Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1838-12-17

cohhtscNcceunp forty uIiltous tha hcte was an IN
crease OF The whole amount OF specie IN tho country
OF five millions aud that the aggregate at this
Time must bo from eighty five 10 ninety millions oil
dollars The official returns Of the Imports aud ex
ports OF gold aud silver during the yesr ending
SEPTEMBER 80 1899. given IN the table annexed.
and the former IN that time will he found To exceed
The latter more than fourteen millions.
Intimately connected with the currency and the
suspension OF specie payments IL tho condition al
The domestic exchanges DUNG the past year, as
compared with some former periods Although IN
1923 National Bank had been IN full operation
ior several years, and IN 1919 for two years. those ex
changes were then quite rs much d,nugcd between
most places MS IN 1877. Bnl OF late they have i'm
proved more rapidly than IN the two former PEE
Rods, without receiving any and nom bank
my interpretations by the General Government.
This iaci demonstrates that the great nominal dill
terence III exchanges At both periods has been pro
dueed by circumstances over which national legisla-
ton possesses but htlo Influence.
When eseesses OF Indebtedness, or other com
metcial causes, render money moro desirable, IN
one place than another, then, aud not I'LL then, the
legitimate difference in exchanges begins aud
that difference can never be corrected by banks
or legislation, hut only by the great laws ri trade
changing the relative Indebtedness aud demand.
But when nominal difference in domestic eS-
changes occurs, extending beyond Two three per
cent the small actual cost OF transporting specie
10 the most distant cities IN the Union, II Is the
consequence, not OF an unequal Indebtedness alone,
but OF that aud an unequal quality of value IN the
local bank currency; and which event has been pro-
dneed, and can be removed onl, by measures oper
ang on the soundncss Of the currency. Each
State has in lts own power cllectual remedy for
any suffering by high exchanges from tins source.
Independent, and true to its vital interests, al
ways adopt such eieotna regulations IN banking as
will remove tho scoufge OF a deprecated paper.
aud thus avert any ruuous rate of domestic ex-
change.
From the whole OF these considerations. It is
manifest that the recent resumption OF specie pay
mcnts, and the equalization OF exchanges, have
both been facilitated 10y tho large oi specie
whic h has Of late years been introduced aud by the
course Of policy pursued III other respects by the
General Government on topics connected with the
circulating medium and the banks.
restoration OF equality IN the foreign cxchan-
ges also, and perseverance, III extlngIiishlng old
debts, with increased toibeannco 10 contract new
ones, ether At home abroad, have revived that 10
reign confidence which had been Withdrawn with
such disastrous precipitation These favorable
changes, united with diln'nutjon IN spcculatons.
whether IN banks, lands commerce, aud II
return to snictcr iugalily IN individual expenses,
aud to more industrious energies for a livelihood,
have aided good crops aud some minor agencies IN
bringing about with greater rapdiy, events the most
desirable, and condition oiihe country highly aus
picous. In many quarters money has become
comparatively abundant, interest lower, and trade
and manufactures active.
Nothing more seems to be necessary to | erpeiu-
the present healthy action OF the currency except
a rgid adherence 10 the system of policy Which, BY
honest and iesolute Efforts, has produced the in
ptovemcnt. 1t cannot hu be wise IN respect to the
circulating medium for the General Goyeinnc nt 10
pcrscverc IN a course which prepared the country
better to meet, and quickly earned 1t through.
fearful crisis. II would seem prudent, likewise,
for the States pro6ing by past cxperloucc 10 insist
reform in their banking institutions, and parlicu-
aly greater self denial in their business, by inn
posing additional checks on over issues, aud strong
er limitations TO excessive discounts. The present
system, # unchecked has inherent defects OF an a
farming character; and, without indulgIng in timd
msgylngs or Unjust suspicious, IL may be said to
tend by its expansions aud inevitable con,raclions
unseltlc frequently the value OF labor well Of
the whole property oil the country.
The General aud State Governments might, also,
with manifest advantage, abstain from apply ing any
STIMULATES 10 the oyeiaction OF all kinds that under
such spccous but ireacherons hopes, deluded so
many INTO the recent embarrassment.
This would not cyince any hostility cithcr to
banks to credit, when well secured aud properly
regulated but would serve to avert ruin from both
Several of The banks, winch under the control
of real capitalists and officers OF prudence and fore
sight have become satisfied that the OF The pub
lie money for discounts, subject TO the restrictions OF
the present deposte act, aud the liabilities to re
fund ii suddenly, which must exist with u small bal
ance in the Treasury, is attended with much incon-
venience and is likely in the end, prove more IN.
furious than profitable to the banks aud Their boz
rowers, as well az 10 the Government. So widely
impressed has thIs conviction become, that some OF
those ine,itu ions have declined to receive public
depostes under the special provisions OF that act.
VII. THE MANNER or KEtrING THE PUBLIC Mo.
YAND rnE CHANCES PROPOSED.
Tho present laws in regard TO tho keeping OF the
public money are defective in several particulars,
which were explained IN the last Two reports the
finances.
The full advantages, either Of the system Of State
banks or the proposed one oil an Independent Troa-
sury are not enjoyed while the Department.,
without all the securities which practicable, is
subjected to some Of the lnconyeniences aud many
oi the risks attending both.
The measures uwould recommend AS most suita-
bic 10 remove the various impereclions which exist
on this subject have been recently and fully
planned thar reconsideration of them all at tins time
cannot be regarded as necessary.
It's deemed proper, however, to communicate TO
Congress such details rs maleIia lor understand
ing with accuracy the mode IN which the public
ney is now kept, and for approaching duly the i'm,
poriance Of those additional checks and securities
which, though proposed as apart of the plan for an
lndept nde't Treasury, appear TO be lmpeasey re-
CURED under any system.
Four OF the six banks reported at the last session
Of Congress as retained under the deposue act of
June %, lS36, still continue to be general deposit
tories. Ofthe other two, the Peoples Bank, nj
Bangor. and The Louisville Savings Institution, the
former has surrendered its charter aud the latter,
having declined the general uusr, is row employed
merely for special deposes. The names Of the
four banks retained are annexed with the amounts
IN each subject TO draft on the lst instant, aud tlIeir
condition generally. COLLECTORS aud receivers resi-
ding near to these institutions have continued to de-
poste IN them as lormerlV Drafts are seldom, n AIDE