The Camden journal. [volume] (Camden, S.C.) 1836-1851, 1841-01-06

unfounded prejudice on the one side,
which may refuse to the public dement's
which, property regulated, they can be-
stow; and, on the other hand' waro on
those evils which their abuse has alreaoy
spread over our whole country.
The real uses Of Banks, lst. 10 anora
safe places of deposite for money; "a.
Expeditions and safe means Of payments
by checks in lieu of counting, 50. by re-
curing similar amount of coin TO con-
duct exchanges, by dispesding. win
part of their specie, and substituting 'ns'r
bills, when ty judicious management inc
credit of the Bank is preserved unques-
toned. The money thus released, IS &C.
lively employed as capital, and by tenn
porary loans, gives renewed and reitera'-
ed activity 10 trade The very fact, that
they issue bills exceeding their money
capital, requires that their loans should
be short, that they may be always ready
to redeem their circulation as fast as IN
the round of business it is brought in. A
Loan Office only lends its actual capital
and as long as the interest is puncluaIly
paid, requires no change of investment.
4. They enable commercial men to ex.
tend their dealings beyond their actual
capital. Thus, if merchant has ten
thousand dollars capital to invest in an
enterprise, he can safely borrow thirty
thousand dollars, and the Bank can Sc.
curely loan it, if his known character for
prudence, warrant, that BY insurance and
other precautions, he will not loose, il
unsuccessful, more than fourth Of the
amount embarked in the enterprise. In a
word, money is only machine to circu.
late property, and paper costing little or
nothing, is a cheaper machine, but it al
WAYS supposes its redemption in coin un-
questionable. These are the legitimate
uses of Banks. They are not designed
10 loan money to government, and when
employed for that purpose, it is fraud
upon the people, and operates as forced
loan, il it is made in bills Of the Bank
Money loaned to government represents
no property. 1t is expended in gun pow.
der, and leaves, when once used, nothing
behind, any more than the powder itself,
after it is exploded. But it swells the cir.
cula.ion, and thus dePreciates its value,
and when carried to great extent, leads
TO the measure adopted in England, a le-
galized suspension of specie payments,
and q compulsory tender Of Bank promis.
es, instead of real actual money. The
prevailing notion, even among merchants,
that Banks are necessary to facilitate ex-
changes between the states, especially
that United States Bank is so necessary,
is a fallacy, whichis capable Of demonstra.
ton TO those who will forget their preju-
dices and submit themselves to the gui-
dance of reason, FIRST, then-Banks ne.
yer have been used, and ATE not intended
10 deal in exchange between nation and
nation. The quantity Of exchange de-
pends on the amount Of property trans
mitted, generally speaking, and bills ori.
ginate with the merchant. II a merchant
in Charleston, transmits thousand bales
of Cotton to Liverpool, he has funds to
draw upon, and the importer who owes
for a cargo of English goods, seeks that
bill 10 remit in payment: II is the proper
duty of a Bank to discount the bills com
ing to maturity, where its own capital is
located. Thus, the Bank of England dis
counts bills, payable in Charleston, would
no. be discounted at the Bank Of England;
neither should bill, payable in Londen,
be discounted in Charleston. 1t tends to
swell the current Of exchange beyond The
actual transactions Of trade and introduces
that species of bills termed kites, by
which Two parties at each end of the line,
by drawing and redrawing, use exchange
as a species of accommodation paper to
raise money, not to facilitate exchange Of
actual products or merchandise. All legi-
innate exchange is calculated upon the
basis of specie; the only money Of com.
merce. There is no real difference be-
tween the several States Of this Union,
and the several countries of the world,
who deal together. The value of the bills
of the Bank of England or France, do
not affect exchanges. 1t is not necessary
10 the trade between France and England,
tha, the bills Of either kingdom should be
current in the other. They are not so in
fact, and exchanges are not impeded.--
The truth is, Bank paper. not oonverta.
bic at will into specie, is no currency at
all, butts worse than delusion. If eve.
ry State permitted no Bank paper not re-
deemabIe-if suspension was death, as it
ought to be every where, a United States
Bank is altogether useless. But even a
United States Bank would not make its