The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-11-03

some proper medium for this transfer il is the duty
OF Government TO provide because il belongs to cur
rency, 10 money, and is therefore beyond the power
Of individuals.
The nature OF exchange, sir, is well understood by
persons engaged in commerce; but as its operations
are little out of the sight Of other classes Of the
community, although they have all a deep and per
manent interest in the subject may be pardoned for
a word or two Of general explanation. speak Of
domestic exchanges only. We mean, then, by ex-
change, this same transfer of funds. Wemean the
making of payment in distant place, or the receiv-
ing of payment from distant place, by some mode
Of paper credits. II done by draft order, bin Of
exchange that is one form if done by the transmits
sion Of bank notes through the post Office, or other
wise, that Is another form In each, credit is used
In the FIRST the credit of the parties whose names are
on the bill or dram in the last the credit Of the bank.
Every man, sir, who looks over this vast country,
and contemplates the commercial connection Of It's
various parts must see the great importance thatthis
exchange should be cheap and easy. To the produ-
Ger and to the consumer TO the manufacturer and the
planter to the merchant to all in all classes this be-
comes matter ofmoment. We may see an instance
in the common articles Of manufacture produced in
the NORTH and sent 10 the south and for sale and
consumption. Hats, Shoes furniture, carriages do
nestle hardware and various other articles the pro-
duce Of those manufactures and of those employ
mcnts which are carried on without the aid of large
capital constitute large part Of this trade well
as the fabrics of cotton and wool Now a state Of
exchange, which shall enable the producers to re-
ceive payments regularly, and without loss is indis-
pensabe to any useful prosecution of this intercourse
arrangement Of currency and exchange is ruinous.
The notes of local banks will not answer the pur-
pose Of remittance and if bills of exchange cannot
be had, can be had only at high rate, how is pay
ment to be received TO be received without great
loss? This evil was severely felt, even before the
suspension OF specie payment by the banks; and 1t
will always be felt, less till there is cur
rency of general credit and circulation through the
country. But when the banks suspended il became
overwhelming. All gentlemen having northern
quaintance must know the existence of this evil.
have heard il said that the hitherto prosperous and
fonrishing town of Newark has already lost con-
siderable part Of its population By the breaking of
It's business, in consequence ofthese commercial en-
barrassments And in cases in which business is not
wholly broken up if five or six per cent, or more,
Is to be paid for exchange, il by so much enhances
the cost to the consumer, or takes away his profit
from the producer. ! have mentioned these articles
of common product of northern labor but the same
evil exists in all the sales Of imported goods; and
must exist, also in the SOUTH in the operations con-
nected with its great staples. All the south must
have and has, constant occasion for remittance by
exchange; and no part of the country is likely to
suffer more severely by its arrangement. In short,
there can be satisfactory state of internal trade
when there is neither cheapness, nor promptness,
nor regularity, nor security, in the domestic ex-
changes. ...&" ~. '#
say, again, sir, that do not hold Government
bound provide bills of exchange for purchase and
sale. Nobody thinks of such thing. II any nsti-
tuition established by Government can do this, as
might be the case, and has been the case, SO much
the better. But the positive obligations OF Govern
ment am content to limit TO currency, and so far
as exchange is concerned, to the aid which may be
afforded to exchange by currency. have been in
formed that few years ago, before the charter of
the late bank expired at those seasons of the year
when southern and western merchants usually visit
the northern cities to make purchases, make pay
ment for existing liabilities that bank redeemed its
notes to the amount Of fifty or even hundred thou
sand dollars day. These notes, having been issued
in the West were brought over the mountains as
funds to be used in the eastern cities. This was
change; and il was exchange through the medium of
currency il perfectly safe, and it cost nothing
This fact illustrates heimportance Of currency OF
universal credit TO the business Of exchange
Having made these remarks for the purpose of ex-
planning exchange, and showing lis connexion with
currency, proceed to discuss the general PROPOSE
TONS
.... TT0 be continued ... 49,. ~.