pursuits of the people, so it could not Of
right bank or engage in the business Of
exchanges; that when it had "coined nous
ey and regulated The value thereof and Of
foreign scon," it had performed all The
functions required of it by the Constiu-
tion in this relation; that doing more than
this was acting without lawful warrant,
and necessarily tended to swerve from
their path of duty the servants of the
people; that it inevitably led to violation
Of that cardinal rule Of the Constitution
which dcnounces commercial preferences
10 one seclior (port) over another. For
manifesty, according 10 all just rules Of i'm
rcrpretalion, the Government cannot con
stitulionolly do that indirectly which il is
forbidden TO do directly.
This same position we take against the
Bank Of The Stale. lr it was strong po-
silion against The Bank of The u. SIaIos,
it is stronger against the Bank Of the
State. q.