Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-01-11

same value as specie. Specie could be transport
from New Orleans 10 New York for less than two per
cent and the cost OF TRANSMISSION was The only true a
SIS for ascerlainas the rate oi exchanges. At press
the rate of exchange between Charleston, August
and New York, vas nothing. So II would he with IT,.
Western States if their Leg satures did their duty all
compel their local banks 10 pay specie. SO il i, i.
fact when specie is the basis Of exchange II only On
non specie paying bank money that five D..
cent exchange is demanded IN The Western State
A National Bank did nothing to regulate such -.
changes Exchanges were lower at many points
than they were when the United States Bank was i.
ru operation, as could be- seen by the tables betor
Congress A National Bank would not relieve III :
country from The exchanges deprecated paper chr
rency nor would the bill now proposed, il: enacted
afford the relief anticipated II The Board ii Exclr.
auer through its agencies, were 10 oea IN ,Achang,
10 The amount Of thirty. tiy, even hundred mi
lions though this could not be, without an explosion
Of the institution within six months-t would tcnei
but SPECTATORS mammoth corporations, and favor
| e politicians The exchanges Of the whole Comm.
nifty do not fall short o, five hundred mions and Tie
hundred millions Of this Institution would only lc
TO one fifth Of The exchange business. Onehith q H.
community would then be benefited by exchanges II
less than two per cent but II would be al the expense
of the four fiiths which would be excluded and whr
in consequence Of this interference, and preierec,
10 the favored few, would have 10 pay higher rates 81
exchange than before This a principle Of the hl
which lie could consent 10 IN any possible con2ic.
mise But with regard another feature Il lie mea
sure, he would 90 far the Senator from virginia
mir Rives effect something for The rcli,i H.
country if It could be pointed out that il wnaG Il
relief and that il could b. done constiiutionaIy hi,
that Senator surely would not educated IL was 4,
the feet Of Gsnael, require that he Mr.. Woodbury.
and his friends should sacrifice thei. constitutional
scrUp Piles for the sake Of action. The Senator
not III ayor d. the ''do nothing policy. il maLt
BE- inferred that he favor Of doing eyery.
thing sooner than do nothing But he (Alr Nod
hury) had right also 10 his opinion, which VAS
that although wiling ard ready 10 co what can be done
cons,tutional he would prefer doing nothn. dong
that y Inch he felt conscious not only unconsliiu.
tional, but inrxpedient. A " HON his State New
hampshire had always honored Mr. Langdonl had
SAID in The Convention that he would rather reject rr
whole Constitution than insert The Three words, land
bills Other intelligent men and undonbted pa.
trots, held the same opinion Mr.. Madison did not
believe that Treasury could be issued paper
currency What Shay rebellion in Massachu.
sets but rebellion 10 relieve the people by
OF paper money II was put down, all such rete..
lions should be- and must be put down. under the Con-
stitulion OF his country. In any sudden crisis, THIS -
per currency could stand SIX weeks. Even The power
certificates Of dcposie proposed IN this bi Il
CONSTITUTIONAL could not effect any good; for, suppose
with five millions Of deposlte, issue OF three tunes lie
amount, fifteen millions, i made, - hat woud be tie
inevitable effect; In the event Of panic--irom SUD.
den war or other causes-how could these cer.csics
for fifteen millions be redeemed? The hrst claimants
Tor five millions would take all the specie; or suppose
they only took half OF IT, there would then be lett oniy
two and half millions Of specie TO redeem twelve ali
a half millions of certificates Of deposes. But If i
was great panic the whole OF the specie would + Ia
KEN and nothing left 10 redeem the ten millions out
standing. 7 he Exchequer Institution would then u
complete rag paper bank as any ever established
on Owl Creek or else where There was no fancy in
this il was all fact would have been the effect rcitt
rated half dozen times within the last halt dozen years
if this plan had been in existence as Government In
stiluton. And the redemption OF certificates OF depose
was not ALL the Treasury notes would have 10 be r.
deemed 1t nigh, be asked how the L ) Bank 60, along
Ii was often reduced dilemma and II was only IS
Transporting specie from the West over The mountains,
by forced marches, that saved itself from disgrace II
by few wagon loads OF silver from The West, when
she had hundred thousand dollars Of specie IN
her vaults that in 1919 and c2l she kept from
pension Similar transporatons OF silver would have
be made from distant agencies, under this bill, or tho
proposed institution could not exist twelve months
Now, transmit specie, sustain exchanges on sle
basis, il necessary 10 have this Exche9ue
Board at all. Kentucky would not lose halt million o.
dollars, the eight Western States, mentioned yes,e
do four millions in exchanges If Kentucky, and her
States of the West would their banks 10 pre-
serve sound and redeemabe State currency But tie
por, under discussion says the proposed scheme
would prevent over issues and expansions Ii THIS was
grave and important subject, the assumption
would provoke laughter. The proposition is TO Issue
three dollars OF paper Tor Of specie lie vaults oil
the institution expansion oftwo hundred per cent
Now the u s. Bank, in is greatest glory. never attempt
ed an expansion beyond fifty per cent II did en- one
occasion expand, IN Blk months, ITS circulation iIom
sixteen millions TO tweHty-iour Millions but that W..
only fifty per cent This institution may, however 3,
any timc expand two hundred per cent And tins
was the proposition 10 prevent expansion Money
ISSUED on lie principles laid down would soon be ID
valueless the continental money once was, wben
thousand dollars OF IT would not purchase breakfast
lie did not agree with gentlemen rs 10 tie necessity
for paper currency al all, issued by the Govern
ment Commercial men and travelling men needed
paper money, and should have 1t but they
have il in bills of exchange furnished by the bus
ness Of the country, and through the ordinary
channels Of business. Amy State can have as good
a currency the Government can make THIS wa'
true, and II only required the proper action o! Slae
Legislatures, and the subsection OF local banks 10 Tie
operation OF Bankrupt law, 10 make State cnrrenc,
good all over the Union Commerce was the bass y
paper currency, and sound and proper currency q
this kind would be AT par III Detroit and in New Yofa
or in other commercial cities. Any State could make
as good Board OF Exchequer rs the Genera! Govern
ment Could not New York do it, could not az,
other State: What occasion was there, then, tor he
General Government TO NEEDLE with the currency
Congress should not tamper with II. !, should 2
left 10 take OF itself The General GorernneE
was, he considered, restricted from this intermrt
ding 1t under 10 obligation 10 interfere, ~.
ought not 10 interfere unless power 10 do so is exp
city given. And If there power 10 issue i a.
vernment paper currency, It surely should tie 90.
fined TO an issue Of dollar for dollar Of specie. u
had said the report Of lS31 which allusa
had before been made But ii paper currency 60
should be issued by the Government, the inst,nn.
issuing II ought not to have the power Of discoung-
the promlsory notes Of individuals, or of dealing
private exchanges. In this he agreed with the sea4
tor from Virginia, [hlr. Rives But the Who'll piI
was based on idliacsous assumptions il was suPp's
that five millions Of scrip could be sold 10 redeem "
The loans authorized last cannot be So
now and how could FIVE millions .! scrip be sold tore
deem Government paper money IN an emergency ~.
ing back the Government currency Bu, fifteen M
lions 10 be issued, not bearing interest, and thahi
to be great saving TO the community. THIS an.
ther fallacy First, that the community would bcreN
by il; and next that The issue would stay out W.T.
out bearing interest. Treasury notes issued AZ
bearing high interest Of six per cent. were beoa
par, because there was not specie enough TO edetH
them 1t really seemed If gentlemen were dispose
TO realize the dreams Of the Arabian Nights, 50 yl'oE
airy was the plan proposed, and Wild the an,cl
Of LII. LIS -.