New Orleans daily crescent. [volume] ([New Orleans, La.]) 1851-1866, 1853-02-16
For the Crescent.
Free Banking No. 8.


legislation to interfere with the internal regulations of
Bank yet it was duty to guard and protect the
Currency that 1t should at all times remain fixed
values and that it essential to the main
teuance this character that the Currency should rest
upon securities which representatives of actual
capital and that consequently readily convertible
into specie at fixed and known While convert
by into specie is the essential requisite Of sound
rencyuniformity of value is Of ordinary import to
enable it properly to perform its functions as an auxiliary
of trade As Currency is but the exchaugabe
tive OF the values OF country and these values
only exchanged to extent at the points where the
resulting balances of trade asceraned it evident
that Currency to be uniform must adapt itself in its
convertible quality to the general laws Of trade Cur
repcy may rest upon sound basis and may be readily
into specie when presented at the point Of its
emission yet if that point is not the the one at
which the resulting balances of trade adjusted the
Currency must be at discount proportion to the
pense time and risk of transporting the specie from the
place of the emission of the Currency the commercial
of the country The channels of trade as fixed
as those channels which hand of nature has marked
for the flow Of The receives aud enguphs the
surplus which flows through these natural channels
and the consumption of the world is the great ocean
which receives aud engufs the surplus productions of
country The channels through which this surplus how
and mouths through which it ia discharged
marked in the instance in the other The produc-
ton of every country and every section Of country be-
yond what is required for its own consumption must
necessarily find its to point where it is required
for the wants Of man it worthless produc-
ton of industry 1t may find several resting places and
may undergo several mutations but its destiny as fixed
as the laws of gravity,
The white mist rests upon the mountain topit trces
down the green mossit bubbles in the clear sprng-it
in the murmuring rvulet aud ows in the mighty
river but still its destiny is to the The laws Of
trade equally inevitable and all its appliances must
conform these ruling principles they not suitable
the ends of their creation Currency Therefore that
does not conform to these general laws Of trade though it
may convertible into specie yet from the labor risk
and expense of its conversion, will not form uniform
standard of values The productive industry of the differ
sections of the country when judgedo by this Cur
rency will not have the Of values attached
it, Care then should be taken in the construction of
Currency that not only its converbty should be pre-
served but that uniformity of value should be given to
So long confidence remains mistaken in the
Currency it is but seldom that is converted
into specie at those points where the resulting
of trade render it necessary that portion of the
exchangeable values Of country should be parted with
qudate its indebtedness 1t is therefore essential to
this uniformity that Currency should not only be
verble the place of its emission but that it shoulda
be convertible at the point of the adjustments of the
sulting balances Of trade Currency thus accommo-
dated the wants Of commerce would be like the life
blood to the human system-each respiration and each
pusaton of the heart would be but receiving giving
back that nourishment which its life and prosperity
depended
So long as the heart was kept healthy and strong the
channels of would be the veins and arteries
through which vitality would be impaired to every por
ton of the State II may be said that such provision
would operate oppressively Banks situated remote
points from the commercial centre But if be true that
the trade and Currency Of country governed by the
same laws, such provision if oppressive at all would
operate with surety the Banks at the commercial
centre For the Currency Of the Banks situated
points being convertible at two points would be main
tanned much longer trasu and thus constitute the
principal circulating medium The first tendency of Cur
rency divergs from the place of its emission
caught by the small rvules of trade and through them
gradually carried to the mighty stream along which the
trade of the country is waited to its point of exchange
having thus performed its functions it is either held in
rest addition to the capital Of the country or it Is
converted into specie to be used for nqudatug the u
debtedness of the country But If this Currency only
payable at the place Of its emission afer having extended
itself the limits the circle of the that place it
will by the inevitable Of commerce. be forced back
upon the Bank for redemption-and the exchangeabe
values of the Bank will be called upon precisely proper
ton to the resulting balances Of trade between the
try of which the centre and the trade Of the
whole country Immediately its circulation passes its own
centre it depreciatng and its depreciation is
in the inverse ratio Of the distance from the place Of its
emission 1t therefore loses its character of currency
becomes article of traffic and is returned back upon
the Bank tiff is redeemed the centre Of the com
of the country well the point its ennis
sion 1t falls into the various channels of trade performing
here and there its functions Of values acee
rated retarded in its flow by the commerce Of the
Try until it falls into the great centre Of trade Accom-
nodatipg itself to the trade of the country 1t main
aimed its character of Currency aud when il the
rcle the trade of the place of its emission it fails not
the hands of brokers' but still gides along the chan
els of trade governed and controlled by the laws
fcommeree Currency thus redeemahlo must be uni
of values for the whole country dependent
lpon this common centre Of trade.
If in the ordinary transactions Of trade 1t is important
hat the Currency should be redeemabe the commercial
centre Of the country how essential is it that it should be
lone in commercial crisis crisis spends its force
upon that point where the resulting balances trade are
adjusted and from it it sends its paralzing influence
through all the channels of trade If the capital the
urplus exchangeabe values of country of that point
not sufficient to meet this crisis prostration must fol-
ow. When this has taken place it extends its influence
over the country and its institutions taken detail one
~ one, must submit to the fate.
But if the Currency is organized that the whole capt
al of the country acts and by the laws Of trade
whenever commercial crises shall press upon the centre
along the veins and arteries OF this Currency will be felt
electric shock which will bring the accumulated CAPT
al Of the country to resist aud mitigate the pressure This
springs either from diminished production or pro-
gal consumption and being felt the whole country
oud produce contraction the part of the various
1sttutons in proportion to their issues aud as they
oud have to part with of their changeable values
the redemption of their issues these several values
altered together would be sufficient lquidate the re-
ilting balances of trade without any serious detrment
any section. Without such an organization when a
ressure comes falling first upon the commercial centre
requires contraction the part of the institutions
seated there this contraction produces vacuum in the
currency which is filled by the expansion Of those inst
utions where locality has prevented them from feeling as
ct the pressure secondary deprecated Currency ia
hus forced upon the community And when this pres
ure shall have reached those institutions their yery m
ansion will have rendered them less able to resist lis
oree
BY sudden and rapid eontrsctions efforts are made to
ard of the danger which often results in the pros
alton of all the interest dependent on the institutions
nd in the bankruptcy of the institutions themselves
or the maintenance then, OF sound Currency it is
'aree less essential that it should upon convertible
sss than that it should possess a uniform value Let
sislaton secure to Currency ready conyeft{blity
ITO specie, aud give to 1t uniform value and IL " in have
enorned its duty The management of that Currency il
thing Of private enterprise with which legislation has
othing to do-saye that when mprovident management
affected the soundness Of this Currency to apply h
,curities IN wi raeta IN {fe |