Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-02
RANK RESTRICTIONS.

OF all the restrictions which have been talked Of
in reference to Banks, we know of none that seems
to have met with more general favor, than that Of
Withdrawing gradually from circulation, al notes IN
der ten and perhaps twenty dollars.
It is an important step; but we shall greatly de-
ssive ourselves if we suppose that all the evils Of
Gae system are to be cured by this simple remedy
any other, however necessary, which does not aim
ulsnasly ct the exterpation Of whole system of
Banking That il is task Of great dehcacy, and
attended with difficulties and even dangers would
not conceal If we could. It is q task for Statement
and will immortslize the names Of those who shall
accomplish it. But no halfway measures will sue
coed.
The remedy is too partial If dangers beset our
path, we must meet and confront them boldly. To
advance but STEP and retreat only aggravates our
difficulties No great object was ever achieved By
timid, halfway measures. If we would effect a re-
form, 8 radical reform in our currency, We must
adopt radical measures.
Certainly it is best that all reforms should be
made gradually. No doubt our system Of Banking
may be improved without abandoning it altogether.
But there sre evils which lie at the very bottom Of
the system, which partial legislation ever re-
move. We may take time abOutit, but the struO-
ture Of sound currency is never complete, so long
as q single dollar of paper promises are allowed to
monOpOlize the place that might otherwise be filed
by gold dollar. If small notes are an evil, so are
large ones You may begin by the prohibition OF
the notes Of smaller denomination, by way of mii
eating the severity of the blow but you will have
done only half work if you stop there. A Bank may
issue with hundred dollar bills and SO break or
suspend. There would in that case be less lost TO
the poor, by the mere depreciation Of the value Of
the Bank paper in their hands. But this is one of
the very least evils of a paper currency The loss
sustained by the depreciation of the paper, which
any one OF us might happen to hold at the time,
would be scarcely felt if it entailed other evil
1t is the depreciation of all property. is the
arrangement Of our whole system Of exchanges,
that constitutes greatest calamity. Millions of
debts have been contracted, the payment of which
it expected to settle either directly indirect
ly by means Of bank loans. With ample means at
command, we have not the medium of exchange
with which to settle our balance. A owes B, owes
O, C owes D, and SO on through the whole alphabet,
until owes A. A can afford to loose the Bank pa
per which he held at the time of suspension, if he
could borrow at twice the legal interest pay B,
who owes c, who owes D, and so on until 2 pays
back the money to which he had borrowed. We
can we'll enough afford to throw away the bucket of
water which we have drawn from the WE'LL if we
have only TO cast our bucket in and draw it full
again from the never ceasing fountain. But when
the Banks fail, the well from which our supplies
were drawn fails us-and must look for it in some
new channel The lsbOrer, the mechanic, the
farmer, may not have lost dollar by the suspen-
sion or bankruptcy of all the Banks in the United
States Yet how little reason has he to congratulate
himself, if the man of wealth or the of trade,
are no longer able to give employment to the one or
purchase the simple products of the other.
The amount of money in actual circulation at any
one time forms but small part of our actualcapital
Our actual circulation forms but about per cent
of our aggregate capitol Its loss won't be but a
drop in the bucket compared with our other means.
But it is the sole medium Of efecting a our K
changes As we have before said, currency hasso
times been compared to the great highway upon
which the commodities of the country transport
ed, and by means Of which exchanges are effected.
The floods may Obstruct iDjure this highway as
totally to destroy its for q season. You may
have lost nothing directly by the food yet the OBJ
structiOn may involve the ruin of many. All ex-
changes, however necessary, must for the time
cease be continued only at an expense involving
ten times the cost Of the old highway, and sacr
fee Of one-fourth or half of all the products ex-
changed. The loss upon cotton alone from the
recent suspension, will amount to more than all the
coin in all the banks in the United States put to-
gether.