The Crisis Met: A Reply to Junius

5 granting unequal privileges to a few to allow them to make money out of it, and hence it is anti-democratic in its spirit and tendency. Third—That feature of the Bill which requires that after 1843 the public dues be paid in specie, will be a full check to the various State banks, by preventing their over-issuing their bills. The effect will be simply this: The banks will be careful ho w they issue, knowing that the people will not take their bills at par unless they are at all times redeemable inspe* cie. If they are not thus redeemable they will necessarily fall below the standard which the government has established. This will most effectually “ regulate the currency,” and in a way which no one can complain of. It violates no state rights, it meddles with no banks, it passes no invidious laws. simply saying what kind of money it will receive, it places a great balance wheel among the ten thousand minor wheels of the monetary system. The power of the banks to expand their circulation, and venture far beyond the bounds of prudence will be checked. Why do prices constantly fluctuate in community and make all kinds of trade so uncertain ? Because of the constant fluctuations in the issues of banks. At one time they shut up their vaults, at another open them and'deluge the land with their floods of paper promises. At one time they lend to all who wish to borrow, then “money is plenty,” as it is called, speculation drives on, prices rise, contracts are made for merchandise, produce, lands, houses, etc., etc,, at these high prices. Now comes the pinch—the banks contract their issues—they call in their loans and stop lending. Now prices fall, panic ensues, and no matter how plentiful the crops may be, or how much the God of providence has blessed the nation, the country is distressed. The whole course of nature is disturbed by the sudden contractions and expansions in the circulating medium. The following is a table of the Ioans of the banks indifferent sections of the country, showing the great fact that the banks, without a check, will play with the people’s interests like children or mad-men. Let the following table be carefully studied: 1837. 1838 1839. 1840. Eastern, $96,730,941 87,823,578 81,232,448 70,844,012 Middle, 150,619,548 122,632,142 133,348,675 121,942,993 Southern, 54,469,236 54,446,061 57,600,484 45,946,334 S. Western, 112'457,163 129,732,374 135,128,216 107,831,136 Western, 43,308,359 38,915,459 43,149,555 37,410,953 U. S. Bank, 63 746,114 45,715,300 41,618,637 36,839,593 $521,331,346 479,264,934 492,278,015 420,815,021 Says a New York journalist—a whig too—“ The power of the banks to create these immense fluctuations grew out of the absence of all demand, foreign or domestic, for coin. Specie, consequently, laid quiet in their vaults, and accumulated in proportion to their issues, which drove the metal out of circulation. As long as the basis remained thus undisturbed, the mass of paper money could be accumulated to almost any extent This could neverbe the result under the operation of the Sub Treasury scheme. A con» stant domestic demand for specie wdl be kept up, which will prevent any one bank from extending its issues beyond a just proportion (o the specie held by it, or from risking the loss of the control of its circulation by discounting long dated bills.” The Independent Treasury will, therefore, act as a bulwark against the abuse of the powers which the privileged class, by their banks, may seek to exercise. Fourth—By the Independent Treasury Bill, the Government's obliged to pay all its debts with the same money it receives; that is, after the year 1843 entirely in specie. This will keep gold and silver in extensive and uninterupted circulation. If it owes money to its pensioners, its sailors, its soldiers, its mail contractors and the like, it must pay in specie; and this, whether it be in Maine or Florida, and from the Rocky Mountains to the sea-side. Under these circumstances, a metalic currency must at all times be in circulation at all places, In no other way, it is fair to presume, can a sound basis be maintained for a mixed currencv. It is not possible, in the limits of this pamphlet, to go into full detail as to the merits of the Independent Treasury Bill, and of its purely democratic character, as opposed to the Exclusive Privilege principle. Let us sum up those to which we have alluded. First—It dissolves, forever, the government connection with the banking interest, making no war on the latter, but simply leaving it to the several State Legislatures, and to the natural wants of trade. Second—It obliges the Goverment to collect, and pay out, under the direction of Congress, its own funds. Third—It requires the public money to be paid in something worth at all times and in all places, one hundred cents on the dollar. And by so doing places a bridle on the expansions and contractions of the banking interest. Fourth—It gives, to as great an extent as the General Government has the power to do, a metalic currency to the nation. The whig orators and editors strain every faculty to deceive the people as to the true

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