Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1834-05-02

- NN' SNHSuS ia phStnf 10 any advantage without A
liberal sys'e" OF credit. and a facility of obtaining money
on loan wheo the eNigrncies OF their business may ne.
q"ne IL. This cannot he obtained without the aid OF .
paper c'rculatoni founded on credit. IL IS there fore not the
interest oil this country to Pot down the paper currency
altogether.
The great object should be, 10 give to il n foundation, q,
which It will saieiy stand. A calculating medium com.
po'ed OF paper and gold aud silver in Just proportions.
would not lie liable to be constantly disordered by the acct.
uen'a, ehnoarrsssm.nts or inprudences OF irsde-ncr by a
cou.bina'ion OF the moneyed interes,s for political pirpo.
ses. The value OF tie metals ia circulation would re.
=. ee ssme, whether There was a panic or not, aud
me proportion oil paper being less, the credit Of the banks
could not be so readily impaired or endangered.
STATE OF me currency then, which is proposed in The
foregoing observations. would provide silver aud gold Tor
ordinary domestic purposes, and the smaller paynen,s-
anu the banks OF the different States would easily be abb.
" 'uI'ish exchanges between distant places according to
'he wants VI commerce. There cannot, therefore, be any
necessity Tor a paper circulation Of general credit through.
out the country. Funds are more conveniently and SAFELY
uahs'err,u ,o", p'aee u place by drafts aud bills OF ex-
change 'h'n 10y bank notes. The Immense Operations be-.
tween d'tierent parts If the u. States, are now chiefly car.
o u ny 'his means, and il is only in particular places
Us, % comparatively small amounts, that notes are used
~ 'ne local Institutions would, without doubt. in a very
SNORT on'e make arrangementsa muns themselves 10 furnish
49, .N."anges wheh commerce requires, and the comps.
uuoh among many would reduce the rate of exchange To-
IL proper level. Besides, they would find il their interest
w make agreements among themselves TO hcnor each
o'hers notes 10 a certain extent, and thus furnish, as far a,
,ms"'o We necessary; paper currency Of general circula-
uon' III such places as would be likely, from their i'm.
fTSour,c with each other, to require such a convenience.
But he establishment Of such a paper currency ouyb,
no, Ia have any aid, direct or incide nial, by legislative pro.
VISIONS. "hiie II rests npon mutual arrangements among
The Bshks themselves, key will keen the issue of each
oher within proper bounds. Bot when they are able to
extend their circuit by any legal provisions. in favor Of
,"er n0es, Ve temptation is constantly presented to avail
themselves oi this advantage and over issues and over.
~ s " "re we necessary consequences. IL, however, a
different policy should be deemed advisable. the aJv,n,.-
gee now gwen oy law To the Bank Of the United States
n,'ent easily be extended TO the notes OF the deposi,orv
Banks, and II their notes were made receivable in nav.
"e"' y, d' oeots TO the government, their currency aud
general credi, would be quite equal to that now enioyed
by the Bank Of the u. States. believing, however IN, a
such a p DIVISION would be calculated 10 increase the issI,s
OF paper, | cannot recominend il. The chief obiect Of tho
p'a" 4 Pfopo e u, 10 increase the proportion of the metallic
currency without diminishing inconvenien,Iy the y.uer,I
mass oil the circulating medium, and any provision tend.
ing 70 enlarge me proportion OF paper be yond what the
pubic convenience requires, should be stuiiousiy avoided.
Tie advantages Of the proposed plan over the presen,
currency VIII not be conined to the superior stability Of
the paper circulation.
me iaooring classes Of the community are now pail
,heir dsiiy or weekly wages, in hank notes of the smaller
denominations, anu II there are any in circulation nj Jonh,.
u value anu appreciated in public estimation, they are too
often used in payments TO The poorer and more beInless
classes OF society. They are not always Judges OF the
Vaiue or gehuIneness OF notes offered TO them; and conse.
quenHy, are often imposed upon, aud their small eIrninos
sun more diminished, by the deprecated character q r en-.
.me wor'h'essiesso OF paper In which, they are paid. II the
a''erauon suggested should be adopted, the smaller notes
would soon be banished from circulation every where, and
the lsoonrers would, therefore, be paid in gold and silver.
and that portion OF society which is most AMI IN sue.r fron,
worthless or deprecated paper, aud who are least ahIe "a
The loss, would be guarded from imposition and ipius.
uee' Ii Is time that the just claims of this portion of so.
cie'y should be regarded IN our legislation in r,Ia,ion IN
me currency. So Tar we have been providing facilities
Tor those employed in extensive commerce, and have lief,
the mechanic and the laborer TO all the hazard, Of a n in.
secure and unstable circulating medium. ""
IL may be objected TO this plan, that i'm giving /, = ,b.
Exeeu I'VE Department. The power Of selecting those Fl.
Cal agents from among the state Banks, an undue ioHu.
ence may be exercised over them, and the power be used
Tor improper aud corrupt purposes. The answer 10 il an.
pears 10 be a plain one. The States in which those insthu.
lions are situated, can at all times control them. and
would efIectuaiiy in.erpose to prevent, such abuses nj NOV.
e' Besides, with the diminished revenue which will
hereafter be collected on the reduced tariff of duties. il is
'mpos',o,e 10 Imagine that the gains to be derived from
he public Geposites, when distributed, as thew mus, he
among so many Banks, and among so many stockholders in
each Bank, can ever be sufficiently important, to ,empi
them TO swerve from their duty, or TO influence in anv
respect, their conduct or opinions.
but II Is proper, no doubt, in all eases, TO restrict poi,i.
car power WI hh certain aud defined limits, and il will
be advisable, therefore, TO regulate The selection in such
a manner ss TO remove all apprehensions of its abuse
he following are respectfully suggested Tor consideration:
IL the danger OF abuse is considered Ivy Congress a g on.
Of any magnitude, and as likely TO produce improper iudu.
ence. II may be etiectuaIIy removed, 10y makisg n the din.
~ OF the Secretary OF the Treasury to divide the depo.
sites amoug all the incorporated specie paving Banks oT
the place where the revenue is collected in proportion TO
heir respective capitals actually paid in, provided thew are
all willing 10 receive them upon The terms prescribed nv
law, aud 1t they are not all williag, then among so ,nany
as would agree to take the .
Every danger OF abuse in the selection will bv ,his
mode, be taken away; and the safety 81 The money conIJ
be secured, by authorizing the Secretary of the Treasury
10 demand security iroIh any Of these Banks, when. in hi,
Judgment Tie public interest required il; and there might
also be a prohibition against removing the money to any
place, except where II was immediately necessary for The
purpose oi disburse Inrni.
This mode would some " hat complicate The o,or,,;o,s
o. ue department. Yet 10 not perceive that it would
produce any serious Inconvenience to the public service
IL might, eid probably would, make il nsressaIy Il. npIov
one or two more Clerks in The Department. But that
would DE but a small considerations, il il be deemed all.
'isab'e 10 take from The Executive all discre ion 90 Tho
subject.
IL, however, Congress should agree with me in II,
posing that the danger apprebended from this discrchoni i
more imaginary than real, 1 would then respectfnIlv nro.
pose lbe following regulations:
l. That the Secretary of tie Treasury should annually.
al the beginning OF each session, report to Congress tie
Banks which had been used by him. during the wear, a stbe
repositories oil the public money.
z. That the Banks once selected 40 tho lie pu,iuries M
the pubic money, should be continued a. such, unless. in
the Judgment OF the Secretary of the Treasury. the pubIic
interest required Tie depository TO be changed: in which
case, he should report TO Congress, at its next session, the
reason OF the change.
3. That, III all Cases where there were two or more
Banks AT The same pace where the revenue is to be de.
posted, at least two should be EMPLOYED az the deposi,o.
ris OF The money oil the United States, if they ate ,sI
ling to receive II, and give the security that may be re.
quired.
4. Where there shall be no banks at the places wbere
Tue revenue IL received, The money shall be ,Ieposi,,d in
such places as Tie Secretary shall direct, subject 10 ihe
same obligation TO report 10 Congress.
D. no bank TO be seiec ed as a DEPOSITORY of the n,b.
iic money, or continued AZ such, which shall deal in .nv
stocks, except those OF The Stale ia v Inch il il situated
or OF the Unied tales.
g. After The third OF March, eighteen hundred and nir.
'y-six' no bahs TO I've used as the Repositories of Tie public
money, "hich shall issue or pay out notes below five dol.
lars, and the notes oil no bank To be received i'm u,vn.,,
oil debts due 10 The u. States, which shall issue or 80 om,
notes oil a less denomination than ihat above meni1,ed
aver me nNne aiofesaid. nor shall any bank he q deposiiorv
S' PuOhe money which does not pay specie on demand
Tor its noiea.
E-HI. Rail a.I-u,- IN