Wheeling compiler. [volume] (Wheeling, Va. [i.e. W. Va.]) 1829-1831, 1829-07-01

the currency, when It IS considered that
Through its branches its influence Is extend
ed to the most distant parts OF the country,
and that all those acting under one head
can be brought to throw the circulation of
\ United States bank notes to points the
'Imost distant from where they are redema-
Ible with coin, or where it will even accept
them IN payment of debts due to itself
That there is no policy which IS practi-
cable for the separate and Independent
banking corporations ofthe states to adopt,
which Shall counteract the power Of the
bank ofthe United States over the curren-
cy. is clear--as easy would It be for the
militia Of the states, acting IN separate
Ibugadcs. to oppose the march of a we'll
organized and regular army OF the United
States: each NAV be very efficient auXIlla-
ries, though they would be feeble opponents
and subject to defeat and dispersion IN
detail. The banks of Maryland, Pennsyl-
vania, and New York, cannot, even with
/ in their own states, combine for general
purposes to promote their own interests
| ifthey could do so, they could not estab'
I6sh branches in different aud distant states
at which to make their notes payable, or
prevent their speedy return for payment in
lcoin. Nor is it probable If such combi-
nations were practicable, that they would
mot be adopted for purposes PreudIcaI TO
the public interest.
The power of the bank Of the United
States over the commerce is incidental,
arising from its ability to contract and eX
pand tho currency generally, as we'll as To-
cally. or partially, at any particular point;
to which may be added a specific graft IN
its charter to deal in bills Of exchange, a
privilege it has exercised to great profit.
Add as bills of exchange are as much ar
ucles of commerce as any other species OF
merchandise, a practical illustration Of the
operation and affect Of this grant may be
properly entertained.
Tit be tho interest Of the bank to pur
chase bills of exchange, It will Of course
purchase them OF the lowest terms at which
they can be obtained. The government OF
the bank is in Philadelphia--the president
and six or eight members Of the board
there are sufficient to digest and arrange
all measures which the interests Of the as
sociati0n require. Thence are issued or
dcrs to the different branches fo- execution;
their object may be the purchase Of bills
ON England to a 1rge amount, and the
southern portion Of the United States may
be selected for the field of operation. In
what way eau the purchase be made on the
best ternsl Orders sent to the branch
banks IN that section Of the country to cur
tail their usual discounts, and receive pay |
ments of the public revenue and all other
debts freely In the notes OF local banks,
which are a.oace 70 be sent IN for payment
in coin. wli produce an immediate scarcity
OF money within the sphere Of operation OF
such branch banks, ADD bills Of exchange
or other property must be sold by tudIyd
uals % raise funds to sustain their m2rcaa /
tile credit. Money beng scarce every
where batiu the hands oflho branch bank,
Ia sugnation ~ business Is produced.--
There are no purchasers; no sales can be
effected of any thing except bIls.ot eX-
change, and The bank Of the United States
only can purchase them. 1t then obtains
them on lbs own terms; a single month, a
single week, or indeed a single day, may
be sufficient to produce the et3ctIn mer-
camille community where commercial cred
IL is limited to an hour. The bank thus
having become the holder Of the principal
proportion of bills 10 that section Of the
union, resumes MS ordinary course ofbusi-
ness, and money clrculatcs as freely as
before. The bills are RENTED to Europe
for payment, and it is then IN situation
to become the seller Of bills. What then
is its coursc?-New York, Philadelphia,
and Baltimore are the principal importing
districts. and consequently the best fields
Tor operation a policy may be adopted
by the mother bank, and the branches OF
New York and Baltimore directed 10 pur
sue it, Of so far from curtaIlng their dis
counts, that they may temporarily increase
them, aud for a time payment IN coin from
tho local banks may not be required
Money viii consequently be abundant IN
those cities, aud persons indebted ia En-
rope win be competitors for bills with fall
hands, and the bank be able to Obtain the
highest price; it may then resume again
IT'S restrictive system upon state banks
The circulation OF the notes ofthe bank
OF the United States and ITS branches on
the first Of january 1925, was within a
fraction OF eleven millions of dollars. Ira
August of the same year, the circulation
had increased to upwards ofthirteen milf
ons OF dollars; giving an increase IA her
circulation at the rate Of twenty seven per
cant nor t,,,r