Article Text
Bank of Hudson. - The Northern Whig, printed at Hudson, says that this bank no longer redeems its paper in specie, or the bills of other banks. If the writers in some of the southern papers, who are recommending a suspension of specie payments, and a more liberal issue of bank bills, would shew how this notable scheme is to promote the local interests of those places where it is adopted, their labors would be turned to some purpose. We can venture to assure them, with entire confidence, that in this city there will be no suspension of specie payments, although every state bank south of us, should fail. All debts, therefore, due to this city, must be paid in money current here; all debts which are due from it, can be paid in the money current where we owe it: in this case, who will be the gainer? The Bank of the United States, and the banks of this city, can furnish a currency redeemable in specie for the whole nation, and they will do it though all the other banks fail: the necessity of such a currency for the payment of taxes will ensure its wide diffusion; the debtors to government must procure it. The fall of prices, which is the real cause of the public clamor, is not owing to the want of money, as is commonly, though erroneously supposed, but to the want of a market. The demand of consumers can alone raise the value of produce; the medium of purchasing it is abundant, if we had but a market to carry it to. The want of such a market is the only evil; and the only cure for this evil is to buy no more of foreign countries than we can sell to them. To attempt to raise prices by increasing the circulating medium, is only to make the same quantity of produce pass for a greater nominal amount in paper: bank bills will fall, if not redeemed; but property will not rise. Time and the laws of trade will restore things to an equilibrium, if empirical legislatures do not rashly interfere to interrupt the natural course of events. New-York Evening Post.
