Indiana State sentinel. [volume] (Indianapolis) 1841-1853, 1846-02-05

The removal of war fears from the minds of CAPT.
tasts will show the banks that their glory has de-
parted" and, struggle as they may, the day of hard
currency and private bankers is at hand, and that
bank control over the value of every mans property
and the profits of every mans industry is no more
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 is in the neirhbor
hood of E2O,OOe, 500; Of that sum Fla CC0,000 is
secured by the securities Of the Government for the
capital of the bank loaned to il. Above 1000, 600
there can be no notes issued unless for an equal sum
of specie paid into the bank. As tie circulation new
er goes so low E14,000,0C0, it follows that the
currency is purely of specie, of notes at the
option of the holder and that the public are coming
to prefer specie, may be inferred from the fact that
while exchanges have been uniformly in favor of Eli
gand-that is to say, gold is dearer in London than
either In Hamburg Paris-tbe bank has had re-
turned upon it e., 100000 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 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 to the gold on hand
constitutes the only currency with which all the banks
and bankers Of London transact their business They
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
cial world, centering in London, was conducted by
individual banking houses. The Bank was Z" fur
nisher of the currency by virtue of its power of is
suing f3 or more of paper for every Ct of specie
on hand. That character of TIE Bank was essentially
changed at the last renewal of its charter 1t is now
no longer a " furnisher of currency" Its powers
are cut down simply TO the exchange of FL
note for a sovereign, sovereign for f note,
according to the demand of the public The quanti-
ty of money brought into the country or furnished
by ats trade, can in no way now be multiplied by
Bank influence. They have no longer any control
over the volume of the currency, but have only like
all other dealers to operate with that furnished by
commerce. That is the desiderdtum that is TO be
aimed at by the Independent Treasury of the federal
government as projected by Mr.. Walker, in connec-
ton with mint in New York. The commerce of
the country must sur,y its currency, the mint give
it proper form for circulation and the Treasury be-
the active agent for IFS distribution among the
people, Notwithstanding that the government will
quire specie for Its dues and will 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 in specie and
the depostes of specie in the Banks consequently be
larger than now and then specie depostes be always
than ample to meet the checks of importers for
the payment of duties. This in wise affect
the circulation of the City Banks which seldom ex-
ceeds dollar for dollar but it will most eiiectualy trip
up the bubble Banks of the West more particularly
the brood of Ohio wild-cats.-N Y. NeicS