Cheraw gazette. [volume] (Cheraw, S.C.) 1835-1838, 1837-07-19

Sluer1tlON IS, titt SUCH 4 currency tdt! Have
no other basis than the precious metals,
into which 1t Gun at any moment be co0-
,er:eJ. This result this scheme eticctua!y
secures, and am not aware 0? any other
bv which ii can be secured.
To do this it is indispensable that Spcc;c
should be Obtained in sufficient quanAIv,
and that there should be Il proper limitation
10 paper issues, Under the existing state
Of things, the banks are the great dcpos!,o-
ries of specie, anG the sole manufacturers
of paper money. They exist under the au-
shorty, and are maintained by the power OF
the States. The whole nation has adopted
them as necessary TO the welfare or the
community, ard they arc too Intimately
connected with tho concerns OF every man
in active life 70 be dispensed with. Any
feasible scheme, therefore, 10 be Success
iul, must, 10 a reasonable extent, be adj
dressed to their interests, which are, H.
deed, in certain sense, the interests OF the
whole community. The Secretary OF the
Treasury, in his report Of December e,
1885, estimates :ao s7cc!e IN The couA:EE
q. seyca'v three millions, Of whicA forty
five millions were in banks. This amount
has been since reduced bu. there can Dc
10 dolb. that the banks sill possess, 1r have
the means of Obtaining, two-thlrds OF the
specie in the United States, and, it may be,
cf obtaining fresh supplies from Europe.
While their payments in specie are suSpen.
ded, il must remain locked up, and canno'
be reached by ordinary means. Ih!S plan
holds out an inducement TO them TO part
with their specie by giving them an cqu'va-
iert for it some may think more than al
equivalent. According 10 i, when IL tu
operation, the United States will possess
fund of fifty millions Of specie, for when
they will have absolutely gwen th2 banks
their pronlissory notes, payable OF dcm2nd
in specie, TO the amount Of fifty millions:
and loaned them at two per ccntum per an
mum a further sum Of such noes to the
amount Of scvcn;y-tivc millions. These
United Sta.cs noes will eventually coastt-
tu;e the sole currency Of the country, the
banks being inhibited from issuing any
other. Comparing their present circulate"
Il. one hundred millions, and Their dcpostes
at like amount, they must retain IN their
vaults sufficient amount of the United
States notes to meet any demand that may
be made upon them. Fifty millions will
fully answer this erd. Saoull ran at
any time be made upon them to larger
amount, it can be readily met by cartaii
of discounts that cannot fall short OF four
hundred and fifty millions.
Let US look at the reciprocal benefits as
70 strict moneyei interest Of tbs plan, 10
the banks, and TO the nation rs represented
b. the Government.
First, rs 10 the banks.
They now hold the greater part Of ;hc
specie Of the country, winch gives them
IN immense power over It's moacycd al.
fairs.
They possess tie sole power OF making
paper money at present the only c2rr1Hcy
IN existence.
By this plan they surrender bo;h these
to The United States.
They receive in r@turn fifty m;,,;ons of
paper for like sum in specie, so far giving
much more than they receive.
They also receive on loan se1enty-Hve
millions of paper, for which they will pay
annually two per cen um Interest, making
the difference be,wcen i aul fair rate Of
interest without risk, which may be COM
puted at five per ccn:um, which vii! yield
annually two and a quarter millions, for
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