New-York daily tribune., 1857-10-20
LETTERS ON THE CRISIS.
CURRENCY pANrcs-THEIR RExRDY.
rs IA E<.s,~ S I'M. y. rv,hsaa


bdl holders seem generally satisfied ths, bank nosss
are worth hearty quite muck a. they ~sre osfors
the suspension, the time may Be favorable one ssr
pqun'ng whether the true relation betscen our pap@
ard our specie currencies can be accurately sscsr-
,aned clearly understood and mace so inteIg 10
mn on people ss 70 prevent unreasonable exprcss-
tions srd corresponding disspponinenis hsreanss.
The bark note the face Of it, is promise 10 psys
certain sum OF money, more dollars, on de-
uand; AID the common undentsndirs is tAat Il mssos
specie COIN The laws of the lard State and Ns,coa
know Of no other money. And so Il naturally comes
10 psss that uost people helding bsak bulls regMa
them Is promises 70 pay specie " on demand Se
long as they cor ide in the sclyercy arc ntegrny 81
the bar ks so hong they are LED 70 conds in the abb
ity and disposition .f the banks 10 inhl their prom
ises. And wherever II II found OF fesred thai the
banks earnot of vii not psy the fsce Of their 5is 70
sptc;e there comes up the suspicion that there 10
lack either OF int gritty OF solvency IN The banks
But, after Q general suspension Of specie psymecis
has taken plsce and ia nevertheless found n a. Ne
bstks continue TO transact business bsnehcaily 10
themselves and others the impression 1t their want %
fidelity ard solvency wears away Confidence v
r,stofeo, urtil the apprehension oy feaizaton %
another bark suspttsion comes over the conmanitys
when the s.me processes OF surpicion, panic oissR-
pointm ent chsgn ard reinsurance are enacted o.es
again. The question is, whether any lpfcnnstica
can be spread before the public and -
engrsfled into the public mind, ~ q prevent hcse
acnon IN iutwe. ewatt currency not only de-
.eiviug ct confidence but abe 20 commsnd steady
confidence. We ought TO knos, not ony what the
banks DO but also what they cannot d. Il u oas
thfg to know that the bark note worth il face, and
secure ~ arepreseptstive oi its value IN propeftv.
Il some sort lss State stocks, bonds sud mortgages,
sc !. ard suot er thing 10 know that Is always %
oensud, oorveItele, at Psr into specie Toe iornss
NAY be true ard rot the latter Aad the bi-hodsf
should be able TO know and 10 remember rA,ch II not
BOTH is true II only the former be true, thenhc ought
not 10 suppose be leo to suppose, that the suss
sl.o ia tue. A misplaced eiAnee upon toe latter.
when il comes TO be shaken tends to produce an an
u.cessary aud Irrational want Of rehsnce wpcn the
former. H,rce the panics which compel tho bssks
10 suspend, when otherwise, they would have NO oc-
csscn CO &c. Whist are, then, the real facts OF The
case
may safely assume for granted that most or sl %
the ia, ks In tss Stas are amply secure 90 Ter -
ne bIl-bOders concerned IN the seDsc thss ne
bills represent their real value in property Of souss
sort So, probe by, Of bark notes geesrslly 10 the
psightoiirg Sta'es. Solveney in our bsnks we msy
assume 10 De the rule and insolvency the ptian
The soLdton Of confidence thus far We may hope 10
rot wanting. But in respecl to the second KIDD u
confidence above NEUTRALITY-SUSPICIOUS. thst bank
potss are at al times convertible into specie ., par
that is another question. Sometimes, a. We have
been compelled 20 know they afe not. fhey are not
al present The queston 10 whether there I, at any
time any scid ard a5certainable ground for such
cor fdeuce wherein ths ground consists. Il there
any in which il toe demand were geressily made.
TX
moAcy on demand fufled. II there 10 nof uaen the
cothdeI ce il 1t exit s misplaced and oughf not 10
be at sDy time srtertaired and then the sbsense Of
ruch confidence could not st any time produce dissp
poiItn ent and censure, panic aud oismsy. IL no
banks could never at any time, conveTt thu paper
currency Of the country demand into specie thee
tie billhodes ought not 10 suppose otherwise They
ought T. know that wherever the demand Ia gene
prsssed il must be generally unsuccessGn IL ecurss.
What then, Is the fact TO ak sucn que stcu 10
TO answer Il. Though the mass of the pscpls v5e
take ard hold bark notes never think Of making The
inquiry yet those acquainted with our banking q ste
cannot help knowing when they think Of t that tksss
is 10 fine the most prosperous, when the bark
rotes OF the country eouS generally be converted into
specie, II il were generally and simultaneously de-
msnded One, two, three, or a dozen backs, In good
cfect th other bar may stand for specic
by obtaining from other ban ks. But LET The demand
eIteId iisef u the banks IN general ana csnnvs be
met for there never enough specie IN all the banks
to re deer all their notes No bark would issue
ITS bar bills fu were obliged 10 keep always eoeugh
specie in its vault to redeem them oil There would
be pr, fl nor ingucem.nt 10 issue bank bills such
&C Notion. The banks circulate their notes,
which not on interest that they may increase th
snount Of their loans 10 merchants tr Totes bear
ing interest On tha advantage, the whole sys'em of
psper currency BY bank bills IL bulded. Simple -
he fact IL Il Is by Beans universally understood.
Ard bc0Ess il n not unds rsts o5 people expect the
bsDks 10 pay specie fot all their bills, whenever i 10
dsmsnoed Of them. Abd whenever n u vet q r'hcpm-
NJ though ybody ~ calling fs specie n onoe,
they think "the baiks have b'oke.' AID feel them
selves ruined snd injured. they nsyef stop 10 cos-
teE What s due % the banks ~ bsspee what is dus
yon ih- baIkS. They forget the securities proyidsd
n this State 10 Rhode leland and some other s,stss,
for the special protection Of biholders. Thus the
fear that the banks will stop psyirg specie induces the
run, and compels them to stop paying.
II was stated 10 Of the morning papers that whew
our city bsrk, mad, at receit GATE, 20 go go o.
their notes in circulation they bad but s2 CO., 900 In
specie. But this did not prove that the banks wew
lIsolyent bor that the bills were insecure. Whether
that proportion IL the common one, In good times,
csInot ssy II may be an approximation 20 the fact
spieiebty to Illustrate the idea that the paper
currency ssued by our banks must greatly etcseA
their poe ossessiops Of specie. We're 10 otherwise We
tho Uld have DO peper currency at ali.
All tbis may he quite commonplace, but q continued
enbrance Of times ofprosperity might pfevsut
mitigate OF calamity. our successions u
ovefwstbing confidence, and of excessive fright.
Bark Dfecors, too, might Learn hon that IL is ids
for them 10 expect that their solemn resolutions and
or, N ises fo ctnfnue specie payments can alsy
rispg panic as 10 cave them ffom the necessity u
,ufpeuCiDg long intelligent merchants undcrstand
the TACT that they avoid susper sion ct sny
time II general called upon ~ redeem their bills.
Here We might dismfs the su'ject were II not thst
some psrscLs of p'yiDg minds disposed IN view of
there elementary tIuibs TO push nconveniently their
futber iIquiiies. Some vii want 10 know why the
banks sbc ud pFomse TO pay specie coin, o. they Do
upr the face Of each bill they sue, II hey are always
unable 10 do il fully when II s generally demanded,
but can only pay In State stocks, bonds and moss-
gokte, bOUfee, hncs ana utIehbDorct "hicn sfe uOS
morey at ALL and cannot be appraised without .
refers nee 10 some mon ey value. Then they vii ssk
how that can be called q currency which cannM evso
be eiitd into currency nor into anything of .
defrite money value. Others, clinsing " the anti
qusied lotion that paper currency NUT have specie
tor its basis vii. wish 10 know whether, OF hov,
twelve Millions Of specie can be basi- Of shy Nib
los & CT psper currency Ttey will scsreeiy give yea
any teiinibsiion II such question:.
Apneiess Of idsas In some new direction seems likely
70 row out of such speculative questions. have't
or go svslsIche m iheorstoa spsculatons, ~
The case may turn, may Glow IN the vase oi I'm in
nerc al and fnstcisl revulicns Not many days