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Editorial
November 27, 1819
Edwardsville Spectator
Edwardsville, Madison County, Illinois
What is this article about?
As state legislatures and Congress convene, the editorial calls for a careful, national approach to reforming the U.S. currency and banking system, warning against hasty expedients and insisting that banks must pay notes in good money on demand to be trustworthy.
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OCR Quality
98%
Excellent
Full Text
The Currency.—As the period approaches for the meeting of the state legislatures, (one or more of which may be now in session) and of congress, the condition of the currency is a subject which presses itself upon the attention of the public with the greatest intensity.
It may be expected that there will be numerous expedients proposed by way of improving the circulating medium of the Union.
But expedients, in a matter of this serious and important nature, should be carefully guarded against.
The subject must be viewed in relation to the whole of the United States, or any remedy offered will be local and inefficient.
It should be considered with fairness, honesty, good temper, and a sincere desire to adopt the best means of cure.
With respect to a circulating medium, every citizen has an interest common to every other citizen.
Those who propose to bolster up tottering or insolvent banks, or any banks that cannot pay their notes in good money on demand, and those who denounce the whole banking system in a mass, are equally distant from the true correcting medium.
It is subtle, if not fraudulent, to attempt to sustain any bank, by entering into calculations of the degree of solvency or insolvency which appertains to it. The line of prompt payment of its notes, in good money, is the only true measure of its trustworthiness. It is the same thing to the holder of a bank note (though not, perhaps, to a stockholder) whether a bank, which will not pay its note, is near to, or far from, insolvency. Payment in true money, at sight, is the only satisfactory criterion.
A bank is not altogether like a merchant. It is, to be sure, a dealer in money; but for that very reason it ought never to fail; for real money is not a perishable article, and the directors of a bank always know what the state of their genuine means is. If they issue more notes than they can pay, they are wilfully culpable. Insolvent banks should be treated as bankrupts, but without the lenity shewn to merchants, who have a thousand risks, of the sea and otherwise.
Those who enjoy the people's confidence at this moment as legislators, should be cautious not to abuse it by sustaining wild projects,
City of Washington Gazette.
It may be expected that there will be numerous expedients proposed by way of improving the circulating medium of the Union.
But expedients, in a matter of this serious and important nature, should be carefully guarded against.
The subject must be viewed in relation to the whole of the United States, or any remedy offered will be local and inefficient.
It should be considered with fairness, honesty, good temper, and a sincere desire to adopt the best means of cure.
With respect to a circulating medium, every citizen has an interest common to every other citizen.
Those who propose to bolster up tottering or insolvent banks, or any banks that cannot pay their notes in good money on demand, and those who denounce the whole banking system in a mass, are equally distant from the true correcting medium.
It is subtle, if not fraudulent, to attempt to sustain any bank, by entering into calculations of the degree of solvency or insolvency which appertains to it. The line of prompt payment of its notes, in good money, is the only true measure of its trustworthiness. It is the same thing to the holder of a bank note (though not, perhaps, to a stockholder) whether a bank, which will not pay its note, is near to, or far from, insolvency. Payment in true money, at sight, is the only satisfactory criterion.
A bank is not altogether like a merchant. It is, to be sure, a dealer in money; but for that very reason it ought never to fail; for real money is not a perishable article, and the directors of a bank always know what the state of their genuine means is. If they issue more notes than they can pay, they are wilfully culpable. Insolvent banks should be treated as bankrupts, but without the lenity shewn to merchants, who have a thousand risks, of the sea and otherwise.
Those who enjoy the people's confidence at this moment as legislators, should be cautious not to abuse it by sustaining wild projects,
City of Washington Gazette.
What sub-type of article is it?
Economic Policy
What keywords are associated?
Currency
Banks
Insolvency
Circulating Medium
Bank Notes
Economic Reform
Legislatures
What entities or persons were involved?
State Legislatures
Congress
Banks
Legislators
Editorial Details
Primary Topic
Reform Of Currency And Banking System
Stance / Tone
Cautionary Advocacy For Honest National Reform
Key Figures
State Legislatures
Congress
Banks
Legislators
Key Arguments
Remedies For Currency Must Address The Whole United States To Be Effective.
Approach The Issue With Fairness, Honesty, And Good Temper.
Every Citizen Shares A Common Interest In The Circulating Medium.
Do Not Support Tottering Or Insolvent Banks That Cannot Pay Notes In Good Money.
Prompt Payment In Good Money Is The Only Measure Of A Bank's Trustworthiness.
Banks Should Never Fail As They Deal In Non Perishable Money And Directors Know Their Means.
Treat Insolvent Banks As Bankrupts Without Lenity Given To Merchants.
Legislators Must Avoid Sustaining Wild Projects.