Lexington union. (Lexington, Miss.) 1838-18??, 1840-07-25
81. rha. DE curreao, Of lhal tank !. moi

3k Ihut the currency OF I'VE otute uahhs
we're Mt discount OF fifty per cent. during us
continuance, and that il did not iherore 1cMeuy
the evils of the local currency.
4th. That tho notes OF IA United states Dahh
cannct be substituted in the place Of exchange
without grea, Inconvenience and loss.
II also shows, that The opinions OF the
Bank before it had entered the political
arena, before it became The head and front
Of the great credit and specializing sysfem'
were entirely opposed to the claim OF "reg-
ulaling the currency" which political IN
genui,y has since set up. Such opinions,
enforced by such reasoning ought TO be
conclusive 10 every reasonable being.
q. As 10 regulating the Exchanges
The price of Exchange, being nothing
more or less than the cost Of the transmits.
sion Of specie between two given points,
cannot, in the nature Of things, materially
vary, except by an unnatural disturbance
Of The laws Of trade. On this point, ex-
anime the testimony Of the U. S. Bank,
contained ia their memorial to Congress
in 1921.
"Forty and fifty per cent. have been paid in
the current medium in some parts OF the western
States, for the notes OF the branches OF the Bank
Of the United States. 1.-THE notes fthe branches
had been made a local currency from the first
establishment the business Of the bank would
have been under control, and woull, no doubt,
have been so regulated rs 10 have judiciously
distributed the capital ofthe bank. Under such
circumstances, Tor example, there is no doubt il
would have been the interests Of the bank to have
sold exchange in the western States, on the At
lan,ic, at light premium, aud TO have received
its payment by another operation Of exchange
on New Orleans, where the Western States lind
their market. The premium Of exchange, what
Ever it may at any time be, will be fixed by un-
comfortable causes, which are perfectly inst, and
almost perfectly accurate. 1t must inevitably
| be as equitaby and correctly fixed as the price
| Of wheat, cotton, tobacco, rice, or any other
commodity. 1t is an utter msconcepton Of the
| principles Of exchange TO suppose that the Bank
OF the United States, with any capital, or means,
| fol terms OF any material duration, could exact
an unreasonable premium, VI The currency be
1
| fair dealing, and it is idle TO project remedies
againsi unfair practices. The discerning will
easily perceive, and the Candid will readily adj
NIT, that the bank is more likely to suffer than
to gain in such u state of things; but If the cur-
rency be sould Tie rates oferchGage can nerer be
ercessite, because they can never materially, and
fol any considerable length Of time, exceed the
expense, risk, and loss of interest Incurred by the
transportation oIspeeie. The person Ge-irous oi
purchasing exchange will eithe have the specie
in his hands, or win receive it on demand from
some bank whose notes he holds. Who, then
will be guilty Of the folly Of giving much more
than the expense OF Transportation, &c.
"There will be competition, too, wherever
there is gain, which will lie carried on as far, ard
continued as long asit continues to be gainful
1t is true that exchanges between some OF the
States have, for a considerable time past, been
very high Bot wherever it was high tho cur
rency was in greater or less degree unsound
the banks were curtailing and the currency de-
ereasilg. These causes could produce no othcl
result. Had these causes not existed thc pre -
ums Of exchange wopli not have tcen high. In
some places, though the banks pretended to pay
specie for their notes, they eva,Ied il in effect
Let specie be paid promptly and bona fde to-
morrow IN places where exchange is high, and th,
premiums OF exchange will imm, diattly fall Il
rates founded on the chsrges and risk Of t,ans
Toring specie, and trife, perhaps, beyond hci
aggregate. That thisls an inevitable result, it i
believed, has never been denied. In England j
was denied that the adverse state of exchange
which that country suffered while its notes wer
inconvertble, depended on the suspension Of cas-
payments: but it was never denieA, that il III
cur ency could at any time be converted int
lalc fbf,. ,tno. IN
The cost Transportation, &c. Let The currenc
be sound, and The premiums OF exchange must b
precisely Just. Toattrmpt 10 equalizc exchange
OF TO place the charge Of on any other operation
thanihose which shall causea demand for it, vi
be as mpracucable as it will be unjust"
Can human testimony be clearer, O
more conclosiye? Docs not the Ban
PROVE beyond Doubt
Isl. That the premium Of exchange
fixed by uncomfortable causes"
4 %. That Bank Of the United S,u.e
could not materially raise or depress III
price Of exchange, ifMe currency be soun.
Sd. That the equalization Of exchange
by any other means than the usual law
Of trade, to wit The regular dcman
, and supply would be as impracticablc ,
il would be unjust. And hence il lie, that
U. s. Bunk always wiu disturb the lar
; Of trade and exchange-(orcing il fro
its natural channels intoa circuitoas rou
through the pockets ofnorlhern merchan
Hence il is, that che ncrtEern Wing le
ders now strive to ugzzIe the eyes Of i
people Of the sopih, BY blaze Of militia
glory--by . false issue, through viii
they hope to blind the people OF the sou
Irto the support Of measures, which III
have so often condemned at the ballot bc
Ie Rutltha TRTIF ICSFTEN:s R,,nL n,