The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1857-12-16

,ession; but this, although deeply to be
would prove to be only slight
misfortune when compared with the sutf-
.ring aud distress prevailing among the
,eoplc With this the government can
.ot fail deeply to sympathize, though |
it may te without the power TO extend
relief.
II is our duty to inquire what has pre-
d iced such u,fortrn ,tc results, and whe b.
es TIA, ir recurrence can be prevented? In
all ioimer revulsions the blame might
have been fairly attributed to variety
of cooperating causes: but not so upon
The present occasion. 1t is apparent
that our existing misfortuEes have pro-
ceeded solely from our eXtravagant and
VICIOUS system of paper currency and
bank credits, exciting the people to wild
speculatons and gambling III stocks
These revusions must continue to recur
at successive Intervals so long as the
amount Of paper currency and bank loans
and discounts of the country shall be left
to the discretion of fourteen hundred ir-
responsible banking institutions, which
from the very law of their nature will con-
suit the interest of their stockholders
rather than the public welfare.
The trainers of the constitution, when
then gave to Congress the power "to coin
money aud to regulate the value thereof
and prohibited the States from coming
meney, emitting bills of credit, or max
ing anything but gold and silver coin n
tender in payment of debts, supposed
they had protected the people against
the evils of an excessive and irredeema-
ble paper currency. They are not res
ponsible for the existing anomaly that
a government endowed with the sover-
ereign attribute of coming money and
regulating the value thereof should have
no power to prevent others from driving
this coin out of the country and filling up
the channels of circulation with paper
which does not represent gold and sill
yer.
1t is one of the highest and most res
ponsible duties Of government to insure to
the people sound circulation medium
The amount of which ought to be adapted
with the utmost possible wisdom and
skill to the Of internal trade and foreign
exchanges ist If this bo greatly above o.
below the proper standard, the marketa
bic value Of every mans property is in
creased or diminished in the same pro
8 portion, and injustice to individuals a
g well as incalculable evil to the communi
. ty are the consequence.
s. Unfortunately, under the construction
of the federal constitution, which has no,
t, prevailed too long to be changed, thi
l. important and delicate duty has been dis
i severed from the coming power and vii
o tuaily Transferred 10 more than fourtee
1t hundred State banks. acting independen,
ly of each other, end regulating their ps
,r per Issues almost exclusively by a regar
X to the present interest of their stockholt
ers. Exercising the sovereign nowe
ir of providing paper currency, instead I
,e coin, for the country, the first duty whc
G. these banks owe to the public is to kee
j. in their vaults a sufficient amount of gol
" and silver to insure the convertability
rr their notes into coin at all times and III
le der all circumstances No bank oug'
e. ever to be chartered without such re
rs trictions on its business as to secure til
r. result. All other restrictions are cor
d. paratively vain. This is the only tr'
touchstone, the only efficient regulator
rk paper currency-the only one which CT
err guard the public against over-issue a,
n, bank suspensions. As collateral al
It. eventual security it is doubtless wise, al
II. in all cases ought to be. required, tn
,y banks shall hold an amount of Unit
States or State securities equal to th'
his notes in circulation and pledged for tn,
ire redemption. This, however, furnishes
", adequate security against over-issue.
on the contrary. it may be perverted to
he fate the currency.
Indeed, it is possible by this means
convert all the debts of the United Stat
and State governments into bank not
without reference to the specie required
securities may be in themselves, they CT
not be converted into gold and silver
the moment of pressure, as our experier
teaches, in sufficient time to prevent ba
suspensions and the depreciation of ba
ss: notes. In England, which is to ct
he siderable extent q paper-money count
Ity though vastly behind our own in this
he spect, it was deemed advisable, anter
its to the act of Parliament of 1874, VIII
ge wisely separated the issue of notes fr
The banking department. for the Bank
ire England always to keep on hand g
,us and silver equal to one third of its co
his bined circulation and deposites. If t
to proportion was no more than sufficient
to the convertibility Of its notes. with
me whole of Great Britain, End to some
ice tent the continent of Europe as Fl
,ur FLOR s circulation, rendering it aim
DE-. impossible that sudden and immedi
led run to dangerous amount should
ul- made upon it. the same proportion we
an certainly be insufficient under our ba
gh ing system.