The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1857-11-05
s0und Iseas0n from an Uaespeelea

sound Eseason from an Unexpected
Quafter.
From the Cincinnati Commercial tBlack Republi-
cam Of Oct 20.
In an article published at the time Of the first
appearance Of that revulsion which has now be-
come 50 general, we stated that, in our view,
one of The most efficient ca,Ses il not the pTin-
ciple one, of the then existing state Of things,
was "tle legalzation Of paper currency-the
attempt on the part Of government to confer up
on that which is itself ofno yalue-the charac-
ter Of Money" This we held to be-bOth by
the privileges which it coniers on some aud the
restraints which it imposes on others-an inter
ference with the native rights Of men, and as
such might be logically set down as dangerous,
even though, as yet, it has been productive ofno
evil consequences. We then in subsequent ar
tcles, both by process ofreasoning and by ap-
peals to standard authorities of the highest re-
spectabilitysshowed that a mixed currency
that is to say, a currency wherein legalized pa
per is preinitted to pass as money IN the chan
nelS of trade-is necessarily obnoxious to the
following charges:
That it is from its natural flutuating both in
quantity and quality:
That it affords neither correct standard OF
value nor reliable medium ofexehange:
hat, as a consequence it is an uncertain and
dangerous currency, not to be safely relied up
on by mercantile men nor By the public gener-
ally;
That it deranges the industry Of the country
producing periodical and violent revusions o
trade, and numerous and extensive failures:
That, unlike currencyo OF intrinsic value il
is not Tegu laling: fe
That it disturbes the natural price Of money
and enhances the rate Of interest and exchange
That The great prosperity which ~the peopl'
Of the United States have enjoyed 1t IN conse
quence ola mixed currency:
Thatit Goes not increase the capital OF tht
country nor make money more plenty:
| That it has constant tendency TO send spe
Gle out of the country;
| That 1t is not a cheaper currency:
That the general received opinion that ther
is nor enough Of godand silver in the world t
furnish sufficient currency, is fallacy.
Believing, for these reasons, that the legalit,
of paper currency is not only false in principle
but seriously injurious in its practical effects, W
have not hestated to declare that, in our opin
hon, the time for the permission ofsuch acurren
lev to exist should DO at an cnd-that there
in the nature ofthings no public demand ior in
sttutons whose functions are the nalirgo OF pa
I per money-that the clamOI for such does no
come from the people, but from those who ar
dcsirous to employ them AS means Of profit :
themselves--and thatthere is not single oiIic
required by the commercial community tina
cannot he performed quite as conveniently wit
out their assistance
! There are very few men now "a days who ar
not willing to admit the ordinary retail trad
and daily small transactions Of the shops an
markets, may not be quite as easily and NOR
safely done with gold and silver than with pa
per money Ifthc paper was out Of the way
and confidence restored the specie would ur
iqHestionsbIy come in to supply its place, and i
a few weeks we should be wondering how "
ever thought Of preierring the paper promise t
the material value. So fur then as this is con
cerned, we may 6ispcnse with banks Of issu
with positive Benefit.
But there are those who think that for tn
convenience ofc0mmcrce-the' transfers of val
ue4 from one place to another in the large opaI
Fations OF tlada-chaitered institutions will b
found necessary; and therefore. although ther
are apparent evils that flow from their exist
cnce, those evils must be endured in consequence
of the benefits by which the were accompanied
This is a mistake, growing out Of the habit {
confounding two functions which modern chal
tered banks perform. which have no necessar
connection, with each other The charter Of
bank Of issue empowers it to emit paper Gun
rcncy, and to this end is its exclusive privilege
but with the exception of the facilities whicl
are supplied by the power to use its own pape,
as the dealer in exchange, the bank stands upo
no different footing from the individual. Bill
of exchange are an ancient inyention-banks {
issue and paper currency modern one. FC
q thousand years before the latter were dreame
Of the former were familiar things in all tn
4 business circles of the world. Paper money wa
invented less than two hundred year ago: bill
oGexchange were known when the comtnerciI
.alfairs of the world were transacted at Tyre
Athens, Corinth, Syracuse and Alexadria; an
for more than six hundred years they have bee
common things in modern Europe. If all tn
banks Of issue were, in'one moment, annihilste
the catastrophe would not for a single week, PEI
hapse not for single day, retard the eXchane
transactions Of the community. If the instrl
mentalities required for those transactions wei
not in existence, the simple demand would
amply susificient to call them into being. II
exchanges ofthe country, foreign and domesti
; are at this time managed indifierently by cha
tered and unchartered firms; and If there is ar
reason in the nature Of things for giving prefe
ence to the former it is not within our know
edge. We are laying down here what is Il
great and paramount rule by which the NOV
: ments of the industrial world are carried 70
. ward--the law of demand and supply. Wha
j ever there is that will pay for being done, the
is always somebody ready to do itso it ev
. has been, and so it will continue to be until Il
endof the world From ship to a bill of ei
change, business begets its own instruments;ar
when tbs left to work unobstructed, those il
= struments are always adopted to the service r
: CURED Basing its constructions upon an ext
ting demand it makes no mistake. Here al
2 there an implement--an indvidual-may fai
but there is no falling ofsystems-no crash TIL
: prostrates community. We have therefore /
! f1ars--whaever may be the fate OF our banki1
9 institutions--that this great country is to
= deprived Of the means Of carrying on all its III
cessary businass exchanges There may "A
: some difficulty at first; but the existence oftl
: difficulty will speedily promote the end requ
, red. There are millions of capital yet among
: out ofemploy, ready to be invested in tho bus
ness, as soon as affairs are settle into somethli
like regularity. 1t is idle TO expect this seryi
7 from the suspended banking currency Of Il
Y country. They cannot doitnow, nor can tht
0e nursed by legislation lHt0 the aDlNty. II
> more than theycan manage to take care ther
= Eselves; and to do that which is equivalent to
2 winding up Of their affairs is the only conditic
I upon which they can hope to begin again. The
? belong to- ruinous and an exploded syster
\ which--for the present at least, has passed
I way. Business confidence formation
: credt-thc condition precedent to anything lii
\ commercial activity -must be built upon a bas
Y entirely new--a basis not only without Il
9 banks, but away from the banks. Let the DEF
! bury their dead; and let the new creation, ,thoue
I. Lit may be from small heginrgs. arise free fro