But experience has now proved the mischiefs
and dangers of a paper currency, and it rests with you to determine
whether the proper remedy shall be applied.
The paper system being founded on public confidence and having of itself
no intrinsic value, it is liable to great and sudden fluctuations,
thereby rendering property insecure and the wages of labor unsteady and
uncertain. The corporations which create the paper money can not be
relied upon to keep the circulating medium uniform in amount. In times
of prosperity, when confidence is high, they are tempted by the prospect
of gain or by the influence of those who hope to profit by it to extend
their issues of paper beyond the bounds of discretion and the reasonable
demands of business; and when these issues have been pushed on from day
to day, until public confidence is at length shaken, then a reaction
takes place, and they immediately withdraw the credits they have given,
suddenly curtail their issues, and produce an unexpected and ruinous
contraction of the circulating medium, which is felt by the whole
community. The banks by this means save themselves, and the mischievous
consequences of their imprudence or cupidity are visited upon the
public.
Pages:
704
705
706
707
708
709
710
711
712
713
714
715
716
717
718
719
720
721
722
723
724
725
726
727
728