Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-05-11

This table informs u.s. that in 1879 anu 1877 the rates
far from steady, and, on many points worse than
now The Charleston, (South Carolna,l varied
from to 3 per cent. in those years Whereas, since
those Banks have paid specie during the past year, The
rate has scarcely varied from TO u per cent, aud ~
lower than in 1880, during the palnest days o the
Bank The rate on New Orleans varied from par TO >
per cent, which is nearly as great 4 iuctuaton as
now, when those Banks suspended Between Bos-
ion and New York. the rate has changed except
during the suspension of 1887. While the Phladel-
pha Banks paid specie, the rate never varied IRON
par TO quarter discount. This rate was maintained
far more steadily under the bill operations Of the
private houses, than under those of monopozlng
Bank. During the recent resumption oil those Banks,
the rate very steady at par quarter discount; and
all balances due in that city were drawn down CLOSE
For few days before the final suspension there was
balance rather in favor Of Philadelphia than otherwise
Some of the largest bill operators remarked that for
two or three DAYS there was absolute dearth oil
Philadelphia bills-notwtlstanding that New York
was charged with breaking the banks in that city
The instant that the banks stopped the rate
10 per cent Why Not because the Indebtedness IN
creased to that extent, but because Of the dlscred
When the Richmond banks resumed, the rate of bills
did not improve, because there confidence IN
the resumption if broker took bill on that point the
banks might have stopped before 1t could be collected
Let specie payments be general and permanent and the
rate Of bills Ike those on Charleston and Boston, will
always rule at the lowest points in the hands OF private
dealers. The same principle governs them that 70
oreg exchanges; yet no one thinks OF starting
a bank to regulate exchanges over the whole world
As to uniformity of currency, such thing never ex-
sted even under the best days Of the u. 5. Bank
This glance at the table of prices of bank notes will
fully prove. In every year there was variation OF
from par TO 90 per cent discount in the currency To
say that the bills of the U. S. Bank at par every
where, and that therefore, the currency uniform,
is an absurdity. In 1874, the whole Bank circulation
was 800 100000. or this, the IT, $. Bank furnished
Sl2, 900 600, leaving SIS 600, 600 which Of every
shade OF depreciaon from par to 90 per cent discount
Had there been no w. S. Bank from lSl7 10 lc;'G-
but had every established bank been compelled pay
specie on demand, there is doubt not only that ex-
changes over the whole Union would have been
pular as they have been between New England and
New York since 1897, but that the great revuson of
1897 would not have been brought about. II was the
deceptive action Of the bank that prevented the state
of the exchanges acting guide to trade, and caused
that accumulation Of credits that prccipltaed IN
sudden demand, and Frustrated every thing. In lS3o,
the total imports $40 600, O00-in lc'6 they were
5000, O00-an increase of 100 per cent. The ma
jority Of these imports made at the port of y, W
York, and from thence distributed all over the Union
This brought all sections in debt to New York,
and New York in debt 10 Europe-more than could
be paid. The suspension was then inevitable
This excess of Indebtedness WIS but another name
for Il arrangement Of the exchanges which caused
by the action of the bank. Ii was begun in le2o
and reached the crisis in 1896 Mr.. Biddlc's remedy
to wait until the exchanges restored, by pay
mens out Of the proceeds of the crops. The credits
created by the large State loans afforded shorter way
to restore exchanges. The arrangement exists now
only in the depreciation consequent upon suspension.
This National Bank cannot rcmed y.-lt cannot COM
pei banks to resume that unable to do So The on
ly way 10 at 4 sound and uniform currency TO
include corporations i'll bankrupt law the whole will
private enterprise and competition will keep exchanges
steady al their lowest rates.