The national era. [volume] (Washington [D.C.]) 1847-1860, 1858-06-03

DE men, NJ lever Is slgneu L1enVy -. Va
rsv-Ph;Isdc ph:a, December 28;h, 1857"
"Tu.nirg row to cur Treasury, we fad Il al
ready bankrupt, even in the commencement of
this downward movement Irredeemdble paper"
1.-THE Treasury notes-20 millions, if they are
fally issued) "being noio substituted for gold
and silrer. the infur Of foreign merchandise,
and the et7uI Of the precious metals aoiH be
much promoted; and thus wiu the iody be
smoothed toacards total 6ankraptcy-such as
scas aoitnessed in l84l and 1872"
81 thank thee, Jew, for the word" That was
the unkindest cut of all. "Irredeemable
paper" your old friend, when in the guise of
State-bank notesl Mr.. Carey, how could you?
The assertion which you make, that the substi
tuition of irredeemable paper land two-thirds of
our paper currency is irredeemable-as the sus-
pension and the specie returns of the banks show
causes the efflux of the precious metals, and the
which is wholly true, is a most valuable conces-
sion to. the principle of free trade and hard
money.
Every sensible, unprejudiced economist has
known and said it long and often. But that a
protective writer like yourself could do it, we
never believed. Truly, if twenty millions of
paper money has such disastrous effect, what
may we not charge upon the one hundred mil
| lions-and more than that-of purely credit
| money, which has been our circulating medi-
UNI? Surely, if the late Government issues
smooth the way towards total BANKRUPTCY" the
credit currency, in which the people of this
country have so long INDUCED, has applied
the motive power. If that has opened the
door, this has kicked US out.
| Furthermore, our author cherishes a favor.
tie impression, which he received at some time,
| in some place, after some manner, and under
some peculiar circumstances, that our banking
institutions are maintained for the purpose of
| negotiating loans between those who have spare
| capital and those who need it in their bust
ness places at which those who had money
to lend could readily meet those who desired to
borrow" Why, my dear sir, how stupid, how
old-fashioned Is it possible that you do not
know that banks are established for the ex-
press, confessed purpose of making money
to "increase the capital of the country ito
make money more plenty" &C.? Why, zoe
suppose that the reason for the marked change
in the safety of business and the security of the
currency, which you have shown by your Ia
borious and praiseworthy research, is found,
not in any change of national policy, but in
the simple fact, that banks began then fully to
appreciate their high and benefcent mission
namely, and in plain words, to increase the
debt of the country; lengthen general credits |;
and substitute for value money cheap, credit
currency, exposed to all the terrible vicissitudes
of credit. Such desirable reform they have
| effected. You can see the baleful results of an
issue of $50,O00,000 of Treasury notes, which
will not probably go into general circulation.
But you believe that the circulation, as the al
most exclusive money of the country, of over
| $l00, 900 of credit is BIZ unnixed good.
| Permit US to say, hat the cause of your clear
sightedness in the one case, and blindness in
the other, is Justly to be thus explained. The
Treasury notes are issued to meet the necessi-
ties of Democratic Administration. The use
of credit money, on the OF hand, enables
large dividends of profits to be declared on the
immense banking capital of the United States.
Such preudices we believe to be potent to
open or shut the eyes to the plainest truths.
Distinguished legislators have assumed that
there is S260000,OO0 of the coined money of
the United States within its territory. Mr..
Carey very properly asks, :" schere is itP" He
thinks it boarded. But very little of it. 1t has
been used for articles CT fine dress for the men
and women, fine plate for the table, and fine
harness for horses. Much of it, undoubtedly,
| has gone from the country to Europe, and thence
| to barbarism in methods which have escaped
| the investigation of statisticians. If this be
true, the recipe for calling this boarded (?) gold
into circulation will not be needed But it is
worth while to consider the method by what it
was, according to our author, to be brought
into the channels of commerce. A very pretty
simile, or story, of the nature of fable and
parable, is used; the moral of which is, that
the country should look lovingly upon the
money promises of the banks, and thus warm
to genial life the hard heart of the hard money
What folly Gold only needs a fair, free, hon.
oreble circulation, and it will remain in use.
Providing a substitute for it, which possesses
no inherent value, drives it away. Yet, we
are told that the proper way to bring it back
is, to acknowledge the transcendent and benefi.
cent qualities Of this worthless, degrading sub.
stitute, which has in few years sent away
hundreds of millions of the products of our
mines. Gold goes where it is needed, filling
the channels of circulation with other currency;
credit dispaces the gold, and it leaves us.
The remedy, then, for the non-circulation of
gold, is to abolish the Sub-Treasury, and recog-
Mise in our national legislation the virtue of
shinplssters Does not our Government now
play the part of the Sum-" watching into life
this swarm of pestiferous credit? Has it not
always done this? and is it not this policy
which has lost to us our gold circulation
Most certainly, and undeniably. F.A.w.
Il