The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1858-02-25

IMAM 70 know that they can pay their way with the
notes, hence redemption in specie is an illusion
ihese h9id to be the main principles TO be OBJ
served and shall now add a few general remarks.
Ftrst-As to the security of Stocks In such a
system notes redeemed aggravate the pressure in
times OF distrust. In the crisis in October between
three and four million dollars of the currency of
TINS State were withdrawn from circulation and
des troyed.
Second.-Under "A second system of national or
State currency, such as have indicated Banking
would be confined to receiving deposits and dis
counting and exchange business. The secure pa
per money of each State would greatly facilitate
exchanges and prove great economy in business
Thtrd.-Excess of circulation over the legal
Amount would be in gold but it should be closely
watched, there is as much danger in too limited
circulation as in over issue.
As to dealing in gold for foreign payments, the
time has come when it would be a great economy
and safeguard in business if the leading nations
would adopt an international coin of say one ounce
weight and upwards, guaranteed of the same quail
ty, whether coined in the United States, England
France any other nation adopting it. The nres
ent system by which the coins of each nation must
be returned to it melted down abroad involves
serious loss. Uniting with such an arrangement a
plan of depositing gold upon certificates, great say
ing and additional security would be attained in
the working of Foreign Exchanges The late crisis
was in no small degree aggravated by the dstrust
OF private exchange, leading to remittances of gold
from England to America, and at the same time
from America to England.
In my recent visit to the Western States the pos
ton of matters witnessed, has confirmed all nv pre-
vlous impressions as to the true principles ofcurrency
A more deplorable spectacle than these Western |
States present at this moment, could not be i'm
agined. There is everything man wants for pros
perity but sound credit system. Food is supera-
bundant, the soil fertile as to insure the highest
reward for labor plenty of work to be done, and
hands to do much oft, but all is at stand for want
of the proper machinery to set it in operation As
an illustration of how erroneous the views of the
principles of currency are, will mention the pro-
cess by which the State of Wisconsin has got verv
meagre circulation. In the desire for a sound svs
tenn, the banking law of New York was adopted.
Wisconsin has nodebt, (ony $1,000 consequently
no stocks of her own; she therefore, through her
banks in effect lends the State Missouri 900
as foundation for her circulation.
Can this reality be equaled in any imagined abb
ssurdity? need not follow up the entire folly of
her system, suffice it to say magnificent country
Is now Frustrated by it, and the progress it is nat
uraliy capable ofcannot be attaneds so long as the
law is as it is.
have written this hurriedly, but dare say you
Will think have embraced enough for one occa.
sion, and shall be happy to consider carefully any
remarks You may make upon my views.
\ ours very truly.