Mobile register and journal., 1841-12-14
From Gouee's Journal on Bsnking1 ,.y HUNTED STATES DEPOSIT AND EA-

CHANGE REGULATOR.
 When the Reverend ohm Wesley and faiher O'- Leary engaged in an amitnbie distussion "' ''e of their respective charehes, hir. Wesley ob- jected to the doctrine of fursatory. fou may go further and lare Wsrse,' sad Father O1.eaf!' 90 we say to hose hard money who are SD very su- neeked, that they unwilling 10 sanction ''e use of paper, though it may be the rsWssfHta"p' oi gold and silver actually in deposit
 ''Y You may 20 further and fare worsc." fresisen' Tyler is not paper money man; or, if lle is ne Is not what he used to he. But aory oi tie present Congress are paper money men, as has been p'o,e' more than occasion. The President "'s"es satisfy them, if he can, without compromising flh- cirles, and fpaper, which will be the yeorsss"fale of gold and silver actually in deposit, Will sae 'hem satisfaction, by all means lst them have il:
 "We may go further and fare worse. lale num- Der the Madlsonian contains plan for an h"'i'u- ! ton to be called '''fhc United States Deposit ana Exchange Regulator" which we regard as much worse. An outline of il follows: lst. The Exchange Regulator 10 be at washing ton with branches wherever rubllc or lfsate cohNe | nence may require them.
 2d The said Regulator and it's branches to be pro- vdcd with ''en hteen millions ofpapef oi issue | in suitable suus but of not less dcnomialion than | sg20." elf it ten times as mach, says the au- thor of this scheme, 'uscd would have II, II could | do no harm.'
 3i. Ths said paper never to be paid out by any branch but after said branch shall have paid out all
 
 received, and all lls specie.
 9th It is to be obligatory on all [the branchcsl whenever specie, or current bls ol specie i'ayiha banks in the vicinity tenderod and draft on any other branch desired, to draw sad dfait, chlrShB such premium Congress shall ailX; but lhls never to exceed the cost of transporting specie.'
 5th Bills of exchange to be purchased, put on ly for tho purpose Of settling balances between the branches, and then only when the premium on them Is less than, or not than the ordinary cost oi | transporting specie
 | 6th. In other cases, the balances between the branches to be settled by the transportation ofspecie
 Such, as we understand it, Is he sche'ne-t scheme for National Bank of a peculiar character. Unlike former National Banks, it Is to be founded exclusive |, on the credit and resources of the Government; l but like them It is 10 issue credit citfcafy. The proiector propose begin with ten or fifteen millions, and sees ID objection to increasing the amount to i0O millions A credit currency it miil be, indeed, for as the branches are not to begin to issue notes, till ailer their vaults and tls shall be exhausted ct spe- cie and the notes of specie paying banks such notes can.ot be said to rest on even specie basis. They would have nothing u the credit o the United States To support thern
 Hierto, the Government has received bank notes in payment of public dues only. If this plan should be adopted it must receive them to an extent suthcl- ent to ,over an immense amount of exchange trans actions whereby Its risk of loss from Iank failures and suspension ofspecie payments, wonil be greatly increased.
 It s,ens to US that the whole sheme is founded on errontous views he functions of Government. The regulation of weights and measures IS among the at tributes of sovereignty; but ist the regulation of the rates of exchange, the prices of commodities Let the wrg It's and mrastIes of a country, including therein it's meaaa.e of ,al1e be first pr perl" adjust- e> an free com petition will fix the prices faxchange and al other commodities, better than can be done by any direct action of Government.
 Wicre the banks pay specie, this "Excliangc Re gulata'" is moi wanted. Exchanges arc there afeady reduced to the lowest possible rate. Thus, between New York and Boston, they vary from 1 to ] per cent N here the banks du not pay specie, this Ex- change Regulatory will be of no use The braochrs arc t9 reeve only specie, and the notcs of specie paying banks. To obtain these, the people will have t sell the notes ofe local banks at discount, which with the premium they wouli have 10 pay to the branches of the "Resnatnr,' D wouldbrns exchanges. as measured in depreciaed paper, 10 as high Il rate as al present.
 Even in he region of suspended bank paper, bills of exchange can be purchased for specie, at premium not exceeding the cost nf transport gold and silver to the late where the biiis are payable. Sometimes they can be purchased f'r less. The point we cannot | better clucidaie ;han by oxtr ct from the able speech of which iir. Shields, of Alabipa, delivered l in tn, House ol Representatives the 7th August | last.
 s'The exchanges between any two points-as, for l instance, between Mobile and New York--inay he entirely equal, whilst the local curcncies of the two places may be greatly uncYuai in Nalne and when ex. changed one for the ohcr would exhibit that ncqual- liy in a striking manner, do the local currencies most generally throughout the Union at this tinle.- During the last winter the notes of ihe Bank of Mo bile, aud the Pan,ers' and Mcrchants' Bank, [Jot, specie paying banks,) at Mobile, brought checks and bills of exchange on New York at par, within a fraction of par; whilst, at tle same time the noes ol nou-spece paying bank in another street, in the same city, (to wit tho branch bank at Moblie,) with
 capita, paid in of four millions of dollars could bu, check or bill on New York short of d premium of ten or twelve per cent"
 This short paragraph at once reveals the secret o tine Arrangement of the exchanges, and the true dy. The of the Arrangement is to be found ill the suspension of specie payments by the banks The remedy to be found in the resumption of specie pay ments. For this, we must look to the State Govern ments. The United States Government is herein | nearly powerless.