Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1842-03-05

will equal, If not exceed, that Of the Bank Of The
United States. And # The Bank Of the United
States furnished n uniform currency, then the
Exchequer will be capable Of doing The same;
and that, too, without any risk TO the community,
or hazard to the credit Of The Government.
This, when accomplished, will do much towards
equallz,ng exchanges. The ralnous rates oil ex-
change between remote sections Of the country
result, essentially, from the depreciation OF The
local currency.
IL tho paper circulation Of New York and New
Orleans were both Of the vaIuo OF specie, and the
balance OF trade between the Two places, by Tea-
son Of The interchange OF commodities, were mere
nominal, exchange between those distant points
would be at par. Bot II the balance Of trade
were IN favor of New York, then q bill drawn at
New Orleans on New York would command a pre-
MUM equal TO freight, insurance., interest, and
other necessary charges for renting specie. Bat
whilst the paper circulation OF New Iofk. by rea-
son OF Its eonvertIblltty, IL ct the value OF specie,
and that Of New Orleans IS deprecated because
OF the suspension OF lis banks, IA bill drawn THE
latter place on The former, and paid for in depre-
eiated paper, would command a premium equal TO
the cost aud charges Of renting specie, nddeo
TO The amount Of the depreciation ct the local pa
per below the value of specie. The reverse would
be the case, under these circumstances, with a
bill ira n IN New York on New Orleans. M
I regular business, without great sacrifice, can sus-
tain itself under such a Tulnous rate Of exchange.
Tho uniform currency which VIII be furnished by
the operations Of The Exchequer will do much To-
wards curing this gIoat evil.
Bat there is another feature in this system by
which the exchanges viii be perfectly nccumrlo-
dated; winch is, The power TO sell and collect ex-
change. The committee have heretofore avert
ed TO Ibis, and, on this whole subject, have con
sulied some of the ablest, most practical, and ex-
perlenccd men, and their own views are fully con-
hrmed by the Information derived from such high
sources. They cannot, in any way, So well Illus
F trate this branch of IL and IT'S UGDP1CIaI effects
on the sound local banks, together with other ad-
vantages. as by briefly embodyfng the following
views which have thus been communicated TO
them.
a bill drawn by one agency on another, IN any
remote part of the United States, will be as good
az specie within The commercial sphere of The en-
poIium where Tho ageucy is located at which pay
ment is to be made, and may generally be nego-
tIated above par BY any holder within that sPaere
aud at a rate in some measure proportloncd 10 his
distance from its commercial centre. II, for IN
stance, a merchant IN Cincinnati wishes 10 re-
NIT money to a manufacturer in Connecticut, q
bill drawn by The agency 10 Cincinnati, where
the deposite is made, on the agency III New York
would be worth a half per cent. more than specie
to the payer.
Exchanges through the agencies will meet all
the exigcncies oil the markets. /. not unfreqaent
" happens that New Orleans is indebted 10 Ohio
for agricultural products; Ohlo TO New York tor
manufactured goods, domestic or imported; and
New York TO New Ofieana for cotton Every
we'll informed merchant IN those severn! sections
will be advised of the state of the markets a
New Orleans merchant. wishes TO remit TO Ohio.
He deposites his specie III the agency at New Cf-
leans, and gets the same office 10 accept his own
bill of exchange for S 900, payable to the order OF
his Ohio correspondent, and transmits II accoF-
dinghy. This will be above par n the OHIO mar
ket, because i. is a good remittance for New York,
where bills on New Orleans command e premium.
II ia bought by an ONO merchant, who RENTS 1t
to New York IN payment for goods, and from New
York it is sent to New Orleans 10 pay for cotton.
Upon It's arrival it is presented to the agency
where il was accepted, and the specie is ready
for its redemption. The holder, however, not
willing to be buEdened with the specie, viii gen
orally prefer the specie notes OF The agency. Thus
this s. 900 in specie, after paying a small Tre-
MUM at the agency, viii have paid moro Than
its amount 10 two remote markets; sent sale
and convenient currency Of 81 900 into the chan.
neIs Of commerce.. and is still ct rest sustaining
this amount of circulation.
The use Of bills Of exchange will not he SUI
perseded by the specie notes OF the Exchequer.
The former have always been preferred, and were
extensively used under the two National Banks,
when their paper. IN sound credit, had every adj
vantage which this will possess of being made
such a substitute. This proof from experience Is
conclusive. Ono ground OF preference, which
has always been appreciated here and IN Europe.
is, that bills of exchange are more sale than bank
notes. as they offer no temptation 10 robbery or
embeZZlemeut: and as several NAV be sent Of The
same tenor and date by different conveyances,
Tin which case no less VIII be sustained If any one
arrives 10 safety,) the risk may easily be reduced
almost to an impossibility. The perfect charac.
ter Of these bills of exchange, from their uudoIbt-
ed credit, will generally give them a preference
over others. They will never be protested for
want Of funds at any office where they are pay
able. No embarrassment can result from the ne
cessity of transmitting specie from office TO office.
The occasions are very rare (aud if this system
were in operation they would be still more rare3
in which specie needs 10 be removed: as, for al
most every purpose, good paper is preferred. The
paper oil one office would generally be az good as
specie in NEST others. If a deposite were made
IN New York 10 NEE, a draf, on the office in New