Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-02-06


probably no tendency in itself 10 lessen
the average amount Of specie empIove ed
In the country, il produces, under tile
present mint and bank system of the u.
ota'es, lie most inconveaent effect ON
me currency. The general demand of
the commercial world for the material Of
WHICH we make our money, is useful by
giving stability to IFS value. But If a
| state OF things be supposed in viii, n one
country has a constant demand for This
money, taking from US nothing else. while
we are Obliged 10 keep up our auasiity Of
ImpoTtations from other states, il is obyi-
GUS that demand and simnIy hike this.
insiead OF making our cir ulati0n cuna-
Ole, or prepor,ioEed 10 our wants, must
produce that very instability in the value
OF money which the precious metals are
enpioyen TO remove. Undoubtedly a
MARION, Ike an individua3if it owe debt
must pay 1t; and If it have no other
means OF payment, must even export its
coln for the purpose. But, although This
expectation ,annot be prevented. When =
general balance exists against The nation
II Is still true, that the coin or monee of
the country should not be The object Of
regular remittance in any foreign trade.
Nor Is II so " III any commercial nation
but the U. States.
But The Inconvenience of making the
coin or money OF the state, the object Of
regular remittance IN foreign trade, is
greatly suhanced in country which.
like The United St5tes, has mixed cir
culation OF specie and OF the paper of
banks OF discount
While these banks remove large por-
ton OF coin, whose place they suppIy hy
their notes and credits, they give a new
character TO that which remains. Their
obligation. TO pay specie upon demand,
makes II the most important Office of the
precious metals, o.regulafe and restrain
The issue, and to support the credit of
bank paper.
A prosperous condition of trade, an
abundance OF native products, and a TO-
reign demand for them. which requires
large circulation, produce an increased
issue of paper on the part of The banks.
This very prosperity is the incentive 10 a
trade 10 India, which not only abstracts
very largely from the silver coin of the
country, but Obliges the banks 10 with
draw siill larger amount of their paper.
Under this system, indeed, the importa-
lion 0j what the laws make current coin
is encouraged, as well as its expectation
but The quantity OF our money and its
value tiucinate with the seasons and tile
winds. The banks are Obliged TO con-
tract their discounts, not only by gen
eral or durable state Of exchange, but
from temporary causes, and from the con-
diilon OF particular trade.
But the India trade, under the present
system OF our coins, produces another.
and, ultimately peEl,aps, worse effect
upon the operations of the banks. We
have spoken of the Inconvenience which
That trade must cause, if the banks which
issue paper redeem il by specie " henever
II is presented. On this supposiiIon the
merchant will make no effort TO prepare
the bullion or the Spanish dollars which
he wants for the India market: the bank
collects them without charge; he will
draw from that reservoir, and avoiS the
risk and trouble of the double operation.
But the banks do not always paw specie
promptly and willingly when il is reouir-
ed for the India trade. Their resistance
indeed must he often Intellectual, although
II costs something to the merchant and
gives some profit 10 the broker. But If
a combination of banks eau close their
vaults whenever the public interest NAV
seem to require il, the best limitation up
on The issue OF paper is destroyed, and
Tie stability of our currency, and The ex-
ecution of contracts, have no higher secu-
riiy than the public spirit and disinfer-
estedness of their directors While our
COINS are such as it is the interest of tile
merchant habitually 10 remit TO India, the
apology for evading their engagements
will be sometimes made by the banks and
encouraged by The people.
Whether we are TO have banks or NOT.
however, the principles which ~ould pro-
scribe The India trade, are incompatible
with fair and wise legislation but it is
desirable that regulations of the mint
should be such as may prevent that trade
from alternately filling and draining the
circulation of tbe coBntry such as shall
not encourage f!ie merchant TO make its
coins the regular subjects of foreign ex-
pertafion.
The Inconvenience which have been
attributed 10 our present 81 STEM of COINS.
would IN great measure be removed. If
gold should be made the oUly legal tender +,
Tor all debts above a moderate amount.
In favor OF such prov lsion, IL NAV Justly
be said that there has been less variation
for some centuries in The value of gold
than of silver, and that il would avoid The
embarrassmenis which dre isseparable
from mixed circulation Of boil, metals.
The balances of payments beineen differ
emf states would be settled with more casa
than if our coins were principally silver.
and the traveller would be relieved from
the loss and imposition which lie fre-
queutly suffers when lie carries with him
bank notes, the value Of which must vary
with The course Of trade, because their
cannot exiinguish a debt.
though il may change lis form and its
parties. But, whatever may be the adj.
yantages of circulation, consisting priu-
cIpally OF gold, we have been too Iong az
cushioned To- consider silver as The priH-