Fayetteville observer. [volume] (Fayetteville, Tenn.) 1850-1966, 1859-04-14
Writte'. for the Fayetteville 0bserrer
BANKS AND BANKING.
| Concluded.

aspect in which we can view the
banking system, its influence upon
the affairs of the country is highly,
injurious.
Now 10 view of all these facts,
why are people disposed to tolerate
this system any longer? The prin-
cipal reason is found in the fact, tina,
we have been accustomed to it SO
long that we are induced to regard
it as a necessary evil. Many who
are sensible Of the numerous defects.
and disastrous results of the sys-
tenn upon the interests of the coun-
try, are frightened into an acquies-
cence, by the doleful tales Of bank
satellites. They tell os, that if We
should be so foolish as to drive out
Of the country all of this paper
trash, that the price of labor and
every thing else would be reduced to
one-balf or one-fourth Of its present
value. Admitting this to be the
case, for the sake of argument; shst
will the people lose by the change?
What loss will the laborer sustain, if
instead of getting one dollar per day,
he gets only twenty-five cents, wben
he cnn purchase as much Of sbe nee.
essaries and luxuries Of life for TWEEN.
ty-fye cents as be could before fol
one dollar? What loss will the farm
er sustsin, if instead Of getting one
dollar a barrel for bis corn, he gets
emily twesty five cents, when be can
purchase with twenty-five cents as
much rs be could formerly with one
dcllal2 Or what loss will il be to the
merchant, If the prices Of his goods
are II duced one half or more, when
he can get everything be wants at
one half Of what he could before!
But deny the assertion in toto,
that a return to specie currency you'd
reduce the price Of labor OF anything
else. The ground upon which this
assertion is founded, is that the
banks make msney more plenty, and.
therefore increase the prices Of ev-
ierything. ! think that | have dem.
onstrsted, already, by facts aid fig
ures, tina. there would be more geld
and silver in circulation than We
have paper meney, if oil the banks
were blotted out Of existence. Such
b eng the case, instead Of reducing
prices, il would enhance them, and
then they would remain permanent;
end the country would 50 on in its
career Of prosperity, uninterrupted
by bank contractions, failures, or sus-
pensions. But we ere told again,
that if we dc away with eur ewn
banks, that the State will be flooded
with paper money Of other States,
and that We will still be afflicted With
all the evils of the system without
any Of its benefits. If such should
be the case, the Legislature could
easily remedy It by prohibition Up
on The circulation Of foreign bank
paper in the State, and then our
traders Instead Of bringing their
paper with them, would go to the
banks and draw the specie. or pur-
chase bills Of exchange. But even if
the Legislature, should not prohibit
the introduction Of foreign paper into
the State, contend on the other
hand, if there are any benefits in the
use OF paper money as a circulating
medium, that We would have all the
benefits, and but few Of lis evils
This may seem paradoxical, but it is
nevertheless true. What is the chief
evil of the banking system? 1t is
the constant arrangement it produces
in the affairs Of the country by re-
peated expansions and coniractions
The suspension OF specie payments
is small evil compared with this;
for when the banks suspend their pa
per can still be used as money, but
-, 49,, III l.. al