50 BANKING THEORIES IN UNITED STATES

fix the payment thereof upon the purchasers in that hasty manner
 which the rules of the bank required. . . . Whereas if it were
not in existence, they would be obliged to take produce in exchange
 for them.” Others thought that it is only in countries
having an unfavorable balance of trade that banks are disadvantageous
 in this respect.? Nor were the sponsors of the bank
more resourceful. One professed himself unable to understand
how the bank could possibly facilitate the export of specie by
lending money that had to be repaid at the end of a short period.
“Only a foolhardy borrower,” said Robert Morris, “would risk a
shipment of money which must soon be repaid.” * The balance
of trade is unfavorable, he admitted, “but why bring this in
as a charge against the bank? Has the bank engaged in commerce?”
 5 The opinion of Benjamin Franklin, in his reply of
1764 to the Board of Trade, was invoked in support of the idea
that, instead of the issue of paper money driving out gold and
silver, it is the loss of metallic money through an adverse balance
of trade that always brings the necessity of substituting some
medium that cannot be drawn away.® Thomas Paine contributed
a pamphlet in which he scathingly ridiculed the report of the
committee of the Assembly. As for the committee’s contention
that a bank induces the export of specie, he argued that the
reverse would rather be true. ‘Specie may be called the stock
in trade of the bank, it is therefore in its interest to prevent
it from wandering out of the country,” for without hard money
a bank cannot carry on its business. The bank “serves as a
sentinel over the specie.” 7 This attitude was taken by several
of the controversialists: banks are institutions which at once find
it most to their interest to retain a large amount of specie in the
country and are at the same time best able to effect that purpose.®

1 M. Carey, Debates and Proceedings (1786), p. 15. See also, Remarks on a Pamphlet
 by James Wilson, etc. (1785), p. 10; Nestor, “Thoughts on Paper Money,”
American Museum (1787), ii, 40, 41.
2 Carey, Debates and Proceedings (1786), pp. 15, 24.
8. 7bid., p- 31- 4 Ibid., p- 51. 8 Jbid., p. 90.
6 Barton, “True Interest of the United States,” American Museum (1786), ii, 32.
7 Paine, “Dissertations on Government” (1786), Writings, ii, 155-168.
8 Carey, Debates and Proceedings (1786), p. 52.