Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1819-07-02

! 10 The contraction OF the issues OF their
paper. =
| The hiefrecommendaiion ofihis pan,
IN the opinion oi the CuuIuiiise, *, that
u will enable the Bank 10 pay their noies
III gold at a much earlier !,erad than they
could pay them III The present gcid eur
rency. There cannot, While this plan is
acted on, be any d.mand tor gold for the
purposes oi iniernai circulation; aud
wiiatcVrr quan,ii, II would he necessary
! tn piovihc, with The view of r-piaciu. the
sma!l notes ai PRESENT la circulation, may
therefore he dispensed ~Iih. That por
ton a.: capital which .oust oiherw Use be
applied 10 the purchase OF an expensive
and unproauctIve instrument OF com-
merce vii! be less available for the en-
ployment ofprotiuciI,e labour; or at any
| rate, time viii be afforded, during the
operation al the plan, Tor the gradual
| abstraction OF that capital, aud for the
accumulation OF such a stock OF the pre-
Cious metals az may enable the Bank
with perfect safety IL supply a metallic
currency. Although in The event OF gen
eral pane, and Wan, OF confidence in
iiie stability OF paper credit, the Bank
would be exposed TO The same demand
to which they would he liable were cash
payments resumed, Yet i, is probable that
The drain caused by sudden aud local
alarms would be greatly diminished, il not
altogether prevented.
In speaking oi this plan, MIR. Barring
observes, "undrr such systeG, The
whole amount OF bullion that would be- re-
CURED. must be that amount winch The
Bank would be under The necessity of
kcepins Tor the purpose o! balancing the
variations that ma, from time 10 time &C.
a. in, tl,p .,l M
different periods The state OF the Country
may require. and farther, any amount
which The public may be disposed TO
hoard. | shouldnot think that the amour,
80 required by the Bank could much eX-
coed hive or SIX millions, because should
not think that The contraction and eXpan-
sion OF currency al different periods could
go much beyond that amount Hoar;iing
would go certainly To a less extent than
uuder II system oi Coin, because there
could he no small boards, and persons
would be less disposed 10 hoard larger
sums when they had not the means of is
su!B them as currency, II they should be
disposed 10 do so, otherwise than by sell
Ing or carrying them To the Bank Under
these circumstances, l should iucliae TO
think. thai ten millions OF bullion wouid
be abundant for every purpose /; but II is
dlfHculi to speak wills accuracy OF I'LL I'M
tried plan"
Win respect to the preservation of the
standard Of value, Mr.. Barring states,
" That he Is qulle confident that tie
standard ot the country, and of course
tie par value of The paper. would he pre-
served III much greater purity than under
any system of COIN"
MIR. Holland delivered paper TO the
L tpp IN rniarn,,,a tn al a
Bullion Payments, in which he thus ex
presses his opinion can venture 10
assert, as a practical man of business,
that there will be little II any difficulty i'm
carrying II INTO effect. thai ii sill not um-
necessarily cramp circulation; that it will
not impede The ordinary measures, either
ui Government or The mercantile cOmuIi,-
niiy, bat that, on the contrary, ii will
restore order aud harmony, to :Ie sNS stem.
anu give To the country what all parties
who wish lis welfare, desire safe and ETH
cieni standard of value variable, il is
true, IN ccrlain degree, bul less variable
ihan any standard which any coanlr, has
ever vet established.
Your Committee viii now give their
reasons tor recommending the arrange
menf. ,.h'ch they have ,uss".t.c,, a.,
%naiing The mode IN which gold shall be
issued IN exchange ior Bank Aoies, be-
tween February LIST, 1920, and MAY Isl,
1921.
Tie Committee consider ii necessary TO
fix definite period at which the Bank
shall be under The obligation of issuing
gold al the Mint price; and a standard
be thus established to winch tie value OF
the paper currency shall conform, and by
which lis ISSUES shall be regulated. Par
lament has Oh more than one occasion
since The peace fixed a period for the return
TO aymentsinS specie ;aHd whenl II has con-
scented Ia afuriiIcr suspension ofthem, has
expressed an opinion that their resump-
ton was highly desirable ; aud has as
signed as the reason Tor continuing the
restriction, the eXpeiiency of enabling
the Bank 10 make such preparations as
To their discretion and experience might
appear most expedlent, for enabling them
10 resume payments III cash without pub
nc inconvenience.
The Committee, therefore, are DESTROYS
in recommending the further postpone
inent OF those payments, TO devise some
aidltional security that preparations shall |
he made Tor their resumption; to prevent
an impression OH the public mind that
further suspensions will take place /; and |
10 induce Il gradual accommodation OF |
commercial transactions, TO d system of |
currency which, being long discontinued,
would nOi be suddenly resumed without |
cs,raimi aud embarrassment They con-
rcIvc that such security will be best pro-
vIded, by requiring The Bank 10 revert at
an early period TO i!iatprinciple OF which,
10 the restriction act, their is
sHcS were regulaIed--a reference To the
price Of gold. They propose, therefore,
iIai time having been allowed for The re-
payment of a portion of The advances to
80, eminent, the Bank shall undertakcat
! given period 10 deliver gold i'll exchange
or their notes III the manner already de-
.rII,rn