Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1857-12-23

&a:'l, eu'u;e tae cred,: anG :ssg:rS o fourteen
huG:at $s'.!y hGHk. i! sici q MA .!ac u lgS.
va. .r .,n',s EXPANSIONS G:.l e,.;rir8cs!1l:
in our currency which afflicted the country.
throughout the existence Of the late bank, or
secure US against future suspensions. In 1925
all effort was made by the Bank Of England to
curtail the issues of the country banks under
the most favorable circumstances. The paper
currency had been expanded to ruinous extent,
and the B.lHk put forth all itsspower to contract
it ia olrr to reduce prices and restore the equili-
briunl OF the foreign exchanges. 1t according
" commenced a system of curtailment Of its
loans and issues, III the vain hope that the joint
stock and private banks OF the kingdom would
be compelled to follow its example. 1t found,
however, that as it contracted they expanded,
and at the end Of the process, to employ the lam
guage of very high official authority, what
ever reduction Of the paper circulation was et-
tectcl by the Bank of England lin lS25) was
more than made up by the issues OF the country
banks"
But y Bank of the United States would not, IF
it could, restrain the issues and loans of the
State banks because its duty as a regulator of
the currency must often be in direct conflict with
the immediate interest of its stockholders. 1t
we expect one agent to restl:iin or control
another, their interests must, at least i'll some
degree, be antagonistic. But the directors of o
Bank of the United States would feel the same
interest and the same inclination with the direc-
tors OF the State banks to expand the currency,
to accommodate their t;vorites and friends with
loans, and to declare large dividends. Such
has been our experience i'll regard to the last
bank.
Afer all, we must mainly rely upon the pa
triotsm and wisdom of the States for the pre-.
venton and redress of the evil. If they will
afford us real specie basis for our paper circu-
lation by increasing the denomination Of bank
notes, first to twenty, and afterwards to fifty dol
lars; if they will require that the banks shall at
all times keep on hand at least one dollar Of gold
aud silver for every three dollars Of their c;rcu.
lations and depositcs; and if they will provide
by self.eXecuting enactment which nothing can
arrest, that the moment they suspend they shall
60 into liquidation, believe thatsuch provisions,
with weekly publication by each bank Of q
statement OF its condition, would go far to secure
us against future suspensions Of specie payments.
Congress- in my opinion possesses the power
to pass uniform bankrupt law applicable to all
banking institutions throughout the United
States, and strongly recommend its exercise.
This would make it the rreversible organic law
of each banks existence, that suspension of
specie payments shall produce its civil death.
The instinct of selfpreservation would then COM
pei it to perform its duties in such n manner as
to escape the penalty and preserve its life.
The existence of banks and the circulation of
bank paper are so identified with the habits of
our people, that they cannot ut this day be sud.
denly abolished without much immediate injury
to the country. II we could confne them to
their appropriate sphere, and prevent them from
administering to the spirit of wild and reckless
speculation by extravaSant loans and issues,
they might be continued with advantage to the
public.
But this say, after long and much reflection:
if experience shall prove it to be impossible to
enjoy the facilities which wellregulated banks
might afford, without at the same time suffering
the calamities which the excesses of the banks
have hitherto inflicted upon the country, it would
then be- far the lesser evil to deprive them alto.
gether Of the power to issue o paper currency
and confne them to the functions of banks OF
deposte and discounts.
"Sam, why am de belobed oh my heart. Miss