Southport telegraph. [volume] (Southport, W.T. [i.e. Kenosha, Wis.]) 1840-1850, 1843-10-24
AN INDEPENDENT TREASURY.

authorized by law at nominal rate OF lntei,
est, convertible at New York and New Or
leans, and receivable for government dues in
every section of the country, is thus spoken
of by the writer of the money articles in the
New York Herald
''These notes will be paid out in all sec
tons of the Union, where the government
has liabilities TO contractors, army agen!s,
&c. and through them liqudate hong series
of commercial obligations, and gradually ind
their way to the great commercial centre
New York, where they are redecma5!c IN
specie, adding SO much 10 the amount OF
money here The value of the bills as
currency in all parts of the Union, will be as
uniform as the rates of exchange: that is -
say, being New York funds, they WI com
mand premium, perhaps slightly IN advance
of 5, ght checks at all points.
In considering these notes as permanent
national currency, there are many cons:de,-
atoms which might make Them desirable. 1t
is of importance TO the public and the deplr.
ment, that while banks are used as the me-
dunn for the transaction of individual but
ness, notes issued by the government as a
currency, should generally be received in
well as to government The operation OF
this might be, in several years to dsplacc L
proportion of the New York Bank notes equal
in amount to the government notes cjrcul.-
ting here. THIS, however, TO the New York
! City B,nks is scarcely an objection, bccousf
! their circulation is already confined Wilma
smell compass by the interior currency OF
the interior state banks. The city circul-
ton never so far exceeds the specie on hanI
as TO afford much il, any profit, above the &C:
,ul expense of the circulation.
In such 4 state of things the government
notes form very des rablc circalltion. Pre-
c, sely analogous to tn is the conduct of mos.
of the English Joint stock banks. They are
not obliged TO keep specie on hand hcclusa
Bunk of England bills are a lcgal tcnIoy.
Yet large number of them rather th2n IS
sue their own bills form an arrangement VITA
the bank of England, by which they obtain
sufficiency of IFS bills for circulation. II /
rate varying tiom % to 3 per cent, according
to special agreement these they ply out IN
their business, and their profit conss III
the difference of the rate Of interest they
charge. 1t would undoubtedly IN th's view
of the case, be TO the advantage of the city
banks to recall their own circulation, and use
that of the Treasury department., or they can
continue their own circulation, and retain the
latter in the place Of specie.
1t follows, how ,ver, that to redeem these
notes in specie, a fund must be here 10 do
so. This is always furnished by the recc p's
at the custom house, which are abou; s u
100000 per month, and always increase tts-
ter than 5000, go of government bills, :
scmnated through all the channcls OF mes-
nal exchanges could ever be presented i"7
payment. In giving perm ment chlrlc'er
to such circulation, however, 1t would be
desirable to make a proportion OF the is
payable at each leading city accordngt 10 the
ratio of customs receivable there. Yet all
the notes should be receivable every where
for public dues The advantages of tbs
would be, that adverse exchanges would ne
f yer bring all the notes to one point, SO as TO
exhaust the means of meeting them. The
accruing revenue of elch city would always
afford a fund proportionate 10 the amount OF
notes liable TO come there for redemption
One of the greatest evils of paper issues is
its fluctuating character. In fact !h2rc would
be no objection 20 a moderate fixed amount
of piper put afloat, # the amount was unchan-
&c IDLY fixed at Il certain point, SO that, not
wlthstandng lis existence, The tluciuatons
of the whole mass of the currency I'll take
place only in accordance with the move
menis of trade. Thus, if The whole amount
of specie in the Union is $50 900, 600 ana
the quantity which flows in and out each
year in accordance with the movements Of
commerce is s. )0C0,0r0. thea there re-
ma MS SS0,00O,O00, fixed N ,unt in the
country. VIII CHI is used as a currency plliiy,
bat mos ly lays idle in the bank vaults Now,
Of that amount, 100000 900. could b..
turned into government paper, which would
be absorbed in the channels exchange
operations, leaving the remainder TO come
and go as il pleases. The danger is how
ever, that the amount outsand ng would
be altered, that i would be increased or
diminished, and thus create disaster, as in
the use OF bank paper This government
| paper would constitute Il permanent deb:
of the government, costing only the eX-
rense OF its manufacture, and rs long as
the necessity for that d, BIT existed, as j,
now the case, would offer facilities, w ich
would in some degree, counterbalancc the
evils Of lis own exlstance. In fact, borrow
ing in such form is ding SO directly
from thr whole people, instead Of Indirect
| ly through the med um of banks. The
law now restricts the amount Of Treasury
notes as we have stated. NJ $1,000, 900, and
cannot be increased without Legislative ac-
tlon.--Hence we anticipate from this
movement a greatly stimulated internal
trade. Government debts will be paid BY
it in all corners ofthe country, and chain
of Indebtedness equal TO perhaps $50 oo0,-
900 will be effected by the passage of this
additional amount o! currency TO The grea:
commercial centre.
The amount Of this money now authors
ed is not more than will be kept in con-
sian: activity by the government in receipts
and expenditures. The government re-
ceives mostly as the sea ports an average
Of S25 100000. This wear, however The
customs are scarcely Sl2,000,000. Tn:
average receipts, are, however, $1,000