New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1851-04-28

fed that the stability Of such currency reo,i,..
3 determins,e and iDaexible specie basis. z
sc;y VIVA. it shall be, we do not pretend 70 a..
We have indicated what we consider ne,, -.
true mark. With one dollar OF specie in ~.
vaults Of all our Banks to every three Of clrc,,
ton, we believe they would be ready 20 ma,
any ordinary Revision. Bat situated a, ma.
CT them nov are ia this State and in w.
England, though they may be safe enough ia thai.
ordinary operations, they are in no condition =,
all TO Withstand a financial storm.
"The srransenen t would operate prsiaS;..r.
nowhere except among the money changer, ~,
n AXE their profits out of the existing star. !,
things The Banks would still furnish ali ,A.,.
auired exchange on the commercial center, A.,
as now. make money out Of it. But thew ea.ll
not as they ought not, use their bills Of circu,.
tion for bills Of exchange. Their reserve, Of col,
would be kept solely for the basi. Of the circ,l,.
ton, and not, as row, for mere show Of .uoao,
10 their bills Of exchange, which need no such ,.a.
port aid thus the specie OF the Country B.pk,
which low lies as dead weight at homo Will,
they systematically redeem their issues ,v,v
would be made active and constitute a vital ala
ment in their operations.
That il would be no hardship at al 70, Il.
New.England Banks TO keep one dollar Ia pr
Gle for every three In circulation, instead 9u
now, keeping NOT one in ten, 10 manifest iron d,
snount of available fsnds which the Bsnss that
redeem in Boston are compelled to keep there 70
redeem their issues. We have not at hand any
other returns bu, these of the State of Maine. bu.
they are just 40 good tor our purpose, by way q
example, az more. These show that tue fands
held by the Banks Of Maine. 10 Boston and At
home for the redemption Of their notes, Orsm
res of years, acreage Orer ttty per cent. oftlar
circulation These funds could be converted into
specie without al effort Indeed they are reck
oned and counted on as specie funds
But the chief advantage to iow from the pro.
posed reform will result from an augmentation q
the circulation The bills of the Country Banks
will remsin in the channels Of circulation whsa
they cease to fulfil the functions Of exchange
the commercial center. Nominay the circulr
toa of New England is not now deficient. Bat
when we consider that it 10 al redeemed eoeryfse
,rects in Boston, We see at once that vast pro
portion of what purports to be currency Is really
nothing but exchange, in the shape OF packages
of bank notes on the wing from banks and traders
in the country to banks and bankers in Boston,
We have no data by which TO form an accurate
estimate of what the actual money circulation OF
New England 10, but under the Suffolk system
may be doubted n il is any greater than II woude
II Il were nothing bat gold and silver. bus WIN
this system of City redemption overthro~n, and
a solid specie bass aud home redemption su0sn'
tuted. it 10 inevitable that the currency over that
district Of country, in which the Suffolk system
operates, would he greatly ENLARGED and chat this
enlargement would be very senslbly felt In siinu-
lating every dormant resource, and promoting the
growth OF every branch of industry therein "
Now we are ready to agree with our
friend that there are evils connected with
the system he so ably decries, but we are
by no means convinced that his remedy
would essentially improve the matter
The trouble is more radical than his dag
nosis recognizes. He thinks that bank
notes ought not To serve as bills OF e.
change. That means, when reduced out
of technical into ordinary language, hst
no paper currency should possess uni
form value at different places. The msr-
chant at Burlington should not be able to
remit TO Boston the notes of his own bank,
and the merchant at Boston should pays
shave on the notes from distance which
he takes in the course of his business We
must say this is not our opinion. We hold
it to be essential to good currency thatt
should be of the Same value at all places
That is why the old United States Bank
furnished the best currency we ever had
its notes were at par all over the Union
Bills of exchange may DO preferable Tor
greater security in RENTING, as il they are
lost the finder cannot dispose OF them Is
easily as he could of bank notes, but II the
latter can be used equally well tor the
same purpose, minus tho greater danger
from loss-why so much the better. Inc
people are better accommodated by II,
which is the main thing. That 50 mucn
of the currency of New England is used
for remittances to Boston only proves the
great amount Of the business between the
States and tho capital. II those remit
tances were not made ia this form Trey
must be in another, and the only difference
would be that tho banks would make .
profit on selling exchange which they no'
have to get along without. And yet W.
do not understand that they lose monef
If there are not enough of them to furnia
circulation, it is pity, and moro ough''
be made; bat none should be made
issue notes for distant circulation and h
the special purpose Of encouraging the oa'
siness of shaving uncurrent money. nor
do we admit the reasoning Of our friend 90
the snecie basis 10 be altOgether valid