Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1857-10-22

II these losses mad been IN the shape OF
taxation imposed by Government, they would
have caused a revolution OF tie people against
The Government. What is tie eause2 Il is
not the want of s~xehangeable comn 1dities-for
our warehouses and gTsnariss are g~roaIing
with the extraordinary harvests of the year
our cotton, rice, sugar, tobacco, are all ready
and eager for market. Neither is there any
want Of foreign demand. The wsrs Of India
and China call for an unlimited export Of
grain, hour and meat.
The stocks Of cotton o. haad In England.
and on the continent, are frightfuIIy low, and
the price rules higher there than it has for
years.
The cause is not foreign indebtedness, for the
exports Of our country during the last year
exceeded The imports over two million dollars
and the low rates Of 5 srling exchange, svincs
our small due indebtrdness. q
What is the cause Why is it that our
country never more prosperous in trade, and
now cur huge grsnary OF commodities that
will abroad readily oRman the highest
prices, is now grOaniug under the disasters
mentioned?
take the oaass 10 be our faulty baakirg
Systsm. Money is specie, and specie s1Is-
ly. It cannot have the character Of uniformity
and uuiversaii'y in ahy ether shape. Gold and
silver are recognized as standards OF tee
vilse Of property and commodities ia all
countries OF the world. IL you subs itute
paper, wheat, tobacco, iron or any other com
n ,dity in the place Of specie, Il can only be a
local currency, it cannot be a medium. OF ex-
charge with other countries.
40 foreign country will take our wheat, TO-
baecO and iron, much less our PAPER, with the
value our law may attach 10 it as currency, as
a standard Of exohlngeable value for her com
moditiss.
Hence gold and silver must De the law cur.
reney Of every country OF the world, and the
more foreign TIA colatry hiss, the
mere essential is it to adhere strictly to this
species of currency.
Specie has been recognized IS a standard Of
value and as a msdiua Of exchange By all CON-
msrcial c%oantriss from time imuemorial; and
that very fact shows lie peculiar a a p .sduess 10
t7e purpose.
It's limited production gives it q character Of
stesiiness and uniformity Of value, and q ia
eility Of handling AMI moving, that belongs to
no other commercial commodity
Although specie is our laE, currency, by
ch4rIerug banking Institutions, we have sub
sstuted paper pTOnizsOry notes in TIE place
Of it.
Sumo States by law ,eqlire one third, others
less, Of specie, as a basis for the Issuance OF
thOss PrOmisssTy notes.
Various legislative provisions are made by
different States, for the security of those bank
issues, such as the individual liability e stock
boz. srs, the deposit Of State bonds, &.
These provisions, even il observed, which is
never the case, can ouiy be eff .isnt m securing
The ultimate soiyeney 0f tne Ilsuru-I1Hs uuey
cannot create a SQUAD, healthy, inform curren-
ey. They cannot crease a currency equal 10
The exigencies Of a commercial eocn,ry. Ide
~ the wisest Statesman or politicai economist
ia the world to frame a banking 81 stem Of cl-
c~uistion that Is DO. based dollar OF specie for
io,lar of liability, hat will answer the exigsn-
ciss OF q commercial eouatry. Even a pure
S ,eeie currency would b. 81 Get 20 some doe
t~ustions which wOuli produce tenn sorsry con
mercisl distress. Such as an unususl demand
for specie in China, or suy other foreign eoun
Try, and its consequent Withdrawal from this
country.
But the financial diss stsr eaussd by thu nat
ural hictaatlols Of ineissut to q
pure specie currency, would b. hardly notice
able when compared wilh the astounding, Nlde-
spread disasters incident 70 our present Santius
currency.
Leaving out deposits, which though ussg.
allows to be paid in bank circulation, is really
a cash liabHig, what is the proportion Of specie
received by The banks Of the United States to
pay their actual circulation? On the first Of.
JAY, 1876, there was in TIE Uaited State a
bank paper eircuIslion OF one hundred and
ninety-six millions Of dollars, based upon f ity
nine mluiols Of .oscie, which Is a proper i'm
Of more Hsn three and oasihiTd dollar o.
immediate liability 70 one dollar of Immediate
resources. This proportion has been Pre- we'd
70 be very unsafe and even a less proportion
has, as the experience Of the last few weeks
~evinees, ia times Of panic and loss Of conf
denes, resulted in general Suspension and bank
ru5tey. =
To preserve even the unsafe proportion OF
three and oas-thirl to one, what c.surss is i
aeeesszTy for TIE banks to foioE2 Why, il
there Is a foreign denani and conseq 5ent with
from the coan II Of thirty millions O.
specie over our share Of supply froa Cslifor
iis, the banks, to preserve sven the unsafe
proportion OF three and ons-third 70 one, must
curtail their circulation one hundred millions
Of dollars; thus reducing our circulating me-
dium at ones over enc hsf. To sErct this
ALMOST instantaneous reduction, what disasters
must necessarily follow
The d.sas.ers are suea as these The bank
discoant of notes that the commercial CON-
have become accustomed 10, and base
their calculation upos, must be checked 10 The
Of sspiiors, and ;hss .,sithon& fault on
their part, and with plenty Of means, su=h ss
their country cos 0aef's Indebtedness FOR goods
sold, and for advance on produce, nor imu,-
Teaiizable, the mercantile classes are
and bsnsEur;sdb by uhoussnds-,ho,s
drag other thousands down with
.aem to the same hopeless Bankruptcy.
Property and commodities are d, prsciat d
in price By millions. Moasy, or whatever s
AID re-ognizra ia a co1ntry as
money, is The standard Of The value OF property
commodities. Reduce at enc blow ORE
balf our currency, and you reduce in proper
lion tue value OF the property and comnodi-
Of he country.
Our currency having banished Gas paper
money AWAY vii banish) specie from the
roautTy, and TIE banks having ~euFtails their
circulstioa o~ne-5alS, We hayt only one-hsH
enough money 10 carry on our exelsHges Of
and coa nodiiiss. a great propoT-
of this is needed too in he psynsDt Of
and the performances Of pre,io sy ex-
eoumsr-Isl engagements. Hence money
scarce, ia demand, AM os bish value
compared with the the yalls Ct OH y conno- I
iiHss, az money besonss dsar prspefy ard
commodities become cheap. Al even VIE e
commodities have a Tesdy s~xchaDgeaols "a lue
foreign countries such Al sotion, they sIe
lecsssATily deIreciatsd ia Price BY the want Of
nonsy to purchase and move Is of to n8 ket
Foreign exchange csnnat be purehasei for
want Of moaty. B me com aud ties NJ { r.
pain Deprecated in price until fPseis can
II from foreign c0aaiTes. The trula o.
bis is Illustrated BY Tie New Orleans and :
.vsrpool price Of cotton. A bale Of cotton :
sill now bring teiss he Drles IN tie foreign !
as il will 10 the domts,e. !
By this depsseiasion IA shs v4irs o, proper 9
? and eopnoiitiss, even though I nay be
snpor8ry, the country losss inII ions.
Another result OF this bank currently Plac-
aaiion Is tie sxb0Fbtanl rata OF intsrss. that c
Growers must pay. Unable 10 get the usual .
snk accommodation, the usse ha , 20 preserve =
Is credit, uust resort to brokers and shavers. =