Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-11-29
THE EVIL AND THE REMEDY.


ton Of good faith, adopt whatever measures we deem
best in reference ts the general subject Of currency
and currency reform. As additional argument IN
support Of this position, we might have instanced
the fact that the bill which prepared and intro
duced into the Legislature by the Committee upon
banks and every other bill relating to this subject
have substantially asserted and proceeded on the
idea that the act of suspension had in every instance
worked 8 forfeiture Of charter. We might have
inssnced the additional fact of the eagerness with
which all the banks have sought to have their sus-
pension legslEed conclusive evidence of their re-
cognitiOn of their forfeiture of charters Surprising
then, that We have the power, let us see what
remedies would cure the evil and what can be applied
The evils Of our banking system, Of paper credits
Of every kind currency, admitted by all They
are, it is time, but imperfectly understood Yet ALL
or nearly all, admit that a metallic currency, or
paper based not upon credit but upon actual
deposit of metal, dollar for dollar would be BETTER
all things considered, than our present bank paper
credit
But it is said by the advocates of banks, that we
have not gold sufficient to answer the purposes of
circulation. There never was 8 wider mistake. The
amount Of currency required effect the exchanges
ofthe country has always been overestmated. Money
will 60 wherever it is wanted If there is too little
to day, the price Of what have to sell goes down.
but what we have to sell goes down in price below
the general level money in at to take its
place. The difficulty lies not in the scarcity of gold,
but in our unwilngness to pay the price of it. If
we have horses, mules, cattle, hogs wheat,
What-not TO sell, we must be content to sell as low
as our neighbors of Kentucky, Ohio or Canada, who
may come in competition with US.
We may postpone the evil day by an extension of
ourdebts but, with whatever accumulation Ofiuterest
it must come to that at last The banks cannot re-
sumo without gold, and they get it only with the
products Of the country at gold prices.
But it is said we must wait for a restoration of
confidence and then prices will go up and every
thing will 60 along as usual Let the public mind
be quicked, LEI confidence be restored. Confidence,
conference.-the oil with which the wheels of com
merce are fabricated, would in day get everything
in smooth, harmonious and rapid motion. Yes, but
what sort of confidence? Confidence in what? IN
banks NsUsr, neVsr more. Heaven forefend that
our hopes shall ever, rest upon such foundation.
We, too, desire return Of confidence not in banks
but in OUrseltz intrinsic aOealth IN our OaO
iEdomitabIs energies. Confidence in that Supreme
Being whose bountful hand has been outsretched to
save us from our folly; but in banks never
But the country is rich in its resources So it is
and it is of that we would speak. We want to es-
tabsh public confidence in these resources, in our
000H ability, so strong that we have no need to rely
upon confidence in banks. What we want is self |
confidence. We want to see the day when men can |
enjoy their morning meals, no odds what Wall street
may be doing.
According to the most reliable statistics which are
atainabe, have in the United States 500, OOO 900
of coin in banks and over $500 600 600 boarded in
the pockets of the people. We have, on the other
hand Of bank circulation less than $3.50, OOO, 900,
leaving an of gold of more than SO 600 over
our paper money" Which shall we take. We
must choose between them, one or the other We
cant have both; all experience as well as reason
has demonstrated the fact that two currences of IN
equal value will not flow in the same channel at the
same time. Like oil and water, they will not COM
minge-;he lighter rises to the top the other sinks
to the bottom. Look back at the figures again
Bank paper in circulation $4,000, OOO-gold in
bank vaults and the pockets of the people 5000 OOO
OOO-ten millions more of gold than paper. Where
is it all: 1t is at the bottom, the paper is on top
y
real yellow boys as never before dazzIed American
eyes, will loom up before our entranced vision Who
will hesitate! Two hundred and sixty millions of
the real metal offered in exchange for 100000,
900 Of paper promises
But this is not all 1t is but the beginning Of our
wealth, if We choose right Sixty millions are an
nually poured in US from California Shall we
keep this, or as heretofore, make bank paper an
sWer our home purposes, and send the gold abroad
for "store goodsg"
The old tom-ioOlery about "daming up the out
ward current Of gold by tariff falls like the die
ing strains of old mother goose upon the public ear
Gold and silver won't keep company with your film
sy, Filthy, rotten paper We don't blame it, 1t goes
where 1t is better appreciated. Nor has it any spe
oial athnities for American manufacturers more
than for cotton wheat, tobacco, and other products
of agriculture. 1t claims the monopoly Of the bust
ness Of exchanges the world over 1t allows of no
partnership, divided empire No merely arbitra-
~, no penal laws, however severe can cOnfne it.
1t will travel to the remotest parts of the earth,
East India, China, beyond the bounds of Christian
ity or civilization to find resting place where it
is appreciated.
But not alone the gold of California is our if we
want It, OF rather if we are willing and able to pay
for 1t. The governments of Europe are now in full
career upon the road of folly that we have
been travelling, endesvoring to substitute paper
money in lieu Of gold. The death-struggle is now
going on. If confidence" succeeds, confidence in }
paper credits, our work will be all the easier. We
have only to Danish paper, to whatever extent we
please and gold will come back to fill its place d
only resolve that you are done with the paper, L
and for your wheat, tobacco, cotton, and what /
ever else you can spare, you will get returns in
gold; but never SO long you are content with pa
per. The gold will be left on the seaboard, to lie a
loaned in the shape of exchange to buy store il
goods and from the seabOard it goes to Europe,
Asia the ends of the world, on the same errand.
But look at our resources other than gold and for il
which We may have gold to such an extent at least
rs will put US upon footing with che most favored
nation on the globe. Three hundred millions Of e.
'ort', most Of which constitute the prime necessa-
les Of life. What viii you have it in If you are n
content with paper currency it will come back in
merchandise, but if you say you have gold for
domestic purposes, so much will come back. You al
nave only to pay for it the price that others are will
ing to give. Have not abundant grounds OF con- ~
in ourselrssP .,
THERE'S an old saying that burned children dread q
ire Wejudge OF the future by the past 1t took
We hardly know how many years for the country s.
% recover from the effects of the paper explosion of
1885, and We sre too apt fear it may take us as Sc
long to recover from this; but look back once more
NJ the figures, and see how unlike the condition of
hings then and now. Then, we had some si,tv {.
millions OF specie now, we have two hundred and y,
sixty to three hundred millions Them had four ra
dollars TO each inhabiant; now we have ten! Or or
population since 1887 has increased 20 per cent
our coin over 400 per cent. In lS37-the proror- W
ion OF coin IN the banks and country stood at So G
)OOOOO, against paper circulation Of Sl4g 600 S
excess OF paper circulation $50 600 600 Now.
he excess, according to estimates is as much Of
n favor of coin! Then, the depreciation in paper a.
vas immense; now, it is comparatively t-Hing. Of
In 1887, our exports amounted to Sll7 900 900;