The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1840-05-05
354O94

II has been heretofore, 3.229
The banks only get in
rcresl on this amount, now $3.50 8C5
/ The result of the foregoing statement shows,
that the banks on the "a March 1910. had cir
cuIallon in the hands of the people of aboutSl,
600, 600, which is no better to the banks lhan a
circulation of only $3.50, ,5G5, provided the lat
ter were free of expenses. II therefore follows.
thar 1t all the banks N this state circulated only
$3.50, sG5 in bills receivable for all debts due
tho banks-that circulation would afford As
much profit as they now gst on the 5 / 100000
circulation.
The next question is, would The banks circu-
lao as much as they now do,
Os CRCuLArIoN
The circulation Of money. is necessary to ev.
cry people who have made The least progress in
civilization. (Our ancestors found the Indians
oil this country in possession of circulating
medium.)
Without going into learned dsquisitiou, on
the subject, we will come directly to the point
How much money does the people and bu.i-
ness OF Rhode Island require to hold constantly
IN their possession and use, to carry on their
domestic business with Que another1
Five dollars per head for every civilized pen-
pie, has been considered as the least possible
sum they could get nlong with and the reopIe
OF Rhode Island, say about 100, 900 10 number.
now use OF bank paper, as has hecn shown, one
million of dolIars-that is ten dollars 10 each
person in the state.
The price of the article, "f consumption and
commerce. with more active domestic business.
hath at some times kept in use more than dou.
bio the paper than in the present depression of
prices aud business, is now IN the hands ofthe
people So il is fair TO conclude that the amount
they now hold they cannot, orwill not, do with
out. The banks have for = long time supplied
this agent OF exchange, and doubtless will con
tinue to do SO.
We have already shown, they did on the ID
OF March 1910, derive net gain Of the interes,
on S350,S65 only, (and even that is doubtful ,s
many small expenses arise which it is difficult
to enumerstc.l under the present system. Now
what sum would they gain an interest on under
the new SYSTEM
The sum required conStaury in the hands OF
the people. or which is now held by them. is a To-
bout 81 OOO 600
They would then have
the specie in bank on which
they would lose nothing,
say 500 600
Bank Bills, on which
they would got interest, 100000
- 81 ,0O0, 600
The Banks would then receive interest on the
amount of their Bank Bills receivable. saw
5000, 900
| Prudenc. would however requirs
them TO Keep small quantity or sps-
Gle. over the Sl00,00O to meet occa.
'lonaI small calls on their specie bills,
say, 5n 600
The amount on which the Banks
"oT,d QUIZ, GET interest is therefore $500
] Tho amouat on which thev Get
net interest nav IS 35O,s65
The Banks would saia blythe change
an 'n''res' on Sl99,l35
lhe Banks, therefore, would derive from
Their circulation an iutsrest on 500 I35 mare
than they now do, aud no rircuhIiun ruuld he
forced OUT over the real wants Of the peeple.-
Ihe public would then have the same amount
IN their hands rs they now hold, tuo.6 6fbs of
which would be in specls bills, and three. 6ftbs
IN Bank Bills.
The p an OF suppressing small bills, and sub
sttuhng specie for tn, domestic ys. of IN, REQ.
pie, would be, IN my opinion. greater evil than
has been supposed. lfH~ero general. the eooss.
qusnee would be to confue It to the divided
possession OF each individual who had mop.,
so that tue whole mass would b. so sc,,,c,sd
that 1t would not subsers the lsr,. op,,.t,ons
vi trade, either 10y itself 10 Aiud. or by 4, inst
aud available represontsuse Tor all the speci.
In the country would thsu be distributed. law
dollars only u the hands Of each. leaving hule
or none OF this agent to sustain bank r,pc,. or
To settle balances at distance. Thu MIA, to,
hhode Island banking. as proposed. would not
compel The people to use spscle 10 their dpm,s.
''e intercourse. tot the want OF Substitute. but
leave them the eutlre liberty to use ,tbe, ,bs
'peeie or IT'S representative, sIcgys at th,ir o,ea
oP''o"' AID as the use Of paper, ~hiIs the sans
Is '0n''r'"0ie 'nlc specie, Is nov generally prs.
itrred by thsm. the same prsiersnc. NO. h,