Richmond palladium. [volume] (Richmond, IA [i.e. Ind.]) 1839-1854, 1842-03-05
WHOLE NUMBER 5SI.

S business OF the country, aud expand and contract
d with IT. Their circulation would be increased a
. that season of the year whom the products Of in
dus,ry are going forward TO market, and would
. furnish tho means Of getting it there and il would
I contract again when those operations have been
performed, aud the business has been consume
t ted. Iiiis would DO a sound and healthy action
OF tho banking system. and would be much pro-
NOTED by the practical operations Of the Exchc-
quer.
Would this system furnish a uniform currency 7
II by a uniform: currency 1t Is meant that tho
General Government shull undertake. TO furnish
an amount Of currency adequate 10 tho wants Of
the whoic country, the committee answer, no.
II neither has the power nor the ability TO do so.
No measure which Copgross can adopt, whe,ber
1t be in the shape of a National Bank or oihcr>
wise, can supply an hundred millions or moro Of
currency 10 meet the existing or increasing wants
of the comrnunIty-want5 increasing by tho ra-
pid increase Of population aud tho consequent
augmentation Of tho products of domestic indus
try. From the adoption of tho Constitution to
the prcsen, time, the States have furnished by
far the greater portion of this currency. and they
viii continue TO furnish IL. Their right TO do Q
cannot be superseded by any action on the part %
this Government. All that Congress can do, ist
10 iafuSe into tho great mnss of tho circulating
medium of tho country q currency issued under
its authority, and of such undouhtod credit, that,
with tho local currency of tho States when res
tored to q sound condition, shall together form q
tiiti'is ii >GhASHN ~
The currency of the local specie paying banks
in sound coudItion is as good for oil practical pur-
poses, within the sploro of lis circulation. as any
currency which this Government can issue. But
such a circulation cannot extend beyond that
! sphere, and maintain itself alongside Of such q
currency as is proposed to be issued on tho part
Of the Government. This experience and obser-
walton OF overy one demonstrate that a local cur
rency, however sound, cannot have that univer-
sal credit which would attach to n currency Of
tho General Government, founded on q epccio
basis. and carrying with il the responsibility Of
the Government, for the safe custody Of tho specie
which il represents. Neither would a local cur
rency, though founded on a similar basis, possess
tina, universal credit.-And perhaps tho most con.
else reason which can be given is that ono is local
and the other general. To the General Govern
men, tho people Of tho whole country Iook-,o
the State Government the people of the State
look. The credit Of the one, so far as currency
is concerned, is universal; the credit Of the other
is local.
The currency Of tho New York banks, and Tho
currency OF the Kentucky banks, when paying
specie, is as good for al practical purposes within
their respective spheres Of circulation, as a Gov
crnment currency. Tho same may be said Of nny
other distant points.--AlI that is wanting, then.
to make a uniform currency over the whole Union,
is one of such uudoubtcd credit, and sn universal
ly known, that il, will be as good in New York as
in Kentucky, and as good in Maine as in Arkan.
sas: a currency which, for travel and remittance.
will enablo one 10 60 or send from ono Of these
spheres Of local circulation 10 another. This the
proposed Government currency would do, and il
would require but q moderate amount, compared
with the whole circulation of the country. This
amount would be furnished l. BY tho disburse-
ment Of the public revenues, in specie notes in
payment to the public creditor, and which would
be preferred by him 10 coin: ,. BY tho issue Of
such no.es, on the deposites Of specie by individ-
uals, for tho purpose OF entering into general cir
II. a.. ~ ,c,nt nT sI.-
notes would be issued from the agencies ut tho
great commercial omporiUms Of the country, and
would have O universal credit throughout the
Union. The receipt and disbursement of twenty
millions OF public revenue, annually, would
keep up ON active circulation Of an amount adc>
quate TO the disbursement OF SD large n sum: and
which amount, with that which would be issued
on private deposi,es, and in connexion with tho
selling and collecting Of exchange, would be fully
adequate, with a sound local circulation, TO fur
uish a uniform currency throughout the country.
There would be no difficulty in keeping a cuff
Client amount in circulation TO answer all the pur-
posea for which they are intended. Although
wo-thlrds or three fifths Of the revenue from Gus
toms ls collected in the city of New York, still
'here is but a comparatively small portion Of it
iisburscd there. The large disbursements Of tho
Government: are made in the West, for Indian
Indian annui,ies, for tho army, for mil,
i,ary roads, fortifications, and forts, for the I'm
Of lakes, harbors, and the channels Of
liycrs, for the great variety Of expenses for pub
lIc buildings, internal improvements, and tho ci-
vii administration Of tho Territories, with thou
sands Of other disbursements which cannot DO
enumerated. All these would undoubtedly DO
IN the specie notes Of tho Exchequer. And,
although they arc receivable for public dues, and
The natural tendency would be to follow the course
IF trade TO the Atlantic cities, slili there would DO
counferacting causes TO retain them there.
a large amount would be retained for land OF.
Eco money. and tina smaller deDornins iions, hay-
.nn entered into circulation amongst tho People,
be retained in circulation by reason Of its
convenience and undoubted credit; and even the
,noun, which should find It's way 10 the Allan
ic cities ia pay uneni OF public dues, would at
,nce be thrown back upon the West, in payment