The Washington union., 1857-11-17

us we're cancelled the gold and silver IA olrvu
laton must Immediately rise TO equal the value y .l'
whole mixed currency as il before IT, ior example
the amount Of specie currency be supposed 70 equal one
tenth Of the whole cancel the nine tcnths-i e. tne
bank paper-and every dollar of gold and silver mned
il fills the same place andseryes the use, as
measure and representative of value In IKE manner,
dime the use buys just much OF any com
modify dollar and cent much as dime'
From this il is evident that pure specie currency now
small in quantity is capable of division and supu
vision-nay that ii necessarily divides and subdyides u
self TO any possible demand without losing ot Oh
its value That must remain IN equation with the value
of the commodities TO be exchanged by its means
speak not now of the convenience of the thng-that Is
altogether another afairbut simply of The s4eaacy %
quantity gold and silver currency to meet any possible
demand for its medium of exchange
Add to this although it is wholly unnecessary TO the
completeness of the argument that such rise IN the
value of the precious metals follows the Withdrawn
from the currency of the bank paper IN circulation must
equal extent them to flow IN rom all parts
of the world where such paper in nse to that om
which it is banished until the rates of exchange are
eauazed and all possible demands are satisfied.
Hence there can never be deficiency of gold and sill
yer to serve as a medium of exchange. The idea is
pure fallacy And is high time that this iaacy were
once and forever exploded For surely they must be
more than sand blind highgravel blind not to say
blind who attach any value to the arguments
those who first drive the gold and silver out OF the
country and dam up the channels by which il would re-
turn by mountains of bank paper and then, WIN
wink behind them gravcy tellus that without bank pa
per there would not be gold and silver enough to serve
for currency purposes
s. Still another llacy which this equation explodes
the idea that banks of issue necessary to the credit
system for since possible amount of bank issues
increase ot the value of the whole cuirencysince
they increase its quantity only by depreciatng, to
the extent its value there must ARRAYS remain TIE same
amount of pdlue accommodate borrowers Hence and as
matter of fact, with currency OF hundred millions,
the borrower is accommodated by loan of thousand
dollars precisely to the extent for every possible
he he
thousand dollars with currency Of Thousand millions
And it is selevident that with such loans he could be
accommodated by banks of discount issuing no bills as
readily and to the extent, by banks OF ISSUE
1t is true however that banks of issue have mighty
influence upon the credit system but that influence is
wholly disastrous credit for, by aording cgitimate
facilities for time they overthrow it by the inevitable
reaction as it is completely prostraed throughout
this country. These undue facilities they are enabled 10
afford in virtue of being endowed with the power OF ere
ating new portion of circulating medium, which was
not in existence BEFORE that they have whercwthal
to lend. For example, when bank comes into ex-
stencc and its bills to the amount Of million or half
million lying fresh upon its counters the first thing
of course s to find borrowers TO bring them INTO use
The demand for borrowers creates the supply Borrow
ers with less perfect securities come forward anre ac
ccpted than such would be demanded If this additional
amount of currency had not been created and We're not
lying unemployed Such undue facilities of credit draw
away from the field of production to the arena OF specu
ation whole armies, more numerous than the Syrian
locust, of unsecured and inexperienced persons who
IN
up the land. Thus business tempted to
incur debts and responsibilities which they would
think of except in times of acurency greatly expan
ded by bank paper which initiates the minds of all prop
erty holders with the conceit of wealth that Is purely
fictitious For when the prices of all property are thus
enhanced they who In possession OF it feel themselves
to be Just much richer their property is nominally
worth more than when prices were down When with
bloated currency man has thousand dollars in his
pocket knows that his credit il good or that amount
at the bank he feels much richer than he does with
sound currency and hundred dollars in his pocket not
witlstandng that thousand viii buy than this
hundred Hence, at such times, men launch out into all
Of extavagant expenditure So that the ruinous
ravagance recessness of overradng, wdness Of specn
ation madness of stock gambling, with all their
quent Generalization to which the Rev Beecher ascbes
the present overthrow of credit ts ultimate cause
themselves caused by the influence of banks of issue Their
final and legitimate effect upon the credit system is just
that which we are suffering at the present time.
THE FIRST GOVERNOR OF THE CHoCTAW Ma
TION.
A correspondent of the Fort Smith (Arkansas)