The Charlotte journal. [volume] (Charlotte, N.C.) 1835-1851, 1841-06-03
From TIE -HddiSoaiQa.
EXCHANGE AND CURRENCY.
RIcnMosD, MAY 4, ISL.

me currency IN the most sale and peIma-
nent manner
To point out plan requires but few
words, but II may be necessary to add to
the plan some explanations, for the intor-
nation Of those who may not be familiar
with the subject Of exchange.
First, as 10 plan
|. An institution, or National Bank,
with capital Of twenty-five millions OF
dollars;
>. Five millions to be subscribed and
paid in BY individuals, 10 be used as active
capital;
3. Twenty millions to be subscribed BY
the Government and not paid in. The
Government to declare, by a provision in
the law establishing the institution, that ii,
at any time, the board of directors shall
represent 10 the Secretary of the Treasury
that the bank has actually lost or sunk lis
paid-in capital of million, and that there
are s,lll outstanding debts, then the Secre-
tary Of the Treasury shall issue so aIany
bonds of the United States, bearing per
cent. interest, as shall amount to such def
ciences, Propided the same does not exceed
twenty millions OF dollars;
4. The institution 10 be a bank Of dis
count and deposit, with the power Of $50
Ing bills;
8. The bank to be the fiscal agent OF
tie Government, and receive aud disburse
the public revenue, without charge;
6. Al! is paper should be received at
par 10 payment Of public dues in every part
Of the Union;
Z. Three or four Of the directors should
be appointed BY the Secretary Of she Trea-
sGry annually;
:. lis books and papers 10 be open at
all times to The examination Of these d.
directors;
9. Its board Of directors and officers TO
be prohibited, under severe penalties, from
borrowing or dealing with the institution,
directly or indirectly, beyond what is re-
quired in the performance of the duties OF
the Office Of director or officer;
10. Directors and other officers shall
be paid for their services u far compensa-
,Io1i
II 'EA~ A---A---i~ xii L. ---s-e.l -
the f1e millions paid in, and the dividends
On this sum shall not exceed SIX per cent
y. Al the surplus shall be applied to
the expense Of reducing the rate Of cx.
change ON various places;
u. No branch Of this institution shall
be located IN any State Of tins Union with
out tho assent OF the Legislature thereof.
Tins i. plan well CONSIDERED, and which
wiii raee; the wants Of the Government and
Vie appreciation d. the people.
II you desire any explanations, PROFOUND
your questions and they shah be answered.
Question: Why do you lmi, the active
capital Of the bauk to tge millions
Aas1fr.-ln addition to five millions ac-
i've capital, the institution will have the
public deposits and the credit that lis con
necton with the government will give ii,
which vii produce large individual depo-
Sis and 9 corresponding circulation Of It's
notes. These combined causes will furnish
an available fund for all business purposes,
equal, including capital, to twelve or fifteen
millions.
2. This sum is more than sufficient for
all the purposes 10 which the funds Of such
an institution should be applied. The 10
cal banks are no~ very numerous and can
loan their capital and bulls adyanta gcousIy
by discountIng paper payable in their own
immediate nelgh5urhood. Therefore the
funds Of this institution should be applied
% the subject Of Exchange, by dlsceunling
paper payable at different places, aud thus
facilitating rcmittances. If the institution
Is moi used to swell the local capital Of the
place where it is located, then the funds
under i;s control viii be more than yufIi.
cent for all rs purposes.
8. The great object Of the institution IL
to reduce the cost for remittance, aud thus
render the Exchange and currency Of the
country uniform.
To effect this, loss Of interest, and Some
expense must he encountered. II canno.
be successfully and permanently accom-.
pishcd b. any other means.
II We limit our active capital to five mil
hons, and only pay dividend Of SIX per
cent. on this sum, We shall necessarily have
a large surplus to appl} to these purposes,
because the government and Individual de-
posts viii be larae, and the notes Of the
institution will necessarily have a circua-
ton through all the channels Of trade and
travel 10 our country.
a capital Of five millions with the secu-
rity Of the government, will give as large
a circulation and as great an amount Of de-
posts to the bank as if its capital was IF
ty millions Therefore its surplus earn
ings to be applied to reducing The expense
Of Exchange would 10 no degree be increas-
cd while they might be very seriously d.
minished.
4. A large active capital is dangerous
TO the public interests IN the hands Of any
body Of men.
There is a limit to human knowledge aud
ability And all experience las shown,
That banks Of small capital have been man
aged more safely for the public, and much
more prohlaoly for the stock holders, than