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, TO money, and is therefore beyond the power
of individuals.
The nature of exchange, sir is well understood by
persons engaged in commerce; but as It's operations
are little out of the sight Of other classes of the
community, although they have all deep and per-
manent interest in the subject may be pardoned for
word or two Of general explanation. speak OF
domestic exchanges only. We mean, then, by ex-
change, this same transfer of funds. We mean the
making of payment in distant place, the receiv-
ing of payment from distant place, by some mode
Of paper credits. Ii done by dra1 order or bill of
exchange, that is one form; IL 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
on the bill or dra in the last the credit Of the bank
Every man, sir, who looks over this vast country,
and contemplates the commercial connection Of its
various parts must see the great importance ihatthis
exchange should be cheap and easy. To the produ-
Ger and to the consumer TO the manufacturer andthe
planter to the merchant tot in all classes, this be-
comes a matter ofmoment. We may see an instance
in the common articles of manufacture produced In
the NORTH and sent TO the south and west 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
ments which carried on without the aid Of large
capital, constitute large part Of this trade as well
as the fabrics Of cotton and wool. Now state of
exchange, which shall enable the producers 10 re-
pensabe TO any useful prosecution Of this intercourse
Derangement of currency and exchange Is ruinous.
The notes of local banks will not answer the pur-
pose of remittance; and IL bills of exchange cannot
be had, or can be had only at high rate, how ispay
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 it
will always be felt more or less till there is
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
hourishing town of Newark has already lost con-
siderable part OF its population By the breaking Of
its business, in consequence ofthese commercial
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, it 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 il
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 10
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 to provide bills of exchange for purchase and
sale. Nobody thinks of such thing. II any nsti-
tuioh estaDnSheu py government can 40 TINS, 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 10 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 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
change; and was exchange through the medium of
currency; il was perfectly safe and it cost nothing
This fact illustrates the importance OF currency OF
universal credit TO the business of exchange.
Having made these remarks for the purpose of ex-
planning exchange, and showing its connexion with
currency, proceed to discuss the general PROPOSE
tons #@t..
ITO be continued ,.. .#