, 1862-01-11

k1ttng between The Government and the !
banks; since which the banks have dis
counted Of Government debt $15o. 900, 900.
They say they have loaned the Govern
ment that sum, but the fact is they have
loaned the >&oyernnent as much rs the
GoYernment:,Eas leaned them, which is
just nothing 1t al, for MI The specie they
have paid belonged to absolute depositors,
and not to the banks. The Government
debts bills payable and credits the banks:
and the banks debit public stocks, meaning
the Government, and credit bills and ac-
counts payable to the Government, Tho
assets and liabilities Of both parties being
equally created by the one operation, both
having run heavily in debt with nothing
to show for it but each: others promises,
assets and debt alike. -: : -, ~: ., -,
We must, however, except whatever
amount Of the Government loan has been
taken BY the people and, not By :" other
banks So far as the banks have acted as
fiscal agents in borrowing capital Of the
people and lending the same to the Gov
ernment without increasing their own lia-
lilites, that is, without increasing the icti-
tious currency, their. business is normal
and right; beyond this it is sophisty and a
mere cheat ,.:-
Now we know, making every allowance
for the absorption Of the loan by the peo-
pie, outside Of the banks, as well as for the
sum remaining undrawn in the banks at
the credit Of the Government, and there
fore not yet fairly in action as currency,
but, on the other, hand, adding the $685.
100000 Of United States Demand Notes in
circulation, That the volume OF currency of
the loyal States is something over $685.
100000 at the present tin1e-say S415,000,-
600 of debt and $3.50 900, 900 Of money not
in boards, or 500, 100000 too much. We
can no more hold this one hundred millions
Of debt and money together in the country,
than We can keep fire aud dry gun powder
in contact without exploding. One Of them
must 60 out. Which shall it be? The
bul1ionists say the debt currency; we say
+ the debt currency; for there-is not partl.
Gle Of value OF wealth in it. It is mere
moonshine which has created prices 20 pei
cent. above value, On the average, and
which is already curtailing the necessarie<
Of life to many consumcrs, and having
turned the course Of exchange against Us
either that currency must be contracted
with fall Of prices, OF we must LOST
$1oo,00o,O 900 Of solid wealth in gold The
suspension Of specie payments will no
save dime Of it, but only make the mat
ter worse. Every little hoard not in tn
clutch Of the inpracticable miser
every dollar outside Of the banks
and many specie dollars now within them
will find their way into the hands Of til
bullion dealers at what is called premium
On gold, but what is a discount On the deb
currency, and the whole hundred million
will infal}ibly be exported and lost. Onl
one other measure is necessary to make
20 faster, and that is law Of Congres
prohibiting its expectation, 8 measur
which some un1ucky Individuals who writ
for the newspapers, but who have neve
read work upon political economy, al
now urging upon the Government
would raise an army Of smugglers, as sue
prohibition always has done, all the worl
over, and make harvest for them.