Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1856-02-19

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goes out i've dollars Of paper must he drawn IN.
| Thu. mon an nnfavorabe balance of trade thn
/ con,ruction of the currency would, when it con-
sisted in part of paper and in part OF specie.
/ he six times as great when u Consisted wholly
! ~ III. precious metals, and thus would COIN
merce be embarrassed. even by banks prudent
| ly restricted and managed
But, III fact. the tendency 81 banks tn effect
! too large substitution of bank notes or bank
credits for piper has been uniformly eynced
! that II would seem to be ulmo-t "A law of their
na,nre too strong for the most rgii restraints OF
! legislative enaetmenis. and that occasional sns'
/ pensions If payment are necessary incidents 10
! the banking system. Excessive hank loans
create and increase these foreign balances against
| " by the spirit of speculation which they pro
! dnee Hence The foreign demand for specie II
apt TO fall upon an inflated currency Of paper
| Then contraction follows expansion. aud the com-
/ mnnity experience the evils Of sudden change
| from a redundant Il, deficient circulation Com
mereial enterprise sinks from unnatural excite
ment To undue depression prices, rnised to
the their highest point, fall at once 10 their low
est; wild specnlallons and unlimited credit are
followed by a stagnaon of business aud the
sation of confidence between man and nnn; and
the paper money Wa have toiled for dwndles
in our hands through the whitening influence of
bank suspensions. During these banking 1no-
tuations, which differ from the natural aud
healthy fluctuations Of commerce.. rs the tempest
from the tides. all classes suffer- the million
nires aud stock iobbcrs; none much the
laborer and mechanic; and the morals Of the
community and character of the people 10
less injured than the material interests Of the
country
SIR. no saving Of the precious metals
pensnie for such evils rs these. A currency
thus cheapenedis worse economy than cheap
boats and bridges.
Nor do bank notes necessarily efectn saving
of gold and silver. The insecurity of paper
ey leads to the practice of boarding specie
When it is most wantel in periods of monetary
cmbarrassment-il i, most hoardcd;and the Gues-
ton nrses, now in England aud France.
.Whnt hn- become of the sprcel" 'Thi. hoard-
ing III times IT Distress may be more than nn of
set 10 any saving in the use OF god and silver
which the substitution Of paper money effects;
and even according TO Mr. Gatutn. the use of
paper money Is attended with other sub-tan.
tini advantage than chcapncss.
II is thus but single doubtful benefit on the
one hand against many enormous positive evils
the other
Paper money, though for the prcsonta neces-
sary evil in Virginia, was no necessary owl in
the beginning. 1t came not from the natural aud
healihfnl operation of the laws If trndc. But 1t
is the artificial product Of monopoly. When "A
money corporation was first established il has
been truly sud III, NATURAL equilibrium Of soee
~ WIS destroyed. The use of paper morey ~as
not discovered by the most p"pulou- and wealthy
cities Of ancient times. by the mighty ciiies of
ancient Asin, Egypt, Greece aud Rome. With
out il they reached great wealth aud extensive
commerce. For how many long years was there
an inconvorilhlr paper currency on one side of
the British Channel and gold and silver cur
rency on The oiherl Sir. Gpapcr currency would
never have been known in modern times il State
necessities Ind not given il birth; if government
itsfif, by authorizing tho issue of bank bills 10
circulate II, money, had not. i'll fact, made var
against the currency which thH common consent
Of nations hnd established But for the mc,-
ference of government and lhc dangerous mono
poles of banks would suil be in happy igno-
rance of paper circulation. With Currency
exclusively metalic large sums would be pnid, at
distance. hy bills Of exchange, nnd nearer home
by certificates of deposit. \ commercial n,rdi
nm, consisting ot notes. drafts and bills of ex
exchange, would in the larger transactions OF
commerce, come in aid Of specie. which would be
solely employed in small transactions and 10
pay the balances of trade. For trade, insisting
in exchange Of products, and not of specie or
of paper money, it is only the balance of indeb
edness ON the one side or the other. which must
be pnid, and paid ultimately in gold ana silver,
whether the currency he paper nr metallic. Ii l.
IN truth. by commercial papcr-hy inland and
foreign ills Of exchnnge-and not 10y bank notes
tha, Inc accounts Of trade between different pnrts
of the country and between different countries
are even now adjusted, except the balances which
have Ia be paid by specie
There nothing, then, in the history Of the
past which shows any necessity, originally, for
PAPER meney-nothitg in the commerce of the
nineteenth century which calls for It. II power
and monopoly had not attacked tie renl money
Of the world. should now have a currency of
nothing but real money among u; aud IN, the alb