Daily Richmond Whig. [volume] (Richmond, Va.) 1840-1842, 1842-03-01

'han It's amount m two remote markets. sent sate
and convenient currency OF 81 900 into the channels
of commerce, and Is still at rest sustaining this
amount Of circulation.
The use Of bills Of exchange will no, be super
SEEDED by the specie notes Of the EXehequer. The
former have always been pFeCsrred ard were ex
tensively used under the two National Banks. when
their paper, in sound credit, had every advantage
which this will possess of being made such n sub
s,iiutc. This proof from experience is conclusive.
One ground Of preference, which has always been
appreciated here and in Europe, is, that bills Of ex-
change are more safe than bank notes. as they
offer no temptation TO robbery or emLezzlement;
and as several may be sent Of the same tenor and
date by different conveyances, lin which no loss
Will be sustained II any one arrives in safety,) the
risk may easily be reduced almost to impossi
bilty. The perfect character Of these bills Of
change from their undoubted credit, will generally
give them preference others. They will
never be protested for want of funds AZ any office
where they payable. No embarrassment can
result from the necessity Of transmitting specie
from Office to Office. The occasions arc very rare
land II this system were in operation they would
be still moro rarel in which specie needs TO be re.
moved; as, for almost every purpose, good paper
IS preferred. The paper of one office would general
y bc as good rs specie IN most others. Ii deposite
were made in New York TO meet draft on the
ofhce IN New Orleans, this latter Office would pre-
Ter the New York paper 10 coin in the common
state Of exchanges. When the system has been
some time IN operation specie will have found its
proper places of repose, and movements of il would
seldom be required Should an apprehension be
entertained that the retirement of specc into tho
agencies would cmbarrnss the banks, il will be dis.
spated by little reelection upon the operations al
ready described. Those officers are bound 10 de.
liver, at the time Of deposie, an amount in paper
equal to the amour, received in specie That pa.
per will take the place Of the specie which it repre-
sents, and the same portion of Il will be deposited
| by merchants and others who keep their accounts
banking institutions Of the specie for which il
Is n substitute As 1t will be a light and COW intent
II N tpsl lpat, 49,. -.
banks Of sound credit in common commercial onera
tons, and consequently be more frequently used in
making payment upon discounted notes and other
deDtness 10 moneyed institutions, than specie now
Is: When possessed by bank, ithas all the value
oil specie. IL means wanted for deposito in n
agency, this paper will be received OF bank for that
purpose as readily specie. Should gold and silver
oe wahteo Tor expectation or any other extraordi.
nary demand, the bank which possesses this n,per
has the certain means of converting il nj nlessnrc
into the article required. Every bill of EXCHANGE
payable at these Offices will at its maur;,v ,].,n,
70 circulation, either IN specie this sound naner
the amount deposited Tor IFS procurement. Indeed
It is difficult TO foster doubt that in REGARD 10 ~
means OF redeeming their own emissions the b,nks
Will possess more ample resources than M nrseeo,
IL Iue mat the channels OF commerce will be
partially hled with a medium OF sound and inner
ishable credit which will stand the shock of every
possible vicisSitude except the subversion NJ az
government. But this will promo;e the stre,c,L
OF the banking institutions no less than the s,abiI,
establishment of
tlonal corporation with a large specie CAPITAL tho
banks were apprehensive Of sustaining iniurv bv m.
great and sudden withdrawment OF the precious mo-
tails from their possession. But the agencies can
produce NO sucn embarrassment; for their progress
VIII oe TOO gradual IN cause any conyu'sion and
the immediate restoration 10 the market of n,sdnr,
Oh equal amount and value with that which is with
drawn will enable those institutions Of anv time y,
command the specie which they require. As inst
price IS 10 be paid for exchanges II il bs;evoJ H.,
q he t,t,e
EXchequer and Its agencies will be defraved fro,,
that source, and probably q much larger sun, mas,
be realized. The losses OF the currency bv FIRE
shipwreck, and other casualties ms shown q ,L1
experience OF banks, would not be an inconsid,r,
bic item OF gain. A small premium, say A half or
quarter oil one per cent, might reasonably be exact
ed OF depostors, IL hereafter deemed necessary. nm
on notes issued IN exchange for specie. While this
system Will furnish the desired means for the col.
Letting, safe keeping, and disbursement the pub
lie revenue, and oil the requisite facilities for ex.
changes between different sections of the coun,rv
as well as create a sound and convenient CURRENCY
II Is exempt from the Objectionable features of otbe
modes OF efecting, IN part or in whole, the same
objects, heretofore presented for consideration II
authorizes no banks or other corporations no dis.
counts, no lending on credit IN any form whatever
no expansion OF the currency by public drafts or
Otherwise, no paper money resting on the credit NJ
the Government and depending on accruirg reve-
nues tor redemption. IL confers no extent Of Eye.
cuiive patronage or influence. No officer can b.
either appointed or removed by the President with.
out the concurrence Of the Senate and onv for cer
tain specified causes. X conrers no discretion,r,,
powers by which partiai;ios may be induced IN
behalf OF n personal or political favori'e Whosver
presents his specie notes or bills of exchange AZ mn
turIiy is entitled 10 his spec G. and whoever nreeep
MS specie Is entitled 10 the paper which he selects
ne rights OF every applicant are defined by law
and his transactions at the agency are OF the sn,ues
character The laws OF trade, and not any SUPER.
intending board or public agent, decide the amount
lie ofr rrba
The wants and means Of individuals COMPOSING tbs
community will best regulate the proportions of
paper and specie, in the absence Of all artificial
restraint and supervision Of the Government. An
other important consideration which the committee
would add to these views is, that whilst the opera-
tons Of the Exchequer would tend TO promote ,he
real interests of the sound banks il would NJ the
same time, tend TO drive into liquidation the un-
sound ones. Banking capital, which has so enor-
mousy increased within a few years past, ,yould
be reduced. There would, eventually only enou,b
remain to answer the commercial nnd other buS
ness wants Of the country. The large surDIus NJ
capital which sought Investment N banks for the
exOrbitant profits Of those institutions under an in
hdted and unnatural state Of the currency, would
retire, and perform the more legitimate Office of pe--
manent loans, on bond and mortgage to the nrri.
cultural interest Of the community. One great evil
which the country has experienced has been from
he withdrawal of capital from the farming in,eres,
TO invest It in banking operations. That interest
from the very nature oftheir business ought not TO
be driven to bank accommodations. They should
be able to command permanent instead Of temnora
ry loans. Any system, therefore, which should aid
the retirement Of the surplus blaking capital woud
greatly benefit the substantial producing classes of
the country.
From what has been said, it will be seen that the
EXcheqner will furnish a Uniform currency and ef-
ieciually equalIze exchanges. IL has no discount.
ing power, like that vi the late Bank OF the United
States; power which was the principal source of
oil the difficulties and Of the subsequent disasters
Of that institution. In order TO make dividends, il
was necessary TO employ its enormous capital in the
shape Of discounts. The great portion Of those dis
counts was not based upoL legitimate business IN
per- They were long loans, stock loans, uccommo.
daiion loans, permanent loans. And ore reason
Tor this was that, within the sphere Of the opef,.
tons OF the bank there not enough Of legitimate
business paper to employ its capital. There was,
therefore, kind Of necessity Of employing il other
wise; and that apparent necessity IN the otherwise
disastrous state Of the times has led to is fnal over
throw.
The Exeheguer will possess oil the benefits or .
Bank OF the United States without its attendant
cviIs US powerful 10 do good, but poweress TO do
harm. The immediate effect OF the adoption Of the !
measure will be, once more to restore the confidence
OF the country. TIN, confidence is everywhere i'm
paired. IL - impaired in individuals; il is impaired
IN banks; It is impaired in our State Governments
and even shaken IN the General Government The
People require some action the part u Congress
which shall restore II. That can only be done by |
the adoption Of a system Ike the one proposed: n /
system which, in Its leading features, Is perfectly