The daily union. [volume] (Washington [D.C.]) 1845-1857, 1849-10-19
From the Philadelpha Ledger, Oct. IL.
.Tinksring the Currency"

Mr. Thomas L. Clingman, formerly a member oil Con-
gress from North Carolina and Mr. Simeon Draper, an
aucioneer Of New York city, have resumed this oldasn
toned business. Mr. Draper addresses Mr.. Clingman
upon the subject and Mr. Clngman replies in long lei
ter, which highly commended in some OF the journals
IN that city, as any scheme probably Mould be tna' eo
money. His scheme is the conversion of the federal
debt an instrument OF banking, like the debt OF New
York State by authorizing the holders of such stock
to deposiie il with the federal treasurer who should
sign and issue TO the depositors equal amount
Of treasury notes, to be issued by such depostors IN
oans as currency like bank notes said treasury notes
to be redeemed with gold and silver, by the sser, on
presentation and on failure oil such redemption the stock
deposited being sold by the treasurer and the proceeds
ICES any holder of federal debt to found private bank OF
issue upon it, like the private banks OF New York We
ard this scheme very mschievous. and trust that 1t
will be promptly rejected by all the producing part OF Inc
We object to its fundamental principle, which is dou
ole interest The holder oil federal stocks already draws
interest upon them from the whole people, Through this
scheme he would make these stocks the instrument oil
drawing the same or more interest from portion OF me
people including al Tao borrowed 81 Inn ana al VINO mo
great dragon TO devour the substance OF the people, by
Transferring property rsm the many TO the few and hence
or s further augment Interest," If the holder of mil
hon OF federal debt draw interest at per cent and then
issue million of bank notes upon this very stock, in
loans at seven per cent? he draws thirteen per cent
upon his money. Even at six per cent, under which a
capital in money doubles in less than Twelve years,
while neither land houses labor double in the same
period, property leaves the money 10 accumulate
with the few. The statistics OF our country show that
the rich grow richer and fewer and the poor poorer and
more numerous; and in all Europe all statistics show It
thousand fold more. All this is principally caused by
interest money; and il the process be rapid,
in the United States under sac per cent how much
go must u De under thirteen We offer this position Tor
the reflection OF political economists.
We see another objection in the imitation OF the
rency These semi federal banks could control State
or private banks aud would not drive single note Of
al Henca
issued by them would be addition to the whole
rency The effect OF this imitation upon all prices and
consequently upoa American manufactures and agrcu-
ural produce must be obvious to all who remember the
banking excuses of former years. especially 1885, and
~. The imitation might be sufficient to fill country
with foreign manufactures and agricultural produce pre-
vent the expectation OF own and drain the country of
coin. Such things haze Jeen and more than once and
while the national debt could thus be instrument of
population for its public debt would be
element in political contests; and the debt party,
whenever successful, would drive The government to
reckless extravaganza Tor the purpose oil augmenng the
debt The merchants and manufacturers would say,
increase the national debt and shall get liberal
discounts and the farmers and mechanics in debt would
say, money is scarce, and an increase OF the national
debt would make easier" The result easily oeseen
public debt that would be .public blessing" with
vengeance
We object to this scheme for the danger Of bank fail
ures. Or the first batch OF private banks in New York,
founded upon any State stocks, every failed, 10 the
have to the
great loss OF the public and the corresponding gain OF the
JatierS. Thus, ii bank issuing hundred thousand
dollars in notes upon the amount OF New York
Stale stocks supends, the fall TO IS per cent the
banker buys them OF the poor holders at this depreciation
through brokers, often has them redeemed by the comp
trole from the stock which has been sold at par, and
thus makes seventy-ve thousand dollars by the opera
tion What shall prevent similar operations in banks
founded on federal stocks We have other objections
to the scheme but offer these enough for the present
Mr. Clingman says, sit is the opinion OF everybody
that the sub-reasury needs notification He should
Those in favor Of the sub treasury probably the ma
joriiy, and therefore somebody .,a