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

pose as readily as specie. Should gold and SILVER
be wanted for exploration, or any other exiraos
binary demand, the bank which possesses THIS pa
per mas the certain means OF covering it al plea
sure into The article required. Every bill Of ex
change PAYABLE at these Offices viii, at lis ma
iurIty, restore TO circulation, either In specie or
this sound paper, the amount deposited for Its pro
curenent. Indeed, II Is difficult 10 foster a doub;
that, IN regard TO tho means Of redeemlng their
own emissions, the banks vii. possess moro am
pie resources than at present. Ii Is true tha, the
channels OF commerce viii be partially filed wi'h
a medium Of SCUM and impefishable credit, which
| will stand The shock Of every possible ,iolsiiude
except the subYersIon OF the Government. But
thts wall promote the strength Of the banking IN
! stItuuons no less Than The stability of The curren-
cy. From the establishment Of a national corpo.
ration with a large specie cspitai, the banks were
apprehenslVe Of sustaining injury by the great
and sudden withdrawment of the precious metals
from tAeIr possession. BIt the agencies can pro-
duce no such embarrassment; for their progress
will he too gradual 10 cause aay cpnEuisi0n, and
the immediate restoration 10 the marker Of u me
dunn Of equal amount aud value with that which
Is Withdrawn wit enable those Institutions at any
time to command The specie which they require.
As 4 asst price - 10 be paid for exchanges, II
is believed that all the expenses Of condactIn.
the business OF the ExchCquer and It's agencies
viii be defrayed from that source. and probably a
much larger sum may be realized. The losses OF
the currency by fire, sh;pwreck, and other casual
ties, az shown IN the experience of banks, would
not ba an uncomfortable item OF gain. \ small
premium, say half or quarter OF one per cent.
might reasonably be exacted of depositors, If here
after deemed necessary, upon notes issued IN ex
change for specie. While this ystem vii. turn-
Ish the desired means for the collecting sale-keep-
ing. and disbursement of the public revenue, and
all tho requisite facilities for exchanges between
different sections OF the country, as well as create
z sound convenient curfCacv, X Is exempt from
the Obi 3ctionablc features OF other modes OF ef
tcctIng, III part or In whole, the same objects,
heretofore presented for consideration. 1t au-
th0r'zes no banks OF other corporations, no dis
counts, no lending on credI, IN any Gof:n whntes-
er, no expansion OF the currency by public drafts
or otherwise, no paper money resting on the cred
il Of The Government ani depending on accraing
revenues for redemption. 1t conlers no extent Of
Executive patronage or infleaence. NJ officer can
be either appointed or removed by the President
without The concurrence Of the Senate, sod only
for certain specified causes. 1t contcts no dIscre-
tlonary power by which partialities may be iudul
ged in behalf of a personal or political tasori'e.
Whoever presents his specie notes or bills 81 ex
change at maturity Is entitled to specie. and who
ever presents his specie ia entitled 10 the paper
which he selects. The right Of every applicant
are defined by law, and his transactions at he a
gencv arc OF the simplest character. The laws
of trade, and not any experimenting board on
pubiic agent, decide the amount Of dePo<ltes, bills
of exchange. and paper currency. The wants
and mems nj individuals composing INC C0nfHu
uitv will best regulate the proportions Of paper
and specie. IN the absence Of all artificial restraint
and supervision Of the Gosernmcnt- Ano her
important consideration which the COMMITTEE
would add 10 these views is, that whilst the opera
tons of tho Eycheqler would tend to promote
the real interes, of The sound banks, II would, al
the same time, tend 10 drive into liquidation the
unso1nd ones. Banking capital which has so c
Enormously increased within q few years past,
would be reduced. There would, eventulllf, only
enough remain to answer the commercial and
other business wants Of the country. The large
surplus Of capital which sought investment IN
banks for the exharbitant profits Of those iEslitu
lions. under an inflated and unnatural state Of the
currencr, would retire, and Petarm The more le.
c!tinlate Office Of permanent loans on bonds ord
mortgage II the agricultural interest Of the com
munlv. One great evil which the country has
experienced has been from the withdrawal Of cap
ital from the farming ~Intefes: ID invest it IN h1ak-
ing operations. That interest. from the very
nature Of the business. ought not to be driven t.
bank accommodations. They should be able to
command permanent instead Of temporary loans
.iny system. therefore, which should aid the re.
tiremens of the surplus banking capital wonld
greatly benefit the substantial producing classes
of the country.
From what has been sajd, il will be seen hat
the ExcheGuer viii furnish a uniform currency
and etfectualiv equa!ize exchanges. J.. has No
discounting power like that Of the late Bsnk OF
the United States: 2 power which was the rrIn
cipal source Of al the difficulties and of The s"b.
sequent disasters Of that institution. 10 order TO
make dividends, II was necessary 10 employ its
enormous capital IN the shape Of discounts. 1he
great portion Of those discounts was not based
upon legitimate paper. They were tong loans.
stock loans. Accommodation loans. permanent
loans. And one reason for this was, that, within
the sphere Ct the operations of the bank, there
was uoi enough ef legitimate business paper 70
employ IL capital. There was, therefore, a kind
OF necessity of employin ing II olherwiso; and thet
apparan: necessity, in the otherwise disastrous
state Of the times, has led TO It's final overthrow.
Tie Exchequer will possess all the benefits Of
a Bank Of the United States without is attendant
evils. II is powerful 10 DO good. bot Poweriess 10
DO harm. The immediate effect Of the adoption