Lewistown gazette. [volume] (Lewistown, Pa.) 1843-1944, 1852-05-07
New Series-VOl. G-No. go.

contains the enormous sum OF near ninety
millions of gold and silver, whilst in France
and Holland there is an evident excess above
the demands of business. In the United
States we have full supply, which is now
being rapidly augmented by new receipts
These, receipts, as | learn from reliable
though unofficial sources, by importation and
coinage, for the months Of January, February
and March, amounted to over thirteen mil
lions and halt, leaving in this country, after
deducung all exports of specie, for the same
period, balance Of near seven millions of
dollars. This ratio of increase would soon
double and treble the whole capital of the
country. And it is worthy of remark that
this great increase of gold coinage is begin
ming to awaken the inquiry as to what is to
be the effect upon this great standard of val
ue, as compared with other coins or circula-
ting mediums.
The effect of this superaBShdance ofmoney
on the business affairs Of the country is al
ready being made manifest. The signs of
the times, it seems to me, indicate very clear
ly that we are approaching a period of more
than natural prosperity resulting from this
excess of money. The mania which prevails
for oil kinds of business and projects of I'M
provement, which require the investment of
large sums of money, is the evidence of such
tendency in our monetary affairs. If then,
we are to take counsel from the past, and the
indications Of the present, we must believe
that this abundance of currency will, of itself,
produce an imitation of prices and lead to
speculation and prodigaIity. But such arti-
fetal prosperity will be of short duration-
The reaction will as certainly come as that
the sun will continue to rise in the east and
set IN the west; and, unfortunately, when it
does come, the innocent and unwarv who
have made least in this gamo, are forced to
suffer most. Is it wise then, in full view of
such unmistakable indications, to hasten this
state Of affairs, and aggravate the evil by an
lmpr0yidCnt increase Of paper money? Shall
we so TAR forget the severe lessons which have
been heretofore inflicted upon this noble
State? | trust not. l do not say that it may
not be proper at some future time to charter
new banks at some of the points in the State,
where it is now proposed to locate them; but
| most sincerely believe, and | express this
belief with the utmost Difference to the views
Of the General Assembly, that the present is
not propituous period for an increase of
banking capital. Let US first see what is to
be the effect of the increase of gold coinage
and the abundance of money to which | have
already alluded. 1t is prudent, at least, to
remain on the safe side Of this question:
There is no danger of the real prosperity of
the State being retarded for the want of pa
per money, and | have never known the peo-
pie to suffer from such cause. Our currency
is now as sound as at any other period in the
history of the Commonwealth, and her pros
perity and growth resulting from the energy,
industry and enterprise of her people, equal
to that of any of her sister States. Artificial
means to improve this condition, might read
lily produce the reverse result.
| think the aggregate banking capital of
the state large enough, and that of the whole
country too large-much too large for the
welfare Of those pursuits closely pressed by
foreign competition. But the great moneta-
~ movement which, at this time, would seem
wise and necessary, is not within the central
Of n single state. If it were so, and Penn
syl7ania were that state, have no hesitation
in saying, that | should not, during my Off
clai career, sanction the charter or re-charter
Of any bank. 1t should be my purpose to re-
duce, rather than increase, the paper circula-
ton. But a single member of this confeder-
acy can do but little more than show good
example and invite imitation on the part of
sister states. Situated as we are, therefore,
we can only make the best of the circumstan-
ces which surround us-restrain the evil and
promote the good, so far as the influence Of
the state can do this.
the reasoning in favor of establishing banks
in particular localities, as medium through
which to conduct heavy business transactions,
and | should not object to institutions for
this purpose with all the attributes of bank,
except the right to create paper money. 1t
is urged, also, that certain localities need
what are called banking facilities that are
now without such accommodations and that
some, or all of these bills, are only intended
to afford to such places that which has been
already extended to others. ! am free to adj
nit that there are localities thus situated, and
that it is intended, by the bills in question,
to supply some of these, and were it practical
BILE to afford to them these facilities without
increasing the present amount OF paper mo-
ney. or in other words, if this end could be
accomplished by taking from localities that
now manifestly have too much, the evils of an
increase of banking capital, which | have
suggested, could not apply. But it cannot,
ence suffered by certain localities, should be
regarded as paramount to the important con-
siderations that seems clearly, at this time,
to weigh against any increase of the paper
medium Of the state. This complimentary
be gradually set at rest hereafter, should the
considerations against an increase of capital
continue by refusing to re-eharter banks in
localities where there is an excess of such
facilities and distributing them in other quar-
ters. But in this the utmost care will be ne
cessary for we have learned by sad expert
ence that it is dangerous policy to locate
these institutions in region of country
greatly deficient in capital. l need not call
to mind the numerous instances In which
banks, thus located, have misled the business
community, by their promises to pay, without
a dollar in their vaults, and then exploded TO
the vast injury of the people. They are so
many arguments to sustain the truthfnlness
of this position, and nothing but my unwll-