Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1842-01-06
Fran he War lort Irrhrg Post
a..


Yesterday we showed that the continental money
which Mr. Tyler cabinet propose 10 issue, and redeem.
when pressed for payment, ~ borrowing, II they can,
the specie, more likely 10 sustain IFS credit hsn
the bills Of credit issued by the government Of Mich
gan. Like the notes Of ;hat State, and like all Other
paper money issued b. governments in debt, Il wi!
consist Of promises, without ans means Of perform
ance, except The making Of new promises,
The fate OF such promises III the money market X
sooner or later always the same they must deprccate
Our former continental money, first ISSUED IN liz, d.
clned gradually in ra!c tor four years, and already
Isl, it had reached such point of depression tia,
hundred dollars were sold for one silver dollar
It is very likely, however, that al first the notes q
the Exchequer Bank VIII have considerable currency
There will be two modes oil issuing them, namely pay
ng them ont 10 the creditors Of the Government and
dlscountng bills Of exchange The payments made by
the Government are immense, and tie new Bank wlI
nus Tar hay. greater facilities than any other could have
Of crowding its notes INTO circulation.
Tie discounlng Of bills of exchange between ds.
ant cities will afford an excellent opportunity Tor spe.
culaors to obtain money, which will doubtless be I'M
proved with eagcrness The speculator i'll New York
will have correspondent in New Orleans, with whom
he is friendly understanding, and kites will be sent
up, be kept flying backwards and forwards, III
thirty DAYS These domestic bills oil exchange,
known TO those who are skilled in tie money market,
TO be the most hazardous kind Of paper, and to pre-
sent the greatest difficulty IN making distinction be
tween real business paper and mere accommodation pa
per
Suppose, then, the bills Of the bank do not 60
into instant dscredll; suppose that, for time, ,hey
perform the Office which Mr. Tylers cabinet expects
from them, they Will, in that case be injected with
surprising and nprccedened rapdity into the channels
OF circulation. The solvent banks Of this State will find
themselves compelled to contract their circulation t.
make for them The effect Of these large issues OF
paper will be the usual one rapid increase Of prices Il
check TO the expectation Of our commodities an
increase Of mportaons and the expectation Of specie.
The expectation Of specie wit lead 10 demands upon
the banks-he Government Banb will have no supply
Of specie on hand-ihe local banks must be reso,td
o-and If the reaction be IT all commensurate with Tie
suGdcnness Of the expansion as It generally IS, ~.
cannot what j, To prevent The State Banks and the
Government Bank from breaking together. We may
then deal severely with the Stale Banks As W
please but tie Government Bank will be beyond iht
reach Of The State Legislatures, and must be co.,
tent with currency Of deprecated continental no
ncy.
Should these things happen nothing now vii have
occurred nothing hic! has u always occurred IN snci
eases. The consequence. ~ haze pointed At are thr
invariahe IT American banking. The paper mo
ney Ut governments pad. History relatr;
numerous instances "i liz lsse. aud scarcely snG'
uae Of lis redemption.