Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1842-01-06

such case would arise from their superior value /
In comparison with the value Of other paper. 1t
would not be owing to want Of confidence in them !
but to their possessing the highest degree Of con-
6dence.
But il such use Of Treasury notes should take
place, and should diminish the amount circulated
In daily transactions from hand to- hand, yet that
use Itself would confer general benefit o. great
importance, inasmuch as all such reinitances per-
form the office Of furnishing safe and cheap cx-
change, and cooperate directly with the results /,
hoped to he produced by another provision of the |
bill. But if the Exchequer and it's agencies be al
lowed to deal in exchange, this use OF its notes.
although il might exist to some extent would be |
far less considerable.
Among possible objections to the issue Of re-
deemablo Treasury notes. one may be, that they
will be returned on the EAcheguer for specie for
eXporta,ion
States and companies, tits known, owe heavy
debts IN Europe, and these States and companies
1t may DC ianc'ed will obtain Treasury notes. har-
rass the Treasury by demands for specie and
send the specie thusohtaincI abroad in ischarse
OF their own obligations. a few words may
dispel such al i.ua9 ination.
In the first place, the argument, if i, prove any,
thing, proves too much; Tor it proves that for the
same reason all sPecie-paylng banks ought to
cease specie payments. Tut the truth probably
is, that these States and companies find less diff
| Guilty la lighting on some convenient mode of re-
mittince than on commanding at tho present mo-
| meni the means Of making remittances in any
| form. The general depression, with the cooper
| alton doubtless of other causes, has suspended
the power OF obtaining such means. We must
continue to hope that, under better state of things
and IN better times, this power will revive, and
| when it shall, we must look to our crops, 10 our
ci5htS, and to the general earnings Of our indus
try, 10 enable us IL meet the claims Of creditors
broad. In the mean tune, since neither States
nor companies can obtain loans Of Treasury notes
nor Otherwise possess themselves Of them than by
l not, Str Sc
| ourselves with apprchonsIons Of runs on the Ex-
chequcr from that quarter.
1t remains TO say something upon that part o f
the bill which authorizes the Exchequer and its
agencies to buy and sell domestic exchange, un-
der certain limitations ard restrictions.
That an institution founded on more extern
sive plan, with large moned capital which
should deal in exchanges on broad scale, buy
ing bills at long dates, or accepting bills on secn-
rity, In order to enable drawers to anticipate their
means, ard thus afford capital and credit well
as exchange, strictly speaking, might but for the
dangers attending il, produce more benefit than
that now proposed, rnay be safely admitted. But
such 4 scheme Involves the idea Of making loans
and advances, OF veEturing largely on the strength
Oh personal security and entering in small de-
gree into the hazards # commerce. No such
purpose is intended by presenting the presen,
, bill TO the consideration Of Congress. On the
! contrary, the utmost concern has been felt 10
) guard the proposed measure against ailtendencies
, To such systenl Of exchange operations.
In ali its purposes, ii looks 10 currency and 10
exchange, not to lending orto discount. And ii
I may well be matter Of serious consideration,
l whether such large powers Of discount can be
t safely lodged in private Institutions, with the
power OF making such discounts by the use OF
their own notes.
The supervision and regulation of currency be-
long to Government; the business of commerce.
and The borrowing and lending of money, TO in
diylduas. And perhaps no conviction is more
rapidly taking possession Of the minds of enight-
ened uien, than that Government should not COM
I NIT the high and important function of superin-
tending and regulating the currency of a country
to the hands of those whose occupation consists
lss or o ans @ wheshsT on
makes loan, discount by the issue of its
bills, 1t ad Is much TO the circulating medium
oil the country; and in the absence Of all other
regulation or restraint, several hundred banks,
whose palpahe interest il is to increase the
OF circulation, 10 decide, each in the exercise
oil It's OWN discretion, to what extent that augmcn-
taon shall be carried. That to such system
there must be some check, or that, in the abscnce
Of all such check, the cmission Of paper will he
constantly tending to excess, must be manifest
10 every rejecting mind. 1t is not proposed to
enter fa!iy into this subject at present; but as it
has already In other countries, SO il must neces-
SaiIiy ere long in this, command the most serious
attention Of Government.
1t is hoped that the measure now proposed to
Congress viii have some effect al least in coun-
teIaciing the tendency TO excess in bank issues
While 1t may not accomplish all that's to be de-
sired, ii is believed il will effect something. TO
the extent ct lis means employed, It's operations
Will be calculated To restrain issues and
eXcesses because, in the first place, every access
sion OF good currency to the general mass tends
either TO render the bad worthless so that in time
1t shall all give way to better, to compel
those who issue such bad currency to raise It's
value ty preparing for its redemption. If good
currency could be put in circulation i'm such
quantity as TO meet the uses of the country, it
must OF course eypc the bad or bring about a
= change OF its character; although it is equally
true that while the great mass be bad and while
1t yet c.rculates rot having become entirely
worthless; it is difficult for small amount Of
good currency to share in the general circulation
since II Is liable TO he selected from the mass for
purposes which that mass will not answer
Md, IN the second place, the Eychequer will act
benefcial!y in this respect by holding all State
Banks with which it may have dealings 10 a
punciual performance Of their obligations and
bringing them TO an immediate settlement for
such CT their bills as may find their way into or
= into any of its agencies.
1t is not intended TO say thatthe proposed mea-
sure will ofitsef be able TO arrest the progress of
the great evil of excessive bank issues or that
Government may not be obliged hereafter, to a.
dept other mcasurs. On the contrary, as alrea
dy suggested it is appTehended that these evils
may yet imperatiyely call for other remedies.
BUTT is believed that it will have considerable
effect, should its operations be as successful as is
,..,l ,,rl,o,