Supposing about fifty millions of stock to exist in the United States, and that about eighty millions of bank currency are circulated, it follows, as before observed, that the nation pays at least five millions annually for the bank currency, and loses the use of fifty millions specie, worth annually three millions more.
These eight millions are annually paid by the nation, to gain thirty millions currency, more than it set out with. The price paid for this additional currency amounts to about twenty-seven per centum per annum, Which is the better policy; to give eight per centum for money, for the purpose of attacking France or England ; or twenty- seven, to raise up a separate interest to attack our form of government?
But if the fifty millions specie performed more useful services than the eighty millions bank currency, the computation settles in the fact, that we pay a difference of five millions annually in favour of an evil. This is an errour still more egregious. It is taking up sorrow upon interest. A nation which can count, will see that direct pecuniary orders operate as their indirect predecessors have done.
Our calculation goes upon the favorable ground for banking, that the stock is in specie, ready to meet the notes, or to come forth upon a national emergency; but if this stock was never real, or if the specie is banished by a redancy of currency, so as gradually to reduce the supposed specie stock to paper credit; the total loss of so much coin, and the possible misfortunes which may arise from an inability to meet the debts of banking by real money, would constitute no inconsiderable items of additional evil bought by the nation.
The evils bought with debt stock, have been often compared to those obtained by banking. Compare also the riches they bestow on a nation. One does not expel species the other does. One collects five or six per centum interest the other ten or twelve per centum charges and dividends. Ah! but these dividends costs nobody a farthing. Well! let us call the interest of national debt % dividend, and the debt is no more.
