Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1859-07-03

NV Continued.


Rem, W. L. MARCY, and SILAa WRIGHT, as able 5
body of men as ever adorned the GubernatOrial
chair Of any State ia the Union, IabOring in vain
TO avert the increase Of these monopoles, and The
insane fsnaticisn for more bank facilities, always
the greatest when tha cOuFtry IS in the greatest
danger from existing excessss.
To couuteraet this rabia msuia for bank charters,
Mr. MAEcT recommended the repeal of the act CT
1904, prohibiting the establishment Of Offices O.
Deposit discount, and exchange. This vas passed,
(session sst of 1887, p. l4) ami thus we're The
banks Issuing hills Of efeiit stripped Of the nonop
oily which they had hitherto enjoyed in these
branches of business, the freedom Of pursuit re-
stored and TIE principles Of the nobles sintaie Of
British commercial freedom, the zlst JAMES II
partially vinlicated Bat this partial remedy came
after ths disease had taken deep rost ia New York
and throughout the Union This banks had reached
their highest points in 1875 On less than SIX mil
| lions Of specie the banks of New York had debs
due on demand deposits and circulstiOn, 10 the ex
tent of forty six millions Gallqtin, 2. 60. lie
thinks this fatal expsas on could have been vil-
ed, if the maximum Of leans On iheir capital had
been fixed lower than iRo and a half on the capital
stock, but would there not have been an increased
supply Of thing so easily manufactured as baak
stock Can there be any safe limitation, except
that which is founded on The amount Of speeie OF
hand, fixed by Ian
This excessive Issue of paper money, in 1884
'S5, '36, had its usual effect An abundance
fictitious money or credits, dealt out with gener-
Gus hand to all applicants, relaxes beth economy and
industry and promotes public and private exirava-
! > -
Of RAsDoLPH,. "to live by any m}aas bat hat Of
honest industry; spirit of prOfusion, the spirit of
CATsLINE. aaeni aVags sal profasas spirit CT
expedeney, not only in public bat private life the
system Of DIDDLER in the farce, living any way snd
we'll wearing an expensive coat and drinking the
finest wines at any body's expense" II increases
the cost Of producing commodities at home, both
manufactured and agricultural, and breaks down
the manufactures at home, aad checks agriculture
exports.
The effects Of all tariff laws, high or low, are
completely nullifed BY the paper prices, at whiohthe
foreigner sells his goods, taking off gold, ami the
cOuRt-y is filed with foreign impOrtatiOns The
price of -four gos high under the paper prices in
1885, that large quantities of il brought into the
United States from Europe and sold at profit to the
importer. The country ever has and ever will run
deeply in debt under the false and delusive system
of excessive paper issues, exciting in the outset
so bitter and blasting in its termination. Although
| its effects have been asserted and described By
ADAM SMITH, MCCULLocH, and HoMAEs' Dictionary,
HUME and MILL, and stated by WAsHINGToN,
Frankie, JACKSON, JEFFERSON, and others, it is
by more clearly shown in its operation than by
NICHOLAS BIDDLE, in 1925 He says: Banks sre
often managed by needy persons, who borrow too
much, or by sanguine persons, anxious only to in
crease their profits without much peeuniary interest
or personal responsibility in the administration.
The constant tendency Of banks, therefore, is to
loan too much, and to put too many notes ia cireua
ton. Now the addition of many notes, even while
they good as coin, BY being always exchange
able for coin, may beinjurious, because the increase
in the mixed mass of money generally occasions
rise in the prizes of all commodities. The conse-
quenoe is that the high price of foreign productions
induces foreigners TO send large amount of their
commodities, whilst the high prices of domestic pro-
ducion prevents those foreigners from taking il
exchange alaEge amount of our commodities.
"When therefore, you buy from foreigners more
than they buy from you, they must take coin in
payment If this is done, tOa considerable extent,
the danger is that the banks will be obliged 10 pay
| so much of their c5in for their notes as not to
leave th'm sufficient quantity to answer the de-
mand for it, in which case the banks fall and the
community is defrauded. -
Mr. BlDDLE thus shows no " the mode By which the
sale of foreign goods is increased, how the sale of
domestic productions abroad is diminished, and how
our domestic manufactures are broken down. What
/ g. 1 H. L.
put stop to the expectation Of coin" How is this
done by them? "The operat OF, be says, ''pro-
ceeds thus: by issuing no new notes, bat requiring
something from your debtors, you require them to
re-loan to you the notes you Lent them, or Their
| equivalent. This makes bank notes sclrcer
| This makes them more valuable This makes the
| goods, for which they are exchanged less valu-
able; the debtor Ia his anxiety 10 get your notes
being willing to sell his goods at a sacrifice. This
brings down the prices of goods, and makes every
| thing cheaper. Then the remedy begins The
foreigner finds that his goods must be sold 60 low
] that he sends no more. The American importer
finding that he can make no money BY importing
them, imports NJ more. The remainder Of the
CON- of course, not sent tafer new mPortations
but stays at home, where it finds better employment
foreigner hears of this state of things, he sends
back his coin He tlOk ii away merely because your
own domestic productions we're so high that be
could not make any profit in his country by taking
them, but when the news reaches him that his pro
auctions very cheap in our owuoountry, he also
learns that our productions cheap also, ami he
sends back the coin to buy those cheap productions
of ours. We will, therefore, get back our coin by
diminishing paper and it will stay until driven
away by another superabundance OF paper.
"such is the circle which paper currency is al
ways performing. Like the power of steam emf
nently useful when in skilful hands but OF tremen
dous hazard when not controlled.
"These simple ststementsexp lain the present con-
dition of the country, produced by overtradiog
The remedy is, to bank less and trade less"
The Canvass,
We have received, from friend in Jasper,