Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1843-11-22
POLITICAL.
From the N. Y. Journal Of Commerce.
A NATIONAL BANK.

Judging Inc tOne ol poI"ou
newspapers at the; South and South west
there are still, in those sections, many
warm advocates of National Bank and
the favor with which they regard such an
Institution, appears TO rest chiefly on It's
supposed usefu: ness in regulating the ex-
changes. There is no need of discussing
the subject at this late day, with aview 10
any practical result,-for there is not the
least probability tina, National Bank
will ever again he established in this
country. But possibly it may console
some oflhe advocates Of the measure, to
discover tha, the exchanges are IN
much better condition without such an
Institution, than they ever were With one
In fact, a ..great regulator" designed TO
counteract the immutable laws OF trade,
which cair never be related with impunity,
is in the end the greatest dislurber of the
exchanges, as we have too fatally seen.
MIR. Pickens of Carolina, in an able
speech delivered on the floor Of Congress,
Aug. 9th lS4l. (the whole of which
would richly reward perusal.) presents
some sound views on the subject, adapted
TO the latitudes and longi,udes above
menl:oued; and also some facts, showing
the state Of exchanges between different
parts The country at various periods du'
ring The existence Of the U. S. Bank.
The views of Mr.. P. have received am.
pie confirmation, since they were presen-
ted TO Congress, in the admirable working
Of the charges under the free system.
No pond ous machinery Of mans devi-
sing has been in operation; yet the ex-
changes are regulated, in manner far
better than any such machinery ever did,
or eyer could, accomplish it.
EXTRACT FROM Mr.. PIcKENS' SPEECH
We are told that national bank is es-
senliaI to regulate exchanges; and | ra-
,her think this ascertain has had as much
weight in the community as any other
consideration. Many have been induced TO
believe that such was the fact. There was
never greater fallacy. The true mean
ing of real exchange in the difference be-
tween cash and a bill drawn on given
point. This could alone be regulated by
the state of trade between The two points.
But, 10 the modern use OF The term, it had
come to be considered as merely the diff
ference between bank notes of differen;
institutions, or the difference in the price
ofbank paper. A bank note was at spe.
Gle par, or under it, according to its con-
versatility. Exchange is now conside-
red the difference between Ithe capacity
OF banks 10 convert their paper into spe-
Gle at one point, and their capacity at
another point. For instance: in the city
of Augusta, l believe, the banks all sus-
pended except, perhaps, the Planters and
Mechanics; and the consequence was,
,ha, there was a conference in favor Of
the paper of that institution Of some 5 or 6
per cent. So that, if this be exchange,
then there was difference Of FIVE or six
per cent in exchange from one street in
the city Augusta on another street in the
same city. The same might be said as
10 the Hamburg Bank, which is on one
side Of the river, and the banks on the
otherside. 1t is only the difference in the
price of bank paper as compared with
specie par it is mere absurdity to call
it exchange, and the argument founded on
it is a mere catchpeuny argument. Now
in this modern sense Of exchange, lay
down the proposition, that the late U
States Bank never did equaize exchan-
ees. We have heard it boldly asserted
that all this was regulated by the last
bank, as ir we were 10 forget The past.
Now let US look at the history Of this
matter from the records, during the full
operation of the last United States Bank.
/ present table taken from the Senate
document No. 457, session of 1878.
Prices Of bank notes throughout the gear
1918.
MARYLAND 6tolO and from 2 to 80 per
cent dis.
N. Carolina 3to4 5too
S. Carolina l,o3 per cent dis.
Georgia 3to4
Tennessee 4to5 and from 8 to 10 per
cent dis.
Kentucky 6to1Oper cent dis.
Ohio 6to 10
Prices bank notes throughout the gear
1919.
Country banks Of Penn. per cent dis.
Maryland 3lo %
Country banks Of N. Y. 3to 4 4"
Virginia 3to4 q F."
North Carolina 5 10 10 '
South Carolina 3to 3 "
Georgia to 10 +"