Constitutional Whig. [volume] (Richmond, Va.) 1824-1832, 1831-09-29

eosnt Of bals Of exchange: and they received ff.oy
the notes of tho solvent State Banks, with which
periodical and convenient, but certain settlements
OF accounts made.
This system has been in operation for Sc
rcraI years. 1t at first experimental, and of
doubtful issue, and as the consequences were equal
~ Important to the Bank aud the community. its
progress has been watched with deep socitu,le-
Its SUCCESS therefore, has been seen with propor-
tionate satisfaction. Time and experience have
now demonstrated that the Bank has been able To
accomplish all the purposes for which it was crca-
ted, to rcctiy the disorders of the Currency TO sus
tain large and sound circulation and TO reduce
the commercial exchanges within the most ccononi-
cal limits, and this by means III themselves highly
advantageous to the community, not in any degree
injurious to the State Institutions and at the same
time profitable to tho Bank itself. The evidences
of this be best observed by comparing the past
and present situation of the currency, the cxcIan-
gos the country and the Bank.
]. Before the establishment Of the Bank, the cir
culuting medium of the middle, western, and south
ern States, consisted exclusively of an inconver-
Ibo paper money; every part OF that country suf-
tered under the most oppressive of all taxes in
dustry, deprecated currency; the commercial OK
changes between different States and differ
cnt ncghborlioods, wero burdcmcd with the fuctu-
atlons of their respective representatives of money,
while the Government itself, unable to make lis
funds received in section available for its OK
pondtures in another, embarrassed in the midst
of ITS nominal excuses of revenue. These disor-
dcrs arc now rcmcdicd. The local currences re-
morally are equivalent to specie within their res
pectivc spheres of circulation and large mass of
general currency is supcraddcd for pcneral crcuo
tIon That this effect was produced directly hy
the operations of the Bank, requires dcmonstra.
ton The extent Gifts contribution to the general
currency will be seen in the facts,
LIST. That since January l, 1893, il has furnished
To the Mint to be converted into American coin
bullion TO the amount of Sl2Ol61I5 a.
I'd That the Z. circulation of
the Bank on the lst of January
1923 was 45So tA6 co
And on the LIST of Aug. 1881, 1899, All 81
Making an increase of l7,SlO 600 60
From both periods deduction is to DO made of
tho notes In their passage between the Bank and the
branches The total amount known to be in actual
circulation on the lst of Aug. was SI9,3779l0
This circulation is in all respects equal and in
most respects superior, in value 10 any metallic
currency OF the same amount. Indeed, there is
not now, and probably never has been I'm auy other
extensive country, paper currency, comparable to
TINS tor the union of all the qualities of rood cir
culatng medium-pcrf'.ct sccuritv-cosv cnr
vertIbllity into the mctals-and general uniformity
of value -
The notes of the Bank, moreover, not only afford
sound currency themselves but they sustain and
purify the much larger mass of circulating r,ndiu
INTO which they are infused. By receiynp freely
the notes of the State Banks within convenient
reach OF Che Bank and its Branches and bv fire.
qucnt settlements with them these institutions ,rc
",
which naturally induces them so 70 apportion their
ISSUES 10 their means, as to the soundne IS
OF lhclr currency. OF the manner in which they
have executed this extremely delicate part of their
duty, which connects them with the State institu
tons, 1t is not for the Beard of Directors to sneak
but they bear willing testimony in favor of the
uPrlghtness and intelligence which generally char
acterlze the administration of those institutions
and the support which they have always Welded
TO any measures calculated to maintain the sound
ness of the currency.
On the few occasions where it has become necessary to
INSIST on the performances of their obligations from which
either want OF judgment or the pressure of ,prpt No
ceSsIty had Induced them depart the Bank has en-
'e7V"'ea 10 perform ITS own duty ih al the forhear
aEce consistent with the thorough execution of il; and
'hnse Institutions themselves have generally found in the
increased credit arising from fidelity their
foil compensation for all the npcrary Inconvenience
winch that hdeiuy required Ii is indeed confidently be-
ieveh that The solvent State institutions recognize in the
anNi 's true Character, as common frcnu jeal-
Gus r"mpe;Iio anG Mat the good feelings uniformly en-
,r''an:d for them by the Bank rs-bTocatcd rhev
Know that m du'!es OF its position make crly NOR,
promnrn! agent pre--s,,s The <o.ndue.s .f , en-
fsn1y on which their STABILITY aud p.osreriv equally
depend; and ia if its competition sometimes anne
10 preyen' more abundant profits they fad an ndemni,v
III .t general security OF property which tS o"srs'innz
have be ~ ''' beneficial 10 'r', THAT tits own nass
are eqm'''. .a specie % has contributed 90 make ,r.
"i me sac INST. S3'7'F .r. a...- ~Iiun thc.rre
Srrc'iv rs. s"i .a ,rauy OF these institutions e. -r.
lager Prrt.s Uau the Sank i.tjt
ID t.s fetu JoI 30 he uscnarErs er.-,.- BIZ. ...
ank t'on Inc eNtrssa.Eu, ch-lg.s a ..ar1t ,r.Es ta
the preseu. limits ug. 40, now ne ra,;icuIa
zsh n single fact will be sufficient IN usr1aie il r.
10 the Bank was organized the differences Of exchange
n favor of or against Ih'a+ephia in its relations with
the other commercial CT lee, As follows:
WIN Boston II per cent; with New York 81 per cent
"rh Baltimore, AZ per cent; with Masai.gion : ne,
cent with Charleston 81 per cent.
AtPs5en IN sc exchanges generally either at par
or al the utmost one hall OF one per cent
Tins has naturally followed the rectifcaon Of the cur
rencY As long as the general circulation of the United
states consists OF specie O. Its equivalents the rates or
exchange between any places in it can never much
nor ermaneniy va!y from the expense of their rarsoa
IiHn from one place 10 another; and reduction to near
" hai rate was the inevitable consequences Of the re-
sumption o specie payments The Bank has however
oeen ac 10 do more than this The large mas of H.
"ea"os ~ exchanges, by giving it funds in various
paris Oh me b"on which the Of its own business
as vel as that of the Government qures to be transfer
rec" furnishes with the of transferring AT The same
une the property Of individuals very reduced sx, euse
accordingly funds transferred the remotest ,,ort.
Oh me hn sometimes at whatever and al
"aSS WIN charges so moderate afford facilities oi
any other country ~
To be Concluded to- Morro17
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A