The Caledonian. [volume] (St. Johnsbury, Vt.) 1837-1867, 1837-11-21

mean, men, ny exchange, llliS same lruiSleT Oh
funds We mean the making of payment from
distant place, by some mode of paper credits.
II done by draft, order, or bill Of exchange, that
is one form; if done by the transmission OF bank
notes, through The post Office, otherwise, thar
is another form. In cnch, credit is used in The
first, the credit OF the parties whose names are
the bill or draft in the last, the credit Of the bank.
Every man, sir who looks over this vas. country,
and contemplatcs the commercial cOnneXiou OF
its various parts, must see the great Importance
that this exchange should be cheap and easy.
To the producer and 10 the consumer. to the
manufacturer aud to the planter, TO The merchant,
to all, in all classes, this becomcsa matter Of mo-
ment. We may see an instance in the common
articles OF manufacture produced in the North,
and sent to the South AMI West for sale and con
sumption. Hats, Shoes furniture, carriages do
nestle hard ware, and various other articles the
produce of those manufacturers ana OF those ci:-
Payments which are carried on without the aid
Of large capita constitutes large part OF this
trade, us well the fabrics of cotton and wool.
Now II state of eXchungt which shall enable the
producers to receive payment regularly, and with
out loss, is Indispensable to any useful prosecu-
ton of this intercourse. Derangement of cur
rcncy and exchange is ruinous. The notes of
local banks will not answer the purpose Of re-
mttance and if bills Of exchange cannot be had,
or can be had only at high rate, how is pay
ulcnt to be received without great loss? This
evil was severely felt even before The supervision
of specie payment by The banks and it will al
ways he felt more or less, ill there isa currency
of general credit and circulation through tho
country But when the banks suspended, it be-
came overwhelming. All gentlemen having
northern acquaintance, must know the existence
of this evil ! have heard it said thai the hther-
to prosperous and fourlsl!ing town Of Newark
has already lost a considerable part Of its popu-
ation by the breakugup Of lis business, in con-
sequence OF these commercial embarrassments.
And in cases in which business is not wholly bro
ken 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, 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
it must exist, also, in the South, in the operations
connected with its great staples. All the South
must have, and has, constant occasion for remit
lance by exchange; and no part Of the country is
likely to suffer severely by its arrangement.
In short, there can DO no satisfactory sla.e ofin-
ternal trade, when there is neither cheapness nor
regularity, nor security, in the domestic exchanges.
say again sir, that / do not hold Government
bound 10 provide bills Of exchange, for purchase
& sale Nobody thinks ofsuch ,hing. ltuny imSi-
tuition established by Government can do this, as
might be the case, and has hecu the case so mt clI
the h"'i"r Bat the uoSitipe obligation of Gov
UrnmGnt, am content 10 nu.i> anrrancy and
so far as exchange is concerncd to the aid which
may be afforded to exchange by currency. |
have been informed that, few years ago, before
seasons Of the year when southern and western
merchants usually visit the northern cites TO make
purchases, or make payment for existing ll0bl-
ties, that bank redeemed It's notes to the amount
of fifty, even hundred thousand dollars day.
These notes having been issued in the west, were
brought over the mountains, us funds 10 be used
in the eastern cities. This was exchange; and
il was exchange through the medium OF curren-
cy; ii WAS perfectly safe, and it cost nothing.
This fact illustrates Tie importance of a currency
Of universal credit, TO the business of eXchang
Having made these remarks for the purpose
OF explaining exchange, and showing its connex-
ion with currency, proceed to discuss the gen.
Clal propositions.
1t is then tie duty Of this Government, to see that
"A currency be maintained, suited to the circun-
Stances OF the times, and to the Of trade and
commerce?
need not, sir, on this occasion, enter histori-
cally into the WeI!.kuoWn causes which led to
the adoption of the present constitution Those
causes are familiar to all public men; and among
them, certainly, this very matter Of giving
credit and uniformity TO the money system OF the
country. The States possessed no system of ,
money and circulation; and that was among the
curisCs of the sagnation of commerce. Indeed
all commercial affairs were in disjointcd derang
ed aud miserable state. The restoration of com
merce, the object OF giving it uniformity, credit,
and national character, We're among the first in
ccutiveS to more perfect union of the States.
We all know, that the meeting ut Annapolis, in
1856, sprang from desire TO attempt something
which should give uniformity to the commercial
operations Of the States and that iIr and with this
meeting arose the proposition for general con.
vcnlion, to consider Off new constitution Of gov
ernulcnt. Every whe'c State currencies were
depreciatcd um,! continental money was depreci-
atcd also. Dehtscou!d not he paid, and there
was no value to property. From the close of the
war to the time ot the adoption Of this constu-
ton, as l verify believe, the people suffered as
much, except in the loss OF life, from the disor-
dcTed state of the currency aud the prosration
Of commerce aHd business, us they suffered dur
ing the war. All our HISTORY shows the stsas
tcrS and aIfcouS which sprang from these
sources and it would he waste oil i1Ie TO go into
IL detailed recital of them. For the remedy of
thcsl evils, as one OF lis great objects, and
great as amy one, the constitution was formed and
adopted.
Now, sir, By this constitution Congress is an
horized to "con money, TO regulate tn. value
i-rf II