Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1842-03-19

the Government except in the keeping Of
the public money. This is risk which
must always be incurred on the part of the
Government. II is inscparable from any
system which can be proposed or adopted.
If it be supposed, as it has been by many,
that the public money would be safer in
Bank of the United States, or under The
State bank dePosite system, the committee
have already shown that both those modes
of keeping it arc utterly out of the question.
They therefore adopt, at the principal agen-
cics, the only one left namely, the custody
of individuals appointed for the express
purpose by the Government, with as ample
surcties and under such penalties as the law
is capable of providing.
This system is designed for tic collection,
.safe-hocpjng, and disbursement Of the pub
lie revenues, and, through its operations, to
furnish a uniform currency and to equalizo
exchanges.
The committee have already shown in
what way it would furnish q uniform cur
rcacy; and they have no doubt that the spe- |
cio notes which would be put in circulation |
bv il. would in amount exceed the circula-
ton Of the late Bank of the United States.
| The average circulation of that institution
about $4,000 coo, and its average amount
| Of specie on hand short of $G,OO0,OOO. In
some years its specie cqno7led, in others CO.
cce6cd is circulation. And but for its cX-
punsiCns, commencing in 1929. and contin-
| ued to the expiration OF its charter It's av-
erage circulation would moi have much eX-
ceedcd its average specie on hand. /, can
moi 49, dubbed. them that the circulation of
| : -.
the Exchequer will equa II not g.. -,@''"a' that
OF the Bank OF the United States. And Ii
the bank of the United States furnished a
uniform currency, then the Exchequer will
be capable Of doing the same; and that, too,
without any risk to the community, or haz-
ard to the credit Of the Government.
This, when accomplished, will do much
towards equaliziug exchanges. The ruin
Gus rates Of exchange between remote sec
tons Of the country result, essentially, frcm
the depreciation of the local currency.
If the paper circulation Of New York
= and New Orleans were both Of the value
cf specie, and the balance of trade between
the two places, by reason Of the interchange
of commodities, were merely nominal, cX-
change between those distant points would
be at par. But if the balance Of trade were
in favor Of New York, then bill drawn at
New Orleans on New York would COM
; mand premium equal to freight insurance,
: interest and other necessary charges for re-
hitting specie. But whilst the paper cir
cuation of New York, by reason Of its
convcrtiblity, is Of the value Of specie, and
= that Of New Orleans is deprecated because
, of the suspension of It's banks, bill drawn
! at the latter place on the former, and paid
for in deprecated paper, would command Il
:, premium equal to the cost and charges Of
t RENTING specie, added to the amount OF
the depreciation of the local paper below
Q the value of specie. The reverse would be
t the case, under these circumstances, with
: bill drawn in New York on New Orleans
+ No regular business, without great sacrifice,
D can sustain itself under such ruinous rate
5 Of exchange. The uniform currency which
will be furnished by the operations Of the
= Exchequcr will do much towards curing
ill., is great evil.
But ,,,aro is another feature in this sys-
TEN by which lie exchanges will be per-
factly accommodated; w",!.ch Is, the power
to sell and collect exchange. Tic commit
tee have heretofore advertcd to this; and,
on this whole subject, have consulted some
= Of the ab!cst, most practical and expert
!, enccd men; and their own views are fully
t confirmed by the information derived from
such high sources. They cannot, in any
c way. so well Illustrate this branch Of it, and
! It's beneficial effects on the sound local
: banks, together with other advantages, as
It by briefly cmbodying the following views
. which have thus been communicated to
o ihcn.
G 4 bin drawn by one agency on another,
c in any remote part Of the United States
i viii be as good as specie within the com
mcrcial sphere of the emporium where the
: agency is located at which payment is 10 be
,c made, and may generally be negotiated
x above par by any holder within that sphere
N and al a rate in some mcasutc proportona
2r to his distance from its commercial centre
IT, for instance, a merchant in Cincinnati
ID wishes to remit money to a manufacture
IS, in Connecticut, bill drawn by the agcnc,
y in Cincinnati, where the dcposite is made
,e on the agency in New York, would b
ID worth half per cent. more than specie t
r, the payer.
Exchanges through the agencies wi
p meet all the cXigcncios Of the markets.
70 not unfrcqucntIy happens that Now Or
s. leans is indebted to Ohio for agriculture
p products; Ohio to New York for manutac
G. turcd goods, domestic or imported; an
Us New York 10 New Orleans for cotton
Of Every wclEinrormcd merchant in thos
all several sections will be advised of the stat
IN Of the markets. A New Orleans mcrchal
er wishes to remit to Ohio. He deposites hi
&C. specie in the agency at New Orleans, an
gets the same Office to accept his own hi
Il