The spirit of the age. [volume] (Woodstock, Vt.) 1840-1844, 1841-12-24
From Coughs Journal Of BaQkinx.
"UNITED STATES" DEPOSIT AND EN-
CHANGE REGULATOR

|
OF the tenets OF their respective churches, MIR Wes
ley objected to the doctrin of purgatory. "You
| may 20 further aud far worse" said Father o.
Leary. SO we say to those hard money men who
are so very slill-necked, that they are unwilling to
sanction the use Of paper, even though 1t may be
the Representative Of gold and silver actually in de-
post.
"You may 90 further and fare worse" Presi-
dent Tyler is not paper money man. or, ii he Is,
| he is not what he used to be. But ma jority of
the present Congress are paper money men, as has
been proved By their votes on more than one &C.
casion. The President wishes to satisfy them if
he can, without compromising principles, and if
paper which will be the representative Of gold and
silver actually in deposit, will give them sutsiac-
lion, by all means let them have it.
"Wo may go further and fare worse" A late
number of The AiadiSoRian contains a plan for an
institution 10 be called " The United States" De-
post and Exchange Regulator" which we regard
as much worse. An outline Of it follows:
LIST. Tie Exchange Regulator to be al Washing
ton, with branches wherever public OF private con-
vcnIencc may require them.
End. The said Regulator and iis branches 10 be
provided with " ten or fifteen millions ofpaper for
ISSUE in suitable sums, but of not less denomina-
ton than 500" lfi was ten times as much, ~
says tho author of the scheme, used as would
have it, it could do no HARM"
sid. The said paper never 10 be paid out by any
branch, but after said branch shall have paid out
all the notes Of specie paying banks which il may
have received, and all lis specie.
4h it is to be " obligatory on all 1.-THE branch
es] whenever specie, or current bills oispece pay
ing banks in the vicinity are rendered, and draft
on any other branch desired, 10 draw said draft,
changing such premium us Congress shall ailx
but this never to exceed tho cost Of transporting
specie"
9th. Bills of exchange are to be purchased, but
only for the purpose Of settling balances between
the branches, and then only when tho premium on
them is less than, or not more than the ordinary
cost of Transporting specie.
9th. In other cases, the balances between the
branches to DC settled by the transportation of spe-
Gle
Such, as we understand it, is the schcme--a
scheme for 4 National Bank ola peculiar character.
U1kc former NurionaI Banks, it is to be founded
exclusively on the credit and resources oflhe Gov
ernmcnt; but like them it is TO issue n credit cur
reacy. The protector proposes 10 begin with "
or 10 millions, and sees 40 objection 10 increasing
the amount to 1870 millions. A credit currency il
will be indeed, for as the branches are not to begin
to issue notes, till after their vaults and tils shall
ing banks, such notes cannot be said TO rest on
even specie basis. They would have nothing but
the credit Of the United States to support them.
Hitherto, the Government hus received bank
notes in payment fpublic dues only. If this plan
should be adopted, 1t must receive Them 10 an ex-
tent sufficient TO cover an immense amount Of en-
change transactions, whereby It's risk of loss lioln
bank failures and suspension Of specie payments,
would be greatly increased.
1t seems to US that the whole scheme is found
ed on erroneous views ofthe functions Of Govern
nenl The regulation Of weights and measure Is
among the attributes Of sovereignty; but not the
regulation Of the rates of exchange or the prices of
commodities. Let the weights and measures Of
| country, including therein its measures of value,
be first properly adjusted and free competition will
fix the prices Of bills of exchange and Of all other
commodities, better than can be done by any di.
rect action Of Government.
Where the banks pay specie, this Exchange
| Regulator" Is not wanted. Exchanges are there
already reduced to the lowest possible rate. Thus,
between New YORK and Boston, they vary from
IL to Is per cent. Where the banks do not pay
SPECIE this Exchange Regulator" will be Of no
use. The branches are 10 receive only specie,
aud the notes Of specie paying banks. TO obtain
these, the people will have to sell the notes Of the
|
they would have 10 pay TO the branches of the
ured III deprecated paper 10 as high rate as at
| present
Even in the region of suspended bank paper,
bills of exchange can be purchased for specie, at a
premium not exceeding the cost Transporting gold
and silver to the place where the bulls are paya-
Bile. Sometimes they can be purchased for less.
This point we cannot better eucldalc than by an
extract from the able speech which Mr. Shields OF
Alabama delivered in the House Of Representa-
tivcs on the 9Th Of August last.
"'The exchanges between any two points-as
for instance, between Mobile aud New York: may
be entirely cjudi, whilst the local currorci's Of
the two places may be greatly unequal in value
and when exchanged one for the other, would ex.
hiJii that inequality in striking manner us do III,
local currcncies most generally throughout the Tn
ion at this time. During the last winter, the note,
Of the Bank of Mobile, and of the Planters unt
Merchants Bank (ooth specie paying hanks,) n
Mobile, bought checks and bills of exchange OF
New York at par, or within fraction of par
whilst, at the same time, the notes or non-speci
paying bank in another street in the same city Ito
wit the branch bank at Nlohiie,) with n capita
paid in of four million of dollars, could NOT buy
check or bill on New York short OF premium o
ten or twelve per cent"
!, This short paragraph ct once reveals the secrc
Of the arrangement of exchanges, and the true rem
edy. The cause Of the arrangement is to be loun,
in the suspension of specie payments by the banks
The remedy is to be found in 4 resumption of spc
Gle payments. For thi.,we must look TO the Stat,
Governments. The United States Government, j
; herein nearly poworlcss.
, The character Of a ,chig Governor, as draui
By whigs.-The wing citizens of Iowa and Gran
, counties, Wisconsin, held mass meeting at Bel
mont, on the 9Th November, I" for the purpose o
Suggesting some course for the action of the citi
zens Of the whole territory, which shall be deeme,
the most enectual in procuring the removal o
James Duane Doty from The Office Of Governor o