Staunton spectator, and general advertiser. [volume] (Staunton, Va.) 183?-1849, 1844-08-22
THE CURRENCY,

Mr.. Clay and Sir Robert Peel.-The Distinct
I've feature OF Sir Robert Pee's new Currency
system is the separation of the function Of issue
from that OF banking-the object being to prevent
sudden expansions and contractions OF the circu-
atng medium.
We have waited for some time TO obtain full
exposition Of Sir Roberts plan as to its details !;
put as yet without success, although some diifuse
speeches In Parliament have appeared on the
subject.
The main point Of the system, however, is, as
we have stated, in the separation of the banking
power from that of issue. The Westminster Lon.
don review devotes an elaborate article to this
point, and discusses the question whether the de-
sired object will be attained which the new sys-
tenn proposes. In other words, the question is,
wEeiher the fluctuations in the currency, its ex-
panslols and contractions, are really caused NV
the union OF the functions of issuing and of bank
ing' and whether any greater steadlness will be
given to the Currency by allotting each of these
functions to separate and independent depart
mentS.
Whatever may be the opinions of the Review
on 'nis suolect-and we shall not now 90 into the
consideration OF them--the Parliament of Grea,
Britain and the public mind Of that country seem
to DE decidedly in favor Of the Minister'S new
plan.
But Sir Roberts plan is not altogether new
one. The identical feature which forms its dis.
unctiVe characteristic, as compared with the old
-. AIe, 'ohu3 vas Introduced Dy MI Clay
In his Bill of the Extra session providing for a
Bank of the United Sta;es-the first Bill which
MIR. Tyler vetoed. In the Report accompanying
this Bill MIR. Clay, Chairman of the Committee,
says:
ITO guard against the exercise of any undue
Government or official influence, or the imputation
OF any unworthy transaction, The Committee have
thought 1t expedent TO deprive tile parent Bank of
oil power 10 make any discounts loans tDhatever,
ercept loans to Government authorized by eapress
LaO" 1t is subsequently added, -"I'hus the
Directors of tie Bank at Washington (ihe parent
Bank) will become Board of Control superln-
tending the branches, supplying them with a cur
rency, and banking exclusively through the agen-
cy OF their offices of discount and deposite.''
This is precisely the principle upon which Sir
Robert Peel has reformed the currency system of
Great Britain. That the principle thus establish
ed must work q salutary reform in the whole bu-
slness OF banking and currency, think the re-
suits OF the experiment in England will prove be-
yond question.
For want of an accurate knowledge of the de-
tails Of Sir Robert Peel's plan we cannot compare
II in all points with Mr.. Clay's. There are many
very useful restrictions and wise provisions in
the American Statesman's Bill as reported by
him in ls4l, all Of which will probably charac,e-
rlHe the next National system of Currency which
the requirements of the country may hereafter
call into existence. 1t is very likely, too, that the
British, Minister, in taking the main principles of
MIR. Clay's plan, has avaled himself of the other
well-considered provisions which he found con-
neCted with it.-BdN. finer.