Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1842-01-15

bad, and while II yet circulateS, not having
become entirely worthless, it is difficult for
a small amount of good currency to share
in the general circulation, since it is liable
to be selected from the mass for purposes
which that mass will not answer. And, in
the second place, the Exchequer will act
beneficially in this respect, by holding all
State banks with which it may have deal
ings to punctual performance of their OBJ
legations, and bringing them to an immedl-
ate settlement for such of their bills as may
find their way into it or into any of its
agencies.
1t is not intended to say that the propo-
sed measure will of itself be able to arrest
the progress of the great evil Of excessive
bank issues, or that Government may not
be obliged, hereafter, TO adopt other meas
ures. On the contrary, as already suggest.
ed, it is apprehended that these evils may
vet imperativey call for other remedies.
But it is believed that it will have a consid-
cradle effect, should its operations be as
successful as is anticipated, in checking and
limiting what it may not be able entirely
TO suppress.
But there is another very important con.
sideration connected with this part OF the
subject. One great object Of the whole
measure is 20 furnish a sound currency, in
the form of Treasury notes, redeemabIe on
demand in specie. These notes can get
into circulation, and be kept in 1t, only in
two ways: first. by payment in such notes
Of debts and demands on the Treasury;
and, second, by buying domestic exchange.
And it is the last of these modes which is
most confidently looked to as furnishing an
active and continual circulation Of this pa
per. When issued in Government pay
ments, at distant points, the general ten
dencv Of the notes will be from those points
to the great Atlantic cities, according TO the
course of trade; thus leaving the place OF
their first issue without the benefits of their
circulation. But it is evident that if the
agency at those distant points shall be au
thorzed to purchase bills of exchange, a
new source for the issue of sound circuIa'
ting paper will be opened, and the exchange
thus bought would be RENTED, wherever
the demands Of trade should call for it.
In country of such varied productions
as the United States, some parts being
highly commercial, others manufacturing
and others yielding vast amounts in raw
material, the current and course of eX
change has periodical changes. 1t flow:
one wav or the other, or in the same way
with more or less force, according TO tht
seasons. Nor is this course always dl
rect. but on the contrary often circultous
winding Itself through several distant mar
kets. Commodities in many parts OF TIT
West seek a sale in the South, not expect
ing payment in Southern products. but il
means available in the North and East
This happy diversity of products, and thes
useful qualifications Of internal trade, de
mand mperatively not only currency sat
isfactory to all. but the means also OF easy
cheap, and safe dealing in exchange. An
these two objects assist each other. /
good currency enables him who needs eX
change to buy it, and he who has exchang
TO sell, to sell it. Good currency and SAT-
exchange being thus mutually convertible
and acting together, all under proper limit
and securities, form the most perfect syS
TEN of paper circulation. The power Il
deal in exchange seems essential, indeed, It
any considerable circulation of Treasury
notes in the South and West. And it may
be added, that nothing would tend more L
counteract the concentration Of monied al
fairs. at one or a few points, than the abit,
Of buvng domestic exchange with good pa
per, redeemabe at the place of purchase
Commercial transactions, and the Consum
nation OF pecunlary engagements, natural
" concentrate themselves in places wher
the currency is good. There is no remed
against this concentration so sovereign a
the supplying Of good currency ever
where.
4 sale system OF exchange, though n
more extensive than is contemplated b
this bill, will be of great use to the con
merce of the country in other respects, be
sides furnishing the means Of keeping
good currency in circulation. The NOR
direct advantages flowing from it are ne
Uncomfortable. Although its object be NJ
TO supply capital or credit for purposes {
trade. or to make advances, and athoug
the whole system is limited to exchange
strictly, yet it cannot tal! to afford very in
porrant facilities, and to be productive {
much general benefit.
The power or faculty Of reaching
funds already accumulated in distant pa
of the country, and of bringing them hon
Immediately, and without loss, is poWt
or faculty Of no mean importance, IN ii
hands of those whose business leads the
to form commercial connexions in such di
tant parts. This power or faculty Il
measure under consideration proposes
confer impartially on all, TO the extent
its means. And its capacity for good,
this respect, is confidently left TO the jud
ment Of those whose practical eXperien
has rendered them most competent to d
eide.