Indiana State sentinel. [volume] (Indianapolis [Ind.]) 1845-1851, 1846-01-31


The removal of fears from the minds of capt.
taliss viii show the banks that their glory has de-
parted" and, struggle they may the day of hard
currency and private bankers is al hand, and that
bank control over the value of every mans property
and the profits of every mans industry is
The currency of England has become essentially one
Of specie The Bank of England can never again
issue for general circulation any bank note, unless
the value of that note is in specie in her vaults; that
is to say her average circulation III the neighbour
hood of t20 OF, 600; of that sum fli 100000 is
secured by the securities of the Government for the
capital of the bank loaned to IT, Above fl4,0O0, 40
there can be notes issued, unless for equal
Of specie paid into the bank As the circulation
er goes low fl4,000,0 goo, it follows that the
currency is purely of specie Of notes at the
option of the holder and that the public are coming
prefer SPECIE may be inferred from the fact that
while exchanges have been uniformly in favor of Ell
glandhat is to say, gold is dearer in London than
either In Hamburg Paris-the bank has had
turned upon it f2,500,0 600 since July last and gold
taken out in exchange. That gold may to some ex-
tent have been boarded in consequence of the panic
manufactured IN relation famine for political pur-
poses. The truth stands revealed, however, that the
public prefer gold to paper even when that paper is
issued under the best circumstances. Now that pa
per money so furnished by the Bank of England, and
IN all respects equal In amount to the gold hand,
constitutes the only currency with which all the banks
and bankers Of London transact their business. They
none of them issue any promises to circulate as
money and yet the magnitude of their business far
exceeds that of any similar firm in any commercial
country in the world
! The Bank of England was formerly the furnisher
OF money" with which the business of the CONNER
cal world centering in London, was conducted by
individual banking houses. The Bank was - fur
nlsher OF the currency" by virtue of Its power of
suing f3 more Of paper for every Il of specie
on hand. That character IF the Bank was essentially
changed at the last renewal Of its charter 1t is
no longer furn>her of currency Its powers
are cut down simply to the mere exchange of {
note for sovereign, or a sovereign for { | note,
according to the demand of the public. The quanti
ty of money brought into the country or Furnished
! By as trade, can in no way be multiplied BY
Bank influence. They have no longer any contro
over the volume of the currency, but have or like
all other dealers to operate with that furnished by
commerce. That is the deSideratum that is to be
aimed by the Independent Treasury of the federal
government as projected by Mr.. Walker, III connec.
ton with a mint in New York. The commerce oil
The country must supply its currency, the mint give
II proper form for circulation, and the Treasury be-
come the active agent for its distribution among the
people, Notwithstanding that the government will re-
quire specie for its dues and VIII pay out SPECIE thus
increasing the volume of specie In circulation. The
Banks Will always, to greater less extent, issue
bills The activity of specie will prevent those is
sues from running into any excess. The private
bankers will always receive mixed currency Of Uni.
ted States coin and bills. The receipts of dealers and
merchants will TO greater extent be III specie, and
the deposites of specie in the Banks, consequently be
larger than now, and then specie deposites be always
more than ample to meet the checks of importers foI
the payment of duties This can in no wise affect
the circulation of the City Banks, which seldom cx
cceds dollar for dollar, but it will most electualy riE
up the bubble Banks of the West, more particularly
the brood Of Ohio wild-cats.-N y. NercS