Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1849-08-18
tFrom the South carolinian.l
THE BANK-ANoTHER FALLAc,

THE BANK-ANOTBER FALLACY.
But another fallacy which led to the
establishment of this institution was.
that rs the times were hard and money
scarce, a Bank must be created to furnish
circulating medium.
The creation of the Bank NAV have
afforded some relief to many persons di-
rectly and indirectly to many more. But
the notion Of necessity for increasing
the circulating medium is entirely erro,
neous. Under sound condition of
things, the circulation in every communi-
ty will bear certain natural relation to
the business to be transacted and 1t
passes legislative sagacity to determine
that relation: and it has invariably been
found that, when governments have un-
dertaken to prescribe that relation, mis-.
chief has ensucd. Initiation in all branches
of business is the uniform result. High
nominal prices for every thing, that for
time delude all parties with the SEM
blance of prosperity only to make them
feel with great poignancy the bitterness
Of disappointment-ac condition of things
very advantageous to those who have
time and opportunity and sagacity enough
toprofit by the blunders Of others, but
disastrous to the community at large.--
The fact is that the amount Of circulating
medium required by each community will
be regulated by the laws of trade; laws
more potent than any legislative enact
ments. Legislative enactments can only
affect the nominal amount; they cannot
determine the real value of the currency.
And it would be quite as sensible to try
to regulate the aggregate value of the
corn, wine, and oil to be used, as to fix
that of the circulating medium. The
whole notion belongs to the economy of
the sixteenth century, and Is quito un-
worthy the consideration of grown men
of the nineteenth. 1t is no part of the
duty of government to furnish circula
ting medium; it does all that it can lepit-
imately do when it coins money and reg
ulates the value thereof, just as it deter
mines upon the weights and measures by
which articles may be sold, 1t fixes thus
the standard for exchanges, and thus pro-
notes convenience and equity in CONNER
cial transactions.
1t may seem puerile at this time of
day to be making these statements which
belong to the horn book Of economical
science; but as their truth is practically
denied by the friends of the re-charter
at the present day. as it was by the ad-
vocates Of the charter thirty years
ago, we must be indulged in repetition
Of the A, B, g.
This idea of its being part of the duty
of the State Governments to furnish a
currency is of a piece with the notion so
much insisted on eight or ten years ago,
that IL was indispensable to the com.
riesce of the States that the Govern.
ment of the States should furnish
means Of effecting exchanges; and the
friends of the United States Bank rang
the changes upon it with. such persever.
ance, that even The most sceptical on the
other side were almost inclined to believe
that there must be something in it.
Thanks to the triumph of the Democratic
principles, even the Whigs (the decided,
il not @iira) must begin to see that there
is nothing IN It.
In the United States Bank eontrover-
sy the true position was taken by the peo.
pleCs this State. IL was in substance
thatthe United States Government was
the agent of the States for certain pur-
poses only: That as il could not of right
be q ship owner. excepting ships for de-
fence or merchant, or agriculturist, or
manufacturer, or engage in any Of the
industrial pursuits Of the people, SO It
could not Of right bank or engage in the
basiness of exchanges; that when It had
"coined money and regulated the valae
thereof and OF foreign coin, IL had per-
formed all the functions required Of it by
the Constitution in this relation; that
doing more than this was acting without