Boon's Lick times. [volume] (Fayette, Mo.) 1840-1848, 1842-01-15

Oe small, tDen OF course II can only Ill IHt
channels Of circulation 10 limited extent.
And while the paper OF the State banks
shall continue deprecated and yet remain
in circulation, Treasury notes, it is highly
probable, will often be taken out of the
general circulation and used for purposes Of
remittance. Their limited circulation in
such cases would arise from their superior
value in comparison with The value of 9TH
er paper. 1t would not he owing 10 want
of confidence in them. but to their posses
sing the highest degree of confidence.
But if such use Of Treasury notes should
take place, and should diminish the amount
circulated in dliIy transactions from hand
to hand, yet that use itself would confer a
general benefit Of great importance, mas.
much as all such remittances perform the
office Of furnishing safe and cheap en-
change, and cooperate directly with the
results hoped 10 be produced bv another
provision OF the bill. But if the Exchcuuer
and its agencies be allowed to deal in OK
change. this use Of its notes, although 1t
might exist to some extent, would he far
less considerable.
Among possible objections TO the issue Of
redeemabe Treasury notes, one may be.
that they will be returned on the Ex-
chequer for specie for expectation.
States and companies. it is known. owe
heavy debts in Europe, and these States
and companies 1t may be tancied will obtain
| Treasury notes. harass the Treasury By
demands for specie. and send the specie
thus obtained abroad in discharge Of their
Obligations. A few words may dlspel such
an imagination.
In the first place, the argument, il it
prove any thing, proves too much; for it
proves that for the same reason all specie
paying banks ought to cease specie pay
ments. But the truth probably Is, that
these States and companies find less diff.
Guilty in lighting on some convenient mode
of remittance than on commanding at the
present moment the means of making re-
mittances in any form. The general de-
preston, with the cooperation doubtless Of
other causes, has suspended the power Of
obtaining such means. We must continue
to hope that, under better state OF things
aud in better times, this power will revive,
and when it shall we must look to our crops,
to our treighls, and to the general earnings
Of our industry, to enable us to meet the
claims of creditors abroad. In the mean
time. since neither States nor companies
can obtain loans OF Treasury notes. nor
otherwise possess themselves Of them than
by buying and paying for them. we need
not distress ourselves with apprehensions OF
runs on the Exchequer from that quarter.
1t remains to say something upon that
part Of the bill which authorizes the Ex-
chequer and its agencies to buy and sell
domestic exchange, under certain lmita-
tons and restrictions.
That an institution founded on more
extensive plan. with large clonied capital,
which should deal in exchanges on broad
scale. buying bills at long rates, or accept
ing bills on security. IL order 20 enable
drawers TO anticipate their means, and thus
afford capital and credit. as wei as ex-
change, strictly speaking. might. but for
the dangers attending II, produce more ben
eft than that now proposed, may be safely
admitted. But SuCh a scheme involves the
idea Of making loans and advances. OF ven
turing largely on the strength OF personal
security, and entering in no small degree
into the hazards at commerce. No such
purpose is intended by presenting the pres
ent bill to the consideration oil Congress.
On the contrary. the utmost concern has
been felt to guard the proposed measure a.
ganst all tendencies to such system of ex-
hange operations.
In all its purposes, i, looks to currency
and TO exchange. not 10 lending o: discount.
And it may well be a matter OF serious con-
slderation, whether such large powers OF
discount can be safely lodged in private in
situations. with the power Of making such
discounts By the use OF their own notes.
The supervisors and regulation of cur.
halN ,l,o h.,