Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1842-01-03
VOL XI..-.vO. ii.


and dsbursed aud On the degree OF success which NAV
attend the operations provided r by another part of the
bill But. whether the circulation Of the notes Ut the
tAeleuer be larger or smaller II must, far that cir
cnlailon shall extend be favorable all interests. II
cannot but conduce the public welfare that there should
be- IN IN every part OF the country, institutions
or one agency which shall be Of undoubed credit
and whose issues he they great small, shall be eguisa-
lent Ia coin.
II the circulation Of the notes of the Exeheaner from
hand Ia hand, in the business of life should be
found 10 be small, that fact will arise from Que or the
other oi two causes from the combined effect Of both.
II the amount issued should be small then Of course il
can only I'LL the channels of circulation to limited ex-
tent And While the piper oil the Stale hanks shall
unne deprecated and yet remain in circulation Treasury
notes, II highly probable, will often be taken Of the
general circulation aud USED fr the purpose Of remit
lance. This limited circulation in such would
rise from their superior value IN comparison with the val
ne o other paper II would nji lie owing of con-
idenee IN thcn bot to THEN p5ase sing the highest degree
Of confidence
Blu, II such Of Treasury notes should take place,
aud should diminish the amount circulated in daily rans-
actions from hand to hand. yet thai itself would con
for general benefit Of great importance nasnueh all
such remlttanccs perform the office OF furnishing safe and
cheap exchange, and operate directly with the results
hoped 10 be produced by another provision Of the bin.
But II the ESchcquer and its agencies be allowed 10
deal III exchange, this use Of t5 notes. although might
eNist 10 some oNcnt, would be ar less considerable
Among possible objections 10 thc issue Of releenable
on The f.Nchcqucr ilr specie Tor expectation.
States aud companies. is known owe heavy debts in
Europe. and these States and companies may be anciod
will obtain Treasury notes. hans{ the Treasury by de-
mands r specie aud send the specie thus obtained abroad
IN discharge Of their own obligations few words may
dspel such luagiuaona
In the first place. the Argument. if prove any thing
proves loo much iar proves that iur the reason
all specie paying banks ought 10 specie payments.
But the truth probably H. thai these States and companies
lind less difficulty IN lighting convenient mode of
remittance than on commenting AT the present
The nienns OF making remtianrts IN any form The gen
eral depression with the corporation doubtless of other
causes has suspended the power of obtaining sneh means
We must continue 10 hope that under Letter state Of
infs and IN better tunes, this power will revive. and
when II shall, we must look TO crops. lreigls
and 10 the general earnings Of ON industry enable us
10 meet the claims Of creditors abroad Ia the mean time
SINCE neither States companies obtain loans Of
Treasury notes. otherwise possess tcnalvos OF them
than by buying and paying for them, need mol distress
ourselves with apprchensions Of runs the FNc.icqner
from that quarter.
II remains To say something upn that raIt 81 the hill
which authorizes tho EXehequtt and In lgences To buy
and sell domestic exchange upde certain limitations and
restriction.
That institution founded on a more extensive plan
with large moneycd capital. which should deal in
changes broad SCALE hnyna bills long dates or ac
eertng bills ON security. N order TO enable drawers 10
anticipate their means and thus Afford capital and credit
az we'll rs exchange. strictly speaking might. but for
now proposed. may be safely admitted. Put such
scheme involves the idea OF milking leans and advances.
81 Henrne largely the strength Of personal security.
and entering small dofefee INTO the hazards Of com
moree " such purpose Is intended by presenting tho
present bill To the consideration Of Congress. On the
contrary the utmost concern has been Ict to guard tho
proposed measure against all tendencies such system
Of exchange operations.
In all its purposes loohs 70 currency and exchanges
not 10 lending 10 discount And il NAV well be mat
OF whether sth afgp
Of discount can be safely lodged in private institutions
with the power Of making such discounts Is tic use of
their notes
The supervision and regulation Of currency belong To
Government; the business OF commerce and The borrow
ing and lending OF money 10 individuals. And perhaps
no conviction Is rapidly taking possession of the
mind ei enlightened men. and that Government should
n1 commit the high and important function Of supcrin-
tending and regulating the currency Of country the
hands o those whose occupation consists in ma kim loans
and DISCOUNTS whether promisslry or bills ON
time Whenever a bank makes loan. a discount, by
the issue of It's bills ii adds 20 much to the circulating
medium OF the country and. m the absence OF all other
regulation restraint several hundred hins whose pal
able interest it is to increase the of circulation
arc 10 decide each III the exercise OF lbs dr. reon
what extent that augmentation shall lie carried That
IN such system there must be some check that, in
the absence oia.l such check, the emission of paper will
be continually tending 10 excess. must he manifest to
" rejecting mind. 1t proposed to enter fully into
tins subject at present but it has already in other
countries. so 1t must necessarily long in this,
mand the most 81 rlo'is attention Of GJvernment.
II Is hoped that the measure proposed Congress
viii have effect, at least, counteractng the ten
doncy TO excess IN bank issues While il may not ac-
coplish all that it is To be desired, believed it will
eitcl something. 10 the extent of its means employed,
lis operations Will be calculated 10 restrain and
correct because in the first place, every
sl1n o good currency To the general mass lends either
Ia render the bad worthless that time it shall give
way 10 better, 10 compel those no issue such bad
currency to raise its value by pre- pairing r its rodemr
ton. good currency could he put into circulation in
such quantity TO meet the Of the country,
of course cXrol the bad or brine about change of its
charactcr although it is equaly true that, while the
great mass he bad and lille II vet crculaes not having
become entirely worthless it is difficult for ! small
mount Of good currency 10 share in the general crcua
ton since 1t is liable 10 be selected from the mass for pur
poses which that mass viii not answer And, in the
second place. the Excheor will act benefcally in this
respect, by holding all State banks with which it may
have dealings to puneua performance Of their oblga
tons, and bringing the To immediate settlement Tor
such Of their bills may find their way into it, into
any OF its agencies.
1t is not intended to say that tho proposed measure will
o Itself be able TO arrest the progress OF the great evil Of
excessive bank issues, tat Government nlsy not Lc
obliged hereafter To adopt other On the
tray as already suggested II Is apprchon9dd that these
evils may yet imperavey call for other remedies But
II is believed that 1t will have ccnside raLle effect,
should its operations lie successful Anticipated in
checking and limiting what it may be able entirely
to suppress
But there is another very important consideration