The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-10-22
BANKS AND BANKING. --c0NTINUED. Z


Sos sf BANKS AND BANKING--CONTINUED q e
~ There are persons whose knowledge does not
qualify them to distinguish between hostility TO
banks and bankers and manfpl opposition to paper
money banking. We have not assaulted banks hon
estly and fairly conducted, while we have high re-
spect for many bankers. What we oppose and
hope to give place that which is far better is
the present system Of paper issues, which pro-
duces many disastrous consequences upon the
banks themselves, upon individuals, and the bust
ness and prosperity of the country and happi-
ness Of the people. The evil Of a bad system is
upon us, and we desire its removal without vio-
lence and in the best calculated to avoid all
bad results. We are not seeking to prove who most
contributed to the introduction of present fatal
system and fastening il upon the people but topoint
out its alarming and fatal defects and to urge the in
PRODUCTION Of one clearly better. Our paper system
has repeatedly exploded, involving many of those
connected with it, as makers and con6ding holders,
and the unsuspcious public, in its alarming conse-
quences Just prior and during the war of 1912, in
1879, ls26-T 1897 l847 g. and in 1857 it failed to
meet its assurances to the public, or the demands
and expectations of those relying upon it, No public
policy ever more signally fatally failed to confer
it's Wanted benefits, or TO avoid imaginary real
evils and mono ever more often and strikingly dis
appointed con6ding friends and an unsuspectng pub
lie. ta 7ia .
The important and widespread relation Of debtor
and creditor is most essentially affected by the paper
system. Without referring to banks which usually
show their debts and credits balanced to cent it
cannot be denied that the great majority of peo-
pie are debtors to a limited number of creditors.
The lenders money, and sellers of goods, manuac
lures and of lands constitute limited class how
ever active, sagacious, and respectable Debts are
contracted with them when times are easy and
money plenty with a ready reckessness, which as
tonishes those whose prudence equals their hopes.
Property-holders sell freely and become largely
creditors, more frequently taking security for
paid balances than receiving full pay The prices
contracted to be paid in proportion to the guam
tity of currency which is almost wholly issued in
paper by the banks. The Legislature clothes them
with the power of furnishing this pretended equva-
lent of money to an extent largely beyond their ab
ity to redeem By exercising this privilege the cur
rency becomes inflated and abundant, and prices in
crease in proportion and men purchase freely, and
even rashly expecting that currency can always be as
easily and cheaply obtained as when they contract
debts During the last few years currency has been
abundant and cheap, and lands houses, merchandise,
and all other property have been sold at enormous
prices, and largely upon credit; and thus the masses
have become debtors to tho few to the amount of
hundreds of millions of dollars. ,aag
This Indebtedness has not been occasoned by the
purchase of any one class of property. 1t includes
land, all descriptions of stocks, provisions manufac
lures, and merchandise. The consideration for all
such debts has suddenly deprecated in value from
five to twenty-five per cent, if not more, because
our paper currency has fallen in value OF diminished
in amount thereby lessening the value Of property
farm worth ten thousand dollars when there is
five hundred millions of currency will fall to five
thousand dollars when the currency is reduced to
two hundred and fifty millions, becomes worth
only that sum in fact 1t follows that the value of
all kinds of property is affected by the amount Of
currency, and those who are in debt for property
may be compelled to pay far more for balances due
on account Of it than its real value at the time of
payment. Let every man in the United States in
debt for property which he now OWNS examine
whether it is worth the consideration money few
will be able to say that it is and those who owe
much towards it will hardly fail to see the whole
absorbed to meet the balance Those who bought,
some months since, Virginia and other State stocks
at par cannot have failed to notice that they sudden
ly fell from twenty-five to forty per cent. without
any cause, except the troubles among the paper-is
suing banks.
State stocks, by the action of the banks, fell in
value many millions, and railroad stocks hundreds of
millions the New York correspondent Of the National
Inelgeneer estimating it at five hundred millions.
The depreciation of the value of cotton and farm pro-
duce of lumber and manufactures and Of real estate
has been greater than the amount of the capital of all
the banks in the Union, occasoned exclusively, by
the contraction Of the banks which make our paper
currency and their failure to pay in specie their
debts. This is the penalty paid by the debtors
and property owners of the country. Of course, !
real money has become proportionaby more valua-
BILE, and what debtors have lost by it's deprecia-
ton or dminution Of the value Of their property,
their creditors have gained. farm house bought
few weeks since on credit at five thousand dollars
will not now sell for that sum. 1t will take
now some six OIL seven thousand dollars worth of
property as then valued to pay for it. As much as
the purchaser must add to the property purchased
to pay for it, so much he has lost and the seller