The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1841-12-23

deal in exchanges a broad scale, buying bills AZ
long dates, accepting bulls security IN order 70
enable drawers 10 anticipate their means ana mus az
ford capital and credit, well exchange hircty
speaking might but for the dangers attending H. pro-
4 duce more benefit than that now proposed may he
salty admitted. But such scheme involves the idea
of making loans and advances, of veniurlng largely
on the strength of personal security and entering ~
no small degree into the hazards OF commerce N"
such purpose is inieOded by presenting the present
bill u the consideration of Congress. On The CON
lrary, the utmost has been felt 10 guard the
proposed measure against all tendencies 10 such sys
TEN of exchange operations.
la all ne purposes, il looks to currency and TO eh
change, noS TO lending or TO discount Anu may
well he matter of serious consideration whether Such
large powers of discount be safely lodged IN private
institutions with the power Of making such discounts
by the use OF their own notes
The supervision aud regulation of currency belong
10 Government; the business OF commerce anu the
! borrowing and lending oil money TO individuals. Anu
perhaps no conviction rapidly taking posses
sion Of the minds Of enlightened men, than mat DoV-
! eminent should not commit the high and important
function of experimenting and regulating the curren
cy OF country 10 the hands OF those whose occupa-
| ton Consists in making loans and discounts, whether
on promissory notes bills on time whenever
bank makes loan or discount by the issue oil us
bills II adds much TO the circulating medium OF the
country and in the absence OF all other regulation OF
rest ran several hundred banks whose pal pable ine-
rest II Is TO increase the amount OF circulation are TO
decide, each in the exercise of It's own dscretlon 10
what extent that augmentation shall be carried i nat
! TO such system there must be some check or that,
in the absence Of all such check the emission OF pa
per will be continually tending TO excess, must be
manifest to every rejecting mind. u Is not proposed
To enei fully into this ubect at present but as II has
already in other countries SO II must necessarily ere
long in this command the most serious attention oil
| Government.
Ii is hoped that the measure now proposed TO Con
gross will have effect, al least, IN counteractlhg
the lendencyto excess in bank issues. While II may
ot that he believed IL
Will ELECT something To the extent OF It's means EN-
ployed its operations will be calculated to restrain Is
sues and to correct excuses; because, IN the nrsl
place every OF good currency TO the general
tends either render the bad worthless so that IN
time it shall all give way to better, or tocompe those
who issue such bad currency TO raise It's value by pre-
pairing for lis redemption. Ii good currency could be
put into circulation In such quantity as To meet the
of the country II must OF course exPel the bad or
! bring about change of its character although IL Is
! equally true that, bile the great mass be bad, and
while II yet crculates, not having become entirely
worthless it is difficult for small amount OF good cur
rency to share in the general circulation since i IS
liable to be selected from the for purposes which
that will not And, IN the second place.
the Exchequer VIII act benefealy in this respect by
holding all State banks with which 1t may have deal
iDgs TO punctual performance OF their Obligations
and bringing them immediate settlement for such
Of their bills may find their way into 1t OF into any
lis agencies.
+ 1t not intended to say that the proposed measure
will of itself be able to arrest the progress OF the
great evil of excessive bank issues, that Govern
ment may not be obliged, hereafter, adopt other
measures On the contrary, already suggested, 1t
is apprehended that these evils may yet imperatyey
call for other remedies But it is believed that II
will have considerable effect should its operations
be as successful is anticipated, in checking and
limiting what il may not be able entirely 10 suppress
But there is another very important consideration
connected with this part Of the subject One great
object of the whole measure is TO furnish sound cur
rcncy in the form OF Treasury notes, redecmable on
demand in specie. These notes get into crcuIa-
ton, and be kept in it, only IN two ways first by
payment in such notes of debts and demands on the
Treasury and second, by buying domestic exchange
And is the last of these modes which Is most con
deuy looked to as furnishing active and conllnu-
al circulation Of this paper. When issued IN Con
eminent payments, al distant points, the general ten
Idency OF the notes viii be from those points to the
great Atlantic cities, according tothe course of trade
bh hes a q t te Petff n fe fs S esdeht 6a f
the agencies at those distant points shall be authoriz
ed to purchase bills of exchange, new source for
the issue of sound circulating paper viii be opened
and the exchange thus bought would be RENTED
wherever the demands of trade should call for it.
In a country of such varied productions as the
United States, some parts beng highly commercial
Others manufacturing, and others yielding vast
amounts in material the current and course OF ex-
change has periodical changes II flows one way or
the other or in the same way with more or less
force, according 10 the seasons. Nor Is tins course
winding itself through several distant markets Com
modites in many parts of the West seek a sale III
the South, not expecting payment IN Southern pro .
ducts but in means available In the North ana ule
East This happy diversity of products, and these
useful ramicailons Of internal trade demand impe-
ratiyey not only currency satisfactory To all, bi
the means also of easy cheap, and safe dealing IN
exchange And these two objects assist each other
a good currency enables him who needs exchange TO
buy it, and ne who has exchange to sell to sell II.
Good currency and safe exchange being thus mutu'
ally convertible and acting together, all under proper
limits and securities form the most perfect system OF
papet circulation The power to deal in exchange
seems essential indeed to any considerable crcula-
tion of Treasury notes in the South and West And
il may be added, that nothing would tend more TO
cotncract the concentration of moneyed affairs at
one or a few points than the ability of buying do
nestle exchange with good paper redcemabe at the
place of purchase Commercial transactions, and
the consummaton of pecuniary engagements natti-
rally concentrate themselves in places where the cur
rency good. There is remedy against tbs con
centration SO sovereign the supplying of good
currency every where.
A safe system of change, though no more tx en-
sive than is contemplated 10y this BILL viii be of great
the commerce of the country in other respects
besides funshngth the means of keeping good cuffen
cy in circulation. The more direct advantages
flowing from it not nconsiderable. Although It's
object he not supply capital credit for purp ses
of trade, to make advances, and although the
whole system is mited TO exchanges, strictly vet II
cannot iail 10 afford very important facilities, and TO
be productive of much general benefit.
Tile power or acu ~ of reaching TO funds already
ac ,umua,eI in distant part of the country, and OF
bringing them home Immediately, and without loss
is power or faculty of no mean Importance, IN the
hands OF those whose business leads them to form
commercial connexions IN such distant parts, THIS
power or faculty the measure under consld ration
proposes to confer impartally ALL TO the extent of
It's means And its capacity for good in this respect
is confidently left to the Judgment of those whose
practical experience has rendered them most coupe
tent 10 decide.
As to any dangerous consequences from unto
ward influences in buying selling exchanges 1t is
to be again observed that the Exchequer can lend
money to nobody it furnish capital to no one To