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

Gle IN their vaults. lheif issues are some Iilne
IN proportion TO capital, and sometimes graduate
by discounts. This ration, however, of three !;
one has always been deemed safe in banking ope
rations. But would II be a sale principlc TOR IN
Government to adopt in regard to any paper
may issue 10 circulate es currency! The com
mittee think not. The officers Of Government
cannot provide for contingencies and emergen
cies of individuals, or rs banks controlled by in
disiduals, can do. However faithful and homes
they may be, aud however conscientiously the,
may intend 10 discharge their duties. they have
not tho interest nor the means 10 provide Tor suct
occasions.
Individuals interested in, and concerned in thc
management of banks, are always looking GU
und providing in advance for any sudden deemanC
upon them for specie. And with oil their Inter
ests, sagacity, and vigilance, ihoy arc not always
able 10 provide against q SUSPENSION or specie
payments. Will The officers o. tho Government
be any better able to provide against III There
might BIO G sudden and unexpected demand which
would drain an agency at once OF Its ePecie.--
I There nigh. be Il systematic operation and com
hInaiion, from political or other motives, to accL-
muiate tho notes of an agency, and to present
them suddenly and Unexpectedly for redemption,
md for the express purpose OF compelling 1t TO
suspend specie payments. The effect would be
not only TO destroy the crodi, Of tho Government,
but disgrace il in tho eyes OF the world. The
Government should not be so exposed. Its credit
should always be- beyond any possible contsngon-
cy.
Tho committee, therefore propose that no pa
per shall DO issued on the credit of the Govern.
ment TO circulate rs currency; but that a paper
may 10 issued for the purpose, basod upon specie
Oh hand, dollar for dollar, and that the amount Of
such paper in circulation shall not III any csse.
nor under eny circumstances, exceed the amount
Of specie holden for its redemption.
The paper thus issued is called specie notes, az
being a currency based on specie, and as contra
l;,.t,x,;ohoj iron, 'Traas npfaG whIsh r .
sued on the credit Of the Government, not for
currency, but as q means OF borrowing.
These specie notes can, IN no sense whatever,
be obnoxious to an objection as bills Of credit
They are not issued on the credit of the Govern
mont, but are issued on specie in deposIte Of an
eunal amount: for their redemption. They pass
by delivery from hand to hand, as a currency, and
tho possessor Of such a note holds II rs evidence
Of ownership Of the amount OF specie which IL
represents, and to tho possession Of which he is
entitled at any moment, on presentation Of the
note u, the agency where issued. Until that time
the specie remains in tho depository OF the Gov
crnmont, is guarded by its authority, and the hol-
der of the note has the responsibility OF the Gov
ernment for its safe custody.
These specie notes issued upon the public rev.
onuo to the public creditor in the disbursements
of the Government. and upon the dcposi,es Of in
diyiduais, would form n currency Of the most per-
feet character, a currency combining ali tho con
veuienccs Of paper with tho value of coin. They
would everywhere DO preferred n com. They
would be preferred by the public creditor, as
well as by the whole community because every
one would know that the specie was resting in
the Government depository for their redemption,
end, with it, The guaranty Of the Government for
its safe keeping.
The issue Of suoh a paper, eqoa. only IN amount
to the specie held for its redemption, will neither
increase nor diminish the currency. Consequent
ly, there will be no power on the part of the Gov
eminent 10 expand or contract the currency
a power which the committee think should never
be possessed or exercised By tho Government--
So far, therefore,, as its action IS concerned, 1t
cannot cause q scarcity or abundance Of money,
and Of course cannot in juriously affect The busi.
Of the country. There will DC no imitation
Of the currency, nor any rise or fall in the prices
Of commodities, through its fundamentally. The
receipts and disbursements OF the Government
re so naa:iy equal that any expansion or oontrac
ton will be regulated by The business from which
revenue is derived, aud vii only De a healthy &C
ton of The system.
Neither would The specie notes Of q low de-
nomination, be Liable to the objection which Is
made 10 the small note circulation OF
the banks, namely, that Of driving specie cut of
tho country. Ga tho contrary, the specie would
remain under the safe custody of the Government
for their redemption; and whilst these notes
would form a more active and convenient oircu-
lating medium for the People than the specie they
represent, the specie would remain at rest, and
not be exposed to the casualties Of circulation,
by which II is often irrecoverably lost to the world.
10 his view OF the matter, the see no
TO an issue Of specie notes OF a denom-
nation corresponding 10 the small note circulation
Of the banks. Being free from ell possible risk,
and in no way obnoxious ID the objections which
are made 10 those notes, they would be peculiar
y acceptable and beneficial 70 that mos, useful
and respectable class to wit: the small dealers md
lay !aberers Throughout the country. They
would feel that Wills, Government Is providing a
currency Of uu6oubtod credit and safety for The
.areer business interests Of the community, it is
not unmindfu! Of those Of small means and Of
more humble occupation.
Under the proposed system, there is to be no
power of discount, in any shape whatever. That
nus, be left 10 the local institutions. To them il