Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-01-30
Total,
sso3 as7

Th, proposition was laid before the Join. standing I'm
mtiee banks in the House of Representatives, sud the Bank
Of Tennessee instructed accept it, The institution
holds discounted domestic bills the of Of
which the above has been of for the Of
the state dsbt, as described.
On the i7th November last, ia writing upon the sub
jeet OF the currency OF this state gave sketch OF
the in which the banks Of England, Scotland,
Ireland, and New England maintained their circulation
par the great centre Of trade in each eosHy. The banks
of each have different method Of obtaining the end;
that Of always making their neSey equal to gold nd silver
Since that mc the subject has been much discuss 10 both
this tate and Penaan aud many plans have been pro
posed to attain the ebse, in New York According
the of the comptroller the circulation of the safety
fund the state Of New York. j, sl2cOe goo There
have issued SO 100000 the free banks, which 81
900 in actual circulation or both descriptions of not
$4,000 coo issued by country banks. This amount has
probably redeemed four tines and the average dis
count has been follows;
LOIS by Discount.
SlsOo1 zoo Free Bant, per cent $4,000
36o0000o Safety Fund, perc cent 40 900
sasoooooo siDssO5o
There loss Of Ooo whieA has been paid by the New
York rerehaH the money they have received from their
the country for good, sold them. This lose OF
course, forms additional item in the Of their goods, and
added the price The supplies purchased by the farmer
enhanced to that amount This evil il sought TO rsmey
and plans have been oresd interested parties with
the alter the old their utars benefit
One party proposes that all tie banks should receive each
others note, par; another party prcpo'c. thai partially
ia operation Albany A.oer party propose. the Of the
Bank Fund redemption fund Albany and many other
less feasible projects been stasda Of which chiefly
the country banks and throw of their shoulders the
expense attending their own circulation.
The first mentioned plan has been The avoritc VIII large
clas its pju.e, and nay d, not TO have been
much inquired New York is The great centre Of pay
m,nis to which all the circulation Of the state tends The
circulation the city bsaks necessarily mveh smaller ihan
that Of the county baAks TO osge ne former to receive
the latter ymeni and dspose par would operate
to ,ubarrs.s then. Any Psrso. might make dsppe Ia
hill. Western bunk aud then turn rou.d aud demand pe
ce when would require two weeks Cor the bahk to REIN
burss ITSELF The burden thus put upon them, they would
naturally throw of possible, which would be done
by speedily realizing specie all the bills received by them
They would then have IL their power and u would be TO
their interest," compel suspension In any particular
ton whenever they pleased Tais, them would resolve itself
into compelling the country banks TO keep dcpose IN the
city, in the that the SUE ok Bank, Of Boston
operate, upon the banks Of New England The other plan
rcd,emng their bills in Albany exposes the banks Of
Western New York continual runs tept up upon th, fer
purposes Of speculation Thus stated that certain Of The
Albany b,k. placed funds in the hands Of roker in
New York by up the bills Of the Western baak, These
the bank in Albany. and then homs Cor redsmp
ton. The operation yisll, per cent IN short time,
while the Western banks have been oraped By the
that they have been OBLIGED constantly eurts their issues
i nn't sways be the that country ney will be at
discount IN New York, loSr provision is made for
them there To redeem them in Albany, only ucreasing
the buying them up and returning them the banks
The tact that they are used argument Why
they should not place funds in New York 10 redeem them
We cannot say they provide sganst places This
reasoning Is erroneous The fact that the sis ere at dis
count ,rsse' The 'un uPoH hem BY AFT Ting the ,peeulator
handsome pre6, and would soon as netting could
be made BY it, The banks in the country would not If they
kept funds in New YORK. be obliged k,ep but small
proportion at home The banks Ct New England are reur.
ed hep funds in Boston, and sqienJ experience
very seldom demand al home for Psos. II stated in