The western Democrat. [volume] (Charlotte, N.C.) 1852-1870, 1857-11-24
THE BANK QUESTION.

THE BANK QUESTION.
The New York Sun says that the leading
journals throughout the country continue
to discuss the banking question. But there
is as yet no unanimty of opinion regarding
the practical remedy for the evils of the
present system. The Washington Intelli-
gencer, faithful to its ancient Wing creed,
revives the argument in favor of a National
Bank, while its Democratic neighbor, the
Union, repudiates the idea of resurrectng
an institution which brought upon itself an
emphatic and decisive condemnation. The
Union, however, is evidently laboring to
prepare the way for some action being
taken in the next Congress, towards estab-
fishing an uniform currency throughout
the United States, but its plan is not yet
developed.
A pure specie currency is not immedi
ately practicable, and perhaps no CONNER
cial country will ever restrict itself to a
specie currency; but the diffic ulty is to
devise a mixed specie and paper currency,
which shall, at all times and under all cir
cum<tances, be equally safe. If there
were gold and silver enough in the country
with which to carry on all its industrial
and commercial operat. rs, there would be
no wisdom in placing the gold and silver in
bank vaults and issuing promissory notes
as a medium of exchange. But the amount
of specie in the country is limited, and
cannot be augmented at pleasure, neither
while we carry on trade with foreign coun-
tries. Hence trade and commerce feel the
necessity of an auxiliary currency, which
aids the general movements of trade and
industry at home, and leaves the specie to
be used in selling the trade balances be-
tween distant places and countries having
commercial relations.
The precious metals, apart from their use
as mediums of exchange or representatives
of value, have an intrinsic value, and enter
into the list of valuable products which are
annually exported and imported in the
general business of commerce. There is,
consequently. frequent fluctuations in the
commercial value and in the productions of
the precious metals. More than this, if
there were not an ounce of gold OF silver in
the world trade could be still carried on,
as the ingenuity of man would devise
modes by which exchanges of products of
labor and of the earth could be made Still,
the precious metals are the most stable me-
diums of exchange, but they possess no mi
raculous virtue which makes them sure
protection against financial revulsions or
commercial dishonesty.
If there was not bank nor a bank note
on the whole American Continent, there
would be periods of Financial distresses,"
and of stagnation in all the branches of
trade and industry. There would be grand
defalcatiOns, embellishments and suspen-
sions. To carry on trade or manufactures
to any extent, there would be a necessity
for credits, and when the ''hard CASH fail
ed to be forthcoming to redeem those cred
its, there would be the usual declaration of
insolvency. A half eagle will no more ap-
pease hunger than will five dollar bill,
anu ii tuc UIlI Cttll U6 ulduC " cOulILdDu, dL
all times, and in all parts of the country, as
much bread as the gold piece, the bill is,
practically, just as good medium of ex-
change as the half eagle. What we want,
+. therefore, is not exactly paper currency
convertible at all times into gold or silver,
but paper currency, auxiliary to our spe-
Gle currency, so we'll secured that it will
always, according to its denominations,
command equally with gold and silver
pieces, of corresponding denominations of
value, the service, the food, the clothing or
the luxuries which we need or desire To
supply this desideratuIn, should our banking
system be confined and if this were done,
we would not be exposed to the curse of an
inflated or worthless paper currency.-CoE-
umbid Times.