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

for his charter; Jul ulC
anonccd by such considerations; they nave
tbo mower and will decide, what vii mos
efsctuallv subserye their interests, Sho
this decision will no doubt be correct, tha'
I'll hanks shall rigldly comply with tne''
contracts Estate banks contract to Keep
tho standard value of their notes hlgle'
tban tho average standard value OF the
notes Of the bank of the United otaets,
,bov must do so, though the effect may DC
70 dcnriye them of all advantages arising
from the circulation Of notes.
OWN 10 the receivabiity of all the
,o,os IF The bank of the United States ana
~ branches in payment OF all debts due
- the government, they constitute a CIR
cuIatin9 medium in every part OF the y
States though they are of unequal value
NJ different places, when tested by the
standard ofcoin, according to the distance
difficulty and risk to be incurred IN their
transmission to the point of payment Inc
difference in the intrinsic value OF note
of the hank of the United States, between
Baltimore and Philadelphia, Is not mucll
II IS true: but the difference IN the intrinsic
valne Of 4 note of the bank OF the United
States. pavable at It's branch in New Or
beans. AT New Orleans. and at boston, Is
NOT q trae. and would be much more than
Il now IS. were it not that the bank Is colS-
Delled TO receive it in the payment OF the
revenue. This obligation on the parton
the bank. while it has its inoonve9lencles
on the one hand, has its bene'l oE the 9th
er-it prevents the value of rs Hotes sink
inr so far below a metallic standard, 10
any pant of the United States. that they
will not answer the purpose OF a cIrcuIat-
ING medium, ar Il Is fact well known
that where a cur cy is composed OF two
characters of different value that which Is
least valuable viii remain ~ circulation,
while that which can be most easily eX
changed for coin, will be returned Tor
redemption. Hence the policy Of the bank
og the United States, in issuing ITS own
notes freely at all lis offices, from, which,
by degrees, they ind their way 10 every
part of the country, and receiving pay
ment in the notes OF all solvent state banks
in the neighboruood ofthose offices. which
notes are Immediately convertible INTO
coin. The bank of the United States
therefore, furnishes currency less purely
metallic, and OF course less valuable THAI
the notes of state banks, whose sphere Of
circulation is limited TO the neigad0rhood
of their location; then notes arc easily col.
ccted and returned for payment throug
the agency OF the branches OF the bank o.
tn, United States, while those branci
banks may put in circulation such note
of the bunk of the United States as the
will not accept IA payment Of debts due g.
themselves If It be the wish OF the ban
Of the United States 10 maintain pur
currency in the country, 1t ought 10 set tn,
example and raise the value Of its owr
notes to the nearest point of metallic
standard, by accepting them N payment o.
all debts due to iisolfnstead Of restricting
their reception either to distant places or
lin paymuent of the revenue.
But ia Justice to the bank Of the United
States it must be admitted, that from ia.
time of IFS establishment W to the yo'.
1922. its administration was surrounlaf
with many difficulties; to restore the CO..
rency of the couatry to legal control. Of
was necessary 10 reduce il IN amount a
OF. two-thirds; this operation the bank %.
the United States was enabled to periOl 10
through the fundamentally Of It's branCle-
and state banks. though with much hazard
and loss TO the stockholders. 4 persoyor
ance in the samo policy by that bank since
the wear 1872, after the object had been
accomplished, has enabled II to augment
the circulation Of IT'S notes from i've aud
an hllfto thirteen millions of dollars, By
decreasing tho quantity ofstate bank notes
IN tlo same proportion, without In the least
degree improving the purity Of the currcn-
cy. The result Of a continuation in thar
policy few years longer cannot be mis-
taken.
The question then arises, whether GO.
faith towards the pubic, aud the intere
of 5, .khoIders in state banks will no.
jusiify those banks 10 the adoption Of
policy which viii impose upon the bank OF
the United States the necessity of raising
the value Of rs notes to a par with state
bank notes m every part Of the United
States where they nay circulate, or throw
upon II the responsibility Of furnishing a
currency less pure than !. was established
to maintain.
lftms question shall be answered 10 The
affirmative, the operation my he perform
ed by state banks issuing notes payable
10 the notes Of the bank OF the y. States
or coin. AZ fhalr nnilnn . Tnia VII haue