Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-11-09


&c as4o4 ~ an a. as9 e 100 20
OIL los, lss g0 lie 6523G3 9l,l;4G3 c''''so-' e",''o
bank notes in nnoer bu, The taiae OF said amount oil
hank notes space in place LOT 'e same ta'"o !"
specie in another. ILL.,,
40. 10, Lee r,ou onr inequality or Encouragement OF
I, the EXCHANGES" hut from the failure IN the bank or
banks issuing them to redeem mem III specie. when
eye, bap paper IS not convertible into specie, its value
INNS, NECESSARILY fall below specie pnrthc rate of de-.
n,ec;,,ion benny regulated controlled by q variety
If crcumsrances-as, for instance, the quantity in
circulation in proportion 10 thu demands Of business
for circulating medium; the Indebtedness Of the COM
munty in which crculates 70 distant or foreign com.
munes growing out Of their commercial intercourse;
the prospect probability o's early or ultimate re-
demp,on in specie; and other circumstances that in
fuenoe the condition and use lrcdI, and currency
II is, indeed possible that pap not convertible into
specie may be kept at par with ec'e bu! such state
can only result, from the ford especial policy Of
law attended with rigid limitation oi the quantity Of
such paper in circulation TO rany supply ofthe de-
mand that may exist for circulating medium.
| And on the other hand Whenever bank paper is rea-
Oily convertible into specie, II r OF once aud ihereup
! on at par with spece-some times, indeed, shade
above specie par especially silver par III consequence
of its greater portability aud convenience for heavy
business transactions II is only when the bank note
currency of place is in such condition, that lis ea-
chanseable value be regarded rs indicating accu-
rately the true rates of exchange. And when the To-
cal currency Of place is in such condliion-,hat IS,
when it is convertible into speclr-'le rates OF ex
change with other places having the same sort OF n
currency-a specie paying currencyarc reguli ex-
casrely by the action Of trade and the cos, Of trans
porting specie from point Ia another. At neither
of such points will the depreciation OF hank paper be-
low specie par exist, and consequently afford cause
for misleading and bewilderng The mind III regard 10
! the true rates ofexchange. A merchant of Mobile or
New Orleans, for example, will not pay Eve, Ten, or
/ fifteen per cent. premium for check or bill of ex
I change OH New York, when nv calling al the counter
of the bank he exchange !';s Alabama or New Or.
leans bank notes for specie, which IN very few days
he ship transmit to New Iork al irihng cost,
not exceeding from one 10 twp and half q to 2t)
per cent Ut is the rcu6istnce ilI5t he has it
his power TO withdraw the sxscc !rnm the vaults
of the Bank, and transmit, il r c:eaply 10 the de-
sired point and the certainty at he vii do so rather
than pay high rate Of fx Hngc, that places the
Bank in his power ard comp II 10 furnish him with
Nothern funds, or such funds. his necessities require,
at low of exchange. Tie merchants at the com.
merca points in The South, and, indeed, throughout
the world, bAhese means eaabed tn command the
exchanges; 10 liz their rates within st limits; and at
snch rates, thus established q, Inc numerical points
by The mercantile operations ." hos po'n's the whole
surrounding country is acc mm"d1 and all foreign
payments and distant nlonkaIY tran lotions performed
Specc.paying banks are compelled 10 keep on hand
an abundant, supply Of exchange ID bccnmmodac the
commercial wants nf the couptry Otherwise, their spe
J Gle will he drawn from het. vaults; and, finally, q
suspension Of specie payment; rendered unavoidable
And will take occasion here remark, as pass on,
that i, should ever be an ineeae, nnai,ernhis RUE Of
conduct for every bank, at every commercial point in
the Union issue soiitiry dollar Of its paper
for circulation except 6SSs composed Of the spe
eie its rauifs and araiiatc bona fdc bills Of
change, drown upon the trdnt@r safe If The comma.
dities Of The amount Of its notes in circu
ation should never exceed the aggregate OF It's
specie in vault, and Of rat business Hs # exchange
dro,cn upon HE products nj tie iubor cfh country.
b.,L
notes. representing the real substantial busne trans
, actions Of the community which it is located, ex
cpt sciM lis actual capai. Capital alone should be
lie basis Of such discounts: an never shoulc
bank issue dollar Of It's papcr upon credit
except in the discount of genuine, available bills
exchange which, within reasonably short period, wi
yield return IN specie or specie funds. Under rigid ad
herence 10 this rule, the evils which have afflicted h
country heretofore, and which weigh so heavil,
upon IT, from blending of The func of issue
discount IN banks, would be averad: order and uniform
y restored 10 the currency; equality to the exchanges
soundness nnd health 10 trade and credit. A sound
specie paying currency adequate 10 abe Just demands
r business would be the result of such action of In
hanks; and this is what the country wants. and oil tina
@ the country wants
We have seen, however, That Sl1O, goo goo, or two
j. thirds Of the whale hank currency Of the country arr
not convertible specie; and con seGueny are de
II overwhelmingly drpreciaed-te specie par il
different quarters Of tie Union THIS depreciation
and the VARIED degrees Of il, rantng from three In v
per cent 10 as ow fifty per MT DO not at all show
have also seen, any inequality arrangement
; the exchanges but exclusively the degree of credit
rather Of dscrtda attn bed TO each description OF bau
e paper of which The 81 lie n,nss is composed When
ever gold and silver he standard of value as il
the U. S. and throughoH the commercial world the
changes serve barometer 10 i1 the rauc and ere
dit OF The local currencies cf The different, Slalss ant
# nations trading with ench other.
II IS pa'n that all the noR.spcce paying ba INKS o
+ The Union were 10 resume aud continue the pavmen
y Of specie urou heir notes, he inequalities h nov
characterize The comparative value nf their paper wou
Immediately disappear, and, in common phrase abc x
changes become regulated. And ii necessarily result
from this, that the erssing suspension of specie pau
ntntS by The banks IS the direct and immediate caus
of all the disorders Of the CURRENCY and derantemen
" of exchanges" COMPLAINED Of.
y Why, then, do the banks not resume specc nav
ments, and restore sonndness and uniformity 10 th
: currency, and equality TO The exchanges? Al Sir
: this is pregnant question IL is easily answered; bu
i the answer dscloses the latent cause tile real Of
The ills that al'ct rs Some there may be TIA, vii
not resume, from sthe want .cf inclination; bn; few
! there are, luke it, lat can resume, because of tn
gate OF loans and o. units duo the banks stated 10 b.
I Ss62es6,o23' and r'li be not far from correct t
2 suppose two thirds his sum to be due 10 the bank
4 now in state of pension. Now, SIR the unior
tunate individuals Ao bear The relation Of d. btor
r TO these banks arY' unable TO nay this immens
mass, tHiS HSuTtouS aifaWuH!0G OF 0eDt the o
$308, 5o7,6S2 wo-thrcs of the above aggr.gate) du
them from nsolvent and embarrassed debtors, do IS no
present description character Of resources nedi
atey available of debts easily collectabe The in
debtedness Of individuals TO snother-of the peo
pie among hemselves-if TO pay any res rect
what said here in favor of the passage Of ban krup
law, is immense-indeed, inca'cuIab!e
To what source the debtor classes 10 appt al 70
re lief from The calling bondage at Expresses hem
The enactment of bankrupt law may relieve S, ch a
are hopelessly insovrn bul lie effect Of such la,
is the annhila,ion, not the, payment, of debt An
under its operations immense proportion o, th