Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1858-08-31
Hon. 4. d. p. Nicholson on the Currency
Question.


We publish below several extracts from very
able speech delivered at Pulaski Tenn, on the 9th
of June, 1913, by the Hon. A. o. P. NICHOLSON.
These extracts indicate the opinion then held by the
Democratic party on the currency question, and
contain unanswerable arguments against the emN
ployment Of bank paper a circulating medium.
Judge NICHOLSON distinctly announces his .opPOsi-
ton to the perpetuatiOn of State Banks:
I advocate two currencies-Staie Bank, paperand
specie. advocate a convertible State Bank paper,
simpIv because the State Banks are already char
tered and must continue until they either wind up
or their charters expire. During the existence of
these State Banks now chartered, propose that
thev shall be regulated Dy law which shall wind
Them up whenever they inhict upon thecOuntry the
curse Of deprecated currency, by refusing TO re-
deem their notes with specie. As the present State
Banks 90 down. either by expiration of their char
tiers or by being wound up, with my present views
I woud let them sink to rise more, and have the
place now occupied by their notes. then occupied by
specie | am free TO declare that experience has
satisfied nv mind that our country would have been
greatly benefited if we had never had any banks
But as it is now impossible TO return TO an exclusive
specie currency except gradually by the expiration
of State Bank charters, am in favor of resorting
to the most eectual mode Of checking and prevent
ing their excuses.
What is it that the farmer desires above all things
connected with his temporal interests next to favor
able seasons? It is that he calculate with some
confidence on the probable price which he IS TO get
for mis- produce or his stock. If the farmer could
calculate with any probability that his cotton crop
would yield year by year eight cents per ID, he
would at once see the broad track to prosperity
oneDed M But when he plants and tolls and
sWeas all is uncertainty as 10 whether MS labor ls
10 be rewarded or,not-he can make no reliable cal
epIation. Why is this ? l affirm that the main
cause exists in the power of Banks to make money
uleptv or scarce at their villa power proposed TO
he given 10 a National Bank as well as to State
Banks The price Of property is fixed by the guam
tity Of money in circulation. This everybody IN
derstands THERE'S fixed amount 0 fcuTrency neces-
sarv for every community varying in different coun-
tries according to circumstances. The laws Of
trade will always secure this necessary amount Of
currency ifthey not nterfered with and derang~
ed by artificial attempts to regulate currency
When this fixed amount of currency exists, then
propertv and labor bear fair price If this amount
is increased prices rse if is diminished prices fall
1t has always been and always will be the business
of Banks authorised to create currency to increase
or diminish this amount Of currency, and hence
the regular laws of trade can never operate under
/ the mana cement of a National Bank At peri
cd it is the interest of the Bank to make prices
high-at another 10 make them loW--just as its inS
terest dictates currency is plenty scarce, because
the State Banks will always follow in the wake Of
the National Bank and adapt their operations to
those Of the great leader and regulator. After all
the clamor then for a uniform currency Of National
paper, in what does its great excellence over gold
and silver consist? Simply that travellers are
somewhat accommodated-but as to making the
quantity of currency uniform, and thereby securing
uniformity and seadiness of prices, so far from eff
fecling these great purposes from its very nature
ndinherent interest il must prevent them