Lynchburg Virginian. [volume] (Lynchburg [Va.]) 1829-185?, 1842-01-03


IN which debts the c. emncn may be- paid and which
may also be useful 10 the and general business
Of the country The fns of these functions Is purely ifs
cal and The fundamentally ofeountry. may become in
dspcnSlhe 10 the exercise of the highest duties Of Go
scruIncut.
tn sa reasoning upon this subject. AS 10 come 10 any
practical conclusions, II IS necessary 10 consider some
things settled aud ccttau Among these one of pr
mary Importance Is that paper circulation exists in the
country, and thai there IS the least probability of lts
ceasing to exist The States posses, lh, power of crca-
ting banks oi circulation they exercise tbs power many
oi them derive not nnlmportant from exercise
and some of them even have established banks of which
they are themselves poplctnrs. No man reasonably
expect To see the day when they viii elnqnish this pow
or. OF refrain from liseNercis0.
In the next place. experience has confirmed the truth
beyond the possibility of doubt question that paper of
State banks cannot h. o universal circulation and credit
there never has been, aud there noW any State
bank whose notes pass readily from hand 10 hand rs e
qWvaCn 10 specie, over all parts OF the country. Many
o these local institutions are perfectly sound will ad
minsrrcd and thelrcred IN thor own neiehhourhood
entirely good and ungncslioncd. But from the very
iit ct things their credit is and must he local only II
can never be universal The People are acquainted with
the institutions Of then own respective Saie and gene
rally understand The ground of the claims such stitu-
tons Ia confidence and respect They pay attention also
10 whatever Is enthusiastically the General Government.
because they have interest In the laws Which passes
n, the People that is to say. the great mass OF produc
tive earucs oi STATE cannot generally speaking. be
acquainted with the monoycd institutions of other aud dis
t,n States. nnasl easrs, they Ito not know such
institutions by name. How. then, can they give hon
hsr confidence We they do mol give IL where
II might be- most safely bestowed They prefer the pa
per al hor own banks. though they know 10 be dcprcr
ated. To the paper al other banks because they have conf
denct IN the institutions OF their STATE and because
they know the amount ui the depreciation the pa por of
such banks, whereas the value u ui distant bank
they arc wholly ignorant. Bul tins knowledge, which
the great mass 81 the conn unity does mol possess brokers
and money dealers do aud they ltskly To their own
advantage. farmer of Virginia will hesitate to receive
IN payment NV York note. lie will prefer Virginia
paper. although he knows IT "a not equivalent specie,
because he can form opinion o lis value, while of
tho New York note he knows nothing nnl tho holder
ct the New ofh mole. At the same Tune Is able 10 dis
pose Of It at the first brokers' office arpe premium
Every man III the habit of observing what passCs n
round hun every day the existence Of ths state
oi things and It's inevitable consequence a. throw the
loss o depreciation the laborous aud productive class
cs. Wherever bad paper clrcuaics the industrious
aud hand working who suffer first and sulir longest.
and suffer most Bnt IL Is not intended pursue tins
part Of the SUBJECT further than 10 illustrate and confirm
the truth, that State bank, founded whatever cap
nal. administered BY whatever degree al fidelity and
SKILL Obtain thai familiar character. and that ,rtah-
shcd and well known credit, which shall give It's bills
circulation through all classes IN any amounts, and in all
parts ol the country.
Now. another most important truth. equally well SGT
TEDDY experience Is, that paper ISSUED for circulation,
under the authority with the sanction of the Govern
ment Of the United States. does acquire and retain the
advantage 81 known and unqucsouod character aud UNI
Vcra confidence. No matter whether The or BIN
present ltscilm Maryland or Missouri Maine or Goor-
ga II 1t promise payment in specie. an demand. and that
promise be supposed la he guaranteed by the character
and credit OF TIN Government II springs immediately To
value equivalent 10 specie. The impress Of the Ma
uonal Government connected with Tho fact 81 lis rutnt'
date convcrtlhllty, stamps the paper with mark of
perfect aud universal reliance. hccanse all The People, IN
all the States, alike interested IN the General Gov
ernmcnt, alike acquainted with lis Proceedings and have
like faith in paper 10 which il gives lis sanction We
secm to be- called upon, therefore. tins subject
with three important truths made clear before us: first
that piper circulation viii continue among us second.
that paper circulation of universal credit can ever be-
furnished by State banks thifd that such paper can he
furnished under the authority s the Government Of the
United States.
s under the influence oftloso realities that i, s now
proposed 10 ISSUE, 10 some extent paper currency
cordng to the provisions Of this bill Its uses are pect
ed To be twood In the FIST place. alrondr stated
II will furnished as safe paper medium, in which pay
ul,nts may be made to Government Of all debts and
taxes Few persons, perhaps, sufficiently impressed
with what would be the value Of this, IN certain
gcuccS
Debts 10 Government are 10 be paid in specie or
the notes Of specie paying banks. Letus suppose that
some cNgoneY should come suddenly upon tho country
requiring the immediate d heavy taxes and
that the cNgenry should compel all the State banks
10 suspend specie payments In such posture Of affairs
how could taxes be paid OF specie there would be lit
tie TO be had Of The bills Of SPECIE paying bans
Government would be driven by absolute necessity h. the
USE OF paper resting On It's credit and created for the
occasion. Il would have no other resource All must
see how vastly useful the system proposed would be
upon the happening Of such emergency The FIX
chcucr would be found in operation and In possession Of
certain quantity Of specie; lis would have be
come familiar to the public it would have, in addition
10 lis specie and It's established character the amount
OF revenue, whatever that might be- sustain lis
circulation. II would furnish notes for disbursement
and receive them for taxes With these means and b,
faithful and sklliul management, though might be
barrasscd b. the pTosr0n ufother institutions around
would still retain lis credit and that credit would ht
vlVlyng aud fracyng germ amidst general blight alc
barrcuncSS.
But this part Of the bill has another purpose equally
sll more Important The measure is intended Tor tho
/ People well for the Government. ! he issue o
Treasury notes always rodcemabe gold or silver an,
the use OF them IN payments from the Treasury and il
the purchase Of exchange, cannot but be beneficial il i
conceived ma high degree, 10 the whole commerce an
all the business concerns Of the country.
In this part Of It's operation the system presents sel
as bencccnt and productive Of essential good 1t seek
not Government omolumont or Government convenience
only but the public good, the good Of the People, in TN
largest and most comprehensive sense. Its effect is
give TO the People, their labor and their internal trade
the activity Of funds which would otherwise be locke
up and To give them, at the time, good money.
employs those funds 10 sustain credit to supply
currency, and 10 favor useful intercourse between til
States. And ii does this without assuming undeerato
powers, without alarming the jealousy woundng ia
pride Of the States
: a. II