The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1841-04-23

we su0Joln the fourth letter oil our esteemed
friend in Richmond. Il explains what is meant
by a system of Exchange The information is
valuable.
LETTER Nv.
RICHMOND, Goth April 1871.
QUESTION. What do you mean by sysism Of
Exchange?
| ANSWER An organized credit, that will be able by
the use of Bills of Exchange to prevent the rate o.
Exchange from being high to cause specie to BIO
shipped to make payment in other places in the United
States. la answer to previous questions, it has been
stated that the great Of suspension is the ship
ment of large sums Of specie to meet the demands OF
trade and not the loud calls for ordinary circulation
Any system that will render shipment of specie
necessary will quiet the Exchanges and prevent
Their suspension, after the Western and Southern
States have been able to pay their debts. What the
form Of system shall be- will be explained in ertenso
at early period at present the only to the
above question that appears be necessary has been
given, but it may not be improper explain somcwha
more at length how Exchange can he kept under sps-
| Gle par.
Ifan institution is created that shall possess suic
cnt credit and capital to be able to sell Exchange
every section of the Unonat all seasons ofthc year
place the specie the point where the funds
may be required the object will be effected and the
amount Of specie now in our country will be more
than sufficient for all the purposes of currency Specie
cannot be kept in circulation among the people long
such large required for transportation and
therefore to give stability to the currency, and nuse
into coin, the Exchanges must be regulated by
SYSTEM the form and character Of which, and the du
ties which its action should be confined will be pre-
| sented under another head.
To be able to cqualze the rate of Exchange requires
comprehensive view Of all the diversified interests Of
this great continent, knowledge derived from agents
and correspondents stationed in every town of any
Importance, and accurate statement from month
month of the grain, tobacco cotton and manufactures
in the different places where they prepared for
market. Ii correct information be obtained,
ry accurate judgment be formed Of the probable To-
cation OF the balances of trade produced~rom vare
y of Crops of grain, cotton, tobacco, &c. may
be short abundant the prices advancing rcceJng
The manufacturers may be successlulor unfortunate
large quantities may be sent forward for sale to the
Southern cities, be actually sold to Southern
Western merchants Thus variety Of
constantly occurring according 10 the regular
Of trade to shin from place to place. and time to time
the balance of Indebtedness.
| well organized system Of Exchange will be able
by the Of funds and the discount of drafts at vari
dates in anticipation Of results to sell or buy Bills
of Exchange to meet these various and varying bal
ances without allowing the rate Of Exchange to run
above the cost Of shipping specie. This system will
necessarily cause the loss Of interest large Of
money, but this can TO some extent be overcome by
| proper arrangement.
| In the manner balance wheel to machinery
operates an impeachment while it performs the part
of regulator. A system of Exchange operates imper
ceptibly regulator II neither accelcrates de-
ereases legitimate business, but produces equali-
sed action through any section Of country, and
every department Of industry To effect all these OBJ
| ecs 80 much desired by the country, requires but
comparatively small amount of funds, and therefore
but little power beyond the ability TO do good by
systematic application of money and credit to the e-
Ultimate business of equazing the rate Of Exchange,
and permitting limited general currency.
Question. By cqualiizng the Exchanges, will the
currency be increased or diminishedl
/ Question. What is the practical operation Of two
currcncies
Extract If letter from Editor Of paper in Gin
cinnati, 10 his friend in his city dated 18Th April
Taylor (son-in-law Of Gen. Harrson) as Postmaster
in this city reached here yesterday through your let
ter nd which as far can learn, the only
| received here on the subject. We instantly had il
out on our Bulletin and the intelligence flew like wild