Vermont watchman and State journal. [volume] (Montpelier, Vt.) 1836-1883, 1842-01-03

banks though they know to he deprecated, the paper of
other banks because they have confidence the institutions of
their ate aud because they know the amount of deec
alton the paper of such banks whereas the value OF note
of distant bank they wholly Ignorant But this knowl-
edge, which tho great of tho community does not possess,
own advantage. farmer of Virginia will hesitate to receive
in payment New York note. He will prefer Virginia piper,
although he knows it is not equivalent ospece because he
TORN some opinion OF is ynnc while Of the Nov YORK note he
knows nothing But tho hodor of the New York note, at the
same tune is able TO to dispose of it at the first brokers' Office
Every the habit of observing whit passes around him
must see every day the existence of this state ohngs and its
inevitable consequence to throw the loss OF depreciation
tho abofous and productive classes Wherever bad paper cir
cuaes is the industrious and hard working who suffer first,
sue this part Of the subject farther than to illustrate and confirm
the TRUTH that no bank founded whatever capital admins
tered by whatever degree of fidelity and skill obtain that
mar characte aGd that established and well known credit
amounts, and in all parts of the country
Now another most important truth, equally well settled by
experience, is, that paper issued o circulation, under the
hoity with the sanction Of tho Government of tho United
States does acquire aud retain this advantage of known and
questioned character and universal confidence No matter
whether the note bill will present itself in Maryland Mis-
man and That promise supposed to be gnaranccd BY tie char
ecte en1 credit Of the Goyemment springs Immediately to
crnmcnt connected with the fact ofs immediate conyouby,
stamps the paper with mark Of perfect aud universal reliance,
because all the people in all alike interested in
the General Govenncnt alike acquainted with its proceedings,
ana nave lkr nun III paper 10 which gives its sanction Wo
secm to be called upon therefore, to act this subject with
three important truths made clear before first that paper
circulation will continue among second that paper ccu
mon of universal credit be furnished by state banks
@ doso+o%o% d S lie G y s .I''Y u' tue 'O'o'
tic provision. of ibis b it, uses nro expected be woiod
In he r.i ,cc es dy stated il win furnish sar paper
medium in which ymcu mDy b, undo to Government of all
debts ara tRe' Few PERSONS per, are sufficiently impress
seq win what would be the value uts "a certain emogcnces
Debts to Government are no" t"1e pdin specie or the notes
Of sprciepaying hunks let suppose that exigency
should come suddenly upon the country requiring the mmc
~ gSsos.ne3i ., hc4y 'Ac ana mt the same cAgchcy
In such posture of alr how could taxes be paidi ofspe
bmks, Government wuud be driven by absolute
s to the uo Of Gaper resting on its own credit AMI created
the happening Of such emergency. Tic Exccqucr would
De a IA operation 9aI in possession Of certain qnany Of
specie 's "oIcs would have become familiar to the public it
would nave, in addition to i,s specie and its established
i'ctc the account OF revenue, wh'cvcr that amount might
e 10 sustain its cuon. 1t would furnish for dis
by faithful md ssm management though it might be embar-
rssod by the poson of other institutions around it it would
s retain it, cWn credit and that credit would be viviJins
But Ills prf, of the m has anotbof nnrno.c enuaIly or still
more important The measure intended for the people as
WEI MS for ne scyenmcni be issue of Ironsuy notes al
mcnis from the routy and ia the purchase of exchange,
m m DC Doneh.ia II Is c9aac'cd III nigh desco, to tho
la this part Of H. operation the system presents itself as ben
lie gooI tn gool If iI T.; ,t I-, amy r3 n no
hove la effect people, their labor,
ami their Internal trades the activity Of funds which would 9TH
money. It emplo, 6m. to sustain credit, to supply
sound currency and to favor useful intercourse bctwccn the
yithou alarming the Jealousy or woundns the pride Of the
Yet cannot with any Justice rroprcty called
ment bank Tho essential elements Of bank still wanting
or to make gains by the Of its credit make the is
sues Of the Exeheque substitute for order
meet its Nor does propose tho
people the evils and the Of an edeomob0 Government
gold silver dtmandal paper thus resting The double
basis of immediate converijy and the public filth. 1t
more safe Or moe useful for the purposes Of "nd Il
try loudly demand.
Tho c&tcnt'o which this paper may be issued M circulated
depend the amount % collected and discussed, ard
hll.-But
ton Of the notes OF the Excepuor be larger snaler must,
far that circulation shall extend be favorable TO al inter-
ess II cannot but conduce to the public welfare that there
should be- in every part Of NE country some one nsGIo" or
whose issues be they great small shall be equivalent to coin
If the circulation Of the of the EXchequer from hand to
hand, tho business of o should be found to he
small that fact will arise from the other of two causes
from the combined effects Of both If tho amount issued
circulation to limited eStontEAnd While the Paper Of tho
state banks shall continue deprecated and remain in ccu
C@ TsoesSry notes j. highly probable viii often be taken
mtunce This limited circulation in such would arise
paper 1t would be owing in them,
but to thoir possessing the highest degree Of confidence
hand to hand vet tbat use selT would confer emc6,
OF groo Importance nasmuch oil such remiltauces perform
the Office Of furnishing safe and cheap exchange cooperate
directly with The results hoped to he produced by another
vision of the bill nu the exchequer agencies be al
lowed to d1al IN exchange This use o. its notes although
Among possible objections the issue of cdeemabe Teasu
notes. be- that they will be returned tho Excheq
uer for specie for expectation.
States and companies, is known, owe heavy debts in Eu-
tain Treasury notes. arsss the Treasury by demands for specie
md send the specie thus obtained abroad in discharge of their
own obligations few words may dispe such lima sinatons
In the first place the Argument il it prove thing
too much for that for the all pecopay
ing hanks ought to specie payments But the truth prob
ably is that these states and companies fud less difficulty
lighting some convenient mode OF remittance thun
mandng the moment the of making remttan
ces in any FORM The general dcres with the corporation
doubtless of causes suspended power obtaining
such We must continue to hope that under better
M 5 wS "aT % a enable o % no SaI no
States nor companies can obtain loans of Treasury notes. nor
oa we themselves of them, need not distress
selves with Pchensons of the Exchequer from that
It remains to say something upon part tho hill which
authorizes tho Exeheu' aud It's agencies to buy and sell do
That institution founded extensive plan, with
large moncd capital which shond deal in exchanges on
cury in order enne drawers anticipate their mems,
aud thus afford capital and credit well exchange, strictly
speaking might hut for the dangers attending it, produce more
benefit than now proposed may be s3y admitted But goh
turing largely the strength of personal security aud entens
in small degree into the hazards of commerce. No such
Grafton of Congress- On the contrary, the utmost concern has
been felt guard the proposed measure against all tendencies to
such a system of exchange operations.
The supervision and regulation of currency belong to govern
Of money! individuals. And poap. conviction
rapidly taking possession of the mind OF enlightened mem than
on Of experimenting and regulating the currency OF county
and discounts whether promsory notes or bills on time
Whenever bank mako loan discount by the issue ofts
and in the absence Of NIL other regulation restraint, several
hundred banks whose ppibc interest II Is TO lnceusu the a.
circulation docide each in the exercise of us
discretion what extent that augmentation shall be carried
That such system there must be some check, or that III the
all check, the emission of paper will be contn
uly tending EXCESS must be manifest TO every rejecting
mnd proposed fully into this subject at pros
cn already other countries, so must
b long this command the most serious attention OF gov
eTanent.
Ii hoped measure proposed by Congress will
have effect least in commencing the tendency TO OK
in hank issues. Wills may accomplish all that is TO
be desired it believed il III effect something To the
tent Of It's means employed, operations w be calculated 70
restrain issues and to exercises because, IN the Mst
place, every accession of good currently to me general mass
tends either 10 render tho bad worthless mat IN time tn
oil sro better compel those issue uoh O
currency TO raise - value by preparing for its II
good eurfoney could be put into circulation quani as
TO meet the of tho country, courso\ eApe Inc
bad bring about change of its characters although Is O.