Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1842-03-07

bill drawn by agency another. in any remote
part o the United States. will be good as specie with
IN the commercial sphere ol the emporium where the n
gonct Is located nj which payment he made, and
may gcnemy be negotiated above par by any holder
within that sphere aud at rate in proper
toned to his distance from its commercial centrc IT, for
instance, merchant IN Cincinnati wishes to remit mon
ey To manufactures IN Connecticut, bill drawn by the
agency III Cincinnati, where the dcpnsllc made on the
agency IN New York, would be worth half per cent
more than specie 10 the paycc.
Exchanges through the agencies will meet NIL the
o>genrlcso the markets II unlroquontly happens
that New Orleans is Indebted 10 Ohn Tor agricultural
products; OHIO 10 New York for manufactured goods,
domestic imported; and New York Ia New Orleans Tor
cotton. Every we'll informed merchant III those sesc
raj sections will he adysed Of the u the markets
New Orleans merchant wishes to remit TO Ohio. lie
dcpusltcs his specie the agency nj New Orleans and
gets the same office To accept his bill OF exchange
ir 81 900, payable 10 the order OF his Ohio correspon
dont. aud transmits II accordingly. This will he above
par IN the Ohio market, because II Is good remittance
Tor Ne" York. where bulls ON New Orleans command
n premium. II is bought by an OHIO merchant who 70
ni,s it 10 New iork in payment for goods and from
New York II is sent 10 New Orleans pay for cotton
pom IT'S arrival Is presented 10 the agency where
was accepted. and Tie specie Is ready Ter lis redemption
] The holicr however, moi willing To be burdenod with
the specie. will generally prefer the specie Of the
agency Thus this, $1,000 mspiecc after paying small
premium nj the agency, will have paid more than its
mount IN Two remote markets. sent safe and nvenent
sill NJ rest sustaining this amount Of circulation.
The use OF bills Of exchange will mol be supers, ded by
the specie notes ol the FNchcquer The former have al
ways been preferred. and were extensively used undor
the Two National Banks, when their paper. in sound
credit had every advantage which tins win POSSESSES OF
ho'ng made substitute This proof from experience IL
conclusive. onc ground oi preference, which has always
been appreciated here and IN Europe IL. thai bulls Of eN
change more snc than bank notes. they Offer
temptation IT. robbery embellishments; aud several
may be sCnl OF the tenor and date bv different con
v"Nars III which case no loss will BIZ sustained If any
one arrives IN snicy The rsh may easily he reduced al
most 10 impa shlllty The perfect character Of
these bills al exchange. from thelr undoubted credit
VIII generally give them preference others, They
VIII never he protested lof want ol funds AT any oicr
where they were payable Ne enlhn can result
irom the necessity OF transmitting specie from Office To
office. The uccusons very rare (and if this system
were IA orclaon they would be still rare) IN which
specie needs 10 be remove iur almost every purpose
good Pa"ris preferred. The paper ol one Office would
generally he as good ms specie others Ii de
p,-ile we're made IN New York to draft ON the
Office III New Orleans. this latter office would prefer the
New lorh paper To CON IN tho Of cNrha
pcS When The system has been some time IN operation
specie will have found lis proper places Of opose and
movements oi IT would seldom be required. Should an
apprehension he entertained that the retirement Of specie
into the agencies would embarrass the banks viii be
dsraied hy little reelection upon the operations nlroa
dy described Those officers bound 10 deliver the
ime o i'paslie IN amount in paper equal to the amount
received IN specie That paper viii take the place Of
specie ""H'tu represents, and the same portion Of II
VIII be deposited by n,,r,.a uts and others who keep
then accounts IN bnhng institutions oiho specie r
which II Is substitute. As II will be light and
Vonlent circulation. II viii mlnglo with tho PAPER
banks ol sound cr,di IN commercial operations
and consc Iuently he more frequently used making
payment upon discounted note. and other nder, dness
moneyed institutions, then specie H. When pos
sosscd by bank, il has all the value uf specie. II
means are wanted ior dcsi'c in All agency, this paper
will be received Of bank for that purpose as readily as
specie. Should gold and silver be wanted for eXIoria
ton. or any other extraordinary demand. the bank which
possesses this paper has the certain Of converting
II at pleasure into the article required Every bill ofex
change payable AT these offices vii, at It's maturity
store 10 circulation either III specie this sound paper
the amount deposited for It's procurement Indeed IL is
difficult To foster doubt that regard the OF
redccnllng Their own emissions, the banks will ross IS
more am he resources than at present 1t that
the channels Of commerce will be partially filled with
medium Of a sound and lmperIslable credit which will
stand the shock Of every possible yclssude except The
subvcrson Of the Government. But this viii promote
the strength o the banking institutions no less than the
stability Of the currency. From the establishment of
national corporation with large specie capital The banks
were apprchensvc OF sustaining INJURY by the great aud
sudden "hdrwment OF the precious metals iroln Their
possession But the agencies can produce no such
bamssnont Tor their progress WILDE too gradual 10
any CONFUSION, aud the immediate restoration 10 the
market ola medium oiequal amount and value with that
which Is withdrawn will enable those institutions any
time 10 command the specie which they require. As
Just price Is 10 be- paid for exchanges, believed TINT
all the expenses ofconducng the business Of the Exche
quer and lis agencies will be- olrayod from that source
and probably much larger may be realized The
losses OF the currency by fire. shpWrcck and other ca
saltlcs shown III the ,IIencc Of banks, would not
be an lnconsdorable item OF gain. A small premium,
say hall or quarter OF one pei cent might reasonably
be oNaced OF deposors II hereafter deemed ssary
upon notes ISSUED IN exchange for specie. While this
system WI" furnish The desired means for the collecting,
safe Keeping and disbursement Of the public revenue
and all the requisite facilities for exchanges between diff
erent sections OF the country, as well sound
and convenient currency, it is exempt from the obec
onabe features of other modes of clec,ing in part or
in whole the Objects heretofore presented for con
no discounts, lending credit any form whatever
no expansion of the currency by public drafts other
wise, paper money resting the creGt Of the Go
vernmcnt and depending accruing for re-
demptlon. 1t coniers extent of Executive patronage
influence No officer be either appointed OF re
moved by the President without the concurrence Of the
Senate, and only for certain 1t conIers dis
crctionary powers by which partiaes may he INDUCED
IN behalf OF personal political tavorite Whoever
presents his specie notes bills Of exchange maturity
entitled 10 his specie and whoever presents his specie
Is entitled 10 the paper which he selects. The rights
Of every applicant defined by law aud his
tons AZ the agency Of the simplest character. Tie
laws 81 trade and not any experimenting board pub
lie agent, decide the amount of depostes, bills of
change and paper currency. The wants and means Of
individuals, composing the community will best regulate
the proportions Of paper and specie, in the absence OF all
ARTIFICIAL roStalnt ami supervision OF the Coycrnuen
Another important consideration which the committee