The Lancaster ledger. [volume] (Lancaster, S.C.) 1852-1905, 1862-02-12

quite unnecessary for the Banks, every
where, claim this very exemption from
interest, as the preroga,ve Of their indeb.
teduess and their issue Of the evidence
OF that indebtedness-which people use
as MONEYS circulated among its hold
era, without interest. Thus the old truth
still lives, and those who scotf al it as an
sbsurdity, practically acknowledge it, in
the business of every day life. Mos, o
the fallacies among men are propagated
under the cover Of the stealtny use oI
words, diverted from their legitimate
meaning /: the bastard Bank paper is no W
known as money, and coin, pifercd of its
title, is exiled or imprisoned in vaults
under the Insignificant and iuappr opra,e
name Of specie.
Gold and silver, like diamonds, and
other jewels, have much value in small
compass, and being easily removable, re-.
treat before the approach Of Violence
They abound where justice and law are
firmly established, and sovereignty is un
disturbed at home and abroad that is
in the ca I'm Of peace. War and in,estin'
ed disorder Danish them from communi
ties, which they aff1ict. They fly away
on the wings Of peaceful commerce or
they hide themselves in holes and cor.
ners, in miser's chests, or old ladies stock.
ings. They are like our deceased friends.
and "the places that knew them once,
know them no more"
1t may be expedent to consider some
Of the practical results Of this system by
way Of illustration. Bank paper is issu
ed in exchange for the promissory notes
Of borrowers; whose credit, depends on
the estimate placed upon ii oy the direc.
tors Of the Banks and that-set,inr
aside all other motives affecting their con,
duct-rests on their judgment of the val
ne Of the property of the borrowers, or
the judicious use they shall make Of their
loans. The loan once made, the Banks
have no further control OF the expendi
ture. As the poet sage has written, Dor
rowing "du!ls the edge of husbandryr;
and - the paper money, by which all
values are TO be measured, is frs, expes
ded, upon its issue, by the borrowers, it is
manifest that, as n whole it will not te
spent, or thrown into circulation, with the
most pruden. economy. Injudicious spec.
ula.ions aud extravaganza are promoted.
The borrowers compete with the res. Of
the community IN the markets o. com.
merce Tor every commodity, and thus
high prices are paid, higher than they
could or should bring if money were it,
self a material Of intrinsic worth, and
were confined to lis strictly legitimate
use, as the measure Of real value. Pro.
Perty OF every description rises in valua-
ton, while the sad truth is that it has
only become exposed to waste and mis-,
management in the hands Of the impru.
dent who are tempted, and encouraged
by the facilities Of borrowing and are
thereby enabled 10 ou,bid the economical.
The inevitable result is that property
changes hands from the careful TO the
careless and, however few or MANY ex
ceptions they map happen to be, among
a community, yet as a whole, there mus,
be waste and consequent. impoverishmeut
in proportion.
Again it is ssid that the value of gold
and silver is lost 10 the community to the
extent OF its use as money: "Arga,"
as that astute logician, the grave
digger in Hamlet might say, the
less money an circulation the better for
the community. True, il wood were scarce
men might use as fuel all superhuous yard
sticks !: and so with iron and lead and
copper for weights. 1t is sheer nonsense.
The primary value Of gold and silver is
their use as money. 1t is actual wealth,
more portable than the eoLsumable goods
and productive land it represents. Ilcsn
be exchanged for the former in foreign
countries; and therefore its possession
does add something really valuable to
the community, to be enjoyed at the will
OF the holder. Whatever amount Of real
money may be among people, more
than is absolutely necessary for the ex.
changes Of trade, is valuable as a reserve;
which prudent men keep about them to
meet the contingencies Of social life.-
That is its use ; and it is not Improbable,
because not loaned out at interest; and
thereby risked 10 the hands OF some Dor,
rover.
However, let the proposition be conce