Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1858-11-27
The Amended Currency.

ing question, with view to suggest such alter
atlOns Of the laws OF the State as shall S.
cure more uniformity of action and render
the currency, net only Of our own State Tut
other States, subject to none Of the severe
contraetions that have hitherto taken place.
This is change which all business men will
agree is most desirable 10 the community.
The gentlemen tsome twenty-five or thirty
in number who have conferred together ON
this subject, have seen tit to delegate to
committee the preparation OF "a Report on
the Currency;" which Report we learn will
be published this week for gratuitOus distrl-
| button among those Who take an Interest IN
The subject. We have been favored with
proof sheet Of this pamphlet, signed by
Messrs. Geo. Opdyke Wilson q. Hunt, Jas.
Glliatiu and John EadIe. The general con-
clusious to which the Committee have arrived
are as follow:
Fret That the banking laws Of this State
be so amended that 10 bank shall hereafter
be permitted to extend its loans. discounts,
and ether Investments, beyond an amount
equal to the sum vi its capita hall its capl-
tai, and the specie IN its vaults; nor shall 1t
be Permitted to let It's specie al any time fail
below 20 per cent. of its Immediate liablli-
ties, exclusive of its circulating notes. Inc
banks hereafter II be organized under the
banking laws of the State, also TO be required,
before commencing business, to have their
entire capital paid up 10 full specie, and
that all banks be hereafter prohibited from
making loans, either directly or indirectly,
on their own stock.
Second That all laws against usury be re-
pesed
Third. That the circulation of all bank
notes of less denomination than ten dollars
be suppressed, by means of a tax or stamp
duty to be levied by Congress.
Fourth. That the Government Of the Uai-
ted States, through its dIfforen: treasures,
receive gold from the people, and issue re-
ceipts or certificates of deposit therefor, in
sums of not less than 500.
The Committee conclude:
"rhese four measures constitute the sys-
tenn of reform your Committee venture to re-.
commend. They have pointed out the oeces-
sity and proprieiy Of each under the proper
heads. They may mere add their belief tha:
the adoption Of the entire series would be
| likely to 80 elevate the character Of our cur
rency as to make il the best extant, instead
of being about the worst, as II now urqnes-
tionaby is. 1t would render our currency
better than that of Great Britain, because
the restraints which she has placed upon her
banks do not embrace deposits. Sir Robert
Psei's bill has made this fatal omission, and
it is thus rendered of little practical value.
Its Limitation of the movements of the Back
of England applies only to the circulation,
requiring all that is issued in excess OF Ga
900, 600 to represent an equal amount oil cola
in it's vaults; but leaving it aud all other
banks in the United Kingdom including; the
private bankers and discount houses, free TO
transmute debt into currency, by loanlns
their credit, to whatever extent their inclna-
ton and ability may dictate. They had
abused this privilege, prior to the crisis Of:
last year. to a much greater ex;entthan even
our own banks. Ia other words, their cu;.
reucy wos much mere inflated than ours
This assertion will surprise many, but 1t Is,
nevertheless, strictly true. Aud had not the
government wisely come forward and author
lied the Bank to violate its charter, by in
creasing its issues regardless Of the specie In
it's vaults, and thus breaking the force Of the
reaction and panic before they reached their
eliminating poiut is they were permitted to
do here, the whole debtor class in that king.
dom would have been involved in hopeless
bankruptcy. As it was they suffered more
than we did There were, perhaps, less OF
suspended debts there, but vastly more Of ac-
tual insolvency.
The banking system Of France is liable
to the same objection. Its discounts are not
subject to any legal restraints whatever, nor
is its circulation az we'll guarded as that of
the Bank Of England. But the commerce of
that nation was less seriously affected by the
crisis than was that OF Great Britain or the
United States, because it ia prosecuted on
the principle of cash pay ments OF very short
credits.
"But to return to the measures OF reform
hero recommended Why should they not
he adopted ard moulded into laws2 Sound
views of public policy, and Que regard for
the general welfare, alike demand II. From
what quarter may NO anticipate Objection!
Surely not from any well managed bank, Tor
the proposed measures will not lessen It's
average profits, while they will add greatly
to the security Of its business. And If we'll
grounded objections cannot como from this
quarter, they cannot GENE at all, Tor their
adoption would greatly benefit every other
interest"
OF the distress arising from the fluctuations
in the volume Of the currency, the Commit
tee properly say:
"These evils are Il 4 GIost serious charao-
ter, it will be c0nfe- sed; and they are now
universally rec gDizei as resulting from
those fluctuations in the currency that are
occasioned by the want OF proper restraint
imposed by law on the loans AMI discounts
OF backs. They are allowed TO ex;erd thor
lines Cf discounts without limit, and thus
exercise a more dangerous and despite pow
err over the property of the community than
was ever exercised by the most absolute gov
errment By acourse Of reckless expansion.
follow ed By forced contraction, they Ciicn
ruin the most prodent OF merchants, trades
men and mechanics, stripping them OF the
property accumulated through years OF hcr.
est Industry. irugality and care. Nor does
our banking system afford ang adequate cou-
pensa,Ion FIR these evils. Ga the contrary,
i, il H!cts other injuries that base not yet
been adverted to. 1t causes our commercial
intercourse with other natons to be lmpoVer.
isbing rather than eprichiog; tor It makes
money plenty and cheap here, aud thereby
enhances prices ut home, while 1t does DO'
affect them abroad. tins compelling u to buy
foreign goods dear, and sell cur exports
cheap. Assin; bank SUSPENSIONS IN some
instances turn out to be most disastrous fail
ures, and in all such cases the Community,