The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1842-03-26
Boston. .......... IA

doubtless resume in short time that
the late law ofthe Legislature does not require until
September next The ward march ofsound principles
such as to compel them to specie payments
without waiting for the action Of the law Probably by
thist next year the currency o. the whole Union
will be reduced TO the specie standard, and consist
OF large majority the precious metas with proper
ton Of the notes ofspece paying local Banks such
state ofthings will form firm and admirable foundation
for the ESTABLISHING mt Of the proposed sxchequer Of Mr.
Cushing That plan does not propose to add to the cur
rsncy capital ofthe country by lending, borrowing
the Of credit in any shape 1t proposes simply
to utilize the precious metals that h to relieve them Of
their cumbrous qualities without in any way adding
taking from their quantities. The legitimate Of
the precious metals to settle balances by the transfer
Of actual value The local currency of any country
section Of country may be safely composed OF mix
ture opsper and specie under strict commercial banking
rules. The exchanges settlement Of ultimate Ia
lances after the great interchange Of commodities be-
tween countries sections has been affected be
done only Through the fundamentally Of the precious
metals. Between this country and Europe other
medium ID used ought to be used sought after
But when bills drawn against sales exhausted spe-
Gle goes forward a matter of course until the balance
settled The same process il sought now 10 be esta-
blshed between the different sections Of this country
The exchequer Offers as il Railroad intersectng
all the great commercial centres by which the ultimate
OuAduCes DetWeon eoCn NJ
est possible expense The bill proposes the establish
ment of Offices, say at the following places =
Boston. ....................C Cincinnati
New iork: '.''.....'. 1913 LOUIS
fhiiadelphla ......... .Louisville
Daumofe.' ........- s.s'' .NewOrleans
-A''A Charleston. "00"s
Each Of these cities 10 the centre of the trade of its
district-That is to say, it II the point to which the
producers Of the neighborhood sell their pro.
duce and the purchase their supplies
Each Of the districts il supplied with local paper
reney BY the banks which the purpose of cir
culating medium we'll i'll in proportion to the skill
and honesty with which these banks conducted
The disbursement Of the money in the purchase of pro-
duce scatters each distrct and it sgain returns
to the centre Of each In the purchase of supplies Now
comes to be true that each centre there sccumuaes
surplus Of the produce which in the hands Of ship
pers 10 sent to the centre Of other dis.
trict for salethe proceeds applied the purchase
ofthose supplies which brought back and dispensed
to the consumers In the neghborhood of the place of
shipment. Al the close Of the year always happens
that centre has purchased from another centre more
than should have DONE The shopkeepers have upon
their shelves goods than they could SELL and for
which they must pay Notwithstanding, or the banks
may have been too liberal in their loans and
consumption greater than the production war
ranted Hence arises balause which be pal d-and
~ the produce 10 not there to pay it, specie 20 for
ward Now isto facilitate this that the exche
quer plan il proposed The operation is generally thus
Cincinnati il the centre Of agricultural district To
that city beef pork and other agricultural produce is
brought for shipment Tais goes down mostly to New
Orleans for SALE At the time the Of Cn
cinnat New Yotk and Boston and purchase dry
goods, &C. which they carry home aud sell to the con
sumers In the neighborhood Of Cincinnati. Now the
produce seat down to New Orleans becomes the basis
Of good bills that mature at that city, and discounted BY
the Cincinnati banks. New Orleans il the centre of
cotton triet from which cotton 10 sent to New York
and Boston for SALE Ths cotton becomes the basis Of
bills maturing in these latter cities and discount
ed by the New Orleans Banks. New York thus
becomes indebted to New Orleans, New Orleans to
Cincinnati, and Cincinnati to New York This il
settled by the purchase Of New York bills in New
Orleans account Of Cincinnati, with the proceeds
Of bills Of latter city maturing in New Orleans This
IL the usual commercial movement, and which cannot
be interfered with or altered without danger. But il
frequently happens that purchases on Cincinnati &C.
count have ben made in New York to greater money
value than sales Of produce have been made on Cncip
natl account and there is deficiency of bills at the
close Of the year Of say 800 OOo The cause of this
over-purchase will be in cases q redundancy of
paper credit in Cincinnati The true remedy il there
fore reduction but the late National Bank plan was
not to pay this balance Of 100000, but the branch
there sold its bills for the drawn credit
with the branch in New York. By this operation the
debbecame changed from debt due by the merchants Of
Cincinnati to those Of New York. to debt the branch
bank thereto the branch in CIV York but paid No
depletion Of the currency at the indebted point took
place, consequently the cause existed Cor an in.
crease Of debt the following year. By the process
the Atlantic branches tended foreign credits uu.
til they burst, and ruin followed The exchequer pro-
poses nothing ofal this When the supply of bills ct
Cincinnati, to follow illustration, becomes exhaust
ed there means Of remittance except fictitious bills
rspece the latter is cumbrous, and will cost per
Gentle send to New 70 rk The exchequer proposes
instead obgiDg the merchants submit to this rou
bic and delay, to receive the specie into its vaults and
give dra for the full am,unt able at sight at the
New York Office, for charge of per eentl only Tho
specie is at once ttus sent by ra DAD fare
Every legitimate operation of exchsngs can thus Re
done at small cost and promptly This surely all that
reasonable and rghtthinkng merchants can desire Il
leaves the local Banks the full and unlimited enjoy M Mt
ofthe ocal tiads. l. does not compete with them for
loans and bank business rally nor does it emf,
circulation that will compete with them, which M,
tional Bank woui do IL requires only prompt paw.
ment other bills which it may receive for its drafts