Arkansas true Democrat., 1857-10-27

In 1947, there a great demand for our breadsulls ill Europe, ana in that year the sub treasury system went into operation. These two causes combined caused the imports of gold and silver to exceed the exports in the sum of upwards of p millions.
 In the next year, the banks increased their current credits frcm 225 to 27l millions and the exports of gold and silver exceeded the imports iu the sum of nearly nine millions and half.
 In l8l9, they diminished their current cre- dita, and the imports of gold and silver exceed ed the exports.
 In 1850, they increased their current credits, and the reverse took place. The exports of the precious metals exceeded the imports
 From 1851 to l057 the banks increased their current credits in the sum of $272, ,364 ,616, and in this period the exports of gold and silver exceeded the imports in the sum of S269, ,7l2,- 964
 The reason for this is obvious. Every paper dollar the banks create drives gold or silver dollar from the country.
 We might give additional confirmations of this truth by table beginning with the year 1854. We might, for example, show that in 1841, when the current credits of the banks were 239 millions, the exports of the precious metals exceeded the imports in the sum of S5.- O45, ,699; while in 1S43, when the banks reduced their current credits to 13G millions, the inn ports of the precious metals exceeded the ex ports in the sum of $2O, ,969 768.
 table going so far back, would, however. require extensive annotations explanatory of the vaclllating conduct of the banks, and of the many changes that have taken place in the political and commercial world These we have not, at this moment, the time to write: nor would our readers, perhaps have leisure to peruse them. What is given above will satisfy every rational candid mind as to the nature of bank acton In so far it affects the importa- tion and exportation of gold and silver.
 Chief Justice Fancy, when he was Secretary of the Treasury, more than twenty years ago, spoke the plain truth on this subject:
 "Gold and silver will never circulate wbera t"i"' o'uU to.oo, "ilcn come Tn competition with them; for it will invariably happen that when the circulating medium is composed of different kinds of money, and one of them is less valuable than the other, but not sufficiently depreciated to be dscredited, the inferior will, after a time, become the general currency, and the more valuable will entirely disappear
 "This is obvious in the States where the banks issue notes low as one dollar; for sil- yer dollars never found-in circulation where paper ones are freely issued by the banks In order, therefore, to bring the precious metals into use, the rvalship of paper must be e6ectu- ally taken daoay. We must not only remove the notes of the Bank of the United States. but also those cf tue State banks"
 To place matters on solid, permanent basis in the Union, two things must be done.
 The first is to reduce the current credits of the the banks one-half, and keep them so re- duced. If such credits are used at all tbeir use ought to be restricted to large transactions between wholesale dealers.
 The second is, to double the amount of gold and silver In the country. This can easily be done, II we are disposed to do it. In fact, it would follow as necessary consequence of diminishing the bank credits one half and keen. ing them so reduced.
 It could not be done in one year. or in two: put, with our own mines yielding us 60 mil lions of gold year, it could be done in four ar five years
 In that short period we could substitute gold for paper, and the change would cause less in convenience to the public at large, than will be produced by attempts to rebuild the present rotten banking system