Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-10-15
2,ls6 iS2

2lscic2
/ MakIn. in Is months an aggregate Of S2l 3i9.5I
I SCch was the tavnrIliam and monopoly oil an nsI:u
ton the height Of its prosperity, and when We
tcId il best conducted Can such nonoroles have
friendly influence upon commerce and trade;
THE EXCHANGES.
We hear il continually asserted, that during The exst
enCc Of L 5 Bank The exchanges were always IN
good condition, and cheap rates This assertion
positively conraGicted by The history Of The curen
cy Exchanges Will always lie high when The currency
/. unsound ard appreciated
We have already show how often That was The crss
during the existence Of The U. S Bank We have al
ready by tie Of the bank itself that
change hgh as fifty per cent. in some Of tie
Western States during is existence. Exchange, when
the banks honestly pay srecIe. nrver be more than
nr- the cost Of the transportation OF specie from
point 10 point This expense viii no! exceed two Fer
any portion of The Union. As an unansweraNle
arguwent upon he tuc'rine Of exchanges, We present
HE follow ing extract the memorial II the Bank
Congress -2I II vii be found in the ninth volume
cf American State Papers. page so:
Forty and Fifty per cent. have been paid in the
rent medium IN paris At tie Western States tor
tie notes Of the branches Of the Bank al Tie United
States II tie notes OF the branches had been made
heal currency from lbs,T establishment the busness Of
the bank would have been under control and would no
doubt. have Eten regulated rs TO have lndIccCsly
Distributed The crai 81 the bnnk Under such crcunI
stances, for example. ;hcre doubt II would have
b the interest al tic bank 10 have sold exchange
the Western States on The Atlantic al light premium,
snd 10 rccrvfG payment by annlher operation
ri exchange New Orrans where lie Western 5 aes
find Her afket Tie premium OF exchange, whatever
IT may ., any time De. will he fixed by uncomfortable
causes which perfectly just and almost perfectly
~ nG:t pss ga &c Us bse se
or any other commcduy, Il is an utter misconcapr,on
Of e principles Of exchange 10 suppose tnt the Bank
OF tie United States wilhany capital, or any means Tor
Terms Of any material DURATION could eSact unr.a-
sGnah'e premium. u he earr,Hty be sound II that he
unsonnd there is no basis for far dealing and i IS idle
project remedies against Unfair practices. The DIS.
corning will easily perceive, and the canGd Wi! ready
admit tina, the bank likely suffer than gain
in such state Of hings bHt Jbe cmrsncybc S0nnd he
RATES If rIchGngc Etrr BE- t1rssir because they
Fever materially. and tor any considerable length OF
time, exceed the expense risk ana loss Of interest ~
cured b. Ike transportation Of spece The person de-
SIRIUS cpuchcsing exchange wiIle have the spsce
| ~ his hGnds, VIII receive II on demand from come
bsni whose he h. Ids ho, then, will be guilty
OF the folly of giving much more than tie expense Of
! transportation. &c
There vii! be competition, loo, wherever there IL
gain which will be carried on as far, and continued %
Ioug az II continues be eriniu Il is true that eS
chanres between ~ the States haze Tor considc-
rable time past, teen very high. But wherever 1t was
hnh the currency was IN greater or lees degree IN
sprd the banks were cGrinlDg ARD Inc currency &C.
c.,snp These causcs could produce other result.
Had these cares existed The premiums Of eXchsnGr
would not have been high. In some places, though
the banks pretended 10 pay specie tor their notes they
svs,lrd il ia effect Let specie be paid promptly ana
boro fife to morrow in places where exchange IS hg,
md The premiums CT exchange vii! Immediately aii !"
rates founded The charges and risk OF transporting
:ppce. and tria', perhaps, beyond ihcr aggfega@.
That this is an inevitable result Is believed has never
be.n denied In England It denied mat The adverse
stale Of exchanges which hct cnantIy Suffered while Ia
note. were nc0nvsrtibe depended on the suspension
( cash payments: but il never denied, that II the
urtency could at any time be converted into precious
metals The rates would b. governed by the cost OF trans
ottaun &c. Let The currency be sound, and the pre-
NUNS ofexchanse Must be precisely J:ss To attempt
1,lnr Eoc harm III n IN
,e opp ra,lons than hasp which s!al! cause demand
Tor IT, will be as imprac'scoble e. u will be unjust
Such - the testimony Of the U S. Bank in rea,ion
to the exchanges. from which we learn hat 'htonai
y,rk dces MOI Cu.aic sIchsEge, or control lis price,
,u, tina, Iii. depends upon the payment OF specie by Tie
banks -
AZ further Illustration OF the condition Of The g.
cf,nges during tie existence Of q U Bank, and al
! ,,her perods we make the following extract from
speech delivered by Col Benton, IN le7, whose efforts
10 reform the currency ard promote me ioftes OF ~
people en,,ic him 10 The gratitude OF lis country ana o.
/ mankind:
I .Tnis comparative table is made up from the prices
cprrpn, of Phadelphn he very and citadel Of ne
great regulator Itself and what does Il cay Listen 10
I II, and i, viii tell YOU: ,,.
/ Maine New Hampshire, Vermont, Nlass,chusrtF,
Rbod. Island and Connecticut from 10 l2 per cent
discoun, in December ISIS; from to : m feerua-
~, 1893 New York city, Pnr then ana par now.
Country banks of New York TO PER cent discount
II ,hsn m, nov Baltimore then. 3 now. Western
V;,,in;s ! 10 ) discount then . TO 3 nov. North
f,,rolino . 2,o then 9 ! to now. South caro-
I;o,Il2,o2 then, . 9 10 2 now. Georgia 10
hon 3Ioto4 now Alabama 10 10 ID then, 9mo IL
,ow Louisiana 5 10 then, now Mississippi ~ 70
II, ,ben Il now Tennessee 10 10 ~ then, ~ TO ~ IL
ro, Ohio 10 6 then, ) , I" now. Kentucky,
|.rd a The name Of Kentucky Dir Benton raised bis
80 md rersaed The with great emphasis,) Ken
L from IS 10 30 and from 10 10 10 per cent discount
~ from, 2 10 discount now. Let no gentleman
sn,,o.e ha, there is any mistake in figures in this refer
srcr 10 Kentucky
why are the exchanges now confused ard eSosbiant
r; sare portion. Of ,be country Its because the banks
do not honestly pay specie 1t is because they eVaHs
specie payments by issuing this miserable deprecated
aos note CURRENCY; and because tey induce me pan'e
take exchange for cotton, the great ptoooeft 81
pecie and Southern exchange In those sections OF me
Union here the banks redeem their notes "thooteV
.on exchange is az low this moment IS u ever vas
!urinp The existence of n Y > bana. 80,
In b,s address 10 the stockholders OF Inc bank 10 lc5i
Nr Riddle declared As long IS The general currency
the n consists of specie or its equivalent Inc raes
r erchanp. between any two places N IT, can never
much or ve rmaneny vary from the expenses OF mex
,,,nsoor,o,on from place 10 another; and reoue'
.;o 70 nearly that rate the inevitable consequence
n The resumption Of specie payments Thus ~e eTr
told by the President Of The Bank that The Pdymens