The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1854-02-22
Fer the Spirit of Democracy
Banks and Currency.
NUMBER VII.

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Mr.. EDlToR The Bank reform, whic
sshs subscriber proposes, is an absolute an
effsctual prohibition Of the small bank not
circulation The evils arising from ithi
kind Of stuff are so great, that if lieA,e
penal.ies will not prevent the mani ufao.ure
she manufacturers ought to be sent 10 sa,
marble at the seat of government, withou
resolving any part of that '.just and lib
eraf compensation" with which Charlie,
Reemelin, in the constitutional conyen
hon, proposed to solace and comfort suci
ueassy.
8s0k notes of q large denomination
Zach S swenty. fifty and one hundred dol
ier bsls, represents weight OF silver very
incopvenlsns. 81 be carried about mans
spsfson, and for distant remiaancss by mail
they are preferable to golds Such notes
when emitted BY safe and solvent banks
Atiord, ,iacilities 10 commerce and dealing;
,aAd they remedy one defect of the, coins,
so wit: their great weight and bulk. Blu,
the small trash, the ones, twos, threes and
fives are At best utterly useless; they afford
! no commercial facility. They pretend to
rspressnt and often falsely pretend to rep.
afeseat, weight of silver which is very
.:inconsid derable, and very conveniently car
80 about the Psrsoa. They remedy no
dsiect Of the coins. To The man who has
spsymeats toimake they afford no one CON.
veniencs or facility, and to the man who
has payments to receive they are a posi-.
tive nuisance, especially if issued by "a far
distant rag-moneysmint, and the paymas-
ter sprofssses to have no other means of
payment. 49,. q ~
believe, perhaps. ii IS MI. Native
who speaks Of q hank note circulation,
:AsDassftibfe inip specie atsihe WILL of the
~! iA fiat gentleman be kind
npu6h e nfofm our Mills how TO conrert,
ihe. small eote issues of rag-money -mints,
.si,iated ON Moosehead lake or Poshapoe
Psad eway down IN The State Of Msincs
y il. is enough to make the blood Of an
American citizen boil with indign alton 10
De mder the necessity of writing against
.acasr4Hey = The very offspring and spawn
Of frdheulsn, syarice The circulation off
Wood 2 half lfpence threw all Ireland into
Z fame. Yet, Woods halfpence were
.s'the rale. copper, the ginupine cri.ter, 81
and had actual, intrinsic value. II is
stated that William Pit, the .Great Com.
monsr.n : in, his old age was told by the then
premier, that he had resolved to recon-
mend to Parliamentto to permit the banks TO
issue one pound notes. "Then'' says Pitt
ssyoa viii never see q guinea again. nj
the government would issue copper dollars,
no silver dolIer would circulate in compa.
nyiwithithe black, dirty fraudulent things.
Yet such a'circulation would be honesty
and fair-dealing compared with the small
mole circula.ion Of "Pejepscot and Peiam-
scot and Sof-spooney-ville and Bedamn.
scot.
Bit the frauds. which are committed by
sneahss of small nots circulation, are no,
the only consequence, NOT even the worst
consequences of that sort of currency
While the issue, OF small notes, is permit.
ted, we can have no uniformity, no stabi-
ity in the currency ! Undulations, fluctua-
aiions, infaticns, expansions and contrac-
tions are the offspring, The inevitable of.
sptfng Of that kind Of bank note issues.
Not high prices, not low prices are :fi.s the
consequence, but ever recurring changes
sf prices and ever recurring derangemen.
and confasion in all business pursuits. / i
shall not at present offer any argument in |
favor Of this position. That task will be
lerformed in future numbers according to
sss bsst of my poor ability. At present,
: shall content myself with quotation
rom the immortal work Of JEAN BAprIsrE
SAy, man who, nextto ADAM SMITH, de-
eeFYes the yeneFation and the GRATITUDE
pf fmankiEd; asg aelas45 s
AOnsimetkod Of checking the immoder.
ate issue Of notes is, TO limit them 10 fixed
and nigh denomin atIon of value; so as to |
.adaPtthem to the circulation of goods from
.dne merchant to another, but make them
inoonvenient Tor the circulation between
,the merchant and the consumer. j Il has
,hesh qnestionsd whether government has
anyriRhfAo the issue of small n oies.
vhsrslhs public is willing to take them; and
whether such q limitation is not violation
Of tbat liberty Of commerce, which it is the
chief duty Eof government to protect. But
the rights undoubtedly just as complete,
- that of ordering q building to be pulled
down because itsendangsrs the public safes
w. Political Economy, pages 279-8o.
&as a. 1910 ONO.
WooDsFIELD, Feb. 10, 1854.
Or Did we always do our duty by act
ipg 10 accordance with the admonitions Of
he divine teacher within us, we. should
have iewy faRrsts. a.s.4