Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1840-05-14

place Win metallic On wen 40 WIN PuPot
currency though not so obviously, because
the little trade that is possessed by countries
where the only money consists IN coin, can
Of course be lable only to little variations.'
Carey, another modern writer Of equal ce-
lebrity, says:
"t is not unfrequcnily assumed that the ten
dency TO variation in the amount Of the curren-
cy, aud consequent unsteadiness Of prices, Is the
result Of The substitution OF drafts, checks, and
circulation notes, for gold and silver, and that II
communities would agree to deprive themselves
of those facilities to trade, a steady currency
might be- established. Experience, however.
teaches that with every increase in the facility
Of intercourse and exchange, there is tendency
10 equality and steadlness Of value, which Is IN
direct opposi ilon TO the idea we have referred To.
Prices are much more uniform throughout tho
world and from year to year, now, than they
were fifty, ono hundred, or five hundred years
since. The price OF grain IN the fifteenth CEN
tury huctunted in u single yenr from four slml-
lings to four pounds, and tho produce OF China,
or India, a century since, would sell IN England
at three or four times the cost, whereas at The
present time an advance Of 10, l5, or 20 per
cent. is deemed sufficient II unsteadincss in
the currency be tho consequence of tho increas-
ed faciliies for trading, It viii be found that
" here the restrictions upon the use oi those Ia
ciiiiies are most numerous, the currency VIII DO
smallest, aud there will be the least tendency To
expansion and contraction, whereas If steadtness
be the natural effect Of improved modes ~
fransacfing business, 1t niH De Joun" fhdf
chere the people are most free to select Jo'
MemSeiuts thar 0un medium " trchdnge,
the currency wiH most nearly approach the
amount actually needed for the daily bust
nf md he
liable to expansion or contraction at the r'H
Of either individuals or associations, and
thus that the cheapest currency rW DC the
safest and most shody."
The gentleman further says, Gas the
wants of the people do not fuctua.e but lit
4 tic, the amount Of Bank Bills" in circula-
ton could not vary much" And in another
place hc says, "That tho price of articles Of
consumption md u more active business,
have kept in circulation more than double
the amount of paper now IN the hands Of
the people" This last is undoubtedly true
aud if the wants of the people do not vary
much, why do not the Banks lend as much
money now as in 1873 or at least why
do they not find market for what they have
now on hand and desire to loan? Two or
three Banks in this town have had money 10
let for some weeks, and have found no de-
mand for it. II the wants of the people do
not vary, why did the Banks of this Slats
keep in circulation in 1878. a million Of
dollars more than they do now' Then the
people wanted more than they could get
Now they can get more than they wish to
hire. Merchants of known wealth and re-
spectabi,y were glad to obtain in 1885,, ,lonns
Of "Whig Money" (as somo dlsparagingly
called it who were not less ANXIOUS to obtain
it than olhers) although they abused the Banks
which accommodated them at tho sams
time.
The writer has seen il somewhere stated,
that, snlnll favors make friends, large ones
enemies" Could the hostility of any
person to Banks bs accounted for in this
way?
Again he says "Any money that would
pay deb, a, Bank will always have curren-
cy in a town, village, or community whsre
such Bank is located, aud as much further a.
the principal trade Of such town, village, or
community extends"
The principal trade Of this town aud State,
It is believed, is to New York and Boston.
Even when the Banks pay specie their notes
will not pay Bank debt in New York, and
would not in Boston were the Suffolk sys-
TEN not in operation. During the suspen-
sion of 1880, the bills of any Bank in Rhode
Island would pny debt at the Bank issuing
them, and with two or three exceptions at
any other Bank in the State. These Bills
would not pay a debt in New York and Bos-
ton at Bank, or any where else ut par, as
they were at from 5 to 10 per cent discount.
Would "Ba'.k Bills" be even as good as those
Of Banks temporarily suspended, where there
was a prospect of their resumption In
their rorst state they would pay debt at tho
Bank issuing them. In the very best state
tho Bank Bills" could do no more.
The gentleman says, in speaking OF the
system of redemption practiccd by the New
England Banks, that the Banks Of Rhode
Island, 62 in number, with about Sl0O00,O00
capital, and 100000 circulation, pay the
interest Of $780, or $50 900 per annurn
for expenses and agencies to redeem their
bills. This is undoubtedly true. And what
does it provc' Simply this that in order
that the Bank Bills Of Rhode Island may
pay Bank debt in any part Of New Eng
land, and to maintain a convenient paper cur
rency to be RENTED, by mail, or in friends
pocket, to any place within the arrange
mcnt, aud thus prevent transporting specie,
Mt great expense and risk: TO do all this,
the Banks pay $30,OO0 annually, and by SO
doing relieve The people from paying double
the sum in exchange, or in transporting coin,
about the country. That the Banks arc not
10 do any thing more than redeem
heir bills in coin at their own counters, is
known TO all, and If they voluntarily redeem
all over New England, and the stockholders