Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1820-03-24
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NATEONAL CURRENCY.

REPORT Or TIE SECl}h1.IRY or 7HE
1RR3NORl -UuNCLCVEu.
IL Whenever. ,rOW any cause, the currency
should become redundant, the Redundancy
may be funded u, a rate OF interest a fraction
below tie rae al legal interest.
IL drtrrmiuing the rate at which it may be
funded, due regard should be- paid 10 The rate
OF interest preyI0s>iy existing in the state.
The rate Ui interest, II is conceived, ou.h t
not to depend and, where a metailic currency
prevails, does not depend solely upon the a.
inouDt OF currency necessary 10 perform with
faculty, tie exchanges required by the wants
ana convenience OF society. IN u new conn
try, where there is but u slight accumulation
OF capital, the interest ofmcney will he high
Notwithstanding there may be even a redun-
dancy at currency beyond what is necessary
10 elect ITS exchanges. In such a country
all the objects upon which capital NAV be
employed, except those Of the most simple
Hlhu, are nnoccuPied. The currency ueccs.
sdrS 10 enect thv exchanges OF its properly,
moveable and lmDi0vsdbie, will he entirely in
3uincieUt To satisfy ihr demand for capital ter
ilose objects. Hit should be multiplied so
as 10 eQuod that demand, II would exceed the
denlaud tor the necessary exchanges OF socle-
~, aid, consequently, depreciate Surh, in
fact, II Is believed, would be the CONSEQUENCE
II ISSUING The currency upon individual credit
OF upUI the pledge of property, atd rate OF
intereht below thai Which previously existed
IN the state. Any change OF the interest of
money by law, previous 10 its having taken
piaCein individual transactions ia consequence
OF the accumulation oi capital, would be un-
tuSi, aId could not iaii 10 produce serious
lnCOnS cnieuCe 10 the community. Admitting
Ill" rate OF interest. ia a state about TO make
The experiment., 10 be six per cent, then lne
currency should be issued euly in exchange
sor specie OF Sax per cent. stock, or Other stock
according Ia ihat rdtiO. II the currency
sii n,d vr"", BY any meas acknowledgements
Cd BE- tGnddbic al tIN and al half per cent
Interest, tie ut.Gost depreciation, 10 which il
conid be subject, wo"id be eight amt one third
per cent. Bat II is probable dat the real de-
piesa0n IN ITS value wCnid not, at any time be
more than hdlf t.Gi amount. Before funding
Houiu coGnMehcv, The public Stock, ryCtivea.
OLE Ia exchange tor tie national currency
WIIid he above the tateS al which I was receive
anie. It's Issue upon Tie exchange of StOC K
would, therefore, nave ceased There are in
every community, capitalists who would pre-
Ter ieuulGg TO The government at five aud a
han per cent, than 10 Individuals at six
Z NC funding Oi The currency would therefore,
Begin before the Redundancy would offer any
general GndncemeIt 10 that mode OF reducing
It. The variation tn which It's value would he
subject, would therefore be less than eight
aud ons-tGiTd per cent. Il would be the III.
terest Of tue government to reserve the light
OF FGdSrmIng tile stock created BY funding
al It's par value ; under The condition, howe
vef, Oi rcdeemIn% Il according 10 the order
OI tItie in which al was created Connected
Wllh tbs system Mould I've a permission 10 the
banks 10 purchase public stock, bat not 10
diHpUAc or 1t, except 10 the government, at its
pas ga curTeui value, when under par, unless
ale Cove Ti,ment should decline The purchase.
Ahe currency. upon GPiHe funded, should be
Invariably cancelled. ender "A system OF this
sind, II no other paper was permitted so ear.
CUiete, than the n.IOndi currency, a reduu-
daIcy Which would aiiect its value could only
0ccaf i'y a temporary diuiUutiOu OF the drtI-
Cito winch were a. he exchanged through ITS
ius.IunsGtaitly. "a dat eVent, the pIiCe OF
tHe dtucieS would he eGiiduCtd, so As TO sc
qGie greater ahoGnt OF currency 10 effect
.Gslr exchange. Should the price not be en-
hIkcUd IN proportion 10 the diminution i'm
the qaanGty Of The articles, that portion OF
tie currency which would. under such en-
cUnsianCes, be left without employment,
would ice funded. \ just relation between tie
anJHni Of Cirreacy, aud the demand for it,
"Oui5 be promptly restored without affecting
inlurirusly, the relations between indiyidu-
as. Ca the other hand, should greater
quantity OF eAciIangeaDie articles be prOdu.
Ced, the demand for currency would eXCerd
lie supply, aud lead Immediately TO Additions
al Is.nes. until the necessary supply should be
Il .ed.
Bat In state where banks already exlsfei
WiHch derived their charters from the sOve-
Frignty that regulated tie cur, eucy where
Tie people we've accustomed 10 bsilh notes
att ~ me hahit OF receiving them, tic a,en,
~ OF csc Institutions might b" admitted IN
supplying apOrtOu Of tie currency. They
might he permitted 10 Issue their notes paya-
Die Oh deinand, iH the national currency 49,
.nair HOtes would Of COur.e he issued on per-
SOndl secJriIy, Ia this case, the currency
mt ut DCrpn,e redundant BY the Issues OF tie
banks. Whenever Ting should hdppen, tie
nanoHal cutrency world be demanded Of
iirm tor tbe purpose at being funded The
banks would be compelled TO curtaH theIr
discounts, 10 relieve Themselves tran the
pressure. aud The dnpdnf Of the carTrucy
"Gnid he promptly reduce to thr legitimate
demand. Wherever TIVE agency Of hdHRs
should be employed in furnishing part Of
the circulation Tgtu-dt Omission. ID
discharge insiT notes demand. in tic
national rutTeHcg, Should be- treated NJ 40
sCt Of b4n&mpfCy. I!ic tattO3ial CUrreu-
., being iecdl teuder in the payment
Of debt' 10 individuals and 90 Inc government,
would. IN 'yClatiou 10 the banks, petturm The
functions Ot specie, WHERE bank notes are
convertible into coiu. lint in Otder to iiu-
pose q s,iuisgy chcck against excessive Isl
sues Of bank uUics. HIr Rational currency
sEVuld alone b. receivable 40 al payments 10
49, uuert.
{n az auetapi 10 trace the probable results
~ ptpeT cnrruuCy. iDnnled up0u The primer
ptes which lHyc been developed ~ tie pre-.
rediug pages, tic influence which ia VII
nave UpOn foreign exchange requires invests
CATION. The want of stability, morality, aad
intelligence in ths government, which may
undertake 10 tub-titute paper for me-
ttilic cufvcncy aTe lhe objections which have
already teen considered. 10 these accOr-
ding 10 COnmOu opinion, is to be added, the
luIuuOus effect when, % is suprOsed, 81 viii
have upon foreign exchange In country,
%here tHc carreucy ~ mctdiiic, an uniaVOfa-
bie state 0i foreign exchange will probably
nave TIE following effects:
lst. 10 raise tive price Of exportabie articles
IS u,uch above thai, which they ought to
bear, as the prendrui PAID upon foreign
bills, uHHi Va exceeds the expense Ut eX-
porting specie 20 the foreign market.
I'd. When tuls rise exceeds the eXpeuce of
szeh sxgOrtssl0n, ths price Of csroflab!o