Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1839-11-12
(From tile Pcnnsylranian.)
on THE CIRCULATION OF SMALL NOTES,

on THE CIRCULATION OF SMALL NOTES,
BY Mr. GALLATiN.
The following remarks extracted from the Ion
sderaons Currency aud Banking published Dy
Mr. Gnllatin in 1881 The observations OF This very
able writer and experienced banker are al Inc pteseh'
mumant, we'll deserving OF serious attention.
Zone 81 The most efficient modes TO reduce tfie at"u
Of bank notes compared TO the total amount OF tne
currency OF The country, consists IN me increase OF NV
metallic currency which circuates among Inc peoPe
independent 1T that which is kept IN reserve IN lne
vaults of the banks lisevrdsnt. that inasmnch as ohy
certain amount nf sound currency Is wanted ana can
be sustained that PAT, which CONSISTS OF BANK h"s u
be essened and thereby made salrr, as me me'a"e %
ton is increased Whenever also the specie OF '"e
banks il drained by any extraordinary demand whatever
delays and often difficulties may arse III lhr iP"''a
ton of supply from abroad; which is. however, the only
resource hen the circulating metallic currency nus
nearly disappeared :. ~
awe ha re had an opportunity 10 witness in France
the sauarv effect ofa currency consisting rrlncpaS OF
the precious metals not only in cases OF great naoha'
difficulty but also for the specific purpose OF ieihs'atne
bank momentay endangered by over issues OF paper.
Bu, we prefer referring 10 the evidence OF very aoe
and pracucal Witness who was also deeply interested
in The issue and we will extract this from The work
Of another distinguished and practical writer, coke OH
Currency .
nOr he comparative facility with which the Golfers OF
hank which has suffered too great reduction OF lis
reserves BY mprudrnt issues of paper may be repensh
ed out of circulation consisting IN great propof"o" "
coin Notwithstanding coincdeni demand Tor large pay
mems abrnnd strong instance is afforded IN me case OF
the Bank France. in 1917 and 1918 Tue circumstance
is thus stated in Mr. Bnrings evidence IN nrch lo'9
fVd Repor of Lords Committee on the resumption OF
cash payments p. 1852 Speaking ola drain which 'ha'
bank had experienced, he saye:
"rhe,, bullion WINS reduced by imprudent issues,
from, one hundred and seventeen millions oil francs, 10
thirty our millions of rancs and has returned, by more
prudent and cautious measures TO one hnnorra h"ns
of francs al which it stood ten days ago when tit
Paris This considerable change took place since the
first week in November, when the amount OF specie
4 Al.
ways recoec,ed that the operation took place 10 acoun
rv every part Of the circulation OF which Is salurato
with specie and, therefore, no inference can be drawn
in favor of the possibility OF rapid an operation IN lhs
county, where owing to The absence OF specie IN ccu
laon The supply must entirely from abroad; for in
Paris though PORTIONS have come from foreign
countries The great supply must undoubtedly have come
through oil the various small channels OF ccuiauoh
thrnu Ghou that kingdom.
Again in the same evidence, p los:
90 Has France after two years OF great scarcity
in corn and years Of foreign contribution been ao'e
to contribute proportion OF the precious meuis 10 'ne
wants Of Russia and Anstra:
a Undoubtedly the precious metals have been sup.
piled from France In Russia and Austria and shipped, 10
considerable amount, TO America, notwithstanding Inc
ymenrs foreign powers and very large Tor
imported corn. whilst al the same time, wine having
Utmost totally failed tor several past they were de-
prived of the essential article OF their export
"And in reference these payments in the proceed.
ing answer, Mr. Barring states that they
"Prnduced arrangement whatever OF te circulation
of that country, France
".lt NAV not b. unnporant further 10 remark, mat
The OF The currency IN France ever since 'e sup
preston of The assgnas. appears to be decisive OF te
great nd yantages attending metallic circulation, IN
times of political difficulty and danger. On no ono great
occasion did her efforts appear to be Parayzrd, or even
restricted by any arrangement OF The currency; ana IN
the tyn instances of her territory being occupied ny an
invading army there does not appear 10 nave peeh any
material fuc'uati"n III It's value.
ave perceive but two means Of enlargng the cIrcu.
a,ins metallic currency, LIST, the suppression OF small
nnte; Cd the necessary 10 bring again gold
into circulation.
..The first measure is that which after long experience,
n most deliberate investigation aud Notwithstanding
strenuous opposition by The parties INTERESTED has been
finally adopted and psrsevsrrd IN by the government OF
Great Britain BY the suppression of all notes OF DE-
nomination less than e. sterling. in England Wales and
Ireland the of The circulating metallic currency
become equal To tina. bank notes OF every dcscrp-
,i,r -'"'i- of eight millions
sterling in silver, which is receivable ONLY in payments
exceeding forty shings aud Of twenty-five millions
sterling IN gold This measure has given better
ry against fluctuations in the currency and a suspen
sion Of specie payments, than had been pnnyed during
the thirty preceding years In France, here the Bank
of France alone authorised issue bank notes and
none of denomination under five hundred francs, It's
circulation hardly ever reaches ten millions sterling or
about tenth part of the currency of the country In
the United States, all the banks of FIVE dol.
lars The States of Pennsylvania, Maryland and Viz
GINA and perhaps Others have forbidden the issue
Of notes Of lower denomination, to the great
renence of the community, and without experiencing
any Of The evils which had been predicted We have
seen, in Pennsy ivania the chnsm occasoned by that
suppression rfstan,aneouSly filled by silver, without
the least elimination in The amount of currency We
cannot bat earnestly wish that The other States may
adopt sFilas measure, and put end 10 the circua
ton Of the one two, and three dollar notes which Of
no utility but TO the bnnksIhpse small noles are,
currency, exclusively local. and public nuisance; and
in OF the failure OF any bank, The loss arising from
them fails heavily the poorest class Of the
muny We have other data TO estimate the proper.
ton they bear 10 the whole amount of notes, than the
return Of ,e Banks Of Massachusetts and Maine subse-
quenl January 1925 by which appears that those
States, those small notes make one fifth OF the whole
paper currency Bot we would wish to go farther than
this and in order bring gold generally ;no cir.
culaon, that all under the denomination Of ten
dollars might be suppressed The five dollar of
the Bank o. the United States, constitute less than one
sixth part %! its circulation, and amount in value TO
thin DIS Of i.at OF lis ten dollar From those data
taking into consideration The amount OF currency Of the
States where the small mites do not circulate and al
lowing that portion of the FIVE would be supplied by
ten dollar notes the reduction in thu OF the pa
per currency, arising from suppression of The small
notes, may be estimated six, and that produce BY he
suppression nf the five dollar notes OF about mil
lions. Both together uld probably lessen the paper
currency by one hitl, and substitute silver and gold
coins in lieu thereof =
ABOLITION MOVEMENTS IN ONO.
n esteemed friend has favored with the doines Of
the Abol,onisis at Cleveland late meeting Of the
American Anti slavery Society. Politics seems be
their main oec, and they have resolved themselves into
distinct political party u generally understood that
General Har 500 will satisfy lhrn if nominated by the
Harrisburgh Convention. II Harrison should be nomi-
mated, the contest will be mainly Abolition Anti
masonry. II Clay is nominated there will be split in
tho Abolition rnnks-par voting for Clay. and part either
voting a, all for third candale-the latter the
"l.tl. ,,....l