Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1844-06-20
IMPORTANT.

The British Government contemplate n great revolution
in their system OF paper currency. The ? an Of VIZ. Peel
Is 10 separate the business OF banking flom that # issuing
money IN other words, u divide the Bank of England
into two branches. a bank of deposit and a bank of Issue.
Tho notes issued are 10 be limited IN amount To 4lf,OOO,-
600. or about 7 10000, 900. hasd upon public debt, ex-
chequer bal :. and other public secu Iues. This amount
may br eAtend'd 10y PERMISSION OF the government. which
will take all tie profits Of such exiension. Tue jpIut
stock and other banks of the Kingdom are u be placed on
the same foundation with the Bank OF Eng aud. being al
lowed t. receive deposits and transact oihee blnking bust
ness, without limit, bu, will not be allowed TO issue be-
yond a certain amount. A the banks Will be required to
publish a weekly statement Of Their condition aud thus
the public may know, at all times, the amount of paper
money IN circulation.
Tbs plan is severely cen.ured hy al interested in the
provinc al aud ,nt STOCK bank, aud by all having an m
,ee>t IN multiply Ing Issues; but II Is approved by hose
who regard stability as the N ST important qu t!iy of cur
rency, and who see speculation and other mIsohiei-, fatal
nr injurious 10 r guar business, IN a luctualing currency.
aud also see nuctuaron IN all currency whose amount
Is controlled h, the lenders. he sudden adoption Il This
pa may greatly dcranse business Ia England. lhou-h we
cannot doubt lis ultimate utility. By diminishing the
amount of clrou'aiion, 1t Wi! derress all prices. Bu, 10y
rendering The amount OF circula Ion less lIciuating. II viii
render prizes more stable. All prices are nonInaliy law
cr III Con mental Europe than Ia England, and merely b.
cause England has an expanded paper currency, while the
cpi.iIHeniai nations, or most oi them, have currcncies OF
com; aid lie result OF this is tie d.m.nuiion Of The con-
tnental market for British manufaciures, and the increase
II continental manufacturing. How far this new project
WI tnah'e the BIush manufacturers 10 recover the CONT
rental mnAtts. II more than we can fJresce thou Il a
recovery 20 some extent Is probable, unless the co iincn-
tai raion- adopt severe Testficlous But The case l. I'M
ror, III 10 tais country, which. Ike Billain, ha> an ex-
banded paper currency. The Dutls! statesmen trace our
own pr grtss IN mnnuiactarss. and the diniuuilon OF our
supplies fcsn Euslind, 10 the reduction II our paper cur
rency and 10 cousicrlct This tendency, they have wisely
resolved to contract Their own. Heretofore, Tie Bniish
statesmen. seeing how their paper currency euhaueed Pl-
ces. AID thus cha led foreigners 10 nnlefs,t! them, encour-
aged the establishment - h,ukS abroad; for they plainly
saw ihai wih all Tie /, ltion Il her own currency. they
still had the advap'age over every country with a cuiren-
~ a : ,nucl, or more m It'd. Hence their soictuie 10
Increase banks OF I,suc IN Ffance, to establish item IN
Spain and ohcr countries, aud t. support our system oil
state and na;onal banks. Bat defeated IN ,hcs. views,
since tAcy cannot raise the Gu r.. 81 ; If other countries
to tie level oi their OWL, they must reduce their o"n 10
the level of the currpucics of other countries.
THIS measure calls to- sr.Iuus r. lection hy our govern
ments. state and Federal, Il i a blow aimed at our man
uiac trr,ng interest. The landhoijcrs-d, not wish l., a!er
the ceTi, laAs, ior they wish 10 supply Us with manufac-
IN e., " Without buying our bread; amd a. they cannot do
THIS under our contracting currency, they vii attempt Il
hy contracting their uwr. Therefore we advise the man
uiacturiug and agricultural interests Ia oppose all attempts
to extend b.,kiag. AID to improve AL = cd opportunities
for reducing e present amount ci paper money. III the
British Government adaut tins plan, nothing hui a metal
he turirucy Wi save gu manufacturers. ~ circ our iirn-
ets a chance for sending tirir rroiu,e to i3ri am. There
fo.c ct tlen no. b. out-gcarra led 10y the Blush Govern
nicnt. acting IN caHccu VIII the paper money interest on
ihs SIDE oil the wat~ee-Fa:Adephia Le{ser.