Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1841-09-10
63,6l9,6iC
Increase in ten months


Increase in ten months lO,J9O,l iS
Mr. Gallatln, in his Suggestions Banks and Cur
rency published in loil observes, that "ihe only way
in which Bank of the United States can regulate
the local currenc,cs Ivy keeping lis loans and
discounts within bounds, and vigorously rtqnr
ing regular payment Of the balances due 10 II b. the
State banks Tie object may 6e attained aodhont It's aid
in places where the local banks will, W adapting The
same course check each oher, ana regulate McmstrcS
Where this does not take place, the interference Of the
National Bank IS of great Importance and highly use
ful. But the measure IS prdriicdHy difficult ami gene
rdtiy unpopular: though might be rendered more pal
aabe IT the bank torbddcn TO use The public de-
pOScs, beyond certain amount, for its own benefit
ut IS perfectly clear that II cannot act regulator
Of iocuf cnsrHcirs in those places where the banks
from any cause whatever, continue To suspend their
specie payments. "Some other advantages, of more
doutof nature, to he expected from Bank Of the
u. S-suci IN increase Of commercial iacIlitles 4
greater G;i cmy in domestic exchanges; and iopc
that It's notes may, to great extent, advaniageousy
supesede those of the local banks. sAn increase Of
the Of commercial loans moi at all desirable
The number OF banks and the amount of their dis
counts already too great" "The great inequality
and fluctuations Of the domestic exchanges far
they The result Of d,precad currenc,es Le
remedted by Bank of the U. ), rs long they
,lnue 10 ar The local circulating medium at is a
great IL suppose that It can afford generally
uniform currency, rhich ShaI al the time
be Of 'ht raiue in al pacfs. THIS 10 conound
erehGt.s ai currency, and 10 suppose that paper mo-
nv only be true representative of goid aHd
silver, Ia; irlorm that which gold and silver
not accomplish
'.if tic c"rrcacy he sound" says the memorial Of
the United States Bank 10 Congress in the year 1891
'fhc II exchange ntrfr br erceSSre, because
they never materially, and fer any considerable
length Of tne exceed the expense risk, and loss Of
interest incurred by the transportation of specie.
II is true that exchanges between some Of
the States have, for considerable time past, been rery
kich Eu wherever il was high, the currency was in
greater or less degree unsound the Banks were cur
taug, and the currency decreasing. These causes
c"old produce other result. Had these cases not
eA>ed, the premiums of exchangr couid not hare been
hsh. In some places, though the Banks pretended TO
pay specie for their notes, they eSad.d in effect. Let
The currency be sound and the premiums OF exchange
mast he precisely just"
| We learn from tins testimony of the late National
Bank that the rate OF exchange not regulated By IT,
s. Bank bat that II depends upon the payment of spe
Gle BY ne banks If they will pay specie, they
ought TO be abolished; they do pay it, then exchanges
cannot be excessively high.
In his address to the stockholders of the Bank in
1881, Mr. B.ddle declared, GAS long the general
currency of the u. $. consists Of specie its guiUa-
lent the rates of exchange between any two places
ia it can never much permanently vary from the
expenses Of their transportation from place
ther and reduction TO nearly that the in
evtable consequence of the resumption Of specie pay
nents.''
The authorities have cited are so explicit and con-
elusive on this point, tina. deem it unnecessary 10
dwell longer on it. Indeed if to this weight of au-
shortly be added the general conduct of the late United
States Bank we must be constrained to admit that the
against the passage OF the present bill are con-
elusive For it has been shown that the National Bank
did regulate the currency-that existing causes ana
passing events embarrassed that institution, as well as
The State Banks. Nay, Sir we have seen the Federal
Bank expand lis circulation, and the State Banks fol-