Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1857-12-04

The Council Bluffs Bugie, one
the ablest journals in the West attrib-
utes the defeat OF the Democracy in
this State last October 10 their first
false step lin asserting 10 call
new Constitutional Convention, and
implicitly admitting the cxpcdiency Of
n banking system. There is too much
truth in that reflection. We think,
however, that it Is not TO late for the
party to retrace its steps, and aas,lmc
the position it ought TO have taken at
first. The next Legislature is decided
ly Republican, snd Of course it is not
in our power TO prevent the incorpor-
ation Of any number Of banks, but this
one thing our Democratic members can
do; they can throw their votes and
their influence against all banks Of is
sue, and thereby clear the Democratic
party from all responsibility for burst
ing, breaking, swindling, shaving shops.
The Country must come to the hard
money policy some day, and the soon
er the people look the matter
squarely in the face, the sooner will
they perceive that the difficulties
which it IL said will attend q return to
the gold and silver carrency contem-
plated by the constitution, are all i'm
aginary. There is no reason for our
using the shaun instead of the real
paper promises instead of money. An
advocate Of paper money never talks
without expatiating on the convent
ence of bank promissory notes, and the
facility with which they can be trans
ported. Now, admitting that paper is
capable of easier transportation than
coin, that fact does not tend to prove
the necessity or even the expediency
Of bank promises to pay. Paper which
represents specie can be transmitted
just as easily as a paper substitute for
specie. Paper which represented,
dollar for dollar, actual coin, could be
made just as light as our present pa
per. such paper, indeed, would
cease to be paper money; it would be
y represent ative-not substitutc-of
money an evidence OF deposit of 30
much coin somewhere; q convenient
means of transferring the right OF coin
from one to another. 1t would be,
moreover, incapable OF initiation OR con-
traction, except so far AS gold itself
were increased or diminished.
1t is well known fact that the
poorer currency invariably drives out
the better; if gold and bank bills are
issued at the same time in any com
munity, the bills will perform the
whole Office of currency, to the exclu-
sion Of gold. Every man knows that
the bulk OF the currency OF this county
is paper, comparatively little gold be-
ing in circulation. Now, it is also
law familiar to us all that the general
prices Of property rise and fall by the
quantity Of the currency. If its VOL
ume be Increased, prices rise; if its
volume be decreased, prices fall. 1t is
just this fall Of prices, and nothing else,
when men in debt tear when they con-
template contraction or restriction
Of the currency. And it is this fall of
prices which they dread as the result
Of coming down to an exclusive spe-
Gle currency.-Are those fears well
founded! Clearly they arc not. We
believe, that II the people we're trading
ON specie only, they would have a
larger volume Of currency than they
now have, and ~ q necessary conse-
quence, that prices would rise, not fall,
and a far greater plenty Of money be
had than under the present paper mon
ey system. Taking it then for grant
ed that those results would follow if
the currency we're enlarged, let us in
quire what is the amount Of paper
money in circulation, and what amount
Of specie there is in this country. 1t
will be borne in mind that nearly, very
: nearly all our currency is paper. The
whole amount of the bank note circu-
lstion in the United States is $751;
100000, and that is about all the cur
rency We have. The whole amount Of
specie 10 the country prior to the
panic, There is more now, say $780,
OOO,OOO) va. $2s9. 100000. Of this
the banks have about 100000, 900 !;
the government holds s1l, 100000 ;
and there are left 5000, 900 in the
hands Of the people. This vast amount
1900. DOC. 900 ia scattered AMONG the
people somewhere; the most of it
boarded up, and it will DO seen that at
the least calculation, it exceeds by up
wards Of 4l3,O0O,O0O the total bank
mote circulation. These figures cannot
be successfully disputed, and they es-