Southern Argus. [volume] (Columbus, Miss.) 1834-1842, 1840-04-21


as to be prepared under all ordinary
circumstances 10 redeem their liabili-
tiesin specie, and that proper penal
| ties shouldsbe the consequence ofany
| failure. There is no reason to fear
thata suspension Of specie payments
will ever be resorted to, unless ALSO.
lutely necessary as the only alterna-
i tive to avoid a greater evil, and in such
a case, it seems to me that the best
! policy is TO bring into action at once,
and TO the best advantage, all our recu-
] perative energies, and to avoid whateV
ers has tendency to paralyse or pros
trate. The penalties of forfeiture and
lheavy damages to be recovered in a.
summary way, being of destructive.
tendency, and on that very account
not likely TO be enforced, would, /
think, be. wisely. exchanged for some-
thing of a different character. [ would
suggest, as suitable provisions, that
holders of claims whenever presented,
in amounts not under, say, 5000,
should be entitled to receive Certih-
Gates of Deposit, to bear interest at the
rate of 10 per cent. per annum, to
cease when there was bona fide re-
sumption Of specie payments, and that
the Banks should be required not to
increase the discount line at any time
: during suspensions.* These provis-
: ions, [ think, would be a sufficient
check upon the Banks, and would pro
tect the interest of their creditors. Our
currency could not be increased, and,
consequently, as the measure of the
1 value ofour property would not be de-
preciated. 1t would, for the time be
less valuable to effect payments out of
| the State, but this expense is necessa-
ry to avert the greater evil which was
t the object of suspension. The Banks
t retain their specie, which prevents
e that exhaustion which would be the
4 consequence offs transfer to settle at
e once the balance due out of the State,
but as nothing else is withheld, by the
application of all to her available
means as they accrue, it is gradually
: corrected, and that general pIostratior
avoided which must inevitably have
e resulted from different course.
j The propriety of allowing the Bank;
: TO deal in exchanges can scarcely be
u questionable, inasmuch as they can eff
0 feet great saving TO the community
Exchange operations can be perform
d ed by the Banks at much less expenst
e and to better advantage than by indi
L viduals, aud are necessary in orde
that the Banks may have funds tina
b will satisfy demands upon them, ths
Is would otherwise have to be met by tn
, payment of specie.
II The intimate connection, in matter
Of business and trade, which subsist
If between this country and Europe, pal
: ticularly Great Britain, ought not t
Of be overlooked in arranging our sys
tenn as it regards the currency. Their
r probably is even in Great Britain Ia
i'd ger portion Of coin circulating than i
L this country, but their policy seems
ID be to avoid the necessity of requirin
ty too much specie, as the basis of Ban
i? note circulation. Notes of the Ban
Ia of England being, in that country,
to legal tender except at its own counte
tie are, consequently, the basis Of tn
IS notes issued by the Joint stock an
private banking companies, and ii
chief res ervoir of bullion is. the vaul
of the Bank Of England. | believ
the stock ofbulIion win be found Sc
er dom to exceed one-ffth of the Ban
to notes in circulation, and if the pole
~ should prevail in this country of r.
n quiring our currency to be chiefly
I'd specie, would not the effect upon OF
at interest be disastrous If they ca
upon given sum in specie, do fv
rs times the amount of business that W
of can, and to equal advantage, whic
E. would be the case, while the convert
lie bility of their currency is maintained
a we must, think, expect, that our trad
mt and its profits will get pretty much in
ry to their hands. Is it not our true pc
'ir icy to take such measures as are be
s. calculated to keep our currency col
e vertible, under all ordinary circun
he stances, without requiring any unnece
be sary accumulation of specie?
he The profits upon investments
he Bank stock, have not been, aud al
ng not likely to be, such as to present an
all special inducement for persons WI
d, can manage their own money matte
at, to become stockholders in our Bank
to and Directors have to perform duti'
in so troublesome and Improbable, til
the Office is not sought aiterby person
II properly qualified. | fear, therefor
in that injurious consequences may resu
x from a continuance of vexatious meas
,e- ures, when their investments, al
ce services are mainly tosustain institl
u lions believed to be necessary to pr
sw vent US from becoming tributary to OF
It'll sister States or foreign countries.
to have crudely thrown together these r
.ly marks for your consideration, and n
he main
C Yours respectfully.
nix JAMES CASKIE.
mt *The penalty of forfeiture might