The daily Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1841-1845, 1842-01-31
+ From the Register and Journal

| paper OF the llln--sN.. L. american
From the Register and Journai.l
The rapid depreciation Of Alabama money marked
| by the runous rise in exchange within lew days,
demands serious attention No business can sustain
the terrible loss and the continuance, not to say IN
crease of this depreciation, will soon parayze what
little business is left II becomes therefore, the duty OF
every body that buys SELLS large dealers and small
merchants and politicians, and banks, to do something
to put stop to it, if they can. Something out OF
which instruction may be gathered for this end will
be learned from an inquiry into the causes OF tins
movement downwards of the money, and upwards OF
| the exchange.
Is there any thing in the condition of the State
rency within the last month, which actually lessons
| its real value-and what is 1t
| Some influence is to be assigned to the New York
| money market. There is heavy pressure there,
and money is " tight" the saying goes. AT such
times the holders of distant paper there, hasten to
realize at loss and all sorts Of paper not converti-
BILE there go down below their actual value
But there are other causes affecting circulation,
which are partly owing to Encouragement among
orr own people and partly to misrepresentation
abroad to the real security Of the notes of the State
Bank and branches.
II The djournment of the Legislature, without doing
any thing on the Rank subject, Is not yet known IN
New York. When known, it must have its delete
rous influences; but part Of them h been un-
doubtedly anticipated in the rise OF exchange, from
the indications which were all but conclusive that
nothing efectual would be DONE A very simple bill
would have been sufficient for the purpose Of quiet
ing good deal of alarm which was likely to arise,
whether reasonable or not. The amount OF the pre-
sent circulation is comparatively so small that con-
sdering what security there Is in fact, and what de-
mand there is for it constantly current, its value
would not be essened except by increasing the guam
tity. short act forbidding any further issue for
any purpose, or on any pretence whatever, would
have relieved all fear this head and prevented the
uncertainty which has its effect in the present depre
ciaton-putting much in the power OF the specu-
latos in currency who profit by all these unreasona-
BILE alarms, and have therefore direct interest in
creating them.
There is, am told an understanding among the
banks that the circulation shall not be increased. If
this fact were fully ascerained in such form as to
induce belief, one element OF dscredlt would be re-
moved, and the State currency would be estimated
at more fixed value, from knowledge OF its posi-
tive quality and of the security for its redemption
Let us see, then, what is the quality OF State cir
culation and what funds are responsible for it.
By the last bank reports, condensed in the Register
) and Journal, the amount OF
Issues unredeemed, S,7,026l35 SO
Deposites, S74,4o4 10
t Due other banks, 232,b2l Oo-So, ,23I %
They had cash means;
. Specie, sl,566'4e2 ~
Due from other banks, 1873, 1871 l2S2,974,S97 SO
f Deficit S. ,339 ga
The items educ from other Banks, and "notes of
' other Banks" on hand, are to nearly their whole
: amount q positive withdrawal of so much currency
They represent the notes of each Branch which has
received the issues of the Others and when distracted
Fl from circulation and sealed up charged as Bank
balances.
/, So, also, a part of the "Depostes," is not cash
liability and Dug hit to be deducted from the circua-
ton. The sum on special depose, apphcaole TO aeo,s
and not subject to check, is considerable, AT the
Tuscaloosa Bank, the amount is stated at about nifty
thousand dollars There are, doubtless, large sums
. similarly situated in the other Branches.
Taking these facts together, it would be high es-
innate to fix the actual amount Of State Bank cur
rency passing from hand to hand and on deposte sub
ect to check at Sc 500 OOO to ST. 100000 Of specie in
o their vaults.
: This is surely not redu ndant amount for a State
of which the ex ports alone between sixteen and
! twenty millions all paid for in this currency Sup.
posing the number of families in the State but ~
OO0 and there more here is less than OO EACH for
their current handto hand business, without loaning
j. dollar of surplus to go abroad or for larger opera
n tons.
The proportion of specie in the vaults to crcula
ton is as less than one to four The specie Will re-
, deem s. 100000 in round sums, leaving about $o
900 TO be provided for out Of the assets Let US
, see what they are
: The whole amount due the Bank in every foln ]:
! reported at $23,o3o, oao y.
q The whole cash liabilities at S,l43437 81
Surplus $l4,SS7,3S2 II
Deductinp the cash assets Immediately available
from this account the same figures will result, but the
proportion will be avoraby increased There will be
y Ieft $li,055922 Il
r To pay o,i1looy q
So that the notes in circulation, are only about
,ceny-fpe per cent on the amount OF the funds sPe
: officially liable to redeem them. Three-ourths OF all
the debts due the banks may be lost and yet the notes
f be redeemed out of the assets Besides which, there
is the State guarantee behind.
1t cannot think, that if these facts were fully under
stood, there would have been such fall in the notes
;e No al m
II sion on this hand and to that attribute great dea