The daily union. [volume] (Washington [D.C.]) 1845-1857, 1853-04-30
From the Boston Post, April %.
The Increase OF Banks-Sound warnings.

Our legislators on the important and vital subject OF
the currency, have proved themselves deaf 10 the voice
OF experience and impervous 10 the souudes reasoning
and the consequence will be that Massachusetts will au-
thorze millions OF additional paper issues, making
additional facilities Tor sixteen millions OF credit loan
ing the effect of which will be 10 debase the cur
rency and this will tend TO swell prices, 10 invite in
debedness 10 trap the unwary, 10 foster corruption to
destroy commercial confidence, and to bring on general
suspension OF specie payments Let IL be remembered
that while everywhere else with the check rein OF
colaerastock security, this increase OF banks and Of
issues looked upon as dangerous here Is looked upon
as beneficial Here issues will have other secu.
r,y for the public than discounted paper that to-day may
be good and to- morrow may be worthless
In New York It is proposed 10 enlarge the collateral
list, and thus allow banks 10 be made The Journal
OF Commerce opposes even this mode In strong art
Gle IT says
The number OF banks already created is too large
BY means OF them prices the increase, and they
may reach that height under further encouragement,
when il will be impossible, until the banks are leyelled
by new explosion, to compete with the residue Of the
world ~ any department Of industry common 10 all the
world. In the long effect be produced by local
legislation the price OF commodities Their price de-
Ponds on other and general laws temporary nfu-
ence may, however, be produced in that locality which
money OF the whole world were doubled in amount,
prices would be increased everywhere The increase
being general, its effect would be equally general The
effect would be as general the particular To-
caty may by increasing the amount OF lis local
cy, produce effect OF the character IL
however, be otherwise than temporary and preiudcal
Under It's operation we inevitably become debtors TO
those countries whose currency remains undebased Our
local currency then answers purpose OF payment.
We must pay IN the money OF all communities-n the
precious metals. The effect OF the bank bill will
therefore be TO make us debtors 10 the world al high
prices, and to deprive OF the OF convenient
ment."
The Journal thus aludes to the security principle
here sneered al by self conce-here denounced a
monument OF foly"-bere laughed to seorn by men who
assume much wisdom
"The constitution of this Stale and that OF the Uni
ted States are in perfect harmony on this subject,
Section g. OF article s, OF the constitution OF our State
declares that the Legislature shall require ample security
for the redemption IN specie OF all bills put
circulation money Section ofbids their sanction
ing any manner, directly indirectly the suspension
OF specie payments by any person, association or cor
poration issuing bank-noes OF any description These
the national constitution. They are wise provisions,
founded not the experience OF day. created not for
any temporary purpose. but TO stability, integrity.
and uniformity in the operations OF the government in
the delicate matter of its currency"
This paragraph will apply here. But what have the
arguments favor Of this principle amounted to when
addressed to such majority that OF general court
What have been the bomely notions OF stability and in
egy" in the face of the energy Of interest and the
clsmor Of speculation
Once more, the Journal says:
"On the OF the grand explosion OF 1897, the ten.
dency to create banks at its height II any benefit
result from such legislation, the country had
full opportunity ascertain it, Far from beneficial
the result The increase added fuel TO a flame which
wrapped the whole country in ite embrace and in its
dangers The tendency TO create banks 10 again unirer-
sal and New York. creditor State TO the Union.
sets the example in the dangerous form possible
and against another express prohibition of the State
stiiuiiopv
Our 6naociers scorn such suggestions to another ex
poson, and term those who urge them fools And