The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1858-03-06

los proposed Is that ii vii operate preluale-
tally 70 the interests Of the masses-to The
middle and the laboring classes
La the report 70 which have referred IT'S
claimed that in time Of peace and unlnter-
upted commerce. the benefits Of the high
prices arising from an expanded paper cur
rency, cannot bo occurred % the industry OF
our own community without the protection
Of d lgh tariff Of duties and as such a tar
IN cannot now be- had Il il obviously for the
interest Of New England with 80 large a
proportion Of hei population dependent on
industrial aud manufacturing pursuits mat
The currency should be regulated by Tesrinimg
il 80 az ~ briHg II nearer IN paiHe 10 NE cur
reHcy oC h0se countries irhich are non our
gfeaf compdaors for the supply Of what is
consumed hy our own people" This position
which has reference, essentially 20 the manu-
featuring interest plainly implies, that there
duclion ~ Ih5 currency, by the supPr s'nH
of Bank bills will 20 reduce the price OF IA
bor 40 10 enable US 20 compete in prices WIN
the manufacturers abroad, whore labor 10
known 10 be eheap-it being assumed that d
protective tariff "cannot nov be had
The same view Is advanced by Mr.
buchanan In the annual message lie says,
cit Is the system OF eXlrayagant expansion
raising the nominal price Of every article Tar
Beyond nv real value, ioheH compared W6h
The cost Of similar articles N countries Whose
circulation IL wisely regulated, Which has pre-
rented ~ from competing ~ cur otrn marx
efs rih forcigH manufacturer"
The theory that rs We Withdraw our paper
currency from circulation, gold aud silver VIII
How In and supply the vacuum thus created
IL based, evidently upon the presumption
that the value Of property, and the price OF
labor would be reduced 10 q basis correspond
Ing with the relative amount Of the currency
thuseonsutulcd, a. compared with the amount
Of our present mixed currency,
Il Il noticeable that the proposition, 70 pro-
hihit the issue aud circulation Of small bills
falls principally upon the country Banks, aud
upon the rural puution-the middle class
cs. The Banks Ia me principal cities, with
large capitals and deposits, whose legitimate
customers are the merchants and the large
manufacturers, have LITTLE occasion 90 issue
small bills, nor hu,c the latter occasion o.
act their financial operations 10y means Of
checks aud,dalis, The country Banks, on
the contrary, with small capitals and no dcpuh-
iis, DEPEND essentially upon the circulation
Of their bills Their loans are in small sums,
aud their customers, in great proportion, are
dfpvrrs, dealers Ia produce, country traders,
small manufacturer, and farmers. These ind
IL ou,cncnt 10 use small bills IN thcig do
nestle commerce
Throughout, NoS England, New York. and
many other states, il il rare 20 find an md-
diNidual citizen among the farming ?opula'
lion aE. lha middle lsLaring classes, UAo las
not iu his possession - cater OF lcNs amount
of hi, currency generally the issue OF his
local Bank, in which he has entire confidence,
To aggregate amount OF this small paper
currency is more than moic,y probably
three quurtcrs--of the entire circulation Of
the country Banks The substitution of
large bills, OF even ofspccic, except for small
change, would he to the people an inconNeu-
fence aud hur,hcu
The assumption that if small bills were
| sdpprcsscd. gold aud silver would supplS their
place, ~ not wei iouuded, IL would not
hold good except IN the cities and the princi-
pal manufacturing towns, so far as the Ca
pertinent hl, been tried il has disappointed
the expectations OF those who supported the
. measure. la most if ..ot- all of the states
where the issue and circulation Of small bills
have been prohibited 10y law, the public have
suffered much Inconvenience from the want
Of small currency, aud have sought relief bt
giving currency To the small bills Of neigh.
boring states, IN defiance of the Law prohibit.
ing il. And 50 general has been the disaf-
fiction of the common people. that few al.
l,,t, -rrfurrr the Tr
lilly
In the discussion of this subject, the qucs-
ton is not whether, If our present system of
a mixed currency had never existed, il would
be cNpcdcnt NOW To innugcratc il. But
whether "A syAicm undor which. or IN connrN.
ion with which, we have grown mp, aud every
branch of industrial enterprise has expanded
aud proSpnrcd, shall now be abandoned or
essentially changed.
/ II is probable that In many OF the states,
further and more stringent cnaCtmcnts might
wisely be adopted for restricting the amount
OF Bank issues in proportion to capital and
no doubt there should hc more cnutiun oh
served, by the legislatures OF the several
states, in granting new charters and facilities
for increasing Bank capital. But u sound
discretion should RdmoniSh us of the danger
Of adopting any radical changes in our sys-
TEN at time when the public mind is agitated
and unsettled 10y so great a couyulsiun as that
through which we have just passed. If so
great and radical revolution as that which
has been proposed is to nc considered wise
discretion will indicate that no definite enact
mcnts for cilcctiug such revolution should be
adopted until the public mind can look upon
the question dispassionatrly, unbiased by the
impulses suddenly cngcndcrcd by the late
panic
With great respect sir.
Your oh't servant
ERASTCS FAIRBANKS.
St. Johnsbury, March 3, 1858.
s-----------..--------------y--s
RAscALLY-- A piece of bold inccndiurism
took place on the 18th of Feb. The st Louis
Engine House was fired. In the building
were two splendid Engines and two four