The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-03-13

not wifully blind and determined 10 adhere 10 Inc
destructive and anti-fepubican doctrines oil the Lo-
co-iocos.-.laiae Iatstk
THE PROGRESS OF SOUND OPINION AS
TO CONVERTIBLE PAPER MONEY,
As the most conpement, cheap aud c6iei adjunct 9f
the operations Of commercial and manufacturing Peo.
pics indicated in the steps just taken by the Bank OF
France, and commented upon IN the annexed article
from the London Times. "G,
France which has hitherto been very sober country
in that respect, is likely soon TO run a race with Eng
land and America The Bank Of France takes the lead
ia it, Notice has been gwen that from tire I'd oil Janu-
airy will issue notes TO order Outlets oHe,)
transferable transmsslbe by endorsement Tor any
sum from 500 to 10000 francs Under the system
hitherto acted on the Bank issued "noies to bearer
only of mo amounts 500 and 900 francs The credit
and the circuatiop these Paris and its immediate
envous considerable, but out OF that circle lhey
ceased pass with the facility and to he received
as money This was attributed manly 10 the neon
vencnces attached their being payable 10 bearer only
Although convenient for payments from hand TO hand
in TIE same town. their remittance iron one place To
another was accompanied with some risk the loss OIL
bank being ureparabe, people did not willingly re-
init, send, or carry them from home The new notes
bills order will it is presumed obVae these DIS
advantages; they will lie transmlssible like any other
commercial values by endorsement and thus their CIR
cuation conceived, may extend far beyond Paris,
and their use become much more general as no other
paper oud afford The same guarantee Tor security and
soiidy They are to serve, It seems, to balance the
accounts of town TO another between merchants
and thus contribute diminish the charges OF conns-
brokerage which bankers III me habit oil re-
ceving for furnishing bulls or exchange or wll super
sede the necessity OF the transport OF specie wmeh Is
so frequent The " bankers here alluded to are not oil
the class here known private and country hanhcrs,
but merely merchants, dealers, OF manufacturers VINO
are the habit in the OF their business oil draw
ing or disconntng bills In France there are no private
bankers, properly so called How lar TINS interference
Of the Bank Of France with the business and profits OF
the money dealers may be popular, need not be IN
CURED but that 1t must be serious danage 10 the
country dealers in bills of exchange cannot be doubted,
for persons there having remit TO Pars for example,
OF anywhere else, wi naturally prefer to exchange
their hard cash for bank bills rather than private bills or
be induced to accept these latter only when Offered at
a much lower rate OF premium or interest.
This, however, 1t is said, Is only the first step IN
enlarged sphere of paper dealing proposed by the
Bank Of France The bills TO order" appear at pre-
sent designed ony for the OF traders aud merchants
but the ultimate object contemplated is cir
culation for them money IN every par. oil France
among the public al large 10 effect this now or at a
period more or less remote 1t is stated there but ole
10 pursue, Hh1h is TO secure the payment OF
them at the Will OF tnc holders IN all the large towns,
which it would not be difficult TO accomplish, now that
banks begin TO be planted IN the departments with
whom would not be difficult to come 10 understand
ing to that end III the commencement, until the Bank OF
France should feel the necessity of creating herself
cert&in number Of branch bauks, and thus complete
a system OF credit, which, it is asserted, "is demanded
by the interests Of industry" Ii is acknowledged that
'popularze the bank note III France will not be the
work OF day. and that TO ehecuate it the Bank must
for sometime IN the beginning make up It's mind TO some
sacrifices, for which however, 1t is calculated would
be amply compensated by the profits which would re-
suit from the immense extension OF the circulation of
the paper money. " But eyen,' say the advocates Of
this system, were these profits not important as
supposed, the public would still have right 10 claim
such service from the bank return for the enormous
privilege with which it is invested-that Of coming
Arrangements for the extension of such paper and
credit system as here described are of course drawn
from the example OF England and the United States.
Above ALL reference is made TO the late Bank OF the
United States, where 1t was carried to the highest de-
gree Of Perfection whose notes not only payable
all their branches, but also at almost all the other
hanks Of the Union whose notes also received in
return. Thus nothing was more easy than the remit
lance of any from one place to another; :" thus
the liquidation Of the exchanges between all parts of
the republic operated IN the most simple and
nomical manner" These projects Of the Bank Of
France, but Immediately to that of the issue of
bank bills TO order, first noted actually IN opera
ton would to have been not little influenced by
the Lafitte bauk the Bank OF Havre, and few other
joiut-slock banks established intended in various
parts Of France The Laitte bank had already gwen
notice. prior TO the Of the Bank Of France, that
from the LIST instant, they would commence issuing
{" bank bills bearing interest at the following rates
Bank bills payable three days after sight, at 3 per
cent; bills Is days after sight, at l-2 per cent? bills
20 days after sight at per cent The interest payable
only TO the day Of the risa. The bills transferable by
endorsement without recourse Orders at any date
continue to be furnished upon any town in the depart
ments.
al LAFFiTrE g. CO."
Dec. 80, 1887.
The distinction between these bills and those of the
Bank of France, it will he Observed that the former
are payable after date, and carry interest, while the
latter payable demand, and bear no interest
II ought escape observation IN this matter, that
although far the French writers generally dis
dosed attribute the commercial prosperity OF England
and America to the paper aud credit SYSTEM there
not wanting some who discern in 1t, and in the evident
desire draw closer the connexlon between the Bank
of France and the Government, deep laid scheme Of
,ate'pollcy.
AMERICAN MERcH,NTs.-A late English paper SAYS
g Were the government half as intelligent as the
merchants are honest the United States would not be
visited by destructive visudes like that
under which they are now suffering"