Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1849-10-23
From The Paila lelpAia Ledger, Oct. II.

1TlNkER!NG TIE CURRENCY.
Mr.. Thomas l.. Cingman, formerly men,
Der OF Congress from North Carolina, aud MIR.
Simeon Draper, an auclioneer OF New York
city, have resumed This old fashioned bust
ness. Mr.. Draper addresses MIR. Clingman
upon The subject, and Mr. Clingman replies in
long letter, which is highly recommended in some
OF the journals in that city, as any scheme prob
ably would be that commled The federal gov
eminent 10 the issue OF paper money. His
scheme is The conversion of The federal debt into
an instrument of banking, like the debt OF New
York Stale, by authorizing the holders OF such
stock to depose il with the federal treasurer, who
should sign and issue 10 the depositois an equal
amour. Of treasury notes, 10 be issued by such
dcpt slors 10 loans as currency, like bank notes;
said treasury notes 10 be redeemed with gold and
silver, by the issuer on presentation, and on iaI'
ure OF such redemption The stock deposited being
sold By the treasurer, and the proceeds applied
10 such redemp ion. In short, The scheme auth
orizes any holder Of federal debt 10 found pri'
va,e bank OF issue upon il, like The private banks
OF New York. We regard this scheme as very
mischcyous, and tTus, tina, il will be promptly
rejected by all the producing part oil The nation.
We object 10 its fundamental principle, which
is double interest. TIL: holder oil federal stocks
already draws interest upon them from The Wnole
lhese s.oc.s the instrument OF drawing The same
or more interest from portion of line people, in
Guiding all who borrowed OF him, and all who
purchased them. Interch is, aud always has
been, The great dragon 10 devour The substance
of The people, by transferring property from The
MANY 10 The few; and hence no wise government
will multiply schemes 10 duplicate or still further
augment interest. II The holder OF million Of
federal deb, draw in,ercs, al per cent, and then
issue million of bank notes upon this very
stock, in loans a, seven per cent, he draws lhIr'
leen per cent upon his money. Even at six per
cent under which capital in money doubles 10
less than Twelve years, while neither lana, hon'
ses, nor labor double in The same PERIOD, proper
w soon leaves the money 10 accumulate WIN ihe
lev. The statistics OF our Country snow that Inc
rich grow richer and lever, anu Inc poor poorer
and more numerous; and in all Europe all sta
,;s,;cs show il thousand fold more. All this Is
principally caused by interest on money; and il
m. nroce.s be so rapid, even in The U. States
undsr ,ix per cent how much more so must i! be
rndcr thirteen, We offer this position for the
reflection oil political economists
We see another objection in The initiation OIL
the currency. These sem.Jederal banks could
nj control Stale or private banks, and would no
drive single mole vi The latter ou OF circula
lion. Hence every treasury note issued by then
would be a addition 10 The whole currency. Tit
A. CT OF This inf ,tion upon all prices. and con
| seouen,ly upon American manufactures and az
| riculural produce, must be obvious TO all whs
remember the banking excuses oil former years
esn.cialy 1856, and 7. The inaalon nigh
h., sottici.n, 10 fill our country with foreign man
ufacures AMI agricultural produce, prevent lbt
| eroora,;on of our own and drain the country o
coin. Such things haps bcen. and more thar
/ once. and while The national debt could thus b.
an instrument OF banking, the utmost effort:
would be made by the trading population lur il
| increase. A public debt would be an element IL
! our polical contests; and The deb party, when
| eyer successful, would drive the government L
reckless e1lravagance, Tor The purpose oil aug
,nenlinc The debt. The merchants and manufac
lurers would say, increase the national debt
and wp shall gel more liberal discounts" and tht
farmers and mechanics in debt would say mo
new is scarce. and an increase OF The nationa
debt would make ii ta:icr." The result is easil,
foreseen in public deb. than would be pub
lie blessing" with vengeance!
We object 10 this scheme Tor The danger Oh oani
f.;lnres. Oflhe frs, batch OF private banks IL
New York, founded upon any State stocSs, ever
one failed 10 The loss the poor Utmost Iclusivey
| Ont NJ those founded upon N. York Stale stocks
several have tailed to the great loss OF the public
and the corresponding gain OF the Jdper; Thus
if a bank issuing hundred thousand dollars il
notes nnon the same amount of New York Stall
stocks susptads, the noles tall to 25 per cent, III
5sntsr buys them Of the poor holders at This de
nrecia,ion through brokers, often has them re
deemed by The comptroller from The stock whlc
has been solo at par, and thus makes seventy>hv
thonsand dollars by the OPERATION. What sha
nreyenl similar operations in banks founded o
Federal stocks. We have other objections to N
scheme, but offsr lhts, as enough for The presen
Mr. Clinsman says, Ill is the opinion Of everybt
DIV that The sub.lIeasnry needs modification" II
should no, mistake himself and bis correspondei