Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1857-11-16
For the Spy.
Rhode Island Money,

MeSsrs. Editors The absorbing topic of con-
versation at this time, with business men is,
"Rhode Island money" What shall we do with
it is a question full of perplexihes. l propose,
Mr.. Editor, with your permission, briefly to give
my views of the matter, and let them go for
what they are worth.
From the action of the meeting of traders,
held at the Bay State House on Friday evening,
I entirely dissent. If it was their intention to
retain the Rhode Island money in circulation
here, and divide the loss between the purchaser
and the seller, then their action was proper. But
if their action intended to drive out Of cir
culation here money not current here or else.
where, and enable our own banks to give us in
its place par currency, then their action will
avail nothing for that object On the contrary
so long as it costs in Providence, Boston, and
elsewhere, IL per cent. to convert that curren-
cy into current funds, then the traders of Wor-
cester, in publishing that they would receive it
at per cent, did nothing more or less than Of
fer premium of IL per cent. for macaare7,t
money, thereby making that nducement to throw
uncurrent money into this market, to suppant
the par currency.
But we are frequently met with this objection:
'tlf we drive out Rhode Island we shall have no
currency" Those making that objection do not
look at the practical operation Of the matter and
will endeavor to answer that objection and at
the same time the oft-repeated question: Why
do not our banks discount, and furnish us a ciEss
culatiOn :" The answer is obvious. The issue
of our banks is par currency, and is used to pay
bills in Boston and elsewhere, thereby finding
its way Immediately back into the banks, through
the Suffolk Bank, and back again for redemp.
ton While the issues of the Rhode Islands are
not current funds, they cannot be used in the
payment Of notes, drafts, or bills, and are thereby
left in the hands of the people, with no means Of
its redemption either in gold or in other par cur
rency.
Our banks are in the condition of man who
lends his note on demand one day, and is called
upon and obliged to pay the note the next day
while his neghbor is so situated that he can lend
his notes to any amount on demand, and the
community will take them freely, when they
know they cannot get them paid for an in
definite time, if ever. The first will, of course,
be obliged to discontinue lending his notes.
whilesthe other can put out all the notes he can
find fools enough TO take, and be perfectly easy
about the payment. In short, we must drive this
rreleemable, uncurrent, Rhode Island currency
out of the market, before our own curreny
banks can discount with any safety to them
selves.
But another objection is made, and was proba-
bly, the controlling one with the committee of
the meeting of Friday evening last, and that is,
the people have a large amount of this money in
their pockets, and it would be hard to oblge them
TO sacrlnce so much upon II. But, ask, Will
they ever have less and are we for months to
come, to be continually losing five per cent, on
all we earn, and have this uncurrent money, and
nothing else, in circulation, keep our own banks
all the time from discounting a good currency,
and driving our business men into Rhode Island
for discounts of uncurrent money to pay their
help at par, for them to lose the five per cent
This whole operation is an absurd one, and the
quicker the business men and people of Worces-
ter learn their own interest and stop paying trb-
ute to Rhode Island, and getting uncurrent
money only in return, and resolve to take only
good par currency uncurrent money for what
tits worth, and no more ; l say, the quicker we
do this the sooner the good banks will begin to
discount and the worthless ones will be closed,
good money will be plenty again, and business
revived.
Continue in the present course, and good cur
rency will be entirely driven out of the market,
and in its place shall have the worthless issues
of banks aoho a0W GIloW no check to be put agpon
their unlimited issues Of promises to pay aohen
there is no possible aoay of naakiug them to pay,
either in gold or current funds. Our community
will continually grow poorer from the depreciation
of this currency, which ultimately will be found
to be worth nothing. s.v.s.