Wednesday, March 25, 2009

The Panic of 1837 (7)

Volume: III Page: 340 (extract)
"Amidst all conflicting theories, one position is undeniable, the precious metals will invariably disappear when there ceases to be a necessity for their use as a circulating medium. It was in strict accordance with this truth that whilst in the month of May last they were everywhere seen and were current for all ordinary purposes they disappeared from circulation the moment the payment of specie was refused by the banks and the community tacitly agreed to dispense with its employment. Their place was supplied by a currency exclusively of paper, and in many cases of the worst description.

Already are the bank notes now in circulation greatly depreciated, and they fluctuate in value between one place and another, thus diminishing and making uncertain the worth of property and the price of labor, and failing to sub-serve, except at a heavy loss, the purposes of business. With each succeeding day the metallic currency decreases; by some it is hoarded in the natural fear that once parted with it can not be replaced, while by others it is diverted from its more legitimate uses for the sake of gain. Should Congress sanction this condition of things by making irredeemable paper money receivable in payment of public dues, a temporary check to a wise and salutary policy will in all probability be converted into its absolute destruction.


Source of Information: " A Compilation of the Messages and Papers of the Presidents 789-1897" By: James D. Richardson....A Representative from the State of Tennessee. Publisher: by Authority of Congress..1899. Ten Volumes total. Copyright: 1897 by James D. Richardson; New International Encyclopedia, Dodd, Mead and Co.-NY, Copyright: 1902-1905 21 Volumes; The Bicentennial Almanac, Thomas Nelson, Inc. publishers, New York. Copyright 1975; The History of New York State, Lewis Historical Publishing Company, Inc. New York (1927)

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