Arkansas true Democrat., 1857-12-15
The Banking System

Many of the journals of the day contain ex- cellent remarks on the subjects of banking and currency; but we know of none that in this re. spect exceeds the Philadelphia Ledger. The following extract Is from late number of that paper:
 Fluctuations of prices, recurrence of commer- clal pressure, stagnation of markets, and losses oy insolvency, form but few only of the many evils with which the paper system presses upon aud WelShs down the energies of industry, and goes far towards neutralizing the prodi gious ad- vantages, physical, moral and political which, III thls country, are the result of combination Of circumstances, such as, in the history of na- tlons, has never before been realized, and one peculiarly favorable to the full development of the productive powers of natural agents of up- rlvaled extent and variety
 The natural and irresistible tendency of our vicious corporate banking system is violently to simulate diseased appetite for speculative un dertaklngs and for mordnate profits: to beget contempt for slow, sure and moderate gains: to give wrong direction to enterprise; to divert the productive agency of capital; to weaken the motives to economy, and the incentives to ac- cumulatlon; to encourage extravaganza and la- vlsh expenditure; to undermine all confidence and sound credit; to impair the obligation of con- tracts; to dlmlnlsh the security of property; and thus to retard the physical advancement of the country, and to demoralize the mass of the con- mumty. Banks eXacerbate the nalady of the speculations of one year, and the misery of the panic of the next In an especial manner does the paper system, with its alternate expansions and contractions, wage war upon the interests of the laboring classes. The things which they have to buy are the necessares of life, and the only commodity they have to sell their labor, It Is impossible they should hold back They come into the market, therefore, with a double disadvantage, and the effect is invariably found to correspond with this advantage A de- preciatlon ot the currency, or a rise of prices always depreeses the laboring classes They must buy, and they must sell, and that immedi- ateiy-ahd whilst, on the one hand the wages Of labor always lag behind an advance in prices so, on the other hand, the ordinary conseuuence ol fall ot prices is that, the laborer is M,oton out 2 emptoyaent From the expansion, the excitement and the imitation, which are of the essence of the paper system, none derive so lit- tie advantage as does the laborer. From the subsequent and inevitably consequent contrac- ton, depression and collape none suffer so sc- verelv.
 The great desideratum then, for the protec- ton of the industry, the property and the morals oi the country, Is that, the commodity of con. tract shall be of stable value; and what is justly due to the labor Of the country is, that it shall be pald, not Tn promises, but in a commodity. such as the precious metals, possessed of vualue intrinsic and comparatively stable, a value not subject to the fluctuations every where. at all times, and under all circumstances, HhV"lapiy attendant upon paper substitutes for n pf al Ia n associations, made up of irresponsible parties, valnly attempting to unite and to harmonize the lrreconclabe functions of issuers of currency. and of borrowers and lenders of capital The peoples money, al least, should be the constitu- tlonal currency of coined gold and silver. Noth- ing else should be tolerated
 Is there ground for hope that the needed re- forms will be effected? They will not, if rcli- ance IS placed upon our prohigate politicians aud venal legislators, ever ready, for sufficient con- slderatIon, to sacrifice the interests of their cons. utuents, by a sale to moneyed corporations of the privilege, by an issue of their deltlsve pro- mises of tlcecing the public, upon condition that they will themselves submit to be plum dcred. Hence It IS that the statute book Is en- cumbored with mass of legislation nearly the whole Of which Is useless and much of it un. Jus oppressive, and absolutely pernicous- Withhold from banks the right of issue, the privilege of circulating their promises as money, and all that will then be required will be a few simple enacmcnts providing fer the rigid en- iorccment of contracts. This can be brought about only by the enlightened, intelligent, united and determined action of the people Is there encouragement to expect such action? We fear not as vet-but the time must come. Truth is great and will prevail.