Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1857-12-17

! ~ in it, and yet, if you will allow me 10 say
IL that is precisely the condition Of things III ibis
State to-day. You had money in the bank, ind
when you commenced drawing it out, the banks
commenced their c0ntractions; and you find on the
first of January, 1857, the banks Of Tennessee had
about eight millions of circulation. But the de-
mand for specie continues from day to day, till when
the ides OF October come, the banks had not enough
to pay their debts-not enough settle the balances
OF trade against the peoples and then, for their
lnteress-not the interests Of the peopls-they clos
ed Gown their DOORS aud refused 10 permit the gold
/ to 60 out and meet the demands of trade and con-
meree, in which the people had been engaged If
they had not closed this demand would have contn-
ued TIL the last dollar had been drawn from their
| vaults. Thus, MIR. Chairman, l plant myself upon
these irrefragbe facts, and repeat the allegation,
| that banks OF issue-mere paper maehines-nevtr
have supplied aud meyer can supply the demand for
money required by thss trade and commerce of this
| country; It's only gold and silyer-the circulating
medium of the Eorld-that can perform this Office.
Mr. Chairman. 1t is the over issue, or an issue
not required to effect the exchange Of commodities,
made (which the cupidity Of the owners of banks
will force them make,) BY the banks that beget
! high prices. To illustrate, suppose one hundred
millions Of dollars required for the trade and
commerce of this country, and you increase that
amount to two or three hundred millions; by that
increase you do not add 20 the capacity of your SOIL
| or inYigorate the muscle Of labor or change the
real value of any commodity, but it does increase
the price-and it is doubled or trippled as you in
crease two three times Then, sir this being so,
having driven gold from your midst, raised the pri
ces OF commodities, the manufacturers of other
countries, operating under the protection of spe-
Gle standard, come here and uneerseu you. This is
the law of trade high prices, caused by bank is
sues, then induce importations For these impor-
tatlons, you must pay with your labor, and your
gold. Your paper issue will not do. The expert Of
gold, thus made necessary, TO pay for importatons
no IT. IF tha
evitable; and 6aRkruPhy then follows contractions.
Yes, bankruptcy, poverty, ruin the inevitable
consequences vi everlasting by the banks. These
things being true, what Is duty? II is that
should strike at the root Of the matter; and if
cannot AZ destroy all banks should at least
prevent these over-issGe, Ii we can do that we
sba have started in the right direction for the
edy, but il fail TO do that We shall fail in all
our legislation upon this subject
Mr. Chairman: The only argument which is made
use OF by those who favor banks of issue, is that
they are FOR the convenience of the people. might
take issue upon this, but will admit it for the argu-
ment. 1t Is convenience then, far as transpor-
tion is concerned. Just this point outside of the
regular argument, the question may be put, suppose
you had hard money, and desired to transfer and
pay 1t in New York, now would you effect 1t without
the agency Of banks! l might retort, by asking
him now, ii he had to-day, bank notes, he would
effect the same purpose with banks But choose
to reply, By saying that freight is very little
than exchange, either in cost risk, and that
change can be had, and would be, without the agen-
cy OF banks of issue, upon a mueh more safe and
secure basis than obtain it. To change
credits effect exchange, between two points, is
an easy matter, ii you the gold to start with
But admitting the argument CT convenience, let us
see what it is the people pay for it. have, Mr.
Chairman, a calculation to which ask the atten-
ton OF any friend of these banks Of issue. Look
and see what it is the people Of the United States
pay annually for this c0nUnienes of paper money, |
viz