Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-04-17
Small Notes! Col. NethcrIand,s Banking
Policy.

Small Notes! Col. Nethcrland's Banking
Policy.
The evils Of 6 shinpl4ster currency have been too
severely felt by the people Of this State to require
an enumeration at this time. But Col. EETHERLAxD
in his late speech in this city, having committed
himself and mis- party 10 the policy OF a small note
circulation it becomes important TO examine the ar
gumeuts by which he sought to sustain that policy
Col NErHEELAND eontended that inasmuch as a pa
per currency IS a convenience to the country, all
classes Of our citizens are entitled 10 share in
its benefits; that large notes are seldom or never
found in the hands of men Of small means, and,
therefore, bills Of smaller denomination are re-
quired for the use Of the masses of the people.
WesuppOsed that the experience of the last few
years had exposed the utter G!lacy of this conclu-
sion but 1t seems that the KnoWNo! hing party and
its leaders are impcrviOus to such arguments, and
that the past furnishes them no instruction for the
future They have learned neither wisdom nor pru-
duce from the disastrous consequences Of the sys-
tenn which they advocate
Iii we'll known fact, thst whenever a paper
currency and specie currency are brought into
competition The former will circulate to the exclu-
sion Of the latter. This is found to be more espec-
Tally the case in the circulation of money Of the
over denominations. II the banks are allowed to
issue one and two dollar notes these will constitute
large proportion Of their circulation, because they
are more easily scattered through the State in sec>
tions remote from the centres Of trade and less FIRE.
quently return for redemption in amounts which
would be incOnvenint or embarrassing TO the
banks These small notes passing freely from
hand to hand expeE the gold ald silver from cir
culali0n which is sent off TO other States aud for
eign countries while the less safe and reliable
rency is left to fill its place. Shinpaslers thus be-
come almost the only circulating medium with men
of small means and Of communities living at dis
lance from the location Of the banks and the places
of redemption. The specie is driven from the coun-
try by the circulation of these small notes. The
banks finding that it can be probably employed
abroad do not keep supply to redeem their circus
latiOn, and when revulson comes, like the late
disastrous crisis in this State the holders of these
shinplasters find themselves with nothing but
worthless and deprecated currency to supply their
daily necessities When a. great trouble and ex-
pense the small mole holder comes up from his dis
tant home snd asks the banks for specie in exchange
for their shinplas,eTs he finds that all their coin
has been drained by the capitalists living in the i'm
mediate vicinity, and there is nothing left for him
but empty promises, to be followed by disappoints
ment and distress. Thus when the banks fail,
small note holders are the men who suffer most.
Those wa are least able to loose, bear the princ
pal losses Of the system advocated by Col NETHER-
LAND.
A Democratic Legislature has prohibited the IS
suauce of small notes, and the beneficial cOnse-
quences have been already experienced. Gold and
silver coin has been flowing back to the State and
isnow found in the hands Of the people, the
one dollar bills which once constituted their only
circulating medium. Much yet remains 10 be done
in the way of reform in tLi5respect and much more
will be done under The operation Of the law passed
by the last Democratic Legislature.
Should Col NETHERLASD and his party come into
power, however, and their policy prevail, the work
Of reform would be arrested the shinPsster circus
ation would be restored, gold and silver wcud be
again driven from the country, and the evils and