Virginia free press. (Charlestown, Va. [W. Va.]) 1832-1916, 1837-09-14


greater than are asked for by the warm
est advocates OF such an institution
here, has also proved unable TO proven,
nj undue expansion OF credit, and the
evils that flow from il. Nor can find
any tcnable ground for the re-establish.
rnent of national bank, in the de-
rangement alleged at present 10 exist
IN the domestic exchanges of the coun.
ny, or in the facilities it may be capa-
BILE OF aiiording them. Although ad-
vaniages Of this sort were anticipated
when the first Bank of the United
States was created, they were regarded
as an incidental accommodation; not
one which the Federal Government
was bound, or could be called upon, TO
furnish.
This accommodation is now indeed
after the lapse Of not many years, de-
+. manded from i; az among It's first duties;
and an omission to aid and regulate
commercial exchange. is treated as q
ground OF loud aud serious complaint.
Such results only serve to exemplify
the constant desire, among some Of
our citizens, to enlarge the powers of
the Government, and extend its con-
troll TO subjects with which il should
not interfere. They can never Justify
the creation Of an institution 60 pro-
note such objects. On the contrary.
they justly excite among the comnu-
nifty more dlligent inquiry into the
character OF those operations Of trade,
towards which il is desired to extend
such peculiar favors.
The various transactions which bear
the name o. domestic exchanges, diff
fer essentially in their nature, opera.
ton, and utility. One class Of them
consists Of bills Of exchange, drawn
for the purpose Of transferring actual
capital from one part of the country 10
another, or Ia anticipate the proceeds
of property actually transmitted. Bills
OF this description are highly useful in
the movements of trade and we'll de.
serve all the encourage mcnt which can
, rightfully be given to them. Another
class Is made up OF bills of exchange,
not drawn 10 transfer actual capital
nor OH the credit of property transmit
ted, but 10 create fictitious capital par
taking at once of the character Of notes
discounted in bank, and Of bank notes
IN circulation, and swelling the mass OF
paper credits 10 a vast extent, in the
most objec,ionab!e manner. These
bills have formed, for the last few
years, a large proportion Of what are
termed the domestic exchanges of the
country, serving as the means Of usuri-
Gus profit, and constituting the most un-
safe and precaTious paper in circula.
ton. This species Of traffic, icstead of
being upheld. ought To be Discounts
nanced by the Government and the
people.
In transferring its funds from place
to place, the Government is on the
same footing with the private citizen,
and may resort 10 the same legal
means. II may do so through the me-
dunn Of bills drawn by itself or pur-
chased from others: and in these ope
rations it may, in a manner undoubted-
ly constitutional and Legitimate, facili
tate and assist exchanges Of individual,
founded on real transactions of trade.
The extent to which this may be done,
and the best means Of efecting it, are
entitled to the fullest consideration. -
This has been bestowed by the Seore
tary Of the Treasury, and his views
will be submitted 10 you in his report.
But II was no; designed BY the Con-
stitution that the Government should
assume the management OF domestic
or foreign exchange. II is indeed au-
ihouzed 10 regulate by law the com
merce between the States, and to pro-
vide a general standard Of value, OF
medium Of exchange, in gold and ST..
yer, but IL is not Its province to aid in
dividuals IN the transfer Of their funds.
otherwise than through the facilities
afforded by the Post Office Department.
As Justly might il he called on 60 pro-
vIdo COR the transportation Of their mer-
chandise. These arc operations Of
trade.
They oughiio be conductedby those
who are Interested IN them, In lhe
same manGer that the incidental diff.
oulties Of other pursuits are encounter.
ed by other classes OF citizens. Such
ash has not been deemed necessary in
: other countries. Throughout Europe
J the domestic as well a. the foreign ex.
! changes are earned on by private hou
I ses. often. II not generally, without
the assistance 81 banks Yet they ex
, tend throughout distinct sovereignlics
. and far exceed ~ amount the real ex
I changes Of the United States. Their,
q Is no Teason Why our own may no, be
q conducted ~ the same manner. with
. equal cheapncss and safety. Ceriainl,
tbs might be accomplished. u It wer,
favored by those most deeply interest
Z ed. and few can doubt that their owl
interest. A. we'll as the general wellar,
, Of the country, would be prom oicd b,
= leaving such a subject 10 The h4ndso
p those To whom II properly belongs. 4
3 sysiem founded on private interest. en
E tetpr.e and competition. without d.,
aid Of legislalive grants OF regulation
b by lsa. would rapidly prosper u Woolc
, BE- fee from Tie influence ~ pOlitica
I agitation and extend the same sKemp