Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-02-26

- y I.i fCa o; Treasury Hn;.si !oe;iivti "'i s!
;;s II 81 0o0 COO In other woTds, 10 issue paper
convertible into syccie in the ratio OF three
t,rs al papcr 10 one spccie. In ordinary raih'1I
,cr,tiaus this Is Cccmcd perfectly safe ra,i' IA
m,h ,hc circulation Of most hanks Is not resuhtedhy
h snrcic in their vaults. Their issues are fome'iieS
in nrouor,ion T. ca, i,a aud sometimes graduated
n,,s Th. ratio however: OF three TO one Ia, NJ
49,, ,,ccn rcrmcl safe in banking opereto pun
o,, i hc safe principle TO- the Government 10 aao"
H. ,,rd IN any paper il may issue Ia circulate 40 cur
,crcy7 The committee think not The ofi'cefs y,
| coy,roment canmot pros;de ior contingencies ai'"
mnrrenries as individuals, or as banks con'roien =.
,niyiua,s can do. lioSGver faithful ana hohe' WY
nav In ana however coisc.cnous!y they may ihtehn
- scI,rac their duties, they have not tie interest ho
the means 10 provide tor such occasions.
Iod,yiluals interested III, and concerned IN the man
,n,,,s of banks are always looking out ana prosid-
n.y., - advance for any sudden demand upon them tor
necjc And with all their interest, sasacliy anu "s'-
Inc. they are not always able to PROVIDE aEaihs' us
tension Of siccic payments. WIZ the oiiicrrs ni 20
ycrnu,cn, he any better able to provide against mere
might be sudden and unexpected uenanu , M"
would drain an agency at once OF lis specie mere
: ; l., I've II systematic operation and combination, nom
,;col or other motives 10 accumulate the notes Of an
arency and to present them suddenly and unexpecied-
H. far redcmation ana for The express purpose OF com
nrlinr il to suspend specie payments Inc elect wou
a nat onl 10 destroy the credit Of the government but
- aiscracc il in the eyes of the world The govern
ment Should no, be exposed lis credit should al
WAYS I've beyond any possible contingency =
The committee therefore, propose that no paper shan
be issued on the credit OF the government 10 circulate a.
currency; bu, that paper may lie issued for that pur
os hased upon sgccie hand dollar for dollar, and
that ihe amount oil such paper in circulation shall no
in any case nor under any circumstances, eScecu 'h'
amount Of specie holden for its redemption ~
The paper thus issued is called cce no'cs a being
currency based on Pc ana as h ~ !
from Treasury Notes which are issued on the cftaH
Tho Government, not for currency but as means o
borrowing. ..,.,..,u j., i,
no.iou. 10 an objection rs bfSoi H5ff they are mol
issued on The cred OF the government, hut are issued
on srccic in eioslc Of an equal amount iof 'el' re-
J.mn,ien They pass by deliver, nom hand 10 hand
A. currency and the poSscssor Of such nce holds j
az evidence Of Ownership Of the amount Of specie when
il represents and to The possession 81 whch NJ Is emu
lied NJ any moment presentation OF the note al the
agency where issued Until that time, the specie re-
mains in the depository Of the government, Is guarded
Inv lis authority and the holder al the note has The re-
snonsibly Of the government for its safe custody.
Thce specie notes, issued upon the pubic revenue 10
the pubc creditor in the disbursements of The govern
ment and upon The dePositcs Of individuals would torn
= currency of tho most perfect cha'acer-a currency
combining all the convenences oil paper w"h ,he Saiue
If coin They would every whore be preferred TO coin
They would he preferred by the public creditor, as well
as ,y the whole community, because every one would
know that the specie resting in the Government
depository Tor their redemption, and, with II, the guaran-
" of the government Tor its sae-keoIing.
The issue OF such paper, equal only IN amount 10
the .pece held for It's redemption, will neither increase
nor diminish the currency. Consequently, there wil
he no powar on the part OF Inc Government 10 expand
or contract he currency power which IN" committee
think should never be POSSESSED or exercised ny Tue
Government So far therefore, as lis action Is concern
ed il cannot cause scarcity or abundance OF money
ana of course cannot nurousiy aiiec, the business OF
i rkayc hp inf ltl
CIV or any rise or fall IN the prices OF commodities
through lis fundamentally. The receipts and dis
bursemenls Of the Government are 50 nearly equal that
any EXPANSION or contraction viii he regulated ny Inc
business from which revenue i derived and Will only
| be healthy action OF the system.
Neither would tic specie notes OF a low denomlna-
ton tc liable 10 tie objection which sometimes made
to the small note circulation OF the banks namely tha'
of driving spece cut of The country On the contrary
the snecie would remain under The safe custody OF the
Government for their redenilloni and whilst thc'c
notes would form more active and convenient clfcu-
a,lnr medium for the People than the specie they rep
resent, the specie would remain At rest and not be ex-
posed To the casualties OF circu!a IN, by which II Is
often rrecnvcrahly lost 10 the world. In this view Of
the matter, the committee see no Objection tn an issue
of specie notes of denomination corresponding 10 Tue
small note circulation Of the banks Being free from
all possble risk and in way obnoxious to the oec-
lions which are made 10 those notes they would be Pc
cua,y acceptable and beneficial 10 that most useful and
respectable class 10 wit the small dealers and day
aborers throughout The country. They would feel that
whilst Government Is providing currency Of unbound
ed credit and SAFETY for the larger business interests Of
the community, it is MT unnndiul OF those OF sinol
means and Of more humble occupation.
Under the proposed system there Is to be no power
discount in any shape whatever. That must be left 10
the local institutions. To them it more appropriately
belongs. Those institutions would eel the salu'ary
influence of the operations OF the ESchcquer, IN the
frequent settlement of balances and the consequent re-
straln upon ovcr-ssues and excessive circulation lis
tendency would be TO conine their discounts TO business
instead of accommodation paper-thc only safe rule In
fact for banking operations. Under such arule, theTe
would be no danger 10 The community rom thcr con
| ,ras,ions and expansions.
They would be regulated and controlled by tho bust
ness of the country, and expand and contract win II
Their circulation would he increased at that season
the year when the products of industry are going Tor
ward to market and would furnish the means Of getting
il there and would contract again when those opera
tons have been performed and the business has been
consumnlacd. This would he sound and healthy &C
ton of the banking system, and would be much pro
noted by the practical operations of the Exchequer.
I Would this system furnish uniform currency !
by uniform currency il Is meant that the Genera
Government shall undertake to furnish an amount o.
currency adequate 10 the wants of the whole country
the committee answer, II neither has the power
nor the ability 10 do So No measure which Congres;
can adopt whether il be in the shape of Natlona
Bank or otnerwlse, can supply an nunoea lniiohs y"
more Of currency to meet the existing or increasing
wants Of the community increasing by The IA
pid increase Of population and the consequent augmen
ta,on OF the products of domestic industry From The
; ADOPTION Of The Constitution 10 the present time Tho
States have furnished by Tar the greater portion OF Tn
currency and they will continue to furnish 1t. Ihe
right do cannot be superseded by any action OF
the part of this Government. All that Congress car
do is to afnsc into The great mass Of the circulating
medium of the country currency issued under It's au
thori,y and OF such undouhiel credit, that, with thu
local currency Of the States when restored 10 sount
condition, shall together form uniform currency
throughout the country.
The currency Of the local s1ece-paying banks ir
sound condition is good for all practical purposes
within the sphere Of lis circulation anv currency
which this Government can issue. But such crcnla
lion cannot extend beyond that sphere and maintain
itself alongside of such currency is proposed 10 be
issued on the part OF the Government. The expert
cncc and observation of every demonstrate that
local currency, however SQUAD, cannot have that uni
veysal credit which would attach 10 currency Of the
General Government toun,c,! specie basis, and
carrying with it the rcsro sbiliy of the Government
for the safe custody of the specie "hich it represents
Neither would local currency, though founded on
>ina. basis possess that universal credit. And per
haps the most concise reason which can be given is
that one is cca! ard he ether general To the Gene
raj Government the people of the whole country lock